Promotional Merchandise Quotes

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The electronics effort faced even greater challenges. To launch that category, David Risher tapped a Dartmouth alum named Chris Payne who had previously worked on Amazon’s DVD store. Like Miller, Payne had to plead with suppliers—in this case, Asian consumer-electronics companies like Sony, Toshiba, and Samsung. He quickly hit a wall. The Japanese electronics giants viewed Internet sellers like Amazon as sketchy discounters. They also had big-box stores like Best Buy and Circuit City whispering in their ears and asking them to take a pass on Amazon. There were middlemen distributors, like Ingram Electronics, but they offered a limited selection. Bezos deployed Doerr to talk to Howard Stringer at Sony America, but he got nowhere. So Payne had to turn to the secondary distributors—jobbers that exist in an unsanctioned, though not illegal, gray market. Randy Miller, a retail finance director who came to Amazon from Eddie Bauer, equates it to buying from the trunk of someone’s car in a dark alley. “It was not a sustainable inventory model, but if you are desperate to have particular products on your site or in your store, you do what you need to do,” he says. Buying through these murky middlemen got Payne and his fledgling electronics team part of the way toward stocking Amazon’s virtual shelves. But Bezos was unimpressed with the selection and grumpily compared it to shopping in a Russian supermarket during the years of Communist rule. It would take Amazon years to generate enough sales to sway the big Asian brands. For now, the electronics store was sparely furnished. Bezos had asked to see $100 million in electronics sales for the 1999 holiday season; Payne and his crew got about two-thirds of the way there. Amazon officially announced the new toy and electronics stores that summer, and in September, the company held a press event at the Sheraton in midtown Manhattan to promote the new categories. Someone had the idea that the tables in the conference room at the Sheraton should have piles of merchandise representing all the new categories, to reinforce the idea of broad selection. Bezos loved it, but when he walked into the room the night before the event, he threw a tantrum: he didn’t think the piles were large enough. “Do you want to hand this business to our competitors?” he barked into his cell phone at his underlings. “This is pathetic!” Harrison Miller, Chris Payne, and their colleagues fanned out that night across Manhattan to various stores, splurging on random products and stuffing them in the trunks of taxicabs. Miller spent a thousand dollars alone at a Toys “R” Us in Herald Square. Payne maxed out his personal credit card and had to call his wife in Seattle to tell her not to use the card for a few days. The piles of products were eventually large enough to satisfy Bezos, but the episode was an early warning. To satisfy customers and their own demanding boss during the upcoming holiday, Amazon executives were going to have to substitute artifice and improvisation for truly comprehensive selection.
Brad Stone (The Everything Store: Jeff Bezos and the Age of Amazon)
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As soon as a suitable location was found for a franchise, he was given two weeks to design the store, paint it, install coolers, shelves and counters and arrange merchandise. Nothing could get in the way of him attending opening day for each store, which always took place on a weekend. “I loved that moment. You could feel the excitement of everyone waiting outside before the doors opened.” The energy was that much higher when Perrette promised a complimentary milk jug to the first 500 clients and granted specials on other products, to promote the full range of their offerings.
Guy Gendron (Daring to succed: Couche-tard & Circle K convenience store empire)
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Justin Williams
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Justin Cronin
To this day, the promotion of Extra Large AA eggs is one of the foundations of Trader Joe’s merchandising, not just because of the program per se, but because it set me to wondering whether there weren’t other discontinuities out there in the supplies of merchandise. Eight years later, we built Trader Joe’s on the principle of discontinuity.
Joe Coulombe (Becoming Trader Joe: How I Did Business My Way and Still Beat the Big Guys)
We created and registered a new brand, the ‘Barça Toons’, a cartoon version of all the players in the first team. We started using them to promote match attendance and they ended up having their own range of merchandise. In order to increase its dissemination and legitimacy as a club brand, we started the tradition of giving every new player his own Barça Toon at every presentation press conference.
Esteve Calzada (Show Me the Money!: How to Make Money through Sports Marketing)
They expanded quickly without building the organizations and the support—such as distribution centers—needed to expand those companies. They didn’t get out into their stores to see what was going on. Then Kmart got their machine in gear and began to do it better and better. I remember going in their stores—I’ll bet I’ve been in more Kmarts than anybody—and I would really envy their merchandise mix and the way they presented it. So much about their stores was superior to ours back then that sometimes I felt like we couldn’t compete. Of course that didn’t stop us from trying. And Target came along and did a fine job, taking the whole idea a little more upscale. As these big operators became more organized, the competition grew a lot more difficult. That’s when all those guys who were failing to meet their customers’ needs and who didn’t build strong organizations—all those promoters—started to fall apart and, eventually, fall out.
Sam Walton (Sam Walton: Made In America)
To keep my forward thinking on the track, I’ve divided my job into four elements: customers, employees, merchandise, and promotion. All during the week I make notes and jot down ideas as to how I can improve my business.
David J. Schwartz (The Magic of Thinking Big)
Owing to the ever-increasing pressure on space, as retailers continue to extend private label ranges, there is a risk of branded products being moved to less-optimal locations, having fewer promotional slots and facings or being delisted. Manufacturers cannot wait for this to happen before reacting; they must be proactive in making the case for their brands. While the absolute cash and margins on private labels may be higher for the retailer, the manufacturer has to shift the focus to total system profitability. Many factors favour manufacturer brands when total profitability is considered, including: Sales velocity: Shelfspace turnover is often higher for manufacturer brands. The velocity of leading manufacturer brands is often 10% higher. Profit per linear inch of shelfspace. Discounts and off-invoice allowances: Includes slotting allowances, listing fees, promotional deals, advertising and merchandising allowances, and credit for return of unsold merchandise. Promotional and advertising fees. Provision of ‘free’ logistics services: Includes transportation, warehouse and store labour, and merchandising help for the retailer. Manufacturer brands usually retail at higher-than-average prices: Even when the net margin on manufacturer brands is lower, the absolute cash profit per unit may be higher.
Greg Thain (Store Wars: The Worldwide Battle for Mindspace and Shelfspace, Online and In-store)
Then came a rather surreal exchange about Joy Division T-shirts, with us proudly proclaiming we did not sell merchandise because we didn’t believe in self-promotion of any kind, preferring to let the music speak for itself. ‘Rubbish,’ boomed Scotty. ‘How come wherever I go I see Joy Division and New Order T-shirts, worn and for sale, eh?’ Now, we had no idea where he was going to see these things, but we were all speechless anyway. He continued, ‘I don’t believe you, and will be fining you accordingly.’ So we would get fined £10,000 for not doing our own T-shirts.
Peter Hook (Substance: Inside New Order)