Shownotes
The Start of Hurley 45
Over the years Bob has acquired a unique skillset that is the strength behind Hurley 45. Right out of high school, Bob worked at Sears. He stayed with them for 15 years first as a district buyer and later in the regional buying office. There he learned and perfected his knowledge of sales and sales management. Next he worked for a sales rep agency, Randy Putnam & Associates. Bob took all that he learned from Sears on the retail side and applied it to the manufacturer side showing them how to sell their products to the retailers. In 2010, Bob stepped out on his own to form Hurley 45. Today he helps companies around the world identify their brand and pursue their goal of getting products placed in the various large retailer chains and box stores.Business Building Insights
- We don’t sell products. We sell who we are.
- Retailers are looking for a minimum of 55% margin up to 75-78% margin.
- Large store placement is a numbers game. You will sell large quantities of your product but your margin will be smaller. It’s a mindset switch and a numbers play. “You put dollars in the bank not percentages.”
- Consumer Product Safety Labels should not have misleading information and you must be able to back up all claims.
- What buyers want to know: your social media impact and your supply chain capabilities.
- Selling your product into small to mid size chains is the place to start and can lead you to the larger chains.
Resources Mentioned
AFCI – Association for Creative IndustriesContact Links
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Thanks! Sue
Transcripts
You're listening to gift biz unwrapped episode 162.
Speaker:We sell something to someone every day.
Speaker:Even if it's just ourselves Attention,
Speaker:gifters bakers,
Speaker:crafters, and makers pursuing your dream can be fun.
Speaker:Whether you have an established business or looking to start one.
Speaker:Now you are in the right place.
Speaker:This is gift to biz unwrapped,
Speaker:helping you turn your skill into a flourishing business.
Speaker:Join us for an episode,
Speaker:packed full of invaluable guidance,
Speaker:resources, and the support you need to grow.
Speaker:Your gift biz.
Speaker:Here is your host gift biz gal,
Speaker:Sue moon Heights.
Speaker:Hi there,
Speaker:Sue. And guess what?
Speaker:It is two weeks away from the publishing date of my
Speaker:book. I am so excited to present to you maker,
Speaker:to master in just a couple of weeks.
Speaker:And if you haven't taken advantage of this opportunity already,
Speaker:I want to remind you all that you have a chance
Speaker:to get my book for free,
Speaker:no gimmicks,
Speaker:no nothing truly for free.
Speaker:If you're interested in being on the list to find out
Speaker:how you can do that,
Speaker:go over to gift biz,
Speaker:unwrapped.com forward slash free book.
Speaker:Now let's get onto the show today.
Speaker:I have the pleasure of introducing you to Bob Hurley of
Speaker:Hurley. 45 Bob's company helps businesses grow their sales through major
Speaker:retailers. Do you have a vision of seeing your product on
Speaker:the shelves in one of the big brand stores,
Speaker:maybe even a box store,
Speaker:Bob finds that many people want to jump in without truly
Speaker:understanding the intricacies that they will encounter by nature of their
Speaker:size large organizations that you might want to be in.
Speaker:Have a lot of requirements,
Speaker:financial logistics,
Speaker:testing, vendor contracts,
Speaker:pricing, supply chain management,
Speaker:private label initiatives.
Speaker:Replenishment are just a few.
Speaker:Oh my gosh.
Speaker:I'm already exhausted reading that list.
Speaker:It's important to have that dream of selling big,
Speaker:but not without the adequate preparation Bob advises that you should
Speaker:have a strategic plan for growth,
Speaker:not an impulsive plan for growth.
Speaker:I know we are all going to learn so much in
Speaker:talking with Bob.
Speaker:Thank you so much for being here today.
Speaker:Thank you.
Speaker:So I'm excited about this.
Speaker:So I do kind of a crazy intro,
Speaker:as you know,
Speaker:for us to get to know you in a little bit
Speaker:of a different way.
Speaker:I'd like you to describe yourself through a motivational candle.
Speaker:So if you were to tell me a color and a
Speaker:quote that would describe you as a motivational candle,
Speaker:what would it look like?
Speaker:It's so funny that this is your first question,
Speaker:because just an hour and a half ago,
Speaker:I was consulting with a candle company in Dallas,
Speaker:no way we were talking fragrances and vessels and all sorts
Speaker:of stuff.
Speaker:It was really interesting.
Speaker:Oh My gosh,
Speaker:that's so funny.
Speaker:But I think,
Speaker:and I've got this quote hanging in my bathroom wall and
Speaker:it's by Shakespeare and it says to thine own self be
Speaker:true. And I think that that is such a personal quote
Speaker:that reflects to the world of who you are.
Speaker:And if you can live it and portray it through your
Speaker:actions and deeds,
Speaker:then you truly are your own motivational candle.
Speaker:I would see this as kind of maybe an ivory type
Speaker:candle with some sort of sculpting to it and a rich,
Speaker:deep fragrance like mahogany or Sage wood or smoke,
Speaker:or just something really earthy and nothing pretentious.
Speaker:That would be a candle I would want there,
Speaker:Bob. That's good.
Speaker:I like that.
Speaker:And your quote to thine own self be true.
Speaker:I think a lot of people these days are getting themselves
Speaker:all confused because of what we're seeing on social media,
Speaker:everyone's presenting that their life and their business is all perfect
Speaker:and they've got everything together,
Speaker:right? And when you dig down,
Speaker:you see that that's so far from the truth.
Speaker:So just to be genuine and be like you said to
Speaker:thine own self,
Speaker:be true,
Speaker:gives you some sanity that not everyone's perfect.
Speaker:It's just be truthful,
Speaker:be who you are Exactly.
Speaker:And enjoyed the fun of the ups and downs and twists
Speaker:and turns that life takes you.
Speaker:Yeah. It can be hard when you're in the middle of
Speaker:it. I think it's us perspective though.
Speaker:Exactly. Well,
Speaker:you and I have known each other.
Speaker:I don't know.
Speaker:When did we meet five years ago?
Speaker:Something like that,
Speaker:maybe more.
Speaker:I really don't even remember,
Speaker:but I don't know that I know your whole backstory.
Speaker:So bring me and the guests up to speed and tell
Speaker:me also something,
Speaker:I don't know something.
Speaker:Well, the fun part is I just took a beekeeping school
Speaker:class two weeks ago in central Texas.
Speaker:So I'm wanting to learn how to start my own beehives.
Speaker:I have no idea why,
Speaker:but it just sounds like it's good for the planet.
Speaker:Good for everybody involved.
Speaker:And it's almost relaxing.
Speaker:It's that one thing where you can unplug and just do,
Speaker:Do you have one of those suits yet that I see
Speaker:on TV?
Speaker:Not yet.
Speaker:Although I have suited up and I did not get stung,
Speaker:so I'm batting a hundred right now.
Speaker:This is going to be a conversation.
Speaker:We are going to continue.
Speaker:I got to see how this goes.
Speaker:Oh my gosh.
Speaker:All right.
Speaker:So let's talk about your business too.
Speaker:How did all this come about?
Speaker:Hurley 45?
Speaker:I started right out of high school in retail as most
Speaker:everyone does I with Sears back in the early eighties.
Speaker:And that was back when Sears had the slogan satisfaction guaranteed
Speaker:or your money back.
Speaker:And they had tremendous wonderful people working there.
Speaker:Customer service was job.
Speaker:One, one of my favorite quotes that was hanging in the
Speaker:buying office that I worked in was at Sears.
Speaker:We sell something to someone every day,
Speaker:even if it's just ourselves.
Speaker:And I've carried that with me for 30 plus years now.
Speaker:And we're all in sales.
Speaker:Sometimes we sell products.
Speaker:Sometimes we just sell who we are.
Speaker:And I think that kind of goes back to my quote,
Speaker:thine own self,
Speaker:be true at Sears.
Speaker:I started as a district buyer or replenisher and then as
Speaker:soon as started to organize and push everything to Chicago,
Speaker:they closed down the district offices.
Speaker:So I went to the regional buying office and bought products
Speaker:for the stores,
Speaker:tires, candy,
Speaker:sporting goods.
Speaker:It was such a great experience.
Speaker:I stayed with Sears through the late nineties.
Speaker:There are 15 plus years.
Speaker:Sears had really taken some changes and some drastic turns trying
Speaker:to stay relevant.
Speaker:And there were no longer the company that I identified with.
Speaker:So I left Sears.
Speaker:I went to work for a temp agency and the very
Speaker:first assignment they sent me was to work for a sales
Speaker:rep agency here in the Dallas Fort worth area.
Speaker:And Randy Putnam in associates was an amazing experience for me.
Speaker:I take everything that I had learned from Sears on the
Speaker:retail side and applied it to manufacturers on how to sell
Speaker:their product to the retailers.
Speaker:And that was such an incredible building for me,
Speaker:that I was with Randy and his team for 15 years.
Speaker:And in 2010,
Speaker:I stepped out on my own and started working with companies
Speaker:in Asia.
Speaker:I worked with companies in China and Mexico and worked with
Speaker:domestic manufacturers and designers.
Speaker:And now I'm working with companies out of Europe.
Speaker:So I'm really helping companies throughout the world,
Speaker:try to identify their brand,
Speaker:their strengths,
Speaker:and pursue their goals of getting product placed in the various
Speaker:retailers. And so are you traveling internationally a lot now too?
Speaker:A little bit.
Speaker:Yes. But you can do so much with Skype that we're
Speaker:on right now while we're recording,
Speaker:you can do so much.
Speaker:Exactly. Yes.
Speaker:Technology has made this industry so much more efficient Completely because
Speaker:you don't have to spend a day or two getting somewhere
Speaker:to see somebody every time you want to talk with them
Speaker:and You no longer have to fax orders.
Speaker:Oh my gosh.
Speaker:The fax.
Speaker:Oh my gosh.
Speaker:Crazy. Well,
Speaker:I love the fact that you've worked both sides because you
Speaker:really can understand and be sympathetic from a retail end because
Speaker:also some of our listeners have shops.
Speaker:They have gift shops and they're looking to place products.
Speaker:So they're buying.
Speaker:But the real conversation that I want to do today is
Speaker:people who are making something who are interested in getting it
Speaker:into a shop,
Speaker:you know,
Speaker:a larger store.
Speaker:Some of them might have their products shown in a couple
Speaker:of local boutique type shops,
Speaker:but not some of these bigger stores.
Speaker:And I do know from a little bit of experience,
Speaker:but mostly from talking to you and some of my past
Speaker:experience, it's a whole different ball game.
Speaker:So I think understanding the true picture of what that's all
Speaker:about, not everything but overall and how it's so different,
Speaker:I think will be really beneficial and give biz listeners.
Speaker:I want you to think about this as we're talking,
Speaker:because it might readjust your vision.
Speaker:If this is something that you're thinking about,
Speaker:you may then say,
Speaker:yes, this is exactly the way I want to go.
Speaker:Or you might say,
Speaker:you know what?
Speaker:Hands-off not necessarily for me.
Speaker:I might want to put it on the side,
Speaker:investigate it later.
Speaker:Or it's not really what I want to do.
Speaker:So that's the kind of resolution I want to get to
Speaker:with all of this conversation,
Speaker:Bob. Yes.
Speaker:Let's start with just some overall,
Speaker:if someone has a product and they're considering putting it into
Speaker:some of these larger stores,
Speaker:what's some of the thought process that they should be going
Speaker:through. Well,
Speaker:the first thing you need to consider is how many stores
Speaker:does chain a or retailer a have suppose they have 150
Speaker:200 stores and you are manufacturing candle for lack of other
Speaker:product. And you offer this candle and three different jars and
Speaker:four different colors with three different fragrances in order to supply
Speaker:200 stores,
Speaker:all of a sudden you're having to be able to manufacture
Speaker:within a reasonable amount of time.
Speaker:It could be 2000 pieces that needs to be manufactured and
Speaker:ship within 30,
Speaker:60, 90 days.
Speaker:Okay. This is a good point.
Speaker:First of all,
Speaker:if you're still making your product yourself without going through a
Speaker:manufacturer, this is probably not a place where you can play
Speaker:yet. Right?
Speaker:Right. You need a high value manufacturer.
Speaker:Yes. When you're talking,
Speaker:you're using your example of 200 stores,
Speaker:do you have to approach a company with the feeling that
Speaker:you're going to get in every single store?
Speaker:Or do you have the option of doing something more in
Speaker:those stores on a regional basis?
Speaker:For example,
Speaker:It depends on the retailer and type of retailer.
Speaker:Most stores of that size have what they call a standard
Speaker:basic assortment or they're buying seasonally that goes to all stores.
Speaker:Only the real large chains can distribute by store location or
Speaker:geographic location.
Speaker:So in the smaller,
Speaker:the mid-sized retailers,
Speaker:the a hundred to 300 store chains,
Speaker:you're probably selling to the entire chain.
Speaker:What I'm hearing you saying is it's a distribution issue because
Speaker:a lot of these larger retailers have distribution facilities where you're
Speaker:shipping the product to a certain facility,
Speaker:and then they're sending out to the stores.
Speaker:Exactly. They're just,
Speaker:cross-docking it and shipping it direct to store.
Speaker:All right.
Speaker:So first point is based on the number of stores and
Speaker:then the number of skews you have.
Speaker:And it doesn't mean that are retailers going to accept all
Speaker:your skews either,
Speaker:right? They may only take one or two,
Speaker:especially when they're testing and seeing if they're interested.
Speaker:Exactly. Yes.
Speaker:Okay. So number of stores is something to consider.
Speaker:What else?
Speaker:Well, the financial part of it.
Speaker:So again,
Speaker:if retailer a buys,
Speaker:four of your candles per store,
Speaker:and you have to build a thousand candles,
Speaker:all of a sudden,
Speaker:you've got to have that money to buy the raw goods,
Speaker:have the labor to produce it.
Speaker:And you've got to pay those people by the hour,
Speaker:then you ship it.
Speaker:And the retailer typically does not pay until 30 or 60
Speaker:days. What they call Rogg,
Speaker:which is receipt of goods.
Speaker:So if you ship it on August 1st and the receive
Speaker:it August 15th,
Speaker:they don't pay you typically till 30 to 60 days after
Speaker:August 15th.
Speaker:And even then the time of processing that check after September
Speaker:15th, it could be another 10 to 15 working days.
Speaker:So you're carrying the financial burden for a good 180 days
Speaker:before you get paid.
Speaker:Yeah. For quite a while,
Speaker:for sure.
Speaker:You're making it and because they can't buy it unless it's
Speaker:already made and I'm managing Bob also,
Speaker:you have to show that you have enough in stock.
Speaker:If they blow off the shelves,
Speaker:they're going to want to restock it pretty quickly.
Speaker:So you've got to have supply probably over and above what
Speaker:they've even purchased.
Speaker:They don't want to wait for a turnaround Very much so.
Speaker:And most of them one can acquire financing,
Speaker:but you have to get the right financing.
Speaker:So not all your profit is taken up in finance charges.
Speaker:Oh, good point.
Speaker:Yeah. And you have to build that into your costs.
Speaker:I think that a lot of people look at doing this
Speaker:in the first place.
Speaker:Cause they say,
Speaker:Oh my gosh,
Speaker:big volume,
Speaker:big revenue,
Speaker:right. Talk a little bit about pricing of the product and
Speaker:what larger chains are requiring.
Speaker:And from my experience demanding of what the prices should look
Speaker:like, what happens if you're selling a candle,
Speaker:let's say locally for,
Speaker:I don't know,
Speaker:$10 or something like that.
Speaker:And your cost is five.
Speaker:Let's just go with a traditional markup like that.
Speaker:What are these larger stores on average?
Speaker:I mean,
Speaker:everyone's different.
Speaker:I know,
Speaker:but what's a realistic idea of how the numbers would fall.
Speaker:Well, and again,
Speaker:you have to look at the perceived value.
Speaker:The price that the is willing to pay at a boutique
Speaker:is they're willing to pay a little bit higher price than
Speaker:say at a Kohl's or Steinmart or Walmart or Michael's whomever.
Speaker:So like the candle that may sell for $20 at your
Speaker:local hallmark store,
Speaker:the perceived value at a Michael's or somewhere else could be
Speaker:a good 20% less because it is a mass retailer.
Speaker:When you go to Walmart,
Speaker:you expect lower prices,
Speaker:Right? So let's say let's use your 20 example.
Speaker:They would be looking at selling that at what?
Speaker:15, 16,
Speaker:20% think,
Speaker:You know,
Speaker:14 to $16.
Speaker:Okay. So 14 to $16.
Speaker:And then half of that is what they will pay you
Speaker:for it probably No,
Speaker:if you can get a 50% margin out of them,
Speaker:you've got an incredible product.
Speaker:Ooh, what are we looking at here?
Speaker:See you guys,
Speaker:this is the stuff we need to know.
Speaker:A lot of retailers are looking for minimum 55% margin all
Speaker:the way up to,
Speaker:and don't scream.
Speaker:When I say this is 75 to 78% margin.
Speaker:Again, it depends on the product category.
Speaker:When you step into a retailer,
Speaker:nine times out of 10,
Speaker:let's throw Michaels out.
Speaker:For example,
Speaker:an item that sells for 1999,
Speaker:most everybody knows that Michaels has a 40% off coupon.
Speaker:So if that item's not on sale,
Speaker:that consumer's going to use that 40% off coupon and boom,
Speaker:right there,
Speaker:they're paying $12 for it.
Speaker:Right? So if Michael's cost on that item was $10.
Speaker:Then all of a sudden they're only making $2 per item.
Speaker:So their margin expectations is much greater because they have these,
Speaker:the advertising expenses.
Speaker:They're having to put items on sale in order to get
Speaker:the consumer into the stores where your local boutique isn't having
Speaker:to do that.
Speaker:And if they are putting it on sell,
Speaker:they're marking off 20% and they're still making a decent margin,
Speaker:Right? Because again,
Speaker:using this example at a retailer,
Speaker:let's say a candle for $20.
Speaker:You've probably wholesaled it to them for 10.
Speaker:I'm just using just general standard tier.
Speaker:Right? Exactly.
Speaker:And so you're not supplying as much.
Speaker:They're not buying as much or selling as much,
Speaker:but your margin on those could be so much greater than
Speaker:being in these big chain stores.
Speaker:So it's really something to think about.
Speaker:I'll turn that back around then.
Speaker:Bob, why would anybody want to do that?
Speaker:We're going to hear his answer after a brief word from
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Speaker:for more information,
Speaker:It's all about volume.
Speaker:And one of the first lessons that I learned is you
Speaker:put dollars in the bank,
Speaker:not percentages.
Speaker:And if you're selling a million units and you're only making
Speaker:10 cents per unit,
Speaker:that's quite a few dollars that you're putting in the bank.
Speaker:Versus if you're selling a hundred thousand units and making 12,
Speaker:15 cents per unit,
Speaker:The trick is that you're still making that you're not selling
Speaker:your product out to be in a big store,
Speaker:but you're actually losing money and making it right.
Speaker:So it all goes back in that way to production costs.
Speaker:Yes. So that's the big thing to think about.
Speaker:It's huge.
Speaker:Yeah, but don't let that be a discouragement.
Speaker:Let it be your inspiration to work through not to be
Speaker:afraid of everything that we talked about,
Speaker:let this be a learning and not something to intimidate.
Speaker:Right. Learning to understand the situation because I could see some
Speaker:people if they're interested.
Speaker:Okay. Now they understand,
Speaker:I really got to get my price down.
Speaker:I've got to be working with my manufacturers or doing something
Speaker:with materials to get my product costs down in some way,
Speaker:if they want to position themselves to be able to go
Speaker:into the larger stores.
Speaker:Yes. Okay.
Speaker:Talk a little bit.
Speaker:We talked about financial logistical,
Speaker:a little bit pricing.
Speaker:I don't want to get into some of these others too
Speaker:much, but let's talk about testing.
Speaker:If you go in and I've been in some of those
Speaker:buying offices before,
Speaker:tell everybody that that would be an interesting thing to talk
Speaker:through, tell everybody what to expect.
Speaker:So if they have a candle,
Speaker:let's stick with that.
Speaker:One of my favorite products in the whole world,
Speaker:which is why we started the interview that way.
Speaker:And I really like your sandalwood candle.
Speaker:So someone has candles and they've listened to this and they've
Speaker:gotten their production costs down.
Speaker:They aren't making them out of their house anymore.
Speaker:They have somebody who is producing their original candle,
Speaker:scent and form and all of that.
Speaker:So now they're looking at going into,
Speaker:let's go with Michaels.
Speaker:What are the steps that they take?
Speaker:How does it happen from,
Speaker:okay, I have this idea.
Speaker:I've heard this.
Speaker:I think I'm prepared because Bob told me what to do
Speaker:initially, what happens next?
Speaker:Okay. So in respect to testing,
Speaker:everyone can remember 20 years ago when candles would have led
Speaker:wig with cotton fiber around it.
Speaker:And no one wants to burn lead and be exposed to
Speaker:lead fumes and all that.
Speaker:So consumer product safety administration has stepped in California has been
Speaker:so instrumental in protecting the consumer from inadequate product,
Speaker:like on a candle.
Speaker:One thing they test is burn time to make sure that
Speaker:what you say your burn time is,
Speaker:is going to be what the consumer Connect spec.
Speaker:They inspect to make sure that the glass is not going
Speaker:to break while it's being burned.
Speaker:That it is heat appropriate to the flame,
Speaker:the contents of your wax,
Speaker:the quality of your work.
Speaker:There's so many things they've been looking at how it's labeled
Speaker:to make sure that there's no misleading information,
Speaker:whether it's toys or pillowcases or clothing or jewelry,
Speaker:there's always testing for lead and things like that.
Speaker:When you work with a retailer that is in multiple States
Speaker:that has multiple locations,
Speaker:200 plus more locations,
Speaker:their liability for putting in a bad product that can harm
Speaker:someone. It's incredible.
Speaker:Huge. I can only imagine,
Speaker:like, I think of the old Tylenol scares or some of
Speaker:the baby car seat safety issues.
Speaker:There've been because it's not the worst part is if someone
Speaker:gets injured,
Speaker:but then it's the reputation for the whole chain.
Speaker:The whole name.
Speaker:Exactly. Yes.
Speaker:Yeah. So do you go in having all of your documentation,
Speaker:that all everything's been tested,
Speaker:you try and cover that as much as you can before
Speaker:you see them,
Speaker:It's best to be able to qualify what you're claiming on
Speaker:our product is indeed true and not harmful.
Speaker:Okay. So that's what all the testing is about.
Speaker:Yes. Okay.
Speaker:So let's pretend like we're in a buyer's office.
Speaker:Okay. We've got our candles now and we're going to be
Speaker:sitting down and meeting with a buyer.
Speaker:How do those meetings go?
Speaker:It's the very first one.
Speaker:It's all introductory,
Speaker:it's conversational.
Speaker:And a lot of people like to have a very show,
Speaker:their catalog and things like that.
Speaker:It depends upon the buyer,
Speaker:but you definitely want to tell them who you are,
Speaker:how long you've been in business,
Speaker:your vision.
Speaker:One thing that buyers are now asking is what is your
Speaker:social media impact?
Speaker:How are you able to help drive consumers into the stores
Speaker:to help sell your product?
Speaker:That's always one question.
Speaker:So you have to have a Facebook,
Speaker:Instagram, Pinterest,
Speaker:as a statement.
Speaker:And so they're going to want to know the number of
Speaker:followers, even though we all know that that doesn't necessarily mean
Speaker:anything, but they want to know They do.
Speaker:They want to know again about your supply chain?
Speaker:Can you indeed.
Speaker:If I provide you with an initial order and a reorder
Speaker:every 30 days that you can fulfill it,
Speaker:they want to know about your design capabilities.
Speaker:Are you just a one hit wonder,
Speaker:or are you constantly reworking and redesigning your product to stay
Speaker:relevant for the next season?
Speaker:Oh yeah,
Speaker:because I'm,
Speaker:they have a lot of people coming to them and once
Speaker:you're an approved vendor,
Speaker:sure. That's a process of getting through all of that,
Speaker:reviewing the testing and everything.
Speaker:So they'd rather work with fewer people.
Speaker:I would think that they can continue doing business with bringing
Speaker:in new products,
Speaker:then replacing you because you didn't have an Easter line.
Speaker:Let's say Exactly.
Speaker:And it's all about that partnership.
Speaker:Everyone wants to have that vendor partner that they can go
Speaker:to and say,
Speaker:okay, here's the project for now?
Speaker:How can you enact it and roll it out?
Speaker:What about private labeling?
Speaker:Private labeling is becoming,
Speaker:so there can be a lack of product differentiation almost in
Speaker:the world of sourcing and visibility to product.
Speaker:The world almost seems flat.
Speaker:And what I mean by that is every retailer is watching
Speaker:Pinterest. So if you've got 200,000
Speaker:followers on your Pinterest page,
Speaker:odds are,
Speaker:the retailers are looking at what you're doing as well as
Speaker:your competitors and everybody else.
Speaker:So manufacturers are looking at it.
Speaker:It has amazing visibility beyond what you're taking into consideration.
Speaker:So when I go on a sourcing trip,
Speaker:like to the Canton fair in China,
Speaker:I can go from one showroom to the next,
Speaker:to the next,
Speaker:to the next and see almost virtually the same product in
Speaker:every showroom.
Speaker:Now everyone's following the same Pantone color trends.
Speaker:When Chevron hit four years ago,
Speaker:everyone had Chevron.
Speaker:So that's what I mean when the retail world can almost
Speaker:be flat when it comes to sourcing product,
Speaker:because when one rolls out with it,
Speaker:everyone has it from the same vendor,
Speaker:even multiple vendors.
Speaker:I mean,
Speaker:Oh my goodness Is everyone's producing something similar because they know
Speaker:what to hit.
Speaker:Yes, exactly.
Speaker:So What then about private label?
Speaker:Like if someone's making candles,
Speaker:let's say Michael,
Speaker:branded a candle that was their own.
Speaker:And I know,
Speaker:I think Michael's has had private ribbon brand,
Speaker:Right? They have,
Speaker:I think six different private labels and hobby lobby has their
Speaker:own private label and AC Moore.
Speaker:Is that Something to get into as a designer?
Speaker:It is.
Speaker:Although like when you go to the grocery store,
Speaker:you can buy green,
Speaker:giant green beans,
Speaker:and they're a dollar 49.
Speaker:You can buy the signature brand private label and it's a
Speaker:dollar 29.
Speaker:So in private label,
Speaker:there is a little bit of a cost,
Speaker:less cost associated with it.
Speaker:Unless of course it has the name and Markus brand on
Speaker:it, but that's a whole other story there.
Speaker:But most,
Speaker:every retailer does have a private label initiative.
Speaker:It's becoming so easy to source from overseas and I'll take
Speaker:a product called cricket.
Speaker:It's a dye cutting machine that is used in the craft
Speaker:industry. A lot of our listeners know exactly what that is.
Speaker:So this is a perfect example.
Speaker:So all the retailers carry it and all the prices are
Speaker:pretty much controlled.
Speaker:You very seldom find it on sell less than a threshold
Speaker:price, but by a retailer,
Speaker:being able to private label something that gives them a product
Speaker:it's the same product,
Speaker:but it's differentiated so that they can offer more promotions and
Speaker:drive the consumer specifically to that brand,
Speaker:to their own product.
Speaker:What is the attitude of American made then?
Speaker:I mean,
Speaker:you're doing so much overseas and obviously the cost coming in,
Speaker:you know,
Speaker:at least now you can get things made so much less
Speaker:expensively. What's the value of it being American made?
Speaker:What are the larger companies feeling about that?
Speaker:So Walmart four years ago had,
Speaker:and they still push American made product.
Speaker:I would like to ask our audience to think to themselves,
Speaker:okay, what value does American made mean to me in their
Speaker:own purchasing?
Speaker:Do they typically seek out,
Speaker:made in America versus made anywhere else?
Speaker:And I would have to say nine times out of 10,
Speaker:it's more of an afterthought and it's probably driven more towards
Speaker:a more expensive type brand,
Speaker:possibly automotive things of that type of investment.
Speaker:As far as like again,
Speaker:a candle,
Speaker:I don't think many people will turn over to the bottom
Speaker:of the candle and say,
Speaker:Oh, that's made in Vietnam.
Speaker:I'm not going to buy it If they were in a
Speaker:larger store,
Speaker:probably right.
Speaker:If you're in a craft show,
Speaker:you are,
Speaker:but that's a whole different thing because then you're actually talking
Speaker:to the creator of those products.
Speaker:Yes. You almost Can look at products sold in the larger
Speaker:stores, the big value in play as a totally different product
Speaker:than ones that are made through artisans still handmade or even
Speaker:handmade, but through a manufacturer or something very much.
Speaker:So. Definitely.
Speaker:I think that's an important differentiator here.
Speaker:Yeah. Yes.
Speaker:I would have to say that there is a made in
Speaker:China fatigue and it kind of goes back to an example
Speaker:that I was painting earlier that so much of the product
Speaker:made in China all has the same look,
Speaker:the Chevron's for example,
Speaker:everything out of China was so heavy and chevrons.
Speaker:I do see retailers looking for a more global view.
Speaker:And when you look at successes like world market,
Speaker:you can find a more varied approach to product and you
Speaker:see product out of Europe in other countries beyond just China
Speaker:that allowed the consumer to be more expressive in their purchases.
Speaker:Oh, interesting.
Speaker:Yeah. I wonder if they'll change around,
Speaker:right. That'll be interesting to see,
Speaker:I think you and I met at the craft and hobby
Speaker:show. I think that was the first show we saw each
Speaker:other at,
Speaker:when you're going to shows,
Speaker:what are you doing there?
Speaker:What are you doing there,
Speaker:Bob? And let me explain for the listener.
Speaker:So craft and hobby show will have a number of people
Speaker:showing obviously in our genre crafts.
Speaker:Exactly what it says,
Speaker:but until there'll be small,
Speaker:medium and large vendors there,
Speaker:and a lot of these larger stores are coming And local
Speaker:manufacturers and vendors and international And international you're right.
Speaker:Yeah. So I go back to my question,
Speaker:what are you doing there?
Speaker:I work with,
Speaker:at any given show I'm probably working with anywhere from four
Speaker:to probably 10 different manufacturers at those shows,
Speaker:Are they at their shows as an exhibitor,
Speaker:as an exhibitor?
Speaker:Got it.
Speaker:Okay. And I'm helping them sell their product to the retailers.
Speaker:I have buyers appointments scheduled with various booths with the various
Speaker:retailers that their product pertains to,
Speaker:but I'm also looking at trend and new items and energy
Speaker:levels and kind of the poles of the industries.
Speaker:Oh, that's interesting.
Speaker:I was at the Chicago houseware show two weeks ago and
Speaker:you didn't come say hi.
Speaker:I know it was so cold though.
Speaker:That is not an excuse.
Speaker:I'll forgive you this time.
Speaker:It was such a different vibe and energy level from the
Speaker:craft and hobby and completely different industries yet I'm using the
Speaker:same skillsets,
Speaker:but it's a different approach.
Speaker:That's interesting because you're talking about the vibes of the shows
Speaker:in terms of possibly whether the overall topic is a hot
Speaker:topic right now,
Speaker:right? Yes.
Speaker:And I'll stay with craft and hobby.
Speaker:Cause that's the one I know better when we've been together
Speaker:and probably which booths people are most attracted to,
Speaker:not just for the big retailers that you're working with,
Speaker:but where are the other businesses going?
Speaker:Because they may have a clue as to what's coming up
Speaker:and what's hot.
Speaker:Some of these small and medium sized businesses,
Speaker:these are not consumer shows by the way,
Speaker:give biz listeners.
Speaker:These are business to business shows.
Speaker:People are going to find product that they're going to stock
Speaker:in their stores.
Speaker:So that's interesting.
Speaker:I didn't think about that to really good place to learn.
Speaker:If your going to a show,
Speaker:either as an exhibitor or an attendee,
Speaker:is what looks to be the biggest attractions in the exhibit
Speaker:area, Right?
Speaker:Like craft and hobby show,
Speaker:as you've witnessed for the past 15 years,
Speaker:paper crafting has been the driving force behind it.
Speaker:It started with scrapbooking into card making and makes media.
Speaker:And now you're starting to see the mix media element takeover
Speaker:where wood surfaces and painting and embellishment in,
Speaker:in your ribbon business,
Speaker:how ribbons being used,
Speaker:not just to adorn packaging or for clothing,
Speaker:but it's being used on pictures and,
Speaker:and makes media applications.
Speaker:And it's being driven through Pinterest and Etsy.
Speaker:You've got these independents just putting it.
Speaker:All Right.
Speaker:Reinforcing. Yes.
Speaker:That is interesting.
Speaker:And you're right.
Speaker:I have seen a big difference with the paper.
Speaker:So stationary show,
Speaker:same thing.
Speaker:Pretty much.
Speaker:So things are changing,
Speaker:But I have to say my most favorite show is the
Speaker:fancy food show.
Speaker:Oh yeah.
Speaker:Are you coming to Chicago?
Speaker:Are you coming back to Chicago?
Speaker:Bob? That's next?
Speaker:Oh gosh.
Speaker:And do you have clients to be at the fancy food
Speaker:shows? Yes.
Speaker:So one point that I wanted to talk to your listeners
Speaker:about is retail is an ever-changing ebb and flow environment.
Speaker:What made sense 20 years ago?
Speaker:I mean,
Speaker:my goodness toys R us was the leader in toys 20
Speaker:years ago.
Speaker:And look at them.
Speaker:Now there's so many other ways to sell your product,
Speaker:to get you ready to get into these small,
Speaker:to midsize change that will lead you to the larger chains.
Speaker:If I heard it once I heard it probably 20 times
Speaker:at the past three shows that I've been at and that's
Speaker:the craft and hobby show,
Speaker:the NAMTA the national art material show and housewares show is
Speaker:people are using Facebook to sell their product,
Speaker:to build their following,
Speaker:to drive their brand as well as Instagram and all that.
Speaker:So all those will help you refine your retail skills that
Speaker:will push you into developing better sourcing and supply chain management.
Speaker:They will push you into controlling your finances and being able
Speaker:to plan for larger production runs going forward.
Speaker:So by all means,
Speaker:please take advantage of,
Speaker:you almost have to have a strategy for every retail segment.
Speaker:And that was one of the things that when I spoke
Speaker:to this company earlier today is they're already in retail,
Speaker:but they want to expand it.
Speaker:So they need to have a retail strategy for the Tuesday
Speaker:mornings. The home goods,
Speaker:the TJ Maxx is they need to have retail strategy for
Speaker:just the mass retailers,
Speaker:like the Michaels,
Speaker:the hobby lobbies.
Speaker:Then they need to have a department store strategy for Kohl's
Speaker:and Dillard's and Macy's and then a luxury strategy.
Speaker:And so the strategy is positioning of the product and pricing.
Speaker:I'm assuming Exactly,
Speaker:but also part of positioning is how you're branding it.
Speaker:Yeah. In terms of The labeling,
Speaker:the messaging where the product is going to be positioned,
Speaker:you can negotiate for that too.
Speaker:Is can't you,
Speaker:right? Yes.
Speaker:There is a lot to this,
Speaker:which is why people need you Bob.
Speaker:So you're clearly working with some very well established accounts.
Speaker:Some of our people who are listening are small or yet
Speaker:are there people like you for some of the smaller businesses
Speaker:who can help guide and consult someone along?
Speaker:Where would someone go if they want to know more,
Speaker:If you're in the craft and hobby business to cha organization.
Speaker:So the membership,
Speaker:yes, definitely small business administration does quite a bit of great
Speaker:consulting. And a lot of what they offer is free partnering
Speaker:with your best customer and through their own network,
Speaker:they can get you in touch with other consultants that can
Speaker:help you build your business.
Speaker:So how else?
Speaker:I mean,
Speaker:one of the things that we talked about in terms of
Speaker:understanding all of this while we've talked about to now,
Speaker:we've talked about watching the trends watching what's popular so that
Speaker:you have a product that someone would be interested in in
Speaker:the first place.
Speaker:So you can do that online.
Speaker:You can do that in shows and then for added learning.
Speaker:What we've just talked about,
Speaker:go to the organizations of your industry,
Speaker:such as CA I keep still calling it cha even though
Speaker:it's called a F C C,
Speaker:I now give his listeners I'll link to this in the
Speaker:show notes and the small businesses association too.
Speaker:I'll link in.
Speaker:Are there any other things that you could think of that
Speaker:you would suggest in terms of getting information specifically on this?
Speaker:Are there any books about this or something else that you
Speaker:can think of off the top of your head,
Speaker:Bob, that you would suggest All the books that are referred
Speaker:to are just basically general sells books.
Speaker:So it really wouldn't necessarily apply.
Speaker:I would have to say that there's gotta be some books
Speaker:out there.
Speaker:If not,
Speaker:then I need to get busy with my pen and pencil
Speaker:and putting something down.
Speaker:Yeah, you do.
Speaker:There may be something open right there for you.
Speaker:Well, you would deserve that because you've given us so much
Speaker:great information that way.
Speaker:If that was the idea that was founded here,
Speaker:that would be really good.
Speaker:How about that?
Speaker:Now, Bob,
Speaker:I would like to offer you to dare to dream.
Speaker:I'd like to present you with a virtual gift.
Speaker:It might even be a candle.
Speaker:I don't know,
Speaker:but it's a magical box containing unlimited possibilities for your future.
Speaker:So this is your dream or your goal of almost unreachable
Speaker:Heights that you would wish to obtain.
Speaker:Please accept this gift and open it in our presence.
Speaker:What is inside your box?
Speaker:So this is one of my most favorite questions that you
Speaker:could ask of me being in sales and consulting.
Speaker:I tend to think of myself as a dreamer and I
Speaker:help companies on a regular basis enhance or brainstorm on new
Speaker:products and ideas and things.
Speaker:My goal would be to create my own brand,
Speaker:Oh, wow.
Speaker:My own product line and get it out to the retailers
Speaker:and do something that's unique and something that's not just a,
Speaker:me too,
Speaker:not another Chevron to throw out.
Speaker:I've always been in product development.
Speaker:I feel that this is the next stage in my progression.
Speaker:I was not expecting this Bob,
Speaker:but I love it.
Speaker:I love it.
Speaker:Do you have some thoughts already?
Speaker:We're obviously not going to ask you what they are,
Speaker:but are you like,
Speaker:do your mind going,
Speaker:It's going,
Speaker:I've brought on two people that are going to help me
Speaker:and you met them at the craft and hobby show,
Speaker:right? So there's an alter your plan here.
Speaker:Yes. This has been a plan again,
Speaker:it's strategic.
Speaker:It's something that it's definitely a goal and we've got our
Speaker:metrics and everything to make sure it all happens and where
Speaker:there's a plan.
Speaker:There's a way.
Speaker:Does it have anything to do with bees kind of in
Speaker:a way we're,
Speaker:we're looking at some natural product.
Speaker:Yes. That's got my mind spinning.
Speaker:Now. That is so exciting.
Speaker:Bob. I loved hearing that and really with your experience of
Speaker:knowing both sides of this business and what it entails to
Speaker:actually create and manufacturer,
Speaker:and then be able to sell product in mass,
Speaker:you've got all the knowledge behind you.
Speaker:I sure hope so.
Speaker:Well, thank you so much.
Speaker:Very exciting,
Speaker:very, very exciting,
Speaker:well behalf on myself and the listeners.
Speaker:We wish you so much luck with that and we're going
Speaker:to be following you all about that.
Speaker:That's for sure.
Speaker:I've truly enjoyed this.
Speaker:Sue. This has been probably the highlight of the year for
Speaker:me. So thank you so much for,
Speaker:including me on this.
Speaker:So sweet.
Speaker:Thank you.
Speaker:Well, I was thrilled.
Speaker:We talked about doing this back in January when we're talking
Speaker:about the show,
Speaker:because I'd been mentioning,
Speaker:you know,
Speaker:a lot of people have asked about wholesale and getting into
Speaker:these larger chains.
Speaker:And I knew exactly who would have the goods and you
Speaker:have delivered them here today,
Speaker:Bob. So thank you so so much for joining me.
Speaker:It is my pleasure completely have a good day.
Speaker:You too.
Speaker:Well, this was definitely a treat,
Speaker:hearing everything from Bob about how to expand our products into
Speaker:an entirely different arena.
Speaker:If we so choose.
Speaker:It's also your lucky day,
Speaker:because I'm going to give you a little peak into next
Speaker:week's show and it is going to be entirely different than
Speaker:what you would have expected in the past.
Speaker:As I've been talking about for a while.
Speaker:Now, my book is coming out in just a couple of
Speaker:weeks and next week's show.
Speaker:I'm going to read from that book.
Speaker:I'm going to give you the introduction and then a couple
Speaker:of chapters from the book.
Speaker:I cannot wait to share it with you and that's all
Speaker:up next week on gift biz unwrapped.
Speaker:I'll see you there.
Speaker:This episode is all wrapped up,
Speaker:but fortunately,
Speaker:your gift biz journey continues.
Speaker:Are you eager to learn more?
Speaker:Our gift biz gal has a free download just for you.
Speaker:Head over to gift biz,
Speaker:unwrapped.com/twelve steps to get your copy of the 12 steps to
Speaker:starting a profitable gift biz don't delay,
Speaker:head over to gift biz,
Speaker:unwrapped.com/twelve steps today.
