CEO Notebook

 

How can I increase sales?

Are you following up with former customers to ask for more business? Clifford's Flowers, in Quincy, Mass., uses sales records to generate letters to past customers, reminding them that they may want to order flowers again for upcoming birthdays or anniversaries. Sound too obvious to be effective? On the contrary, says James Clifford, owner of the $5-million florist. He has found that 75% to 85% of customers who get the letter reorder--a figure that shocks him. "I never dreamt that three out of four customers would say, 'Yes, send my mother roses again," he says. --S.G.

HOT TIP

When department heads at Harborside Graphics Sportswear, in Belfast, Maine, tried to get honest feedback from team leaders at monthly meetings, the result was often awkward silence. Apparently, none of the team leaders, who report to the department heads at the $12-million T-shirt business, wanted to speak first about what wasn't working at the company. Finally, the top managers asked team leaders to meet together ahead of time to discuss concerns among themselves. Now, after the team leaders have decided how to present their agenda, the department heads join the meeting--and get the candid feedback they need. Team leader Shelly Alex says it's comforting to know that other departments have similar concerns, and it's been easier to make suggestions with peer support. --S.G.

CEO Sound-off

What entrepreneurs are telling Inc. about hiring and firing

"Hiring our first salesperson was a disaster. We let him stay for nine months, though he hadn't made a sale. It was hard to let him go. We wanted it to work out. We let our emotions override our business sense." --Founder, New York City graphic-design company

"I've learned never to hire anyone quickly. Last year we got into interactive multimedia and hired an entire department full of people. None of them are here this year." --Founder, Missouri communications agency

"Firing is the hardest thing I've had to do. The first time it took me four to five months. The employee was a friend and had been with me from the beginning. I met with her every month and explained what I expected and what had to change. But she was too inefficient, and the situation created turmoil with other employees. Finally, I didn't have a choice." --President, $2-million California manufacturer

I need marketing advice. To whom can I turn?

Try the independent sales reps who represent your company in the marketplace. Instead of wasting time touting his company's products at meetings with his manufacturer's representatives, Ed Muldoon, chairman of Bivar, a $7.5-million electronics manufacturer in Irvine, Calif., tries to benefit from the reps' field experience. Recently, five longtime manufacturer's representatives attended a two-day Bivar conference at a hotel. Prior to the meeting all five sent surveys to other Bivar representatives asking for input such as product ideas and market analysis. At the conference, the group came up with new product ideas, mapped out the market, and critiqued Bivar's sales-and-service support. Then the conference participants created a plan to put their ideas to work. Though the meeting was not cheap for Bivar, Muldoon claims it was worth it, since the feedback was applied immediately--and will result in new products and marketing strategies. --S.G.

Resources:

ARTEKA, David Luse, 15195 Martin Dr., Eden Prairie, MN 55344; 612-934-2000

BIVAR, Ed Muldoon, 4 Thomas, Irvine, CA 92618; 714-951-8808

CAMBRIDGE TRANSLATION RESOURCES, Krista Conley Lincoln, 186 South St., Boston, MA 02111; 617-451-1233

CLIFFORD'S FLOWERS, James Clifford, 1229 Hancock St., Quincy, MA 02169; 800-441-8884

HARBORSIDE GRAPHICS SPORTSWEAR, Gregor and Susan Davens, P.O. Box 346, Belfast, ME 04915; 207-338-4509

LAFLAMME SERVICES, Ed Laflamme, P.O. Box 6377, Bridgeport, CT 06606; 203-333-1912

MAZZELLA WIRE ROPE & SLING CO., Jim and Tony Mazzella, 14600 Brookpark Rd., Cleveland, OH 44135; 216-362-4600

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