Industry Views

Monday Memo: Happy Campers

By Holland Cooke
Consultant

imFor spring break this year, Sarah and I revisited Sandals Grand Bahamian all-inclusive resort – NOT inexpensive, and very worth it. We’ve already booked same-week-next-year, and we think we know who we’ll see there then.

Among those we chatted-up at beach bars: Owner of a HVAC service company in Iowa. He arrived ahead of 16 employees and +ones (“the other 16 are back there keepin’ the heat on”). And get this: He said that, for some, it’s their first airplane travel. And they land in Nassau! WHAT a boss, eh?

Another business owner we met topped that! He had 38 inbound next-day for a long weekend. To qualify for this “President’s Club” trip, those 19 reps each moved a million dollars of product in 2023.

“Selling what?” I had to ask. “All the things nobody wants to buy,” he quipped. His company is a rack jobber, meaning it has agreements with retailers to display and sell products in-store. Think cigarette lighters and the thousand other items you see at gas stations and convenience stores.

Going right into Larry King mode, I learned about those sunglasses that retail for $19.99. He buys ‘em by the palette, 19 cents each. And when I asked “What was HOT 2 years ago, and is NOT now?” he replied, without hesitation, “masks.”

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He caught my ear when he used the term “liberal” to describe regions. In talk radio, that’s a political term. But the way he used it reflects Michael Jordan’s famous quote, “Republicans buy sneakers, too.” Like politics, commerce is regionalized. And he spoke in practical terms: Phone charger cords sold in the northeast are predominantly iPhone-compatible. “Get much-south-of New York,” and Android cords are also popular.

Contributing to inflation: Pre-pandemic, the usual business model was that the store paid for what his company delivered. Some clients were big-enough to change that, to paying-upon-SALE, which bar codes enable. So, the rack jobber is on-the-hook for “inventory shrinkage” (shoplifting and pilferage). But the arm-wrestling continues… and at least 19 reps are winning.

Heading for our final-night-there dinner, we passed the President’s Club reception in a VIP area; and next morning at breakfast, we spotted President’s Club T-shirts. We expect to see more next year, because, as the boss winked, “those wives want to come back!” and they tend to be supportive of long workdays in the meantime. 😉

Holland Cooke (HollandCooke.com) is a consultant working at the intersection of broadcasting and the Internet. He is the author of  The Local Radio Advantage: Your 4-Week Tune-In Tune-Up,” and “Close Like Crazy: Local Direct Leads, Pitches & Specs That Earned the Benjamins” and “Confidential: Negotiation Checklist for Weekend Talk Radio.” Follow HC on Twitter @HollandCooke and connect on LinkedIn.