8 replies to this topic

[osbornjr]

I have recently discovered kaiser and blair. What is everyone's thoughts of using them vs. doing everything your own?

[PinsonDigital]

I have been using them for 6 months. As a newbie to the industry, for me it was a no-brainer. The support and guidance have been very helpful. At this point, I am already placing direct orders on my smaller jobs. I need the full commission to make them worth my time. I do have a really big order coming next month that I will be using K&B for. I do not want to take the financial risk of something going wrong. I will let K&B handle that. I am more than happy to take my 20% for 30 minutes work invested in this order.

I have talked to a couple of distributors doing high six figures sales that use K&B for every order. The perks you get as you grow can be nice. For me, right now, I am sticking with K&B but not using them all the time.

[PromoteYouMe]

I have done a lot of research into many large distributors, some charge 20% of the sales other split the profit 50/50, when you do the math on a spreadsheet (sales projections, profit, mark-up), it all works out to be roughly the same thing, for instance: $500,000 in sales at 40% profit = $200,000 split 50% = $100,000 commission, this equals 20% of sales. The online orders I do on my own are printing. I don't want to take the risk to place orders on my own for promotional products because of the strict product safety laws. One order goes bad and you are bankrupt and the client receives bad PR and a lawsuit, along with you and the supplier.

Here is where I notice the differences between what the large distributors offer:
1. Some allow you to be an employee with office space, health benefits and 401K, the profit split might be lower 45 for you / 55 for them, this covers these benefits and perks. Some will make you sign a contract, but make sure you never get a non-solicitation clause put in it, so you have a right to leave at any time with your clients. Also some include additional bonus programs.

2. Most distributors allow for independent contractors, no contract, and the average split is 50/50 or 20% of sales. You don't get benefits and you cannot work out of their office. Accorsding to IRS you can't keep all of your eggs in one basket, meaning you need to invoice more than one client and not have the sole distributor as your only revenue source, the IRS questions this relationship and will make a case that you are truly an employee, until you give them proof, it's a real hassle. Some distributors do the franchise thing but you get locked into a contract for a certain term. Also some offer additional bonus program for earning more revenue.

3. Customer service, do they give you a dedicated CSR? It's ok if the CSR might handle more than one account executive but as long as they are not always juiced and you are always communicating with the same CSR, who will eventually understand your needs, requirements and clients. There are distibutors that pass you around to the next open CSR, this can be a real hassle. You need a CSR that you can gel with! Also CSRs are usually grouped with a dedicated billing person. However processing departments do not normally function by giving you a dedicated processor, that should be fine.

4. Technology, what kind of online ordering platform do they provide you? is it integrated with a CRM (customer relationship management) software such as Salesforce.com or MS Business Contact Manager? Does their software include FREE marketing tools such as email marketing, online stores & social media integration? Can you multi-task on the screen by opening more than one window? The problem with some distributors is that they are using online ordering systems which THEY think are the latest technology but clearly they are not. Most software I have seen is archaic and lacking in many ways. Some distributors will give you access to an online ordering system which you can order from, do reports but it has no CRM attached to it, and most importantly you cannot multi-task, which is important if you want to look up old order details while you are working on a new order, without multi-tasking, you would have to close the new order to look up the old order, this is a HUGE WASTE of an account executives time! The CRM is very useful when you are quoting a new prospect and then find out from the CRM there is an account conflict because you may be bumping heads with another account executive. Who wants to find out about the account conflict after you place an order? it's a real pain, and most distributors work in secrecy mode by not revealing who the other account manager is, in my opinion that is not how you run a business. Respectfully everyone needs to be brought to the table to discuss the account, as professionals and adults.
The email marketing tool is very usefull, most distributors will have you go setup an account with a provider such as Constant Contact and pay $25 per month, but you have to create your own email campaign. The CRM program that comes with email marketing, usually has back-end tracking and the campaign us created by a marketing rep, see below.

5. Artwork, do they offer internal graphic design department? to help with order art and projects?

6. Marketing Department, do they have a team of marketing professionals that are experienced with developing marketing projects and campaigns? monthly special flyers? event management? Also in reference to marketing tools that SHOULD BE part of the online ordering system, you should not have to pay for any additional software that promotes your business and generates more revenue for you and distribtuor. If you are giving them 50% of the profit, what are you getting for it? marketing tools and support are a part of it and don't let them nickle and ime you.

7. Online Stores, Fulfillment and Warehousing, does the distributor have a dedicated team that handles fulfillment programs and online stores?

8. Bonus program and Preferred supplier pricing? what bonusses do they offer in additiona to the commission split? how does it compare to others? Some will even split profit on the marked-up freight.

9. IT, do they have a dedicated team of techies and programmers? to help with online projects and programming? to help when the ordering systems goes down or you have a technical question or issue?

10. Who is running the company and funding it? Do you have a smart CEO? Are they involved with PPAI & ASI boards? Is your company privately funded or financed through a bank or investment firm or is it venture capital money? The last two options, the CEO has to report to a board of directors and they want to see profit on a regular basis or the asset/company might eventually get sold to another buyer or the CEO needs to raise more funds.

11. Company Culture, does the distributor offer an awards ceremony? do they have regular sales meetings? yearly trips or incentives? Do they send you a card on your birthday or if you experience a personal crisis? is there a feeling that they care like a family?

Just some things to point out that you should ask any distributor before you join.

Again ask them what services are they giving you for the 50% profit or 80% of sales that you are giving to them? Make sure it is a fair arrangement.

[osbornjr]

Thanks for the input. I really appreciate it. My whole thing is since I am just now going, I don't know if I can place an order every 90 days through K&B in order to keep an active status.

[PinsonDigital]

I wouldn't worry too much about the 90 day thing. In the beginning, when I would be getting close I just ordered something for myself, like some pens or refrigerator magnets, which I gave away at networking events.

[AdmanGR]

Brian,

If you would like to diuscuss K&B and perhaps become an affilliate, please give me a call. I have been selling FT in the industry since 1996 and have been a dealer with K&B since 2004. My dealership is among the top 10 in the K&B organization. I have many recruits around the country - some are newbies and some are heavy hitters. Some sell an order a quarter some sell many orders / day.

A any rate, I can offfer you my perspective. We earn income three ways with K&B - transactional commissions, annual bonus, and overrides on our recruits' successes.

888-927-1961 - Rob Glessner

[Chris Miller]

FWIW..... Kaiser is a type of bread roll invented in Vienna. Kaeser on the other hand is a family name that dates back to 1923 in this industry.

http://kaeser-blair.com/aboutUs.php

Call me anal...

[Chris Miller]

AdmanGR, on 09 February 2012 - 02:40 PM, said:

Brian,

If you would like to diuscuss K&B and perhaps become an affilliate, please give me a call. I have been selling FT in the industry since 1996 and have been a dealer with K&B since 2004. My dealership is among the top 10 in the K&B organization. I have many recruits around the country - some are newbies and some are heavy hitters. Some sell an order a quarter some sell many orders / day.

A any rate, I can offfer you my perspective. We earn income three ways with K&B - transactional commissions, annual bonus, and overrides on our recruits' successes.

888-927-1961 - Rob Glessner

Rob is the man when it comes to the K&B thing. I would not recommend anyone else if you're interested in joining K&B, and I surely wouldn't recommend going it alone, without a sponsor. It costs you nothing more, and you get a mentor who has a vested interest in your success. It doesn't get much better than that.

[djoctagone]

PromoteYouMe, on 04 February 2012 - 04:12 PM, said:

I have done a lot of research into many large distributors, some charge 20% of the sales other split the profit 50/50, when you do the math on a spreadsheet (sales projections, profit, mark-up), it all works out to be roughly the same thing, for instance: $500,000 in sales at 40% profit = $200,000 split 50% = $100,000 commission, this equals 20% of sales. The online orders I do on my own are printing. I don't want to take the risk to place orders on my own for promotional products because of the strict product safety laws. One order goes bad and you are bankrupt and the client receives bad PR and a lawsuit, along with you and the supplier.

Here is where I notice the differences between what the large distributors offer:
1. Some allow you to be an employee with office space, health benefits and 401K, the profit split might be lower 45 for you / 55 for them, this covers these benefits and perks. Some will make you sign a contract, but make sure you never get a non-solicitation clause put in it, so you have a right to leave at any time with your clients. Also some include additional bonus programs.

2. Most distributors allow for independent contractors, no contract, and the average split is 50/50 or 20% of sales. You don't get benefits and you cannot work out of their office. Accorsding to IRS you can't keep all of your eggs in one basket, meaning you need to invoice more than one client and not have the sole distributor as your only revenue source, the IRS questions this relationship and will make a case that you are truly an employee, until you give them proof, it's a real hassle. Some distributors do the franchise thing but you get locked into a contract for a certain term. Also some offer additional bonus program for earning more revenue.

3. Customer service, do they give you a dedicated CSR? It's ok if the CSR might handle more than one account executive but as long as they are not always juiced and you are always communicating with the same CSR, who will eventually understand your needs, requirements and clients. There are distibutors that pass you around to the next open CSR, this can be a real hassle. You need a CSR that you can gel with! Also CSRs are usually grouped with a dedicated billing person. However processing departments do not normally function by giving you a dedicated processor, that should be fine.

4. Technology, what kind of online ordering platform do they provide you? is it integrated with a CRM (customer relationship management) software such as Salesforce.com or MS Business Contact Manager? Does their software include FREE marketing tools such as email marketing, online stores & social media integration? Can you multi-task on the screen by opening more than one window? The problem with some distributors is that they are using online ordering systems which THEY think are the latest technology but clearly they are not. Most software I have seen is archaic and lacking in many ways. Some distributors will give you access to an online ordering system which you can order from, do reports but it has no CRM attached to it, and most importantly you cannot multi-task, which is important if you want to look up old order details while you are working on a new order, without multi-tasking, you would have to close the new order to look up the old order, this is a HUGE WASTE of an account executives time! The CRM is very useful when you are quoting a new prospect and then find out from the CRM there is an account conflict because you may be bumping heads with another account executive. Who wants to find out about the account conflict after you place an order? it's a real pain, and most distributors work in secrecy mode by not revealing who the other account manager is, in my opinion that is not how you run a business. Respectfully everyone needs to be brought to the table to discuss the account, as professionals and adults.
The email marketing tool is very usefull, most distributors will have you go setup an account with a provider such as Constant Contact and pay $25 per month, but you have to create your own email campaign. The CRM program that comes with email marketing, usually has back-end tracking and the campaign us created by a marketing rep, see below.

5. Artwork, do they offer internal graphic design department? to help with order art and projects?

6. Marketing Department, do they have a team of marketing professionals that are experienced with developing marketing projects and campaigns? monthly special flyers? event management? Also in reference to marketing tools that SHOULD BE part of the online ordering system, you should not have to pay for any additional software that promotes your business and generates more revenue for you and distribtuor. If you are giving them 50% of the profit, what are you getting for it? marketing tools and support are a part of it and don't let them nickle and ime you.

7. Online Stores, Fulfillment and Warehousing, does the distributor have a dedicated team that handles fulfillment programs and online stores?

8. Bonus program and Preferred supplier pricing? what bonusses do they offer in additiona to the commission split? how does it compare to others? Some will even split profit on the marked-up freight.

9. IT, do they have a dedicated team of techies and programmers? to help with online projects and programming? to help when the ordering systems goes down or you have a technical question or issue?

10. Who is running the company and funding it? Do you have a smart CEO? Are they involved with PPAI & ASI boards? Is your company privately funded or financed through a bank or investment firm or is it venture capital money? The last two options, the CEO has to report to a board of directors and they want to see profit on a regular basis or the asset/company might eventually get sold to another buyer or the CEO needs to raise more funds.

11. Company Culture, does the distributor offer an awards ceremony? do they have regular sales meetings? yearly trips or incentives? Do they send you a card on your birthday or if you experience a personal crisis? is there a feeling that they care like a family?

Just some things to point out that you should ask any distributor before you join.

Again ask them what services are they giving you for the 50% profit or 80% of sales that you are giving to them? Make sure it is a fair arrangement.

GREAT guidance for those seeking on joining, affiliating with or franchising with a national distributor.

My advice? Take a look at the national distributors that have been named by Counselor and PPB as the Best Places To Work and Greatest Companies To Work For, and ask them about these 11 things. Then, you get to decide what's best for you and your interests.

http://www.asicentra...stplacestowork/

http://ppbmag.com/Article.aspx?id=7229