Be Careful Whom You Trust With Advice
It’s important to see why someone would push you to use one company over another.
You have to ask…. What is their motivation?
Most retailers have long and mutually profitable relationships with the professional sales reps that call on them. Over the years, they usually develop strong friendships, founded on trust and
Sales pros that recommend PFP do it for the right reason
honesty. The hundreds of sales professionals, that recommend PFP, do so because they feel that we are the best company to assist their customers. They know that by using PFP, they have the best chance for recovery, whether it’s to save a struggling business, or to use the PFP copyrighted “What If?” program. A “What If” promotion allows a store to completely reinvent their business model with a relevant and profitable new structure. Bottom line, if a sales representative recommends PFP, they’re doing it because they believe we can help, not for their own remuneration. The most they can hope for from PFP is orders to support a sale, but even then, we only buy lines that are “right” for an event and that provide outstanding value.
As an example, we see a lot of correspondence going to sales reps like the following letter sent by a promoter. Unfortunately, these “lead fee” programs are very common. The point is, it’s important to understand the motivation of the person that may be pushing one promoter over another.
The following is a letter that was emailed to hundreds of sales reps nationwide. This is only one example, we’ve seen many….
PROMOTER LETTER (NOT FROM PFP):
When you give us a referral, here is what you can expect from (Company Name Removed):
The majority of you have been in your respective territories for many years and the retail relationships that you have developed and nurtured, in many cases, have also become close friendships. Relationships that your retailer/friend has come to depend on for: product knowledge, market/competitive advice, sales/product presentations for their staff in addition to a number of other various “business caps” you wear for which they solicit your input. That puts you in a unique situation to also make recommendations when their daily sales and margins are falling, they are over-inventoried, floor samples need freshening and the resources to do so are lacking, they have a backlog of sold/undelivered orders that are on credit hold among numerous other signs of distress. NOW, you can make a recommendation to those same retailers/friends when you recognize the signs of distress, or they simply reach out asking for your help.
AND…we’ve strengthened our rep referral program. We will pay you a guaranteed $4,000 for every referral made to us that we convert to a sale (emphasis added). Here is how it works…if you provide me with a retailers name and contact info and that retailer is expecting my call, when we sign that sale, you will be paid a guaranteed $4,000 or .5%, whichever is greater. For example…if the sale does $500,000, you will receive $4,000 and if that same sale does $1,500,000, you will be paid $7,500….if it does $3,000,000, you will earn $15,000, etc. Payments are sent to you on a weekly basis during the term of the event. AND….we’ll buy from you the lines you’re representing to use in the sale; so, you’ll generate a revenue stream from both sides of the event.
AGAIN, the above is a PROMOTER LETTER (NOT FROM PFP):