I had the opportunity to go to a very cool event put on by Highland Capital Partners yesterday on businesses changing or starting out with new business models on selling. The basic premise was software companies eliminating outside sales forces for inside sales or raving customer service. The companies changing their businesses were primarily in enterprise software. The founder at Trilogy is now acquiring companies for cents on the dollars with good technology and then firing the entire sales team. He estimates all of the legacy sales teams are losing money on every sale. So, he has focused on existing customers to improve their experience and renew contracts interacting only with inside sales reps that are more efficient (one location and better tools), more knowledgeable(training and expertise on site) and cost less (at the least, they save the travel and expenses!).
The companies that are starting out as Sales 2.0 organizations were FreshBooks and Constant Contact. Their stories are well documented and copied in a lot of industries. They offer a great simple service for small businesses, they market extremely efficiently with tons of data and have recurring revenue models (that help it all make financial sense). Adding in a creative approach and focus on satisfaction they are both doing incredibly well.
So, lots of great stories and insight into what works for other industries but unfortunately hard to transfer to the embroidery and screen printing industry except one overriding theme......happy and even raving customers are the key success to any business.
Joe from Trilogy mentioned that with one company they bought; 90% of their customers 'hated' the company......and they only survived through contracts and basically trapping their customers. treating a customer as an adversary or someone you trap is luckily a thing of the past. Making customer sooo happy they refer you is the next challenge.
In that regard, starting the day after christmas we will offer $35 custom digitizing for any left chest (normal) size logo. Some folks offer custom embroidered digitizing for Free but we'll let you download it and take it to any vendor you like.....thus eliminating forever the inherent "trap" in the embroidery business and eliminating switching costs.