Ice-Melt Sales Strategies versus Everyday Low Price ‘Minority Operated Women Owned small business’ News

November 19, 2005 (PRLEAP.COM) Business News
The sale of ice-melt is big business each winter with over $2 billion and 10 million tons of salt used in North America. This article lists the top 10 ice-melt sales strategies being used by many businesses and then gives an example how one Minority Operated Women Owned small business (MOWOsb) has chosen to compete.

1) Pre-season sales incentives (10% discount) starting around Labor Day are very successful for the larger companies to avoid the last minute rush for ice-melt when the snow hits.
2) Deep discounts (20% or more discount) for last seasons leftover ice-melt inventory are often used when companies are tricked by weather.
3) Farmer’s Almanac is a tool used by both the large and small company to predict ice-melt sales based on the winter weather forecast.
4) Luck is used by all companies willing to gamble. Obviously, the risks are larger for the smaller business.
5) Use of only a few manufacturers/distributors so that the retailer’s business is important. For the larger companies, this relationship usually means that the manufacturers/distributors will take back leftover inventory at the end of a season.
6) Capture of new customers by doing what it takes to have ice-melt stock “For Sale” when the competition runs out. Again, the risk is larger for the smaller business.
7) Non-participation in the sale of ice-melt is a strategy used by some small companies who find the low margins, the heavy lifting and the product damage too much to handle.
8) Knowing the product and matching the customer’s needs with a specific ice-melt product is a strategy pushed by the manufacturers/distributors.
9) Bundling of ice-melt with other products such as shovels, snow blowers and floor mats can be used by all companies.
10) Advertising/marketing to push the product out the door based on inventory regardless of customer needs. Even the most informed customers would submit themselves to this strategy when a big storm hits and ice-melt supply is low.

“Why”, you ask, “are everyday low prices not on this list”? “It should be,” is the response you get from one MOWOsb in Detroit. Donson Supply, Inc.* is a janitorial supply business out of Detroit that has sold ice-melt since 1999 over the Internet. Recognizing that the customers know what they want from an ice-melt product, Donson Supply refuses to get involved in the seasonal strategizing around ice-melt sales. The new everyday strategy at Donson Supply is “continued improvement of the customer’s buying experience over the Internet”. See previous article, which explains Donson Supply’s new focus on the drop ship Internet business: http://www.prleap.com/pr/18785/.

Without the added expenses to fund these seasonal sales strategies, Donson Supply offers ice-melt at everyday low prices over the Internet for drop ship by the pallet anywhere in the continental United States. This season Donson Supply will rely on repeat ice-melt customers to share their ice-melt buying experience at Donson Supply with others.

Released by Donson Supply, Inc. to announce that ice-melt supply agreements have been confirmed with all previous manufactures from the 2004-2005 season; therefore, Donson Supply will provide ice-melt for the 2005-2006 winter season.

* Donson Supply has been in business since 1981 from Westland / Plymouth communities in the Detroit Metro area and can be contacted on the Internet at www.donson.net, by phone at 877-427-4112 / 734-737-0739 or by FAX at 734-416-0920.