Over the last few years, pallet companies have been turning away new business. Pallet demand skyrocketed, and supply was constrained. This created an environment where pallet companies didn’t have to think much about sales and marketing. But that is starting to change as more pallet companies are seeing demand pull back as the U.S. economy slows down. Overall, pallet demand remains steady, but just not as robust as it was during the pandemic.
Most pallet companies are not worried, but smart executives are looking to fill volume by being more aggressive on the sales front. In a recent survey at the Western Pallet Association (WPA) annual meeting, the crowd was asked to share their responses to a looming economic slowdown or recession. Their most popular response was to become “more aggressive in reaching out to new customers.”
Increasingly, our market surveys are hearing that pallet users are shopping around looking for better pricing and are sending out RFQs. This means that more pallet companies and brokers are calling on your existing customers as well. We are also hearing that more long-standing customers are delaying purchases and sending in last-minute orders. As a result, pallet companies need to be nimble and capable of responding for rush orders.
As the market changes, pallet companies will have to defend accounts and improve outreach to existing customers. In the WPA survey, only 9.76% of respondents were contacting existing customers to see how they could solidify relationships. Clearly, this is an area that needs more attention from pallet companies to measure customer intentions and to cement longstanding business. Shouldn’t you be doing everything you can to reassure them that you are a valued partner?
One way to start these conversations is to send out a survey to customers looking for feedback on their current or projected needs. Of course, there is no substitute for in-person or over the phone conversations. Pallet companies could also send out a market update or customer newsletter to cover changes taking place in the market or your company, such as new service capabilities, increased automation and production capabilities. Maybe you reach out to cover ways that you are helping customers reduce their environmental footprint? Or you could talk about programs to cut costs or improve pallet performance by changing the pallet design? One way to turn a conversation into new orders is to offer a full pallet program review.
If you aren’t sure how to begin this conversation, the article in this issue on Fricks Pallet covers some good ideas for having solution-focused sales conversations as well as smart prospecting. Don’t miss the article on page 22.
Beyond preserving your current customer base, calling on new accounts is critical to maintain a pipeline of new business. Now is the time to focus on prospecting, finding new accounts and working your broker network. This is especially true for companies that have added new production capacity over the last few years.
If you don’t have a sales team and have just relied on third-parties to bring you business, now may be the time to plow some recent profits into finding a good sales person. Smart pallet companies are developing new strategies to find prospects, revamp their websites or create new portals and ways to provide data to customers. Now may be the time to try something new, such as developing accounts through the new online marketplace, www.PalletTrader.com.
While nobody knows for sure if 2023 will bring a recession, investing in your sales and marketing is a good bet no matter the economic reality. Anyone wanting more strategies to deal with a potential downturn should check out the article on page 62. Experts share what to do and what not to do in a time of economic contraction. Cash is king; efficiency is paramount, and making the wrong cuts can hurt you in the future.
