July might seem like a million days away from the dead of winter, yet in coming months — and even now — many distributors are gearing up for preseason ice melt sales. Once winter is here, distributors educate customers on essential training issues, such as application and the consequences of overuse. By packaging ice melts with a variety of other items, smart distributors also know they can retain and even increase their annual ice-melt sales.
“For most of our larger accounts, if they haven’t ordered by August or September, that means they have committed to someone else,” says Bob Gannon, sales director for Maintenance Products Corp., Canton, Mass.
Distributors know it’s difficult — if not impossible — to deliver on the same day it snows because of truck availability and the volume of calls. “Preseason ordering allows us time to deliver,” says David Smith, vice president of Ann Arbor Cleaning Supply Co., Ann Arbor, Mich.
Gannon agrees. “With the first snowflake, all of our customers call at once. We don’t have enough trucks to accommodate their orders. Preseason sales give us a window of delivery time — about one to two weeks,” he says. Such preseason deliveries are typically made starting in mid-August or September.
Foley Distributing Corp. in Rutland, Vt., takes a slightly different approach. In early fall, its customers might receive a flyer in the mail to remind them of the upcoming season, but Foley Distributing doesn’t push for pre-ordering.
“We focus on getting preseason commitments,” says Mark Foley Jr., general manager. “We preseason sell, not order,” he explains. Foley Distributing strives to be a single source of supply for its customers. “We focus on our existing customers and existing market. We make sure the customers know we can meet their demand,” he says.
Early Birds Win
Because many customers wait until the last minute, distributors often offer end users incentives to get orders in early. They sometimes run preseason sales or package ice-melt products with other items.
These sales tactics not only increase sales, but also encourage repeat sales. And even though many facilities are already on a current buying program, distributors can still push for add-ons.
“Typically, customers will receive a preseason price and will take advantage of our delayed billing — they don’t have to pay until November 1st,” explains Smith.
Customers also get a more-than-likely guarantee that ice-melt products will be in stock, adds Smith. A guarantee that fades as winter approaches.
Although higher-volume customers tend to order in advance to stay prepared, their orders depend on previous winters. “Customers won’t order early if they still have three-fourths of last year’s stock sitting in their warehouse,” notes Smith.
Jan/san distributors have learned that it takes add-on sales to increase profitability, no matter what the product category.
Maintenance Products packages their ice-melt products with a variety of other merchandise. “We add on spreaders, shovels, scrapers and gloves,” says Gannon. Smith explains that before snow begins to fall they suggest entryway mats to every ice-melt customer.
Some end users just won’t order early regardless of promotions or discounts. “Unfortunately, the reality is that most customers wait to buy,” says Foley.
Too Hot, Too Cold or Just Right
After monitoring existing customers’ buying patterns, distributors have to consider a number of things before placing their ice-melt orders with manufacturers. Besides taking into account the weather trends of previous winters, distributors also look at who their customers are and how much they order on average.
Trying to predict weather and foresee the amount of needed stock is a game that distributors play each year as they try to balance sales and inventory.
“Ice melt is a seasonal product and we are not a seasonal business. Distributors often forget that with seasonal items you have to closely watch your inventory and stock levels and be careful not to order too much or too little. To do this, you have to be in close contact with your customers and manufacturers,” says Foley. “It’s an item that we only pay attention to four months out of the year, but we really need to be looking at it as much as we do a 12-month product.”
“Calculating the right amount is typically a bit of a problem each year,” admits Smith. “We start out with a truckload or two and that cements availability for our customers.”
Distributors have learned to be cautious in the ordering process — they try to keep a balanced supply of stock. Maintenance Products’ ordering philosophy mirrors that of Ann Arbor Cleaning, even though they are located in different regions. “We order a few truckloads at a time and keep a minimum of at least one load in stock at all times,” says Gannon.
“The key is not to buy all at once,” says Foley. “We keep a stock order inventory at the beginning of the season and also order based on seasonal forecasting.”
However, most distributors will agree that last winter was harsher than average. Previous seasons were a lot milder. “We usually take a close look at the type of year we had last season and order similarly. But, we aren’t putting too much faith in the high demands of last winter. Therefore, we work closely with manufacturers that can meet our supply demands,” adds Foley.
Dreaming of a White Carpet
Many customers want a combination of features when it comes to ice-melt products. While many times jan/san products are price-driven commodities, price issues are often secondary when it comes to end users purchasing ice melt. The bottom line is customers want to know what different products can and cannot do.
“End users look at both price and effectiveness. Most of the people we survey and see, particularly those in retail or high-traffic areas are told by maintenance people to ‘put it down and make sure walks are clear.’ They usually follow that,” says Foley.
“Customers look at quality, availability and price — all in that order,” says Smith. Price doesn’t even play a role when there is no demand for it, he adds.
All in all, end users most often want a product that does what it says it will, is there when they need it, and that isn’t costing them an arm and a leg.
The distributors SM interviewed said they definitely encourage the purchase of environmentally-friendly products; however, customer buying habits don’t always reflect their good intentions.
“Everyone mentions [environmental concerns] preseason, but in-season they just want whatever they can get their hands on,” notes Smith. Regardless of what month it is, Ann Arbor Cleaning stocks and sells the same type of product all year — a type of ice melt that doesn’t harm vegetation or concrete.
“We are part of a pretty ‘green’ marketplace and environmental concerns are important to the customer, and most responsible manufacturers are marketing products that do not damage the environment too significantly; however, customers don’t see it as a value-added selling feature,” Foley notes. A product that is 10 percent less harmful to the environment is not going to necessarily change a customer’s buying habits, he says.
Carpet tracking is another big issue that relates to ice melt sales.
“Everyone wants a product that works like crazy and doesn’t track,” agrees Smith. Generally, tracking isn’t too big of a problem; if it is, it usually is caused by product overuse, he explains.
Proactive customers that act on the advice of their distributors can easily remedy such problems. For example, distributors might suggest more intensive indoor cleaning routines for carpet problems.
“Tracking can be remedied by changing door mats on a daily basis — if that’s what’s needed — or very intensive carpet maintenance to keep up the appearance,” he says.
Basically, all customers want the same things: safe outside walkways and clean inside entryways.
Trainer Know-How
Product application and prevention of overuse are the main issues customers need training on. Distributors say the best way to educate is on an individual basis, because not every end user is having the same problem.
Customers are educated separately depending on the type of environment their facility is in, says Gannon. For example, if a customer is using too little or too much of the product, then Maintenance Products will suggest using a spreader for even disbursement, he explains.
Distributors first need to recognize the problem to offer a feasible solution. If a customer comes in with a tracking problem, we can guess it is from overuse, so we train them on correct application methods, says Smith.
“Another mistake is that customers think that using extra product does a better job. We explain the reasons why that is not true,” says Gannon.
The best thing to do is educate the customer on types of situations that can occur, like carpet tracking and problems with dirty floors, and let them make an informed decision, Foley says. “What they do often depends on the facility. Public areas like hospitality locations and hospitals want to keep floor cleans at all costs,” he adds.
Although overuse and misapplication are the two most common mistakes that distributors see, distributors should keep in mind that not every customer necessarily makes those. Experienced and knowledgeable distributors ask their customers questions in order to offer the best solutions.
It’s a balance of education. Distributors should focus end-user training on application, overuse and preventative strategies such as intensive indoor floor maintenance, suggests Foley.
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What is the most significant factor that affected ice melt sales last year? And what do you expect to affect sales this year?
“Weather is always the most significant determinant of ice melt sales. We got hit pretty hard in December. Many suppliers had a hard time getting raw materials to package; therefore jan/san distributors were shorted or couldn’t get product at all. CP Industries has contracts with suppliers to ensure raw material supplies,” says Tracey Lloyd, sales and marketing, CP Industries, Salt Lake City. |
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What are your three most successful marketing and/or sales strategies when it comes to ice melt?
“Preseason spiffs and programs are important to secure sales. Also, it’s important for the distributor to have a secure source for product for the time when weather hits hard. Great product is important so distributors can supply their customers’ every need. Capability to provide products during the heaviest storms and longer into the spring to cover spring snowfalls,” says Lloyd. |