Whether you’re planning a new business, just launched one, or have been running it for a while, it’s critical to have the right tools in your toolkit to ensure you survive ongoing business challenges as well as economic factors that compound the everyday obstacles of growing a business… 

…Just In Case The Economy Tanks And You Want To Avoid Going Down With It! 

GPS System before you begin your business journey so you end up close to where you intended and don’t get distracted by detours and pit stops along the way. Your roadmap should include not just your destination but all the reasons why you started the journey to keep you going during the inevitable days when the road twists unexpectedly and your business outlook appears murkier than anticipated. 

Noise Cancelling Headphones to make sure you’re actively listening to customers and are not distracted by outside noise. We must be wary of preconceived notions we all possess telling us what we assume our customers need and want because these oftentimes prevent us from really hearing their needs. Remember, headphones are for listening-not talking and that’s a critical skill business owners need to possess to identify what their customers need and expect from them. 

Cell Phone to ensure you are constantly communicating with customers, partners, and mentors throughout the trip. You can never have too strong a communication loop between you and those individuals who support your business. You must be within easy reach and be prepared to respond. Studies show it can cost up to 5 times the amount of money to bring in new customers as it costs to retain good ones. Customers don’t expect perfection, but they do expect courtesy and empathy from you when things go well and especially when things go awry. 

Rearview Mirror will help you see what’s behind you. This includes factors out of your control such as economic and industry regulation changes as well as competitors. Remember, competitors include those companies offering similar products/services as well as businesses that offer different products but satisfy your customers’ needs and have the potential of ‘stealing them’ from you. 

Easel and Paintbrush will help you Illustrate your benefits to potential customers, partners, employees and anybody else who needs to clearly understand the value you provide. Customers buy benefits, not features. Often referred to as the “So What Factor” or “What’s in it for me?” features simply support the value you provide but are not what matters to prospects. You must be able to paint a strong picture for them addressing these benefits to capture their attention and convert them into customers. 
Rechargeable Batteries are an important asset to keep in your toolkit. There are going to be plenty of late nights and stressful times when you feel like you’re on your last load of energy. The security of knowing you’ve got the ability to recharge is empowering. Whether your batteries come in the form of a 3 mile jog around the neighbor, a yoga class or grabbing a glass of wine with a friend, make sure you’ve got “your battery” tucked away and ready to use…just in case you need that extra jumpstart. 

Magnifying Glass will help you study your customers’ demographics, buying patterns and other information you’ve collected to ensure you’re meeting their needs as these evolve with the changing business climate. Do you know what influences their purchasing process, and who is involved in decision-making? What is the one problem that your customers have that you solve for them better than anyone else? Important information about their lifestyle, interests, and values will help you better serve their needs and increase their loyalty-through up and down economic times. 

Measuring Tape will allow you to continually measure and evaluate your customers’ value to your organization. Just as the animals concluded at the end of George Orwell’s book Animal Farm, “All animals are equal but some animals are more equal than others,” the same might be true about your customers. Not that I am comparing them to animals but some might provide greater value to you than others and you need to know the difference. If you don’t continually monitor and measure their Lifetime Value to your organization you might discover that you have lots of customers who provide a very low value or profit margin to your business and only a handful who truly offer significant economic reward. 

Cash always comes in handy, regardless of the economic environment. Make sure you know how much money it’s going to take to ramp up your business and keep it running, in good times as well as bad. A rainy day fund will support you through unanticipated excursions and ensure you realize your vision and reach your ultimate destination. 

A Few Friendly Ghosts doesn’t refer to Casper but to those intangibles that motivated you to start your business in the first place — Vision, Passion and a Belief in what you’re trying to achieve. While you may not be able to touch or feel them, they are critical parts of your toolkit because without them you may as well close shop and find a job working for somebody else. Running a business is hard work and if you don’t feel passionately about it and believe in what you’re doing…then it’s not going to be worth it in the end. 

Author of The Ultimate Small Business Marketing Toolkit (McGraw-Hill), Beth Goldstein has empowered hundreds of entrepreneurs and companies to launch successful marketing and sales programs. Consultant, national speaker & educator, Beth teaches Entrepreneurial Sales and Marketing at the Boston University School of Management and instructs the InnerCity Entrepreneurs business growth program in Massachusetts. Beth can be reached at BethG@m-edge.com or by phone at 508.893.0976. 

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In reading the book, Mavericks at Work, you’re invited to “open your eyes, engage your imagination and be encouraged to think bigger and aim higher.” The second goal of this offering is to restore the promise of business as a force of innovation, satisfaction and progress; overcoming the recent history of revulsion, remorse and recrimination. What can we learn here? 

As you read what follows throughout this business book you’ll see evidence again and yet again as explanation of the book’s subtitle: “Why the Most Original Minds in Business Win”. 
Co-authors William C. Taylor and Polly La Barre want to help equip you to act more boldly as a leader and win more decisively as a competitor. Taylor was co-founder and founding editor of Fast Company and is joined by LaBarre, a former senior editor at Fast Company, widely known for her articles addressing strategy, creativity and personal success. 

Alan Kay, celebrated computer scientist, perhaps said it best already 35 years ago, when he was quoted, “The best way to predict the future is to invent it!” After all, nothing is quite as exhilarating as being an eyewitness to the future. 

Part One: 
Rethinking Competition 
As we read further, we’re invited to learn from the principals involved in businesses like ING Direct, USA; Southwest Airlines, Netscape, HBO, Dell and Craigslist. 

A lead example, Arkadi Kuhlmann, of ING Direct, USA, an internet-based savings bank, is a banker who has challenged the common practices of the entire banking business; with everything about its operation emphasizing speed, simplicity and low overhead. Insisting that “people want to do business with companies that share their values,” Kuhlmann offers, “We speak with a new voice; a different kind of voice for business.” 

Kuhlman and his colleagues aspire to “lead Americans back to savings and in doing so; restore fundamental values: self-reliance, independence having a grub stake!” 
Further explored is Roy Spence, co-founder of GSD & M, a free spirited ad agency of Austin, TX. “We don’t create the purpose of an organization,” says Spence. “Our job is to bring it to life and create the language of leadership.” 

“In the nineties, we saw that the rising tide lifts all boats. Now we see that a changing tide tests the strength of your anchor,” acclaims Spence. “What you stand for is as important as what you sell!” 

Further in “Mavericks”, we’re tested to consider Mike McCue’s advice, heavily influenced by his experiences with Netscape. “Even in the face of massive competition, don’t think about the competition. Literally, don’t think about them. Every time you’re in a meeting and you’re tempted to talk about a competitor, replace that meting with one about user feedback or surveys. Only think about the customer!” says McCue. 

Amidst the book’s first offering of “Maverick Messages”, a few key questions give cause for more careful thinking: Are you prepared to reject opportunities that offer short-term benefits but distract your organization from its long-term mission? If your company went out of business tomorrow, who would really miss you? Why? 
Part Two: 
REINVENTING INNOVATION 
A review of Rob McEwan’s “Goldcorp Challenge” is another lesson in the value of inventing a new model of invention; to create a new set of ideas about the creative process. 

His is the fascinating story where the Canadian mining company shared 50 years worth of maps, reports and raw geological data in inviting “outsider” scientists and engineers to “help” determine the best prospects for mining gold. Overcoming the extreme doubts of his own geologists and fellow company executives, McEwan’s call for open-source ideas yielded more than 1,400 qualified “online prospectors” came to play with resulting submissions from 51 countries with incredible diversity and originality. 

Expecting the standard tools of geophysical analysis and geochemical analysis, McEwan was initially stunned to see people using applied math, advanced physics, intelligent systems and computer graphics. The unqualified success of this project clearly illustrates once again the adage that “the smartest guys (aren’t) in the room – the best ideas from the most people” rules the day. 

Further, one cannot help learn from Tom Brown’s annual “Branch Hunt” on behalf of Second Curve Capital that revealed street-savvy insights on customer service in the banking industry. Again, clearly; “Nobody is as smart as everybody!” 

For most of us, it’s not as easy as applying the open source innovation suggested in the second part of the book to our day-to-day businesses. Yet, there’s no denying that we’re seeing examples of the reshaping the logic of creativity in countless fields, from software to the Internet to pharmaceuticals and the arts. 

As they attempt to help put the spin on the open-source innovation ideas, the authors offer more “Maverick Messages” as practical suggestions: 
• Keep the focus narrow and tightly defined 
• Keep broadening the range of participants 
• Keep it fun 
• Don’t keep all the benefits to yourself 
• Keep challenging yourself to be more open to new ideas and new ways of leading. 

Part Three: 
RECONNECTING WITH CUSTOMERS 
Way too many examples exist where customer satisfaction was left to limp as companies made their customers suffer as executives pursued other priorities. Establishing 1-800 numbers didn’t do the trick. The relentless automation of service, with near total elimination of any human contact; proves to be a misguided path. 

The good news is that there are also several positive examples of where companies have made their performances memorable. The unique story of Commerce Bank and its place as a state-of-the-art retail operation, a bank that doesn’t act like a bank, is revealing. 

“Even though I was trained as a banker, I’m not a banker,” insists Commerce’s Vernon W. Hill II. “We are growth retailers!” His story, although noticeably different than that of ING Direct USA’s Arkadi Kuhlmann, only indicates that he takes a different approach to pricing strategies. And his “Penny Arcades” are legendary. 

Here are more “Maverick Messages” to help explore customer services: 

There’s always a demand for something distinctive. 
Not all customers are created equal. 
Brand is culture, culture is brand. 
Advertising to customers is not the same as connecting with customers. 
When it comes to creating brand value, dollars-and-cents thinking does not always make sense. 

Part Four: 
REDESIGNING WORK 
The core message of Extreme Blue, IBM’s premier internship program for top-notch students pursuing software development and MBA degrees is perhaps best summed up in the words often used: “This is not your father’s IBM.” This incubator program for talent, technology and business innovation is rooted in engaging groups of smart, ambitious, high-strung young people, living and working in close quarters, under intense pressure, focused on technologies and business opportunities with huge potential. Although not exactly “reality television” material, the results prove interesting, to say the least. 

Eventually hiring as many as 80% of these summer program participants, IBM has used the program to accelerate the turnaround strategy that has eluded so many giant organizations that got lost and stayed lost in “doing what they always did”. 

The authors have traveled far and wide to ask CEO’s a simple question: Why would great people want to work here? With a qualifier that responses cannot be pat answers about salaries, bonuses or stock options, it seems the following list of questions becomes critical in getting a true glance at our own companies. 

What is it about the ideas your company stands for, its point of view in the marketplace, the ways in which employees interact with customers or collaborate with each other that becomes irresistible to the best people in your industry? How does your company’s standing in the talent market enhance its position in the product market? 

In the final collection of “Maverick Messages”, the authors again challenge our thinking: 
• Why should great people join your organization? 
• Do you know a great person when you see one? 
• Can you find great people who aren’t looking for you? 
• Are you great at teaching great people how your organization works and wins? 
• Does your organization work as distinctively as it competes? 

Only you can answer these questions for your own company. And the book’s appendix is complete with more “Maverick Material”, a series of resources to help you out-think, out-innovate, out-sell and out-work the competition. 

Perhaps once you’ve read “Mavericks at Work”, you too can re-think competition, reinvent innovation, reconnect with your customers and redesign your work. At least we know you’ll be moved to look at your world of business in a different way and in this case I feel confident that can be a good thing! 

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Clearly, the IFBA Division of NARMS International enjoys a nice momentum that it wants to nurture; growing future memberships along with developing a greater depth of understanding in the marketplace of the benefits of working with independent brokers. 

The margins generated with the successful conference may help IFBA extend its advertising/branding campaign that launched again this year in regular ad execution in Supermarket News. To date, the IFBA mandatory, self-funded ad/branding campaign has focused on “Knowledge”, “Performance” and “Trust” as focal elements. 

Many thanks to our 2008 sponsors and advertisers for their generous support of this year’s Top to Top event. We continue to look to sponsorship involvement to complement IFBA registration fees for our conference program costs.

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New in 2008 and proving to be extremely popular, was the food snack and networking area adjacent to registration that we came to call our “IFBA Lounge” area. This allowed meeting participants to speed through breakfast and lunch times without the cost/time normally committed in hotel restaurants; yet at a comfortable pace with additional networking an added value. 

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The final speaker during the IFBA Business & Education Session was Dave Leedy, a professional inspirational speaker from Springboro, OH. Leedy took attendees on a roller coaster ride of emotions; inspiring and challenging listeners to be mindful of the potential of their impact on all people and business around them every day of their lives. Leedy’s moving anecdotal stories made the program experience truly memorable. 

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Trade spend increases have led to a fundamental industry challenge: manufacturer brand and pricing strategies have become more difficult to execute, as trade spend increases enable aggressive retail pricing tactics that may not align with brand objectives. Given this challenge, manufacturers are now more focused than ever on managing trade spend to better align brand strategies with trade execution. 

Efforts to manage trade spend arise within a complicated and changing legal framework that governs how trade can be deployed with retailers. This article addresses an important question in which legal issues intersect with core business objectives that are particularly important given the industry focus on trade spend management: 

To better execute brand strategies within retail accounts, can manufacturers legally – under federal antitrust laws – condition trade funds on retailers maintaining retail prices above a minimum price threshold? 

Last summer, the Supreme Court issued an important decision that provides significantly more flexibility under federal law for consumer good manufacturers to influence retail prices. In Leegin Creative Leather Products, Inc. v. PSKS, Inc., the Supreme Court held that agreements between manufacturers and retailers that set minimum retail prices would no longer be considered per se illegal under federal antitrust law – i.e., illegal on their face. Rather, these agreements will now be assessed under federal law using a more flexible “rule of reason” analysis, an analysis that incorporates an agreement’s business justifications and market effects. 

Leegin will likely spawn new strategies designed to better align retail prices with brand objectives. One new strategy could involve manufacturers conditioning trade funds on retailers maintaining retail prices above minimum thresholds – referred to as a “conditional allowance” strategy. For instance, a manufacturer could offer a retailer $100 in promotional allowances provided that a product’s retail price does not go below a price floor. Any pricing below the floor would lead to a $10 reduction in promotional allowances. 

Prior to Leegin, federal antitrust enforcers disagreed as to whether a conditional allowance strategy constituted per se unlawful resale price maintenance or should be assessed using the more flexible rule of reason analysis. Leegin has resolved this debate in favor of the rule of reason analysis. Accordingly, the legality of a conditional allowance strategy under federal law now depends on two fundamental considerations by a court, both of which are discussed below: (1) whether a legitimate business justification for the strategy exists and (2) whether the strategy led to higher retail prices within a product category. 

First, a court will consider whether a legitimate business justification for the strategy exists – i.e., a justification that enhances a product’s ability to compete on the basis of service, quality, or price. Examples of business justifications for a conditional allowance strategy that a court may view as competition enhancing include: 

Encourage Product Support Investments: 
A conditional allowance strategy may be necessary to encourage retailers to invest in product-support services, such as in-store demonstrations of product functionality or attributes. Without a conditional allowance strategy, a retailer may not invest in any support services because its investment may benefit competitors that (a) make no similar investment, (b) free ride off the retailer’s effort to pique consumer interest in the product, and (c) undercut the retailer’s price. A conditional allowance strategy would encourage a retailer to invest in product support services by reducing or eliminating a competitor’s incentive to free-ride off the retailer’s investment. 

Reverse Base Sales Declines 
A conditional allowance strategy may be necessary to reverse a trend in which a product’s percentage of base (non-promoted) sales volume is declining and promoted volume is increasing. Deep retail discounts in the market encourage consumers to purchase a product only when sold on promotion. Accordingly, the more trade funds are used to support low promoted pricing, the more consumers will wait for a promotion to purchase a product. A trend in which a product’s base volume is declining and promoted volume is increasing threatens the long-term viability of the product: each year, a manufacturer will have to spend more in trade funds to support continued growth of the product. A conditional allowance strategy can help prevent or reverse base sales declines by encouraging retailers to use trade funds to support activities that build base business – such as special merchandising, shelf placement, distribution, or shopper marketing – rather than simply using trade funds to discount price. 
Support Brand Positioning: 
A conditional allowance strategy can help differentiate a product from lower quality competing products by encouraging retail prices that reflect the quality difference between the products. Considering that consumer perception of product quality is determined in part by retail prices, encouraging differentiated retail prices can enhance competition on the basis of product quality. 

Second, a court will consider whether a conditional allowance strategy led to higher retail prices throughout a category, including the prices of competing products. Higher retail prices for the majority of product sales within a category may be viewed by a court as an “anticompetitive effect” of a conditional allowance strategy. A court would balance any such anticompetitive effect against legitimate business justifications to determine the legality under federal law of the strategy. Absent any anticompetitive effect, and assuming the existence of a legitimate business justification, a court would almost certainly deem a conditional allowance strategy legal under federal law. 

Finally, manufacturers and retailers need to consider state laws before implementing or participating in a conditional allowance strategy. Individual states have their own antitrust laws. States tend to follow legal developments of federal antitrust laws, as state antitrust laws tend to be modeled after federal law. Therefore, most states will likely adopt the principles of Leegin in assessing agreements between manufacturers and retailers to set minimum retail prices. But certain states may reject the Leegin decision and continue to view such agreements as per se unlawful. It is thus important for manufacturers and retailers to work closely with counsel to structure conditional allowance strategies to maximize the likelihood that any state that rejects Leegin nonetheless assesses the strategy using the rule of reason analysis, as some flexibility exists to shape the legal framework such a state uses to assess the strategy. 

In late 2007, Senator Kohl introduced a bill to the Senate, which was co-sponsored by Senator Biden and Senator Clinton, that would reinstate the per se prohibition on minimum price agreements between manufacturers and retailers. 

See the Discount Consumer Protection Act, S. 2261 (available at www.govtrack.us/congress/bill.xpd?bill=s110-2261). If this bill is enacted into law, it would effectively reverse the Supreme Court’s Leegin decision. Industry stakeholders should track developments of the bill throughout 2008. 

This article was originally published in the GMA’s Forum magazine. 

Biography 

Daniel A. Kotchen is managing partner with Kotchen LLC, a law firm based in Washington, D.C. that specializes in representing stakeholders in the consumer goods and retail industry. To learn more about Kotchen LLC, including a consumer goods and retail industry litigation blog, go to www.kotchen.com. Mr. Kotchen can be contacted by e-mail at dkotchen@kotchen.com. 
IFBA Top to Top Draws Record Numbers 

The fifth annual IFBA Top to Top Executive Business Conference posted record attendance of registrants; topping 300 people in total attendance at their three-day event hosted at Caesars Palace, Las Vegas, NV on May 2-4. 

Some 54 manufacturer companies with 108 paying principals joined together with 56 IFBA and other NARMS member companies with 141 attendee registrants. Using a combination company/individual registration fee structure for the first time, the conference saw income grow by nearly 50% significantly from past years; fed also in part by a moderately successful Top to Top sponsor and advertising campaign. 

Unlike bygone days, hosting any event in Las Vegas turns out to be an expensive proposition but the great turnout to the 2008 IFBA event kept planners from over thinking their decision to follow the Food Marketing Institute’s (FMI) to Las Vegas from their traditional downtown Chicago location. Now with FMI moving on to Dallas with an educational focus; planning the next Top to Top is back to square one. 

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A gorgeous morning on the links at the Gold Course of the Golden Horseshoe Golf Club was a highlight memory for a number of the active participants in the 2008 Synergy/NARMS Golf Tournament. Despite a scary accident involving tournament host, Synergy’s Bill Lecznar, the tournament was a giant hit (sorry, pun intended!). Lecznar was hit with a ricocheted shot and spent the balance of Sunday in emergency care with an eye injury. We’re happy to report Bill returned to the meeting Monday in time to announce the featured launch of Synergy’s collaborative platform at the morning general session. 

Winning team awards were: 
1st Place: 
James Grass, Driveline Retail Services; Donald Bloom, Prime Retail Services; Michael Linck, Trend Source, Inc.; and Emily Kemmitz. 
2nd Place: 
Tom Caddell, Alliance Marketing Group Central; Chip O’Hare, JO’H New England/Albany; Jim Louder, Campbell Sales Company; and Steve Workman, BDS Marketing, Inc. 
3rd Place: 
Sean Murray, Legends, LLC; Mike Marano, Alliance Marketing Group; Paul Blackwell, A.I.M. Field Service; and Steve Deming, son of keynoter, Scott Deming. 

Taking home event prizes were Alex Lloyd, son of speaker Harold Lloyd and Mike Marano, Alliance Marketing Group; for being closest to the pin; Melissa Pugh, Kelly Merchandising Resources; and Jim Louder, Campbell Sales Company, for respective longest drives and Jim Nored, CROSSMARK Sales and Marketing for longest putt. 

Thanks to Synergy for taking on event sponsorship and all other companies who generously contributed to the event and we look forward to more generosity flowing for our 2009 event with early plans indicating a schedule change to a Monday afternoon event. 

Also, plans are being developed for a NARMS Service Expo to be staged Monday morning at the conference giving members a greater opportunity to share their story face to face directly with manufacturer and retailer principals. Stay tuned for more information as the program develops, but most importantly; mark your calendar now and make plans to join your fellow NARMS retailing industry associates at the 14th annual conference, April 4-7. Trade Promotion Management At a Crossroads: 
The Intersection of Law and Business 

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Why, you ask? Doesn’t every division of NARMS get affected the same? Not when skill sets to do what we do often make travel a “given.” The higher the skill set, the more likely we will have to travel them to remote sites, rather than risk sending in a less-skilled person. 

What about The Recruiter? you ask. It is an awesome way to find an individual with the needed skill set. The exciting new text-to-voice system makes it instantaneous. BUT, the challenge is how to “employ” them. PICs have an even more difficult time engaging the services of someone with a high skill set by treating them as an IC. With new info from NARMS, we know that misclassifying an individual as an IC can (if the bill passes), fine us up to $10,000 per individual. We need to constantly track that issue to assure we are in compliance, for it is a constantly-moving target. Or, once we find that person we need to pay them as a W-2 employee. 

So back to travel costs. None of us can boast an individual with every skill set in every geographic location. So, travel is typically an integral part of a PIC’s cost structure. Travel is more costly than ever in history. If we also provide for the logistics, we are clearly the hardest-hit. The task of dealing with the issue must start with our contractual agreements. Gone are the days when we could risk a few cents change in fuel from the time of our quote to the time of the project. 

Let’s look at some simple math. 

There is a typical baseline of $1.20/gallon and it is assumed large trucks get 5 MPG. Thus, the surcharge is the difference between current retail fuel prices and the baseline. Divide by 5, i.e. at $4/gal, calculation is $4.00-$1.20 = $2.80. Take $2.80/5 to get $.56/mi fuel surcharge. 

Fuel at $4.25? 
Surcharge = $.61/mi. $5.50? 
Surcharge = $.66/mi. 

In preparing our contracts we first need to look at a reliable data source, such as the web site of Transportation Business Associates (tbabz.com), to get a documented rate for today’s fuel (gasoline or diesel). We need to state that rate in our contract and make sure we remember to track fuel costs during the project and re-bill it after-the-fact. (It is easy to forget fuel surcharges in final billings, but forgetting means huge margin erosion). 

CUSTOMER REACTION: In the past I experienced predictable push-back. Today, it is almost a “given” that fuel surcharges will occur and so far I have not had a single refusal to pay. Again, it needs to be part of the original contract, first and foremost. 

NARMS TO THE RESCUE! 

We should be thankful to NARMS for more reasons than I can list, but these are the key ones for me on this subject: 
NARMS keeps us abreast of the latest legal issues that are so easily missed or forgotten in our hectic pace. 
NARMS provides a huge reservoir of individuals (The Recruiter) to assist us in bolstering our field staffing. It is up to us to employ them properly (or know that they are indeed established ICs) 
NARMS brings us together. The relationships we build at Spring Conferences, trade shows and other events hope help us sort out those with whom we can trust and partner. 

As fuel costs continue to escalate to heights we never imagined, those ever-important relationships of trust (see #3 above) may be our best way to meet our customer’s needs at affordable rates. 

PIC services impacted by Rising Fuel Costs: 
Assemble and install gondolas, wall units and point-of-purchase 
ATM Cleaning Maintenance and Compliance Audits 
Casework 
Complete general contractor services - interior buildouts 
High-End Architectural Millwork/Casework 
Hotel and Hospitality FF and E Installation/Management 
In-home assembly services 
In-Store Assembly Service, i.e. grills, wheelbarrows, bikes, etc. 
Install graphics, signs, and decor packages - interior 
Install prefabricated units 
Laminating 
Manage millwork, electrical, plumbing, distribution, etc. 
Millwork Trim Package 
Project Management Applications 
Project Merchandising 
Retail Assembly of Sporting Equipment 
Site Surveys 
Solid Surface Certified 
Store Planning, Design and Layout 
Store resets, retrofits and remodels and new store set-ups. 
Technology and Multimedia Installation 
Warehousing and distribution 
Web-based Warehouse ManagementGlobalShop: Where New Ideas & New Business are Born! 

Billed as “Where Retail Design & Technology Converge”, the GlobalShop Show returned to where it began in Chicago in 1993 and had stayed in its first ten years. Utilizing the new McCormick Place West Building, the GlobalShop Show is hosted by Nielsen Business Media and boasts of being the “world’s largest annual store design and in-store marketing event.” 

NARMS International jointly sponsors the show with A.R.E. (formerly The National Association of Store Fixture Manufacturers, NASFM), Point of Purchase Advertising International (POPAI) and The National Association of Display Industries (NADI). 

Over a thousand exhibitors, including nearly 30 NARMS member companies participated in the 2008 trade event; gaining exposure to the reported 16,000 show attendees from across multiple continents. 

One interesting conversation to report out of the Retail Marketing Services show area involved the booth visit by the owner of an event marketing company from South Africa. 

A first time U.S. and GlobalShop visitor, this company owner had walked a good share of the show and hadn’t connected; even once, with her “target” of event marketing peer. Told she was in the right place, the company exec then met and held extensive conversations (came back a second day) with both NARMS staff and member company representatives present to exchange understanding of how event marketing and demonstrations serve as key marketing tools, particularly for brand managers. 

Encouraged to review the event marketer member list at www.narms.com and to consider joining NARMS, this global visitor soon gained insights and contact information from companies in the same realm of business. And true to form, through face to face conversation, both real and imagined differences brought on by thousands of miles of another hemisphere and some cultural and economic differences pretty much melt away. 

Other show successes include inter-connection between exhibiting companies leading to exploring new business together. Sometimes what seems to be “downtime” when show goers are limited can be good conversation time and learning about your show neighbors. Often new business opportunities arise where you’d least expect them! 

Also, if you have ever doubted, never underestimate the value of your show presence and booth details. Past NARMS chair, Kit Moss of Kit Moss Productions, reports that literally the fabric on the booth backdrop at GlobalShop, constructed by KMP, resulted in conversations that may involve Kit’s company developing customized class modules to be conducted in their stores. “It was the background fabric that caused them to stop by,” notes Kit Moss. “It was a blue background with little clouds appearing throughout. They carry that fabric in their store and noticed it immediately. That was the ice-breaker leading to conversations of marketing helps that they didn’t feel they had the staff or expertise to deliver on classes that will be beneficial to their customer base.” 

In addition to show co-sponsorship, NARMS involvement includes a show booth and hosting an educational session as a part of the extensive (32 sessions in 2008 which reached an expected 5,000 people in educational venue) effort to help attendees gather additional information in support of the retail process. Facilitated by Mark Hunter, (Mark@TheSalesHunter.com), Omaha, NE; the NARMS sponsored session featured panel discussion concerning “Category/Consumer Centric Merchandising – The Future of Retailing”. 
The GlobalShop Show now returns to the Sands Expo Center in Las Vegas, NV for its annual exposition on March 23-25, 2009. Designed to be a retail B2B expo; interest in GlobalShop and demand for exhibit floor space in 2008 created waiting lists in both the At-Retail Marketing and A.R.E. (store fixturing) pavilions. NARMS witnessed growth of exhibit space of over 32% in the Retail Marketing Services area of the show in 2008. 

Additional NARMS member companies should consider exhibiting/attending GlobalShop but will need to make early decisions concerning acquiring booth space. For more information, simply go to www.globalshop.org. 
2008 Spring Conference: 
A Colonial Success 

A tightening economy may have held back attendance numbers slightly for the 2008 NARMS Spring Conference but certainly didn’t dampen the enthusiasm shared by those at Colonial Williamsburg in Virginia on April 12-15. An opening session visit from “Thomas Jefferson” helped kick off this year’s event; with record trade show exhibitor numbers reported with products/services offerings taken to new heights in creativity; outgrowing the traditional pipe and drape, table-top display experience. 

Changing travel costs and policies might have discouraged some from attending the 13th annual gathering of NARMS retail service leaders, as registration numbered 370 persons from well over 150 member companies, down a bit from 2006’s record attendance of 478. Session attendance and enthusiasm remained at high pitch, with session leaders remarking on the positive attitudes and optimistic outlooks from conference attendees. 

Sponsorship continued strong for the 2008 event, with contributions exceeding $90,000 and rivaling last year’s record support. 33 sponsor slots were filled in all, with special thanks to platinum sponsor – Driveline; gold sponsor – Mosaic; silver sponsors – Prism Retail Services and DAVACO and major contributor, Synergy Systems, Inc. for their exceptional generosity. Without sponsor dollars, registration fees would need to increase significantly in order to deliver similar speaker expertise and program topic offering diversity. 

Plans are now underway for the 2009 event, scheduled for The Broadmoor, Colorado Springs, CO. With conference programming still in initial stages, ideas for speakers and breakout session topics are welcome; plus you can check out the promotional video at www.narms.com. 

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This desire led us to believe that by staging our Manufacturer’s meeting the day before (Saturday) the conference really began would work better for us all. Instead, we discovered the extra night out prohibited the group from having the normal turnout. A lesson learned! Our Manufacturers’ group will carve out a time to meet during the regular conference time schedule next year at The Broadmoor. 

Although the group was small in numbers, the take-away was ….large! 
The discussions were relevant. The ideas, shared and discovered, I found to have immediate impact. The fruit of this meeting is enough to warrant any Manufacturer to participate in NARMS. 

The conference’s general sessions were strong from the start. Just as the business week is an extension of Monday, conferences must begin with something that sets the desired tone. Thomas Jefferson’s welcome was patriotic and reassuring – serving as a reminder to us all the role business plays in our culture. 
Harold Lloyd’s presentation was as entertaining as it was packed with great ideas. Lloyd reminds us; great ideas have more to do with creativity and commitment than capital outlays. Have you ever noticed how conferences become so much more enjoyable once we have obtained enough good ideas to justify the costs (time, travel and $$) of attendance? Teters Floral Products’ cost of attending was met during Lloyd’s presentation. Thank you, Harold, for picking up the tab for my trip! 

Most of us in the Manufacturers’ group think of Mark Hunter as our very own facilitator or mediator. If you attended his “emerging trends” seminar, you know he is much more. Hunter’s observations ranged from Chicago to Beijing concerning our retail environment. Much like “The Babe calling his shot”, Hunter announced the Beijing factory shutdown for the Olympics 90-days in advance. He gave us ideas for lead generation as well as developing parameters to apply for staying power relating to retailers. 

Although I have mentioned only a couple of the speakers by name, please don’t reason that other speakers were less relevant. Actually, this conference possessed the best collective group of presenters ever! 

But, as strong as the conference was, the even greater strength of attending occurs between sessions. The meetings, both by chance and appointment; before and after sessions, are the “hidden” reason for being there. Visiting with other manufacturers and MSO’s often offers as much insight to the industry as anything formal. 

We have very few opportunities to float ideas and ask questions in our everyday work environment. During a NARMS conference we have the opportunity to engage in discussions with the consumer sales giants or top service providers. The words “giants” and “top” are a reference to the membership’s commitment to excellence, not necessarily volume of business. (Although the surroundings at the conference tempt us to break away; I encourage staying plugged in to reap the maximum benefit.) 

The exhibitors also play a vital role in that they help defray the cost of the conference. More importantly, our exhibitors come with products that may radically improve our efficiency. Product categories range from recruitment tools to travel services and so much more. We are currently entertaining three commitments that could significantly improve our business model. Time will tell if we are able to go forward with any of these suppliers; however the mere prospective prove that the NARMS conference offers a great opportunity to explore ideas with a wide range of suppliers and products. 

This past conference was a great success. Now is the time to be planning the success of next year’s conference. I would be interested in hearing any ideas from the Manufacturers’ group that would improve the conference. Please feel free to e-mail or call with your suggestions. 

Kelly Baker 
1-800-999-5996 
kellyb@teters.com 

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If you are in Retail, you had better have your Green products, and your Green designated categories, or you are missing the whole Sustainability Surge. 

Well, on the MSO committee, we are contributing to the Green effort, because we know everyone else on the committee is “Green with Envy” that Carols & I have been chosen to Co-chair the MSO committee for 2008. Well, maybe we are stretching the Green thing a little………… 

We have been handed the “MSO case cutter” from Steve Donzelli and Christian Warren. We would like to thank Steve & Christian for their efforts last 2 years in making the MSO committee a fun and productive committee. They organized and planed a tremendous Spring Conference this last April in Williamsburg, VA. 

We hope everyone enjoyed the Spring Conference in Williamsburg, VA. this year. Our first MSO Session “A conversation with Retailing Thought Leaders” was very well attended and offered some great insights into Retailing today. We thank Phil Lauria for facilitating this session. Our Breakfast session with Don Unser from Hewlett Packard was quite informative as Don spoke about “How an MSO Company becomes indispensable to a Manufacturer Company”. As usual our “2008 Emerging Trends” with Mark Hunter as facilitator was “standing room only” and offered some insightful thoughts on what is happening today and in the next year in Retail. We finished off with a session presented by Beth Goldstein entitled “The So What Factor in Effective Sales Penetration”. This session shared some very enlightening ways to differentiate yourself with your customers. There were some tremendous General Sessions as well this year and we all had the opportunity to dine in old Colonial Virginia on the last night. 

Our 2008 committee will be meeting this summer to focus on these and other objectives: 
• Finalize the MSO Benchmark survey results to release to the membership. Please take the time to complete this survey if you have not already done so. This is a very important survey for our industry that provides you with information you can use to validate the credibility and the value of your company and the service you provide. We had a very poor response on the initial release of the survey, we appreciate you completing it, all responses are confidential. The survey only takes 15 minutes to complete. Simply use the link at the top of the MSO page at NARMS website at www.narms.com. 
• Finalize approvals and release of the NARMS MSO Training Manual. We want to thank Steve Wilkinson for his hard work in updating and driving this project. 
• Begin planning the 2009 spring conference at The Broadmoor in beautiful Colorado Springs, CO. 

Our committee has 6 new members this year, due to a few moving on to the Board and a few moving on to new careers. We are always looking for members who might be interested in getting involved with the MSO committee. Please send an email with your contact information to dborschke@narms.com. 

We are proud to present the 2008-2009 MSO (Merchandising Service Organizations) Divisional Committee 
Committee Co-Chairs: 

Carlos Roca 
CEO/President, Merchandise & Audit Services, Inc. 

Steve Workman 
VP Customer Development, bds mktg 

Committee Members: 

Robert Boyles 
VP and GM Retail, MarketSource, Inc. 

Robert Heckel 
VP-Retail Field Services, Crossmark Sales & Marketing, Inc. 

Jill Shadwell 
Director of Client Services, Chuck Latham Associates 

Steve Crandall 
President, Retail Services, Inc. 

John Gillis 
Vice President Operations, Aisle One Merchandising 

Tabitha Williams 
Vice President, Lawrence Merchandising Services 

Mark Weber 
VP, Client Strategy, Prism Retail Services 

Steve Wilkinson 
President, MAP (Multi-Merchandising Action Professionals) 

Tom Armstrong 
VP-Retail Strategy, Premium Retail Services, Inc. 

Gerry Demple 
VP-Service, MTI - Merchandising Technologies, Inc. 

Board Liaison: Tory Edge 
Dir. Business Development, Beacon Merchandising Group, Inc. 

Staff Liaison: Dan Borschke 
President/CEO, NARMS InternationalManufacturers  

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