It only seems that way...

One of the most intriguing things about a market as small as ours is that we all know each other--or at least we think we do. We each create a "public" persona that others reference and from that try to predict future behavior.

I have that in spades--people have me pegged as a misanthrope, a fatalist, perhaps even a defeatist because they read the blog and think I have these suicidal thoughts all the time--and never more so than after my most recent post.

Just a minute...

I happen to believe the market is incredibly vibrant, and lucrative, and has an incredibly bright future, and you should too. Things are pretty great these days for those companies that devote resources to the market and to its future.

There are so many ways to make money in our business, and it's evidenced by the variety of practitioners that play in the market. Distributors, Reps, Multiple Resource Coordinators, Gift Card types, Retailers, just about everyone can get a piece of the American Dream these days.

But all is not Strawberries and Cream and as a group we have an obligation to hash this stuff out so we don't get blindsided by forces within and outside our purview. While it may not be "optimistic" to talk about the challenges facing us, it helps us understand the stakeholders that influence the market. To ignore them is to run the risk of being rendered obsolete and/or ineffective.

Am I concerned about the preponderance of casino programs, and their relative share of the market? You betcha. But while this train is on the tracks I plan to pour as much coal into the engine as I can scoop because it's the train we're all riding. When it runs off the rails (as the Pharma business did, and the Financial Services did, and so forth) we'll find another train that will take us where we want to go.

That's the beauty of our market--everyone's our customer and sooner or later we'll find one group that is in ascendancy while others fall. And when we ID them, good things happen.

But let's keep this our little secret. I'm always amazed at the incredulousness of my Retail counterparts--they can't believe we actually get paid to do this stuff and they'd cut off body parts in many instances to be us for a while and get away from WalMart.

So, we need a Secret Handshake, or a High Sign that identifies the Playas from the Wannabes. Any suggestions?


Pete

And now, a word from Vince Lombardi...

Vince said it best:




Yeah--what indeed? An informal survey of reps and suppliers says that business is "tough". Now, before anybody starts playing the violins 2008 is not as good (so far) as 2007 because 2007 was a very good year.

But it's such a bizarre time right now--and it's in no small part because of the "transparency" of most Brands. Simply put, there are so many ways to access Branded merchandise that the incentive market "specialists" are in full competition with our own companies. This does not bode well.

One trip to Amazon, or to Google will get the customer any amount of information about just about any Brand you care to mention. You say the Special Markets Manager at Brand X is uncooperative? The Hell with him--let's go buy it at ourpricesareinsane.com. Don't like the prices you're paying from the Premium Rep? No worries--log onto webuyitbetterthanyou.com and you're good to go.

Looking for the Prime Example? Look at Apple iPods. Hysterical demand. But there are so many places to access iPods it's crazy. And pity poor Incentive Concepts, who actually has an agreement with Apple to distribute it into our channel. So clients decide not to go through the front door and instead find it everywhere.

It's all because our market has zero barriers to entry. How many times have you seen a Brand enter our market at some trade show, then exit soon thereafter? It's because it didn't cost them much to enter our business and it costs them even less to exit it.

And here's the REALLY scary part: Take away the Channel Specialist from any Brand and you know what happens? Nothing-for a period of time. The momentum we build up within our Divisions will go on even if we exit. Yeah, yeah--sooner or later the Brand will suffer from a lack of leadership and vision, but how much suffering?

Any Special Markets Manager should be materially concerned about this, and at some point all Brands start wondering if the fixed resources spent in our market might not be better used elsewhere. And don't hit me with the "we make more profit" argument--because that's not how it's being viewed by senior management.

It's not "how much profit are we getting?"--it's "how much business would we still get even if we don't spend ANYTHING in that channel?" and the answer might be "more than you think". Take me away from Samsonite's business and for a year, maybe 18 months we might not lose all that much business. And think of the fixed costs we'd save.

Vince is right--and as Professionals we need to consider new arguments to keep our companies interested in our market as a viable, internally-managed business. We're all one phone call from going away...


Pete