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Maximize DSD Sales Revenue

Business Solutions Magazine

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By Business Solutions magazine

What's your approach to selling DSD solutions? National Datacomputer, Inc. (NDI) has an approach that seems to be working. The integrator is on pace to exceed 60% sales revenue growth in 2008 by selling its DSD solutions (which include O'Neil Product Development mobile printers, Motorola handheld mobile computers, and Micronet Route Rider LE software). NDI focuses exclusively on the food and beverage vertical (i.e. companies delivering soda, beer, coffee, tea, water, bread, and snacks), and, despite its small size, the 20-employee shop is able to sell its solutions across the United States. This success can be attributed to two things — the integrator's marketing program and sales process.

Is Your DSD Marketing Effectively Creating Leads? According to Steve Bergmann, director of product marketing for NDI, his company uses multiple marketing methods to maximize its number of potential leads and gain mindshare among prospective customers. First, the integrator uses direct marketing methods that include telemarketing, e-mail marketing, direct mail, and trade show exhibition. "We outsource our telemarketing and direct mail, often relying on marketing development funds from partners such as value-added distributor (VAD) Avnet," says Bergmann. "As a small company, it's very labor-intensive to get our message to the right people and primary decision makers. Eight hundred contacts [which include about three touches to each] cost us approximately $5,000 per campaign." Bergmann also reveals that in several recent telemarketing campaigns with support from Avnet, one deal alone netted a $1 million project.

NDI also exhibits at industry trade shows throughout the year. Bergmann says that the integrator belongs to various associations dedicated to the food and beverage markets. "It's important to be able to track trends in your verticals and then use those trends as predictors of how your DSD solutions need to change over time," he says. While NDI primarily focuses on national shows such as SNAXPO in March and InterBev in October, the integrator also attends regional shows if there appears to be good value in attending. Bergmann estimates that the cost of a trade show booth at a national show ranges from $5,000 to $15,000. Regional shows are less expensive, averaging $3,000. On top of booth costs are additional expenses such as shipping, collateral, electricity, carpeting, etc., not to mention travel expenses, and tying up key personnel for the better part of the week. With all these associated costs, is it worth it? "We get about 20 leads per show," reveals Bergmann. "Out of those 20, only a few have the necessary budget and are immediately ready to discuss their needs."

Used with permission from Business Solutions magazine