Taking Aim at Hardlines

We've moved

2009-08-10T14:56:00.001-04:00

Check out our new site at http://www.marketingnewproduct.com

Emerging Leadership Circle

2009-06-02T09:51:00.002-04:00

Tough economic conditions mean we all have to tighten our belts. Training is one of those areas that will feel the pinch, but it doesn’t mean that you have to eliminate training all together. Now is the time to train people and gain a competitive advantage when the market rebounds. Emerging Leadership Circle is a new online approach to training featuring a number of recognized experts augmented with special guests to provide current training at affordable prices that you can access from your computer, when and where you want. Click here to get your free trial and learn more about Emerging Leadership Circle.

Danaher to lay off 2,300; close 16 facilities

2009-04-23T16:39:00.002-04:00

Restructuring hits Danaher. With the economy down and still no sign of returning to previous levels, Danaher is taking action. How long before we similar restructuring at other Hardware/Hardlines manufacturers. What does this mean about how Danaher views the future of our industry?

IP: It's a market failure argument

2009-02-24T11:54:00.003-05:00

I have an Inventor Mentor program that I present for groups and at a local college. Every inventor wrestles with getting a patent. Some think it is an invisible shield that protects them from any intrusion into their area of endeavor. Most are very unhappy to learn that a patent only provides you with a basis to go to court and that it will be worthless unless they can pay the legal fees to defend it in court.
This article gives the other side of the story and outlines an alternative approach with some examples.
Good Stuff for Inventors!

Inflation is Coming!

2009-02-04T22:02:00.002-05:00

Glenn Beck got information from the Federal Reserve that shows what is happening with the money supply.

Run for the Gold

New DeWalt nail gun

2009-01-02T08:23:00.001-05:00

You have got to see this post of a new nail gun from DeWalt. Click here

The Tree of Knowledge 3.0

2008-12-07T20:11:00.002-05:00

In the 1980s, I was lucky enough to tap into a new venue for advertising. I moved our company from print in the traditional screwdriver books to broadcast. I had to decide between wrestling and Nascar. Both had the potential to reach my target audience, but Nascar was going to be an easier sell to my Board. Once convinced I spent $500,000 and got $1,000,000 worth of exposure that was part of the reason that sales increased about 60% while I was at that company.
Today another opportunity exists to multiply your advertising investment and increase sales in a questionable economy. Take a look at my latest Taking Aim newsletter. Click here.

The Election is Over

2008-11-07T07:44:00.002-05:00

Yeah! The never ending election is over.

Regardless of your candidate, we will all be watching very closely to see what transpires over the next 4 years. Some will be pleased and some will be discouraged. Either way, if history repeats itself, we will begin this process all over again in two years. Ugh! There must be a better way.

Election Overload

2008-10-31T08:00:00.002-04:00

I don't know about you, but I am burnt out on the election. I get more disgusted every time I hear or read about the election. I suspect that it also is playing a big role in having our markets acting like a yo-yo on a daily basis.

I am certain that come Wednesday of next week that when the election is over, the media will begin a new drumbeat about the administration. At least we will not be harassed with boring debates and never ending political commercials. With any luck, the stock market will pick a direction and stick with it for more than a few hours.

My real fear is that the media is so ramped up and so desperate because of the economic decline in newspaper and major network audiences that they will hype anything that happens to try and create significance for themselves rather than dealing with the real problem. They need to recognize the world has changed and they need a new business model.

Reflections

2008-10-23T13:58:00.003-04:00

It is a beautiful fall day and as I look out the window the lake is still and the hills and trees are perfectly reflected in the water. Meanwhile in the real world, the financial markets are in turmoil, energy prices are an unknown, the election outcome weighs heavily and the internet continues to change at an unbelievable pace.

The last couple of days, I have become convinced that we are in for a long, slow year. Next year at this time, the lake will most likely look very much the same, but the real world should look much more certain. To that end, I suggest that we all rethink our current positions and activities in an effort to increase our productivity. What can be done to maximize our output and minimize our expenses?

Any steps you can take now to improve your productivity should produce gains when our economy finally stabilizes and once again moves upward.

Garage Inventor Website

2008-10-20T14:27:00.002-04:00

Just found the Garage Inventor website. This is a new endeavor geared towards helping preserve manufacturing in the country. That is a goal I can totally support. We need creative new ideas to keep our economy rolling forward. Last week I attended the Hand Tools Institute meeting in Chicago. Everyone was talking about the economy. How we are looking at a tough year coming up and how important new products will be to our survival and prosperity.
I am really looking forward to meeting with these folks next week to see if we can gain advantage by working together towards this worthwhile goal.

YouTube Videos

2008-10-15T17:07:00.002-04:00

A while back I was video taped for Youtube videos. This was a first effort and had no idea where it would or even if anyone would even see the videos. "What's the Big Idea about Decision-Making" has had 665 views. "What's the Big Idea about Positive Attitude" has had 147 views. The latest video is "The Cannon Advantage" and has had 26 views. That is really cool to think that over 800 people have seen these videos.

Check them out for yourself!

Social Networking

2008-10-14T08:07:00.002-04:00

I am just getting started with Social Networking. Check me out on linkedin.com.

I am also on Twitter. Check me out on Twitter.com.

Any and All thoughts and suggestions on how to maximize my efforts are greatly appreciated.

Financial Crisis Procrastination

2008-10-13T21:11:00.003-04:00

The current financial collapse has caused many to panic. It caused me to procrastinate until I overcame my emotional mindset and began to honestly think about the situation it caused me to write my latest newsletter available at http://www.cannonadvantage.com/news0810.htm

What's the Big Idea about Decision Making

2008-01-31T07:18:00.000-05:00

Recently I had a chance to make a video about decision-making and thought you might be interested in seeing it. Click here to see it.

PLANET - Green Industry Conference

2007-11-21T14:26:00.000-05:00

Recently I had the privilege of speaking at the Green Industry Conference in Louisville for the Professional Landcare Network Conference. It was a very interesting show with a huge educational schedule as well. This is a growing industry with some potential for my friends from the Hardware Industry. Certainly there was a tremendous amount of equipment on display with hands on testing taking place outside the building.
Our friends at Snap-On were there selling maintenance software. There were others selling tire changing equipment. It looked to me like there are opportunities for hand and power tool manufacturers, gas can producers, storage system people and other hardware products.

Three Options for Inventors

2007-08-16T14:48:00.000-04:00

There are three basic things that you can do with your invention.

You can sell the invention. This is where you assign your rights to the patent to someone else. Once you have sold the patent and assigned your rights, you have given up total control. The invention and the patent are no longer yours. This approach requires the least amount of investment of time and money and generally offers the least economic reward.

Your second option is to license your product to another entity. With this approach you will collect a royalty on product sold by the licensor. This approach includes many variables and can provide a little more control than selling your invention outright depending upon your licensing arrangement. Will this be an exclusive arrangement? Is the license limited by geography or market? How long is the agreement? Are there minimum quantities required? Is the royalty to be paid on the license to be a fixed percentage or will it vary with volume and/or time? These are just some of the issues to be negotiated with the entity that licenses your invention. Your expenditure of time and money is reduced and your return is potentially greater than an outright sale of the patent.

Your third option is do-it-yourself. This is the most difficult, the most time consuming and the most expensive of the three options. It is also potentially the most lucrative.

If you are interested in more information for inventors, visit www.marketingnewproduct.com .

2007 INPEX Show

2007-06-12T07:21:00.000-04:00

This was my second trip to the Inventionshow in Pittsburgh, but my first as one of the speakers at the “Inventor’s University.” While this is not a huge show, it is a growing show. There were several things that struck me that should be of interest to you.
1. Robert Bosch Tool Corporation, Office Depot, Everlast and Wahl Clipper Corp. were just a few of the companies there looking for new product ideas.
2. There were inventors from all over the world.
3. There was a large contingent of Chinese visiting with the inventors and looking for products to manufacture.
This is an interesting show and might be something to consider spending a day even if it is only from a defensive perspective.

HTI Presents Award to Duncan Hunter

2007-04-02T11:28:00.000-04:00

The Board of Directors of the Hand Tools Institute awarded Representative Duncan L. Hunter with the Hand Tools Institute American Manufacturing Champion Award. The award recognizes leaders that demonstrate strong support for manufacturing. Congressman Hunter has been a vigorous fighter for fair trade policies for American manufacturing and the American worker.

HCN Reports Hand and Power Tool Demand Rise

2007-03-27T08:10:00.000-04:00

Researchers at the Fredonia Group predict that Hand and Power Tool demand will rise by 3.1% annually through 2011 reaching $14.3 billion. Sadly, they are predicting flat production in the U.S. with all of the growth coming from offshore.

Taking Aim for Better Decision-Making

2007-03-19T07:35:00.000-04:00

New Book Positions Decision-Making as Competitive Advantage!

For Immediate Release: January 31, 2007

Contact: Bob Cannon, 216-408-9495

Cleveland, OH: In his new book, “Taking Aim for Better Decision-Making,” Robert Cannon points out that decision-making is a serious and growing problem. Research at Ohio State shows that, “decisions fail half of the time.” This is a huge problem for business and it is even more challenging in today’s environment of speed, information overload, uncertainty and change. Cannon examines the traditional decision-making process and the reasons why it is not producing better results. He also provides an alternative approach that fosters greater commitment to the decision and facilitates smoother, faster implementation and improved results.

“Bob Cannon has captured the essence of leadership in this special book. The best piece of advice I can give you is to devour this book. Buy one for each of your managers, and use it to spark ideas, and discussions” said Mark LeBlanc, Author of “Growing Your Business”.

BOOK DETAILS

Taking Aim for Better Decision-Making
ISBN: 978-0-9792464-0-1
Price: $11.95 (To purchase, visit: www.cannonadvantage.com/ca_store.html)

ABOUT THE AUTHOR

Robert Cannon is President of Cannon Advantage; a firm specializing in helping visionary leaders enhance performance and profitability. He is an author of Masterpieces in Health Care Leadership (Jones and Bartlett, April 2007). He is also the author of “Taking Aim”, the free monthly ezine written for leaders that takes aim at current issues, mixes in real-world experience and provides the focus needed to enhance performance and profitability. He has also been a featured speaker at industry conferences and has had articles published in a variety of trade magazines.

Bob holds a Bachelor’s from Grove City College, a Masters in Business Administration from Gannon University and a Certificate in Appreciative Inquiry from the Weatherhead School of Management at Case Western Reserve University. He has also been awarded the internationally recognized designation of Certified Management Consultant (CMC). At this time, less than 1% of all active professional management consultants in the United States have been recognized with the CMC.

VF Corp sees the light! How long before others follow?

2006-07-21T07:20:00.000-04:00

I have skipped several weeks of postings because I was uninspired, but this morning's Wall Street Journal article about VF Corp building a boat load of retail stores sparked my enthusiasm once again.
Way back before the dot bomb era, it became apparent to me that manufacturers are at the mercy of the few large merchants in each channel of distribution. As distribution consolidates, the few remaining large players can exert ever increasing pressure on manufacturing and margins are going to suffer. Add in the pressure from low cost, off shore production and it is obvious that the route to survival is by selling direct and taking the cost of distribution out of the product (roughly 60% of the selling price in many instances).
In the article about VF opening stores was the following: "These days, if you are a supplier and want to control your own destiny, you better open your own stores," says Howard Davidowitz, chairman of Davidowitz & Associates Inc., a New York retail consulting and investment banking firm.
It seems so obvious but has taken so long for anyone to act. The only area where I might differ with Howard Davidowitz is that the store might be an internet store.
The Revolution in Manufacturing is just beginning. Stay tuned.

Stockholder Revolt at Home Depot

2006-06-02T06:58:00.000-04:00

Today's Wall Street Journal has a great story about the Home Depot Stockholder's meeting. Stockholders withheld votes for directors in response to Nardelli's $115 million pay package since he was hired in 2000. This at the same time the value of the stock has dropped 12%.

Could this be the beginning of the end for overpaid chief executive officers. Pfizer, Exxon, Mobil and Walt Disney have experienced similar situations at their stockholder meetings.

While I am a big believer in paying for talent, I also believe that executive pay has gotten out of control and the time has come for the pendulum to swing, hopefully to a more rational relationship between executive pay and the pay for everyone else including dividends for shareholders!

Cannon Awarded CMC

2006-05-30T11:41:00.000-04:00

The CMC (Certified Management Consultant) designation is awarded to those select consultants who have demonstrated a history of substantive results for clients, adherence to the canon of ethics of the Institute of Management Consultants USA, and professional practice management. Global standards of technical competence and professional conduct are set by the 43-nation International Council of Management Consulting Institutes ( ICMCI ).

At this time, less than 1% of all active professional management consultants in the United States have been recognized with the CMC. For more information about CMC, see www.IMCUSA.org.

When you consider using a management consultant, look for the CMC designation . . .
Your project and your organization deserve nothing less.
The CMC® certification mark is registered with the U.S. Patent and Trademark Office.

How Big Is Your Boat?

2006-05-19T06:47:00.000-04:00

Recently, I have been struck by the differences that exist between companies in our industry. We have some huge players who by their very size make it easier for them to ride out storms in the marketplace. A friend of mine used to refer to large companies as battle ships and that while they could ride out storms with relative ease, it was very difficult to turn these ships around. Their maneuverability is severly limited. We have companies like this in our industry and it is sad in a way to see all that potential sitting broadside to the changes taking place in this industry.

On the other hand, it is great to see the small, agile upstarts that offer so much hope for the future. Let's hope and pray that many will survive the storms and show us the way to the future in our rapidly changing marketplace.

2006 National Hardware Show

2006-05-12T10:23:00.000-04:00

Just back from the 2006 National Hardware Show. There is no question that this 3 year old show is growing. More exhibitors, more visitors, more international presence and more categories. This year saw the return of more of the traditional hardware people who had been absent previously. In talking to these folks, they confirmed that it was a worthwhile endeavor for them.

As usual, the first day of the show had very heavy traffic. The second day fell off especially after lunch and the third day, traffic was light. Most of the majors had open to buy times that attracted a fair amount of attention.

On the negative side, the big name, power tool manufacturers were noticeably absent. It sure would be nice if they would alternate years with Cologne and Vegas.

There were lots of small start-ups with booths and I think that is terrific.

While I hate Las Vegas, moving the show to Orlando next year while facilities expand in Vegas may hurt the show in the short run. Visitors and Vendors alike appreciate having a stable location for the show and for booth locations. It just makes things easier for everyone.

A special salute to our client Raptor Wall Anchors who won new product awards from both Popular Mechanics and Do-It-Yourself Retailing.

Las Vegas Here We Come

2006-04-27T07:41:00.000-04:00

I have my plane reservations, hotel room and my official Hardware Show Badge. The clock is ticking down and we are less than two weeks from the National Hardware Show in Las Vegas.
This will be the third year for the Hardware Show in Las Vegas and it will be interesting to see the changes this year over last. I look forward to seeing friends and catching up on the latest in the industry. I also enjoy looking for the latest new products.
If you plan on going to the Hardware Show and would like to get together, please send me an email at aim@cannonadvantage.com and we can swap cell phone numbers and arrange a time and place.
Hope to see you there!

Remember Wal-mart

2006-04-19T07:40:00.000-04:00

Amazing how things change. Remember a few years ago when hardware retailers were concerned about having a Wal-mart nearby. Today the hardware department in Wal-mart is almost non-existant. The move to become more like Target is almost complete in the hardware department.
Twice now, I have been in Wal-mart to pick up some grocery items and stopped in to the hardware section to pick up a couple of odds and ends. The latest trip was to grab a couple of wall anchors so that I could hang a towel ring in a guest bathroom. I was amazed, there was nothing there. I looked around and realized that Wal-mart is no longer a hardware destination.
In one sense, it kind of makes you wonder if the changes at the big boxes to include appliances and more recently automotive might signal a future where these folks might not be hardware destinations either?

Trade Association Meeting

2006-04-05T11:34:00.000-04:00

I recently returned from a trade association meeting and thought you might be interested in some of the information I gathered, so here it is in nutshell form:

Sales in most markets are up, but manufacturers report that profitability is down.

China has grown to about 35% market share of the hand tool market based on dollars and about 75 to 80% based on units. Thank heaven they don't have a strong brand or marketing!

Concensus is that Sears is in trouble. Home Depot represents about 36% of hand tool sales while Lowes represents about 19% leaving everyone else with 46% of the business.

Autozone, Advance, General, O'Reilly, CSK, Genuine, PEP Boys and Fisher are the leaders in the automotive, retail aftermarket.

There is continuing concern about China, but there is a growing school of thought that China is poised for some really big problems as well.

Continuous Improvement via programs like LEAN are still hot topics.

There is a resurgence in trying to lobby for legislation to help manufacturers.

AHMA Executive Conference and Annual Membership Meeting

2006-03-22T07:02:00.000-05:00

The American Hardware Manufacturers is holding an Executive Conference and Annual Meeting at the Navy Pier in Chicago on June 4th thru the 7th. My first reaction was, fantastic, I need to be a part of this event. I looked at the price tag and got sticker shock. Then I looked at the list of speakers and understood why the price was so high. The speakers list is full of big ticket speakers. Some names I recognized right away and others I had to do some digging.

Most all of us will recognized names like Bill Clinton, Colin Powell, Rudy Giuliani and Michael Porter. All important figures for our times, but none of them are Hardware Gurus with the possible exception of Colin Powell who I think worked in a hardware store as a kid.

The list of speakers continues with Malcolm Gladwell (author of Tipping Point and Blink), Michelle Peluso (Travelocity), Knichi Ohmae (globalization strategist), Dr. Liu Jiren (Software), Bruce Chizen (Adobe Exec.), Marcus Buckingham (Personal Development) and Dennis Nally (Price Waterhouse Exec.).

This looks like a cast of thousands and costs of hundreds of thousands, maybe even a million or more. These speakers individually charge tens to hundreds of thousands of dollars each. They are big picture people and will be talking in generalities.

It was after I looked all these people up that I began to question whether or not I really needed to be at this event. This will consume 4 days, it is going to be general and long term in nature and it will not do a thing to help my business in the short run. If I am a small business owner can I afford to take the time and spend the money on this? If I am a large business executive, what do I think that Clinton, Powell, Giuliani and others can do to help me with improving investor's returns?

I can't help but wonder how the industry is going to respond to this extravaganza?

Stanley Strikes Again

2006-03-17T10:59:00.000-05:00

Home Channel News announced today that Stanley is selling Goldblatt to Finish Pro Tools. The article tells the age old tale of Stanley buys company. Stanley reduces skus. Stanley not happy with business and sells unit. Somebody buys unit and re establishes full product line.

Don't you wonder when they will learn from their own history?

Aggregation has been a factor in this industry for a long time. Sadly, the track record is not good. The idea is to create a market basket of products to take to market and provide one stop shopping for large wholesalers and retailers. What happens is that strong brands and broad product offerings get reduced in the process. What really happens is dilution. There is a dilution of focus, a dilution of the brand and consequently a dilution of customers. This opens the door to low cost offshore competition when no one is minding the product offering and the brand.

Think about it. What is happening to great brands like Lufkin, Plumb, Crescent, Vice Grip and others? It is almost impossible for an umbrella brand to provide the focus and the brand support for all the products in the basket. When that happens it is easy to see how no name or private branded products from offshore can make great inroads into the U.S. Hardware Market.

BusinessWeek online Depot Story

2006-03-06T07:45:00.000-05:00

Wow! Incredible story dated March 6th at BusinessWeek online about Home Depot and Bob Nardeli's efforts to militarize the organization. This control freak is pushing for even greater control than previously. If you remember, it wasn't long after he took over that the power of the regional offices shifted to corporate in Atlanta.

My personal opinion is that this signals the beginning of the decline of Depot. It won't happen overnight. In fact I am certain that it will take a number of years to see the change in our rear view mirrors. No one ever stays on top forever and Depot had to come down someday. The truth is Home Depot grew and flourished on entrepreneurialism. As the company grew, it became increasingly difficult to control. Nardeli's need for control will eventually strangle the organization.

Marketing New Products - Hardware / Hardlines

2006-02-24T08:18:00.000-05:00

This week I had the opportunity to speak to the Pennsylvania Inventors Association as part of Expo Erie. This is the second inventors group that I have had the chance to speak to and in preparation developed a handout that includes much of my 12 step process for marketing new products. It is a quick and dirty check on the preparedness of any inventor to take their product to market.

All too often, I talk to inventors who think there ideas have value. The truth is, we all have ideas and ideas alone are not worth much. The value in the idea increases as the idea approaches commercial success. This week I also visited a prototype shop where the owner complained that working with inventors is the most difficult part of his business. This is due in part to collecting for work done and in part because the inventors have no idea about how the value in their idea grows as they come closer to commercial success.

If you have an idea and want to turn that idea into economic value, then you need a copy of my handout which I will be happy to email to anyone who will send me an email at bob@marketingnewproduct.com .

It is Official, The Center of the Hardware World Has Moved

2006-02-10T07:45:00.000-05:00

Early on in my career, the center of the Hardware World was in New York City. That was the home of the Hardware Show having moved there from Atlantic City much earlier. With the growth of Tru-Value, Ace, Grainger, McMaster-Carr, Distribution America, American Hardware Manufacturers Association and others, the Hardware Show and the center of the U.S. Hardware Market moved to Chicago.

There was an article in Home Channel News this morning announcing that Distribution America is moving to Charlotte, N.C.. This is no surprise and I would expect to see more of this flight from Chicago. The Hardware Show moved several years ago to Las Vegas and without a doubt, two of the biggest players in our business are now located in the Southeast. Another is located in the Southcentral part of the U.S. I suspect we will see other organizations moving in the future to reflect the change that has already taken place in our industry.

Hand Tool Market Keeps On Growing

2006-02-10T07:32:00.000-05:00

There was a most interesting article in the February 10th issue of Home Channel News this morning. Specialists in Business Information (a division of MarketResearch.com) has published the results of a study predicting that the hand tool market will grow at a 3.6% compound rate from $6.2 billion in 2005 to $7.4 billion in 2010. This is great news for strong brands and it creates a real opportunity for inventors and creative marketers of hand tools. Growth is expected to come from innovations in ergonomic design, weight reduction and greater value. So, if you have an idea for a new or improved hand tool, you might want to check out my Marketing New Product website.

Decision Making Today

2006-01-31T16:32:00.000-05:00

I am excited to present a new website devoted to improved decision-making. Research shows that 50% of all decisions fail. Could it be that our approach to decision-making, which looks at everything as a problem to be solved, could be the problem? Is it possible that there is another approach that might provide better results?

Take a look for your self at www.decision-makingtoday.com.

Home Depot Strikes Again

2006-01-11T08:12:00.000-05:00

The Wall Street Journal reported that Home Depot is Acquiring Hughes Supply. This is particularly interesting when you look at their history of acquisitions. In 2004 they acquired White Cap moving then into the Contractor Supply business. This was followed by Lakeside Contractors Supply, Williams Brothers Lumber, National Waterworks and now Hughes Supply. It seems obvious to me that this is an effort to capitalize on and further enhance their incredible purchasing power. Manufacturers Beware! This is not a good thing for you and will result in even greater price pressure.
On the other hand, if we look back at the early battles between Depot and Lowes, we remember that Lowes profitability was not as strong as that of Home Depot primarily because of the higher percentage of business done with Contractors.
Could this be history repeating itself? Home Depot growth has slowed so the company decides to diversify into the Contractor Supply Business. Might this mean a little less focus on the core business and could it eventually provide an opportunity for an entrepreneur with a more concentrated focus emerge as the next big thing in Hardware Marketing?

Hope for the New Year

2006-01-02T08:41:00.001-05:00

The fear of Chinese competition is highly overated. I will grant you that there is a tremendous influx of hardware / hardlines products coming into the U.S. from China. As I have written before, there is nothing new or different here than what happened to us in the 1970s with Japan.

It is especially encouraging to start the new year reflecting on the demise of Olympia hand tools in the U.S. market. Even with offices in the U.S. and a veteran U.S. hardware executive on the team, Olympia could not succeed in the U.S. market. Don't get me wrong, the importation of Chinese products is not going to fade into history. Rather, it is time to appreciate our competitive advantages. First, we have the advantage of proximity to the market. This means we have shorter supply lines and consequently we have an advantage time to market. It should also mean that we have a better understanding of our customers and are able to react much quicker to changes in the market.

Our secret competitive advantage however, is our freedom. Our freedom sets us apart from most of the rest of the world. Our freedom is our unique advantage that fosters creativity and in turn rewards that creativity fostering even greater creativity. Many foreign companies have set up U.S. manufacturing or assembly operations in an effort to shorten their supply lines. Some have even setup engineering operations to tap into our creativity while too many domestic manufacturers have become too far removed from the end user.

Survival and success will belong to those domestic organizations who understand the end user, the market and how to reward creativity. This is a combination that can't be duplicated off shore in countries that limit the freedom of individuals to flourish.

New Years Wishes!

2005-12-30T13:59:00.000-05:00

May you get a clean bill of health from your dentist, your cardiologist, your gastro-enterologist, your urologist, your proctologist, your podiatrist, your psychiatrist, your plumber and the I.R.S.

May your hair, your teeth, your face-lift, your abs and your stocks not fall; and may your blood pressure, your triglycerides, your cholesterol, your white blood count and your mortgage interest not rise.

May New Year's Eve find you seated around the table, together with your beloved family and cherished friends.

May you find the food better, the environment quieter, the cost much cheaper, and the pleasure much more fulfilling than anything else you might ordinarily do that night.

May what you see in the mirror delight you, and what others see in you delight them. May someone love you enough to forgive your faults, be blind to your blemishes, and tell the world about your virtues.

May the telemarketers wait to make their sales calls until you finish dinner, may the commercials on TV not be louder than the program you have been watching, and may your check book and your budget balance - and include generous amounts for charity.

May you remember to say "I love you" at least once a day to your spouse, your child, your parent, your siblings; but not to your secretary, your nurse, your masseuse, your hairdresser or your tennis instructor.

And may we live in a world at peace and with the awareness of God's love in every sunset, every flower's unfolding petals, every baby's smile, every lover's kiss, and every wonderful, astonishing, miraculous beat of our heart.

from an email from former industry executive Jim Gray

Christmas is Upon Us!

2005-12-19T16:28:00.000-05:00

For the last ten years, I have paid particular attention to the Sales figures reported by online merchants as compared to bricks and mortar retailers. Invariably, the early reports always underestimate the online sales and over estimate the traditional retailer's numbers. The online numbers continue to amaze and this year will be no exception. My sense is that we are going to see an incredible increase in online sales over previous years.

First, I am being inundated with promotional offers to buy online.
Second, I am hearing more people who dislike fighting the crowds at the retailers and prefer the comfort of their own home for shopping.
Third, I am hearing more comments about the products being offered at the stores are the same from store to store. Unique items are only available online or at very unusual retailers.
Fourth, The number of online retialers offering free shipping makes buying online more economical than traveling to some distant retail outlet.

Watch the numbers and the incredible power of online retailing.

Industrial Update

2005-11-29T19:51:00.000-05:00

My experience leads me to consider the Industrial and Automotive markets as part of the greater Hardware / Hardlines Market. While I tend to spend more time devoted to Hardware (because it is the bigger piece of the pie for most suppliers) it is important to also be aware of what is happening in other segments.

The "Industrial Update" title is linked to the ISA website and the report of President Tim Tevens at the recent ISA Business Expo in Chicago. This association has been through a tremendous transition in the last couple of years and now they are embarking on changes intended to make them stronger for the future. I recomend reading Tim's remarks to get a flavor of where this trade association is headed in the future.

The Hardware Dilemma

2005-11-22T09:14:00.000-05:00

Yesterday, I was talking to a manufacturer who was explaining their situation and it was the same story I have heard so many times before. The bulk of the business comes from two accounts and these accounts are becoming ever more demanding leaving the manufacturer with less margin after each encounter. Does that sound familiar?

They want to stay in the industry, but have been forced to source product offshore to remain competitive. The refrain is always the same, "What can we do?"

What they want me to do is offer a silver bullet that will give them continued volume growth with constantly improving margins and they want it to be an approach that is proven to work in this industry.

The truth is that there is no one solution. There are many solutions and they all require enough intestinal fortitude to innovate, experiment, change and work hard at a new approach. There are no easy answers.

This is not new information. I watched the same thing happen in the textile/apparel market in this country in the 1970's. I watched it happen again in the bicycle business in the 1980's. Now it is happening in the Hardware / Hardlines industry and there are options available. Here are just a few:
1. Reduce your costs with Lean, high engagement approaches and cost reductions in the channel of distribution a la Dell. This is not easy, nor is it quick, but it is a viable option for the short term.
2. Move your product to commodity status and reorganize to survive in the commodity world. There are lots of people earning a living with commodities.
3. Segment! Develop multiple offerings for different parts of the market. Segment so narrowly with customization and service so that it is virtually impossible for offshore competitors to even attempt to enter your space.
4. Innovate! Concentrate on developing new products in succession and move them into the market rapidly. Make your money before the cheaper knockoffs arrive from offshore and then move on to the next new product or application.
5. Move to the high end position with product, quality and service second to none. Set yourself appart. (This is a variation on the segment idea but rather than serving multiple markets, just service one.)

There are other options and I encourage you to add them to this post. There are also lots of examples that these approaches can work, but it all starts with the decision to change and the willingness to take a risk.

Hardlines / Hardware News online

2005-11-17T08:05:00.000-05:00

There are a number of articles being written today about the decline in subscribers to printed newspapers and that more people are getting their information online. As I was thinking about another posting here, it dawned on me that it might be beneficial to list some of the websites that offer the latest news in our industry.

One site that provides a headline type update is the American Hardware Manufacturers Association website. While there isn't a great deal of detail, it does provide Headline news on 3 or 4 subjects.

Another site is The National Retail Hardware Association website. Again it provides a few current headlines.

Home Channel News also offers headlines and more indepth reporting on the topics covered.

For news from the Industrial Market, you might want to check out Industrial Distribution.

For the latest from the Automotive world, you might want to check out Professional Tool and Equipment News or http://www.autonews.com/.

In some of the other markets, you might want to check out Construction Distribution, The Electrical Distributor Magazine. For HVAC and plumbing news, you might want to check out the publications of TMB Publishing.

If you have any others you would like to see added to this list, please add them as a post to this message.

Decision-Making Today

2005-11-03T07:28:00.000-05:00

Most of you are aware that I am a consultant and speaker. My primary website is www.cannonadvantage.com Over the course of the last couple years, I have realized that specific areas of my work deserve more visibility that can come from their own websites.

A couple of months ago, I started another site to help inventors, importers and manufacturers market their new product ideas to the $200+ billion U.S. Hardware Market. That website is
www.marketingnewproduct.com

This past week, I registered the domain name for another area of specialization. We are still working on the final design of the site and the specific content, but wanted to get a placeholder up while we fine tune the presentation. The area of specialization is Decision-making and the website is www.decision-makingtoday.com.

This is an exciting area of study for me as our traditional "how" based approach to decision-making has not provided very good results for us and I have developed a new, "why" based approach to decision-making that has the potential to dramatically improve the success rate for users of my new approach. If you would like to know more, visit the site or give me a call at (216) 408-9495.

B&D Ups the Stakes In the PowerTool Voltage War

2005-11-03T07:12:00.000-05:00

William Bulkeley of the Wall Street Journal reported today that B&D plans to introduce a family of 36-volt power tools under the DeWalt brand. These new lithium-ion batteries can do 2 to 3 times the work of the current 18-volt batteries. This has all been made possible by new technology in rechargeable batteries. The new technology has potential even for powering hybrid cars since the new lithium-ion battery can provide the same power as a nickel-metal-hydride battery at 20% of the weight.

While I hate to see my 12-volt cordless drill relegated to the trash heap of outmoded technology, I can't wait to watch the onslaught of 36-volt tools from the rest of the industry and the subsequent drop in prices that will inevitably follow!

I just hope my old drill holds on long enough so that I can wait till the price is right.

Industry Trade Association Meeting

2005-10-24T09:54:00.000-04:00

This past week, I attended an industry trade association meeting. As always, it provided me with the latest thinking in the industry.

I sensed a change in the air with regard to Chinese competition. While it is still a factor, there is a growing feeling that American manufacturers can compete if they are aggresive in their operations, taking advantage of the thinking of all of their employees, modernizing and developing a consistent flow of innovative new products.

There was also a sense of concern about the economy going forward, but there was a well known Economist who presented a very strong case for another good year in 2006. While there maybe a slowdown, the year will provide positive growth once again and that fears of another recession are overblown unless we encounter another 9/11.

My sense is that we are all being bombarded with bad news on such an ongoing basis that it is sometimes hard to recognize the underlying strength of our economy.

Maybe we should stop reading our newspapers and listening to TV news!

Galli gone at Newell Rubbermaid

2005-10-18T07:25:00.000-04:00

Galli's departure from Newell Rubbermaid shouldn't really come as a surprise to the industry. His tenure with employers since leaving Black & Decker has not been long. The Wall Street Journal only mentioned his history with B&D and Amazon, but we know that there were other stops along the way that were very short in nature.

Blaming Galli for the problems at Newell, however, really isn't fair or the point of this posting. Newell has followed the path of Cooper and Stanley before them. There is in my opinion an inherent problem with aggregators like these who acquire strong branded products and then homogenize them and loose the identity that brought them to the party in the first place.

As an example, I would like to point to Vice Grip. This was an incredibly strong brand. It got a little muddled as it was the foundation for American Tool. Later, as Newell Rubbermaid acquired American Tool, it virtually disappeared as the decision was made to lump all the tools under the Irwin brand. It is sad to see another strong product identity go the way of Lufkin, Plumb, Goldblatt, Crescent and so many others that fade in the acquisition and aggregation process.

Whether Galli is a good executive is hard to ascertain when the aggregation process itself reduces product identity, uniqueness and focus. I still believe that a strong brand is an asset that should not be squandered in the consolidation that has and is still taking place in our industry.

JibJab nails our Market

2005-10-14T07:45:00.000-04:00

JibJab has done it again and this time they have really hit our market and our industry. The title of the new video is "Big Box Mart." While the pictures would suggest a retailer that sells softgoods like Wal-mart, the name implies that it might also apply to the likes of Depot and Lowes.

I am not suggesting that this changes anything in our world, but it does increase awareness. Maybe if they would do a sequel that harpooned our government for making production in the U.S. more expensive than production in less regulated countries, then we might see something change.

Anyway, I think this is a great start. Click on the title of this post to visit the JibJab website and then click on "Big Box Mart." Enjoy!

Life After Hardware Death

2005-10-07T12:13:00.000-04:00

Regional Hardware Marketer, Chase Pitkin is closing it's doors. Sad to see, but this chain was owned by a grocery retailer and I suspect it was a distraction from the core business. Chase Pitkin is going the way of so many others before them, but do not dispare. The latest Home Channel News has the announcement that the long dead Hechinger name is being revived as www.Hechinger.com new online retailer of hand and power tools.
Wow! There are so many great old names that could be reincarnated like "Builders Square", "Belknap", "Home Quarters" and more. It may be interesting to see if companies like Home Decor Products resurect any others.

The Inventors Connection of Greater Cleveland

2005-10-03T22:02:00.000-04:00

This evening, I had the pleasure of addressing the Inventors Connection of Greater Cleveland. This is a strong group of inventors with over thirty in attendance. I enjoyed the meeting and the questions that came from my presentation on marketing new products to the over $200 Billion Hardware / Hardlines Industry.

If you have a group and would like to have me speak to your group, please send me an email at bob@marketingnewproduct.com .

Hand Tools Institute Meeting

2005-09-22T11:37:00.000-04:00

The Hand Tools Institute is a trade association for domestic manufacturers comprised of U.S. based manufacturers of a variety of products called hand tools. Membership runs the gamut from small family owned businesses to multi billion dollar corporations like Cooper, Danaher, Newell, Snap-on and Stanley. Their purpose is to work as a group to enhance member performance and competitiveness for all members. The core value they provide to members is information exchange and relationships. Some of the areas of work include, product standards, safety, education, government relations and international trade of Hand Tools. This is a great organization for anyone involved in the domestic production of tools as it is a great place to meet fellow industry professionals, learn what is going on in the industry, explore opportunities and establish standards for products.

Did you know that over $20 million in business (initiated at their 2 annual HTI meetings) was conducted between HTI members last year?

Do you realize that 10 HTI members were amicably acquired by other HTI members over the last 5 years?

IF HTI meetings are a great place to meet and mix with other industry members and People want to buy from people they know and trust, then shouldn’t you be at the next HTI meeting?

Hand Tools Institute is having their fall meeting in Chicago in mid October. If you are a manufacturer and are interested in learning more about this organization, contact me by email at aim@cannonadvantage.com or call me at (216) 408-9495.

Newell Rubermaid Reorganization - Again

2005-09-15T11:29:00.000-04:00

Today's Wall Street Journal is full of information about the latest attempt at reorganization at Newell Rubermaid. In essence, the plan calls for the elimination of one-third of the companies 80 manufacturing facilities and the elimination of some 5,000 jobs. They are going to concentrate on speeding up the process of bringing new products to market.
This sounds to me like another way to spin producing more products off shore. As we see more and more production moving off shore, I hope our government officials wake up to the fact that it isn't lower labor rates that is causing this shift, but rather the incredible overhead burdens that are imposed on domestic manufacturers that don't exist in other parts of the world. If we want to maintain our manufacturing base, it is going to be critical that we find a way to make it less expensive for companies to manufacture in this country.

New Product Launch Checklist

2005-09-14T15:30:00.000-04:00

Launching a new product or service is an exciting time and it is possible to overlook something in the rush to get that product or service to market. I developed the following checklist to make certain that I didn’t make the same mistake twice. Hopefully it will keep you from making a mistake the first time.

1. Target the Audience
Over my 30+ years of experience, I have been involved in lots of new product introductions and have witnessed even more. Failing to target the market is the most common mistake I see in new product introductions. If you haven’t adequately defined the market, how can you be sure of what they want or need? Furthermore, how can you develop a plan to reach them? If you only get one thing from this article, make sure that you target your market.

2. Train and Focus the Sales Force
If you want your sales force to sell the new product, then you better make sure that they know and are comfortable with this product. Practice, role play, make calls with the sales force, but make sure they understand and can sell the product.
It is also important to make sure that selling the new product is their focus and that you have not confused them with multiple initiatives in the same or relatively close time frame. Clear the decks and make the new product launch their only focus.

3. Samples and Demos are ready and in place
New products generally need to be explained and samples and demos provide some of the best ways to do this. If you are going to use either, it is going to be critical to your success to insure that they are ready and in place prior to the launch.

4. Pricing is set
Your launch will not be a success if you don’t sell your product or service and you will not be able to do that unless you have completed your pricing and terms. If you are selling through distribution, it will be important to provide them with guidelines as well.

5. Promotions are in place
Frequently new products are introduced with promotions, so making sure the details of that promotion are clear will be critical. It is also possible that there may be programs like co-op advertising or volume rebates that will be affected and making sure those bases are covered should not be overlooked.

6. Displays are ready
Merchandisers and displays can be very effective in a new product launch. First you must decide if that is a part of your plan and if it is, then to make sure that they are in the right place at the right time to make your launch a success. Nobody needs a merchandiser or display after the promotion and the product is taking up regular shelf sapce.

7. Distribution is ready
Make certain that your means of getting the product or service to the end user is in place and ready to go before your press releases and advertising kick in or you will have wasted your budget. Promotion without product doesn’t serve you or the prospective customer or client.

8. Inventory is in stock
It isn’t enough to have product in the channel of distribution. If your estimates are wrong or your sales exceed expectations, your future success will depend on being able to react to that customer demand. Make sure you have inventory on the shelf or coming off the production line in time to replenish your supplies.

9. Advertising is set
Making people aware of your new product is going to be an important part of your launch. Most media have a lead time that has to be a part of your consideration. Print publications can run several months. Getting your website listed in Google or some of the other search engines can take even longer. Production for websites and broadcast commercials take time as well. Don’t wait till the last minute to begin this process.

10. Press Releases are timed
Just like with advertising, press releases need to be timed to the introduction. Lead times are long and talking to the outlets for your releases will be important in making sure that their timing and your timing work together to benefit the launch.

Different products in different markets will have variations on this checklist. Use this not as the end of your checklist, but rather as the base and build additional issues as required for your product or market.

If you would like to learn more about marketing your new product, please visit http://www.marketingnewproduct.com and discover how the Quickie Market Analysis can help you.

 Copyright Bob Cannon/The Cannon Advantage, 2005. All rights reserved.

Byline
Bob Cannon helps inventors, imagineers, importers and manufacturers successfully introduce new products to the Hardware / Hardlines Marketplace. Bob can be reached at (216) 408-9495 or mailto: bob@marketingnewproduct.com

This article courtesy of http://www.marketingnewproduct.com. You may freely reprint this article on your website or in your newsletter provided this courtesy notice and the author name and URL remain intact.

The Shift in Hardware Marketing

2005-09-07T13:48:00.000-04:00

Traditions die hard, but there has been a growing awareness for several years now that there is a convergence of factors that is growing to dramatically shift how products, especially new products move from idea to the end user. I have watched and anticipated this change for almost 10 years now and every once in a while, something happens for me to get a little bit more clarity about what is happening. The following is an attempt to give you a snap shot of some of the things that have brought me to this point in my thinking as well as some early pioneers in this shift and what they are doing that have the potential to revolutionize this business.

Distribution First we need to understand the “traditional channel of distribution.” This is how products have moved from manufacturer to end user since the industrial revolution. Generally, a manufacturer produces a product and sells it to a distributor. The role of the distributor is to stock product in relative close proximity to their retail customers. The distributor also sells the product to the retailer for the manufacturer. Historically this has also provided a layer of financial protection to the manufacturer as the distributor was the one who had to deal with collecting from the many retailers they served. This system worked extremely well when long distance business communication was by mail and transportation was by railcar and truck load.

Times have changed. Distributors have moved from being primarily service driven to being primarily financially driven and the inventory that once was considered an asset is now considered a liability. Turns and Cash Flow have become the driving forces in the Distribution world. Consequently the cost of carrying inventory has been shifted back to the manufacturer in the form of longer average days outstanding on receivables, smaller more frequent orders or both.

Distribution has, for the most part, reduced or eliminated the idea of selling the manufacturers products. What once were exclusive arrangements are now more aptly viewed as cherry picking the best sellers from all of the recognized vendors in the market. This creates an homogenized marketplace where every retailer is selling basically the same offering as every other retailer because the distributor has left them very little in the way of options to differentiate. The selling effort if it exists at all, is focused on selling programs and services that the distributor can provide to the retailer.

The financial insulation that distribution once provided to retailers has evaporated over the last thirty years as the number of Hardware Distributors has consolidated to a relative handful. The manufacturers have learned that as the consolidation continues, the risk of loss increases dramatically as the number of distributor’s decreases.

Finally, distribution has lost market share to the folks like Wal-mart and Home Depot who have found ways to reduce the costs associated with stocking, picking and reshipping inventory. This combined with their financial focus has forced them into a mind set that wants to limit the number of vendors and skus. For some time now, we have been faced with a situation where distributors are reluctant to add new vendors with limited product offerings even if it is a superior product. The time and cost of adding a vendor to the system combined with the cost of monitoring and issuing purchase orders for single items discourages if not eliminates the possibility of adding a better mouse trap if it is a stand alone product unless the manufacturer can prove that it will be a best seller. Recently I heard a comment that, “It costs Grainger $100,000 to set up a new vendor in their system.” This is not conducive to having new products in your offering.

Supply and Demand After World War II, the demand for hardware products far exceeded the supply. This created a situation where the suppliers or the manufacturers had the power in the channel of distribution and could pretty well set the rules of engagement including prices, terms, freight allowances, etc.. During the 70’s and 80’s, supply caught up with demand and the power in the channel shifted to the distributors. Manufacturers had to scramble and began offering programs like co-op advertising and smaller order sizes to make their product offering more attractive. Those that had strong brands, and were aggressive about business survived. There was a tremendous consolidation at the manufacturing level from the late 60’s into the early 80’s. By the late 80’s and all through the 90’s, the power had shifted once again, but this time it was to the Retailers. Home Depot, Lowes, Wal-mart and others set the terms because they were the ones with the power in the channel. Once again manufacturers were forced to adapt with rebate programs, even smaller shipments and lots of other programs. As we entered the 21 Century, the power shifted once more to the End Consumer. There are many factors that have contributed to the fact that the consumer is now the ultimate power in the channel. This is creating challenges and opportunities for manufacturers.

Technology Much has changed in the last 50 years and I believe we are on the forefront of incorporating these changes into a new paradigm in marketing Hardware Products. We have moved from truckload order quantities to LTL (less than truckload) to the world of UPS, Fedex, Airborne and others. We have moved from printed orders to faxed orders to EDI to online interactive ordering. We have moved from Cash in advance to Cash on Delivery to terms to credit card and electronic payments. We have also moved from printed advertising and catalogs to video to digital media. We have moved from Customer Service that is available 8 hours per day to Interactive Websites that are available 24 hours a day, seven days a week, 365 days a year.

The Future In the late 90’s, I thought that the future was in selling hardware products directly from the manufacturer to the end-user and certainly there is a place for that approach. Today, however, I am convinced that the consumer wants immediate access to hardware products, especially new products that meet a specific need that they don’t already own. Distribution doesn’t want to take the risk of adding vendors and products with unknown potential. There are other options that are slowly beginning to surface that will fill this void and help even one sku manufacturers make their products available to retailers who want exciting new products for their customers.

The impending Paradigm Shift is obvious to me. The best or most successful approach to this shift remains to be seen, but I believe it is in your best interest to at least explore the alternatives that are being developed. The shift will come quickly in comparison to past changes. You need to understand what is happening and what options exist for your business.

These are examples of just a few of the issues that we talk about at our new website http://www.marketingnewproduct.com. We have even developed a collaborative consulting product call the Quickie Market Analysis to help inventors, and new product marketers avoid these pitfalls.

It doesn't really matter where you are in the process of introducing your product. The Quickie Market Analysis will pick you up where you stumbled and move you toward success. Visit the U.S. Hardware /Hardlines Resource Center to learn more.

 Copyright Bob Cannon/The Cannon Advantage, 2005. All rights reserved.

Byline
Bob Cannon helps inventors, imagineers, importers and manufacturers successfully introduce new products to the Hardware / Hardlines Marketplace. Check out his blog at http:www.takingaim.blogspot.com. Bob can be reached at (216) 408-9495 or mailto: bob@marketingnewproduct.com

This article courtesy of http://www.marketingnewproduct.com. You may freely reprint this article on your website or in your newsletter provided this courtesy notice and the author name and URL remain intact.

Question from MakoStu

2005-08-23T08:18:00.000-04:00

MakoStu writes, “ I hear from many small vendors telling me that if you do business with one big box home center, (say H/D) then you cannot do business with the other say (Lowe’s) – while not said directly, the big boxes seem to make this point in subtle ways. The problem is principally for the smaller vendors not the real big guys like B&D or Stanley. What strategies have the small vendors used to get over the problem?”

Thanks for the question Stu and if any of our readers would like submit responses, please feel free to comment. If a client were to present this question to me, I would suggest there are a number of options open for us to consider.

1. Don’t fight, accept what they are saying and look for business in other areas. Filling the requirements of a big box for a small vendor can be a taxing undertaking. Do it well and prove the value of your product and your brand. Maybe it will be possible later on to expand to the other retailer after you have become established and valued by the first retailer.

2. Ignore what they are saying and run the risk of loosing some or all of that business. This is risky, but if you have the only widget available to the market and you have the capacity to meet the needs of both retailers at the same time, it may be something you feel is worth the risk.

3. Consider building different models of the product for each outlet. This is an age old approach to the problem and has been done for years in different channels of distribution so that competing channels would not have identical products for cross comparison.

4. Consider a branded product for one and a private label for another. This again is another step to avoid direct comparison.

5. Consider a relationship with another vendor where they take a modified version of your product under their label to the other outlet.

Seven Reasons Why New Products Fail

2005-08-15T08:51:00.000-04:00

The most optimistic success rate I have run across for new product ideas is about 3%. In other words, 97% of product ideas never successfully enter the market. There are lots of reasons for this low level of performance, but there is a consistency around a few common mistakes that routinely present themselves with inventors and new product marketers. These are not the only reasons, but if you can avoid these mistakes, you can greatly improve your chances for success.

The Product: The single biggest shortcoming in new product introductions is not fully understanding the product, its usage and the target market. A dead give away to this problem is when I ask inventors to define the target market and they tell me, "Everybody." If your target market is everybody, you are doomed to failure. It is like shooting a gun at a bull’s eye. You will most likely never hit the bull’s eye if you are aiming at the whole target.

The Opportunity: One of the most difficult questions to answer in preparing a new product for market is defining the opportunity. Sadly, there is not enough information available about most product categories and if you have something that is entirely new, there are no reference points, but this is critical information for the decision- makers you will be dealing with. You must have some verifiable estimate for the potential of this product.

The Channels: With most products, there are going to be intermediate steps between you and the end user of your product. What Channel or Channels will you choose? What are their expectations? Can you provide what they require? What do they require? Are there any trends that could affect your successful launch?

Your Circumstances: There are usually three factors that each inventor / marketer must understand about themselves before they go to market. Do you know what those 3 factors are and what options are available to best match your circumstances?

Research: Many people think they are marketing their new product idea or invention. The truth is you are also marketing actionable information and knowledge, but where do you go to get that information and knowledge? Once you do get it, how do you put it together?

The Fuzzy Front End: The people you are trying to sell your new product or invention to have a perspective that is different than yours. Do you understand their perspective and can you provide answers to their questions both asked and unasked?

Your Offering: Successful new product introductions require more than just the product. If we all just bought products, we would all be driving the same make and model of automobile. People don't just buy products, they buy features and benefits and image and status. How are you going to package your product for success?

These are examples of just a few of the issues that we talk about at our new website http://www.marketingnewproduct.com. We have even developed a collaborative consulting product call the Quickie Market Analysis to help inventors, and new product marketers avoid these pitfalls.

It doesn't really matter where you are in the process of introducing your product. The Quickie Market Analysis will pick you up where you stumbled and move you toward success. Visit the U.S. Hardware /Hardlines Resource Center to learn more.

 Copyright Bob Cannon/the Cannon Advantage, 2005. All rights reserved.

Byline
Bob Cannon helps inventors, imagineers, importers and manufacturers successfully introduce new products to the Hardware / Hardlines Marketplace. Check out his blog at http:www.takingaim.blogspot.com. Bob can be reached at (216) 408-9495 or mailto: bob@marketingnewproduct.com

This article courtesy of http://www.marketingnewproduct.com. You may freely reprint this article on your website or in your newsletter provided this courtesy notice and the author name and URL remain intact.

Marketing New Products - Hardware / Hardlines

2005-08-09T19:28:00.000-04:00

Last week we anounced that we were going to be introducing a new website devoted to helping inventors and people with new product ideas for the Hardware / Hardlines industry. Frequently, it can take a long time before the major search engines pick up a new site. Fortunately for us, Google picked us up today. Now people in search of help for their new product ideas can find us quickly on the web.

We stand ready to help all comers, but because of the time and research required we can only accomodate two of this type of client per month. If this is of interest to you, or if you have a friend that we might be able to help, please tell them to get on board quick as the search engines have found our new site and the traffic and interest in our services will increase significantly.

Bear with us. While the site is new and we are adding to it daily, not all of the features are fully functional yet. We hope to have everything up and running shortly. We will keep you advised.

New Beginning for New Product Marketers

2005-08-03T07:49:00.000-04:00

Today, the first page of a new website went live on the internet. It is a new site devoted to helping inventors, importers, marketers and people with new product ideas that would like to sell their products in the over $200 billion U.S. Hardware Market. In the days ahead, we will see additional pages added to the site as it grows to become a valued resource and asset to people interested in how to successfully launch a new product into this huge market.

The new site is the result of talking to many inventors about their products. Sadly, many spent large sums of money without ever understanding what it takes to successfully launch a new product. With over 30 years in marketing products and over 20 in the Hardware Industry, I have been involved with many new product introductions. Whether it is power tools, hand tools, bicycles, tricycles, ride-on toys and a raft of other hardware products, I have learned what works, what doesn't and why. Now I am sharing those secrets.

Discover the various channels of distribution that exist to get your products to market. Learn the options that exist for you depending upon your desires and your financial situation. Find out how to present your idea in a way that makes it easy for your prospect to say yes. All this and more will be available at Marketing New Product.

HardlinesJobs.com

2005-07-28T08:16:00.000-04:00

Yesterday, I received an email introducing a new website from The National Hardware Show and Reed Exhibitions called HardlinesJobs.com. This seems like a great idea and long overdue. What better than a niche service for this industry put together by the same people who put together the largest gathering of industry executives in the first place. If executed well, I think this could be a big success.

New Heating System for Cold Weather Caulkers

2005-07-27T15:36:00.000-04:00

Back in the days when I was involved with the development of the Essex dispenser for windshield adhesives, I met Bruce Christiansen. Bruce was developing a heating system for adhesives that would make it possible to dispense material in cold weather without rupturing the package holding the material. Water based materials can be extremely difficult if not impossible to dispense in cold weather. Conventional construction workers and tuck pointers have long kept tubes of adhesives and sealants over the vents on the dashboards to heat material. I have even heard of people using duck tape to strengthen the tubes so they are less likely to rupture.
Good News! Bruce has developed a family of products to solve that problem. For more informaion, visit http://www.ezgunn.com .

Check out the Flex-time article in USA Today

2005-07-25T06:46:00.000-04:00

Last week I received a phone call from Stephanie Armour of USA TODAY. She was writing an article for the Money Section about the decline in flex-time in the work place. I explained that the decline was related to the economy and the poor economy over the last four years meant employers didn't have to offer that benefit to hold employees. She offered that her research showed that flex-time employees were more productive. I believe that as the economy continues to move ahead there will be more job changing and flex-time will once again be offered as an inducement to get the best talent possible. This is a difficult thing for employers as it means giving up control and demands that they be more attentive to actual results. It is much easier for a manager to count heads than it is to measure output.

Click on the headline to read the article at USA TODAY.

SK was sold prior to the Stanley offer for Facom

2005-07-21T15:10:00.000-04:00

Earlier this week I wrote about the news that Stanley had made an offer for Facom. At that time, I wondered what would happen to SK. Little did I know at the time that Michel Moulin, President and CEO of SK had purchased the company from Facom back in May. This resolves the issue of how Stanley would handle SK, Proto and Mac. We now know that SK will continue to be a competitor to Proto and Mac.

The press release that I linked to in the title talks about the changes Michel has made at SK and their hopes for the future. It really sounds pretty interesting. Check it out.

Selling New Products to the U.S. Hardware Market

2005-07-20T20:14:00.000-04:00

Ever see a new product and say to yourself, “Why didn’t I think of that?” Well, if you stop to think about it, probably everyone one of us has either had an idea for a new product, believe we are capable of a new product idea or knows of someone else who has had a new product idea.

To get an idea of the magnitude of new product ideas and activity, I did a quick search on the word “inventor” on google and back came 9,300,000 websites. If you do the same thing with “invention” you get 18,000,000 listings. We are not talking hundreds or even thousands, but tens of millions. The generation of new product ideas or inventions in our world is huge. Yet when most people stop to think about the people they have been exposed to with new ideas, they are lucky to think of even one who has achieved any kind of success with their idea.

How many of you have successfully marketed a new product or know someone who has successfully marketed that new product idea? My guess is few if any.

Why is it that with so many new product ideas, there are so few commercial successes?

My experience both in the corporate world and as an independent consultant leads me to believe that it all boils down to a lack of understanding. First and foremost is a lack of understanding of who the customer really is, what they expect of the product and what they are willing to pay for it. This by far is the most common shortcoming in most inventors offering. I can’t even begin to count the number of people who have spent their entire budget on producing product, getting patents and developing sales materials without knowing who the customer is, how the product will be used and what the consumer is willing to pay for the product.

In today’s world, knowing all about the customer is critical. Almost 40 years ago when I started into business, the buyers of products at the different retail chains knew more about the customers than did anyone else in the marketplace. Today, people move so quickly that there is very little knowledge about the consumer. The inventor must now do the work that used to be done by the retailer and the distributor and make the buying decision so easy that it is a no brainer for his channel of distribution partners.

As if that weren’t enough, the inventor also needs to understand the option that are available for getting the product to market and balance that against the time, money and drive that are available to devote to achieving success in the market. The more the inventor knows about their own motivation, the easier it will be to choose among the options. While it is not impossible to figure out what options are available, this is an ideal time to get outside help in outlining the options and evaluating how each option fits that particular inventor. This can be done with an industry knowledgeable advisor, a consultant or possibly with a careful reading of the “Guide to the U.S. Hardware Market.”

After the inventor has developed a clear picture of the product, the consumer and the options available to market the product, they must then understand the different channels to get your product to market and how to present the product to that particular channel. How to present the product includes things like pricing, packaging, promotion and service. All need to be tailored to the particular channel that best fits your needs.

Once you have addressed all of these areas of understanding, you have the basis for a plan to go to market and the next step is execution. Even the most well thought out plans can fail if there isn’t a means to gather feedback and modify the plan as needed.

There are so few people who go through the necessary steps to introduce an invention or new product idea, that it is no wonder we don’t know more successful entrepreneurs.

If you would like to know more about the steps to achieve success in preparing your new product for the U.S. Hardware market, visit http://www.cannonadvantage.com/guide.html.

 Copyright Bob Cannon/The Cannon Advantage, 2006. All rights reserved.

Byline
Bob Cannon helps people with new products for the U.S. Hardware Market find the best way to take their new products to market. Check out other interesting articles available in the Taking Aim newsletter available at www.cannonadvantage.com . Bob can be reached at (216) 408-9495 or mailto: bob@cannonadvantage.com

This article courtesy of http://www.cannonadvantage.com. You may freely reprint this article on your website or in your newsletter provided this courtesy notice and the author name and URL remain intact.

Accelerated Product Evaluation Program

2005-07-19T15:38:00.000-04:00

For over 20 years, I have been working in the Hardlines / Hardware industry and during that time I have been involved with and written about all aspects of new products from development to introduction and everything in between. In fact, I have even written about how to do product variations, re-engineering, re-positioning and re-introductions in my online course on the Product Life Cycle.

One aspect of the process that frequently slowed the whole process was product evaluation. Recently, I discovered an alternative to the traditional do-it-yourself approach to product evaluation and I found it right in my own backyard. OnSpex is a Cleveland based company that helps manufacturers speed up the process and can provide assistance on compliance with UL, CSA, ASTM, ANSI, EMC and FCC standards as well. In addition, their credibility with retailers can have a positive affect on the acceptance of your new product.

If you need accelerated product evaluation for hardlines products like: plumbing products, electrical and gas appliances, power tools, and personal protective equipment, you might want to consider contacting OnSpex. If on the other hand you need to develop a plan to take your new product to market, then you might want to consider my "Guide to the U.S. Hardware Market."

Stanley bidding for Facom

2005-07-18T07:15:00.000-04:00

Consolidation in the Hardware / Hardlines Industry continues and each change has the potential to dramatically alter how manufacturers go to market and the products available to consumers. Today's Wall Street Journal reported that Stanley placed a bid of 410 million EUROs for Facom. This would significantly expand Stanely's presence in Europe and has some interesting implications for the U.S. Market as well. It is interesting to think about how SK might fit into this equation. With a strong presence in both industrial and automotive, it will be interesting to see how this might be folded into Mac and Proto or left as a competitor.
This could be the shot in the arm that Stanley needed. It could also be another deterent to Snap-On raising their stock prices. In any event, it will be interesting to watch.

Comfortably Sore

2005-06-06T06:49:00.000-04:00

We are a little over two week till our official move date. For the past two weekends, my wife and I have been working out at the new house preparing for the move. Our efforts have been concentrated on the outside. Peg has been working in the beds surrounding the house and I have been busy clearing off the long neglected leach field. Not much had been done to the area since the house was built and it was overgrown with trees, grape vines and all kinds of unknown junk. For the field to work properly, it should be covered in grass rather than trees, so I have been cutting and stacking in preparation for bringing in a chipper to clean up the piles. There are lots of tree stumps to be removed, but just getting the things down was a huge project.

Shortly, we will have to devote our attention to packing in preparation for the move. Rather than working on the outside, we will have to concentrate on the inside. I guess the things I will miss about the outside work are:
1. The fresh air
2. The sunshine
3. The tremendous feeling of accomplishment
4. The glorious tired and sore feeling that lasts for several days after the weekend effort.

It is a feeling of comfortably sore that is a reminder of the work that was accomplished.

Direct Marketing E-Book is Now Online

2005-05-24T07:46:00.000-04:00

Linda Yarbrough and I have been working together for several years now. As I was working on "The Impending Paradigm Shift in Hardware Marketing," Linda and I decided to co-create an e-book on Direct Marketing. We both believe that traditional approaches to markets are becoming more difficult to navigate as businesses continue to be more metric sensitive and the number of competing messages continues grow. We have both seen too many entrepreneurs and start-ups that blew their budgets without a good understanding of what they were getting into. It is our hope that this e-book will provide enough information to help those venturing into direct marketing to avoid some of the basic pitfalls.

At only $9.95, it will provide a level of understanding that is the result of years of experience. It is easily downloaded as a PDF and is intended to be an aid to enhance your chances for direct marketing success. Click here for more information.

The 2005 National Hardware Show

2005-05-20T19:45:00.000-04:00

Just back from two days at the National Hardware Show. Last year saw the demise of the Chicago show and the beginning of the Las Vegas Show. Rough years for both. This year, the Las Vegas Show was alive with more true hardware exhibitors and more attendees. Rumors were rampant that Depot and others were staying away, but that was not the case. Traffic was good and there were more small specialty distributors than ever before. the show had it's share of rough edges. The New Products area was a disaster. It was too small. Aisles were way too small and product was jammed in. People were going both directions and it was impossible to manuever. Some hardware folks were stuck in the back end of the Gourmet Food Show and the Lawn and Garden and off shore folks were stuck in an entirely different building.

The good news is that next year everyone is supposed to be together and I think the show will continue to grow.

I talked to several exhibitors with new products and they were especially pleased with the traffic and the ability to reach big name outlets for their products.

To paraphase, The Hardware Show is Dead, Long live the Hardware Show!

It is a thing of beauty

2005-05-13T14:55:00.000-04:00

The web wizards at The Media Mix have outdone themselves. Linda and Hub are the gurus behind the new look at The Cannon Advantage web site. A new menu system was created. Case Studies and a cool new case study search capability has been added. A unique new power point with sound introduction is available. The Business Quiz has been moved to the foreground. It is more welcoming, has tons more information and is certainly more user friendly.

Very shortly, the store will feature a new E-book created jointly with Linda Yarbrough. It will be available for purchase and download for less than $10. Hopefully it will get to the right people before they spend their budgets rather than coming to us after their is no money left as is frequently the case.

Hub and Linda have created a web site that can be a tremendous resource for marketing, strategy, performance and change.

I hope you enjoy it as much as I am going to.

Direct Marketing E-Book

2005-05-10T06:49:00.000-04:00

For some time now, Linda Yarbrough and I have been talking about direct marketing. I have been talking to Linda about how difficult it is for new products from single product marketers to get their products into traditional channels of distribution. Linda on the other hand has been telling me horror stories she has been hearing from some of these same folks who have tried to find reliable, knowledgeable advice on how to use direct marketing for their products or services.

Finally it dawned on us that maybe we should produce an E-Book on Direct Marketing that would provide prospective marketers with a basic understanding and do it so that it wouldn't eat up their marketing budget.

The Direct Marketing E-Book will be up on my website this week and Linda's website shortly as well. If you have a new product or service and are considering using direct marketing or direct advertising to go to market, please save yourself a lot of time, effort and money. Buy the E-Book first! Then, proceed with caution. Use the information provided to make sure that the people you choose to help you go to market are not just spending your budget, but truly do know how to help you get the best results possible.

Good Luck!

The Quiet Revolution in Business

2005-04-29T08:27:00.000-04:00

The media has done an incredible job of painting a negative view of business based upon the unethical actions of a small percentage of companies and executives. At the same time, I am witnessing a diverse and growing, positive revolution that is quietly taking place behind the scenes. The seeds of this revolution were laid out in a book entitled, “Global Mind Change” by Willis Harman written back in the mid 1980s. It is a natural progression that fosters empowerment, freedom, self actualization and yes even enhanced productivity and profitability.

As an example, For the last several months, I have been part of a project to interview leaders about their visions for a better world. The project is called Business as an Agent of World Benefit. Thousands of interviews have been conducted with very interesting results. I am certain we will all hear more about this in the days to come.

Case Western Reserve University is sponsoring a program in October entitled, “Building a Better World is the Next Business Frontier.” The World Business Academy is promoting the triple bottom line: people, profits and planet. A popular business book that I would recommend is “Jesus, CEO” by Laurie Beth Jones. The Chaordic Commons is devoted to helping People around the world pioneering new ways to organize that liberate the human spirit, advance deeply shared purposes, foster the common good, and nourish all life. The Appreciative Inquiry Commons is a place where positive change research and organizational leadership connect for world benefit. These are all unique endeavors, but they are all pointing in a similar direction. It is exciting and it is international in scope. Occasionally we get a small glimpse of this movement in a small business article, but I don’t think it will be long before it becomes widely recognized as the Chaordic Revolution.

Corruption

2005-04-28T19:05:00.000-04:00

Recently it struck me how serious our moral decline has become and how it may be the biggest reason holding back our economy and the stock market. We have corrupt politicians being exposed on a daily basis at virtually every level of government. We have corrupt stockbrokers who sell us overpriced equities in return for large financial deals with the issuers of the stock. We have corrupt businessmen who have robbed their stockholders and walk away with fortunes. We have corrupt lawyers who are more concerned about their fees than they are about justice. It is enough to make us all very cynical.

In my mind there has never been a more important time to tout the moral many as opposed to the immoral few. We should recognize good character and praise it whenever we can while we vigorously prosecute those who break the law and destroy our trust. We can no longer dismiss corrupt behavior as “everyone does it”, for if we do, everyone will do it and our world will be worse off because of our inactivity. We must re-establish our own values, we must instill those values in our children and we must not tolerate those who ignore the values that have made this country great.

How to Motivate Your Sales Force

2005-04-23T15:54:00.000-04:00

I have been fortunate to work with hundreds of salespeople. Each one was different and developed a unique selling style. Maximizing their performance was always more a matter of coaching to help them achieve more than they could achieve on their own.

Here are some basic guidelines that I have followed to help motivate sales folks and increase sales:

1. Keep It Simple! Sales people are busy - they make multiple sales calls each day and constantly answer questions from customers and the factory. Make your message stand out from other messages. It must be both clear and concise.

2. Limit Your Messages! Never try to give multiple inputs at one time. Always space new information so it can be absorbed and acted on before providing more input.

3. Create Recognition! Sales advisory councils are excellent ways to recognize outstanding effort and gain terrific input at the same time. Arrange a meeting with a select group of representatives from the sales group to discuss issues that affect them. Publicize the results.

4. Create Competition! Develop an awards program to generate interest. Establish multiple criteria. Announce monthly progress. Create a visible presentation. Establish a trophy and a list of past recipients.

5. Incentivize! The bigger the results you want, the bigger the incentives should be. At one company, we doubled sales in just two years through sales incentives.

However you motivate your sales force, always remember the goal is to better serve the customer.

Job losses - Technology or China

2004-09-08T07:00:00.000-04:00

Globalization is a word that scares many people since for some it means the loss of jobs to off shore manufacturing. While there is some truth to the idea, there is another interesting aspect of what is happening that is only just now beginning to surface. The September 7th issue of the Cleveland Plain Dealer reported that Eric Fisher spent a year studying why we are losing manufacturing jobs and found that the main reason is because of labor saving technological progress.

This sounds like the Industrial Revolution all over again where productivity gains on the farm made it possible for fewer people to produce the food requirements of the nation. The paper reported that the share of total U.S. employment in manufacturing dropped from 26% in 1960 to 13% in 2002. This is happening all over the globe with Canada dropping from 25% to 15%, Germany from 34% to 24%, Netherlands from 29% to 14%, Sweden from 32% to 17%, the United Kingdom from 36% to 16% and there even indications that manufacturing employment in China is starting to go down.

Given that this is the reality of our world today, it makes little sense for the media and politicians to proclaim the reactionary stance that they will bring back the jobs that have been lost. Rather, we need a new vision that looks forward and encourages innovation and creativity. Our future is dependent upon developing new products and services that will grow and prosper into the future rather than bringing back production of products that are moving toward commodity status.

Globalization - Looking Forward Rather than Backward

2004-09-08T06:39:00.000-04:00

The Plain Dealer had a very interesting article on Tuesday September 7th entitled, "Technology helped kill jobs in manufacturing, says expert." It reminded me of the Industrial Revolution where productivity increased on the farms reducing the need for labor to produce the same or increasing amounts of farm products. The paper reported that the manufacturing share of total employment dropped from 26% in 1960 to 13% in 2002. Canada went from 25% to 15%, Germany from 34% to 24%, Netherlands from 29% to 14%, Sweden from 32% to 17%, the United Kingdom from 36% to 16% etc., etc., etc.

They also recognized some lesser causes as well, but what struck me the most was the rhetoric we are hearing from the media and some politicians about how we should bring manufacturing jobs back. It struck me that once again, they are looking behind us rather than forward. Eric Fisher, Research associate with the Federal Reserve Bank of Cleveland, suggests that rather than looking backward, we should be promoting high tech services or service oriented jobs. "I would tell policy makers to encourage innovation and high-tech services."

Milwaukee Electric to TTI

2004-08-30T11:04:00.000-04:00

Wow! It has been incredible to watch, but today's news about Ryobi (TTI) buying the ATlas Copco power tool business including Milwaukee Electric Tool Company signals aonther huge step in the changing of an industry. This news is another huge step in the movement of the U.S. Tool business off-shore. There will be lots of fall-out from this acquisition and the Black & Decker acquisition of the Pentair Tool Group. It is going to be interesting to see what brands stay and what brands go as well as how they are positioned in the markets. STAY TUNED!

Prepare for the Coming Energy Boom in the U.S.

2004-08-18T08:31:00.000-04:00

It seems like every morning I open my newspaper to read about ever higher prices for oil. In my mind, it hung like a dark cloud over our economy. Over the weekend, I began to see a silver lining. Having lived in Western Pennsylvania and Southern Illinois, I couldn't help but learn a little about energy production. In the early 80's, I remember listening to stories of producers shutting down wells not because their wasn't any oil left to pump but because it wasn't economically feasible at $25 per barrel. Now with oil at prices above $45 per barrel, I believe there will be a boom in the oil, gas and coal fields as entrepreneurs go after the reserves that now look profitable again and people look for other forms of energy production.

Our requirements for energy are not going to diminish. Technology for solar power, wind power and fuel cells aren't quite ready for prime time. Sufficient reserves exist in this country especially at current prices to meet our needs.

I think this bodes well for hand and power tool manufacturers as drilling and mining are large users of hand and power tools. Over the last 20 to 30 years, this has not been a very active segment of our economy, but I think it is very possible that we may experience a boom in this segment very shortly.

Want to buy a looser?

2004-08-13T07:48:00.000-04:00

Yesterday the news reported that Toys-R-Us wants to get out of the toy business and concentrate on baby merchandise because they aren't making any money on toys. It seems that Wal-Mart is too much competition for them. This is really strange as it makes you wonder why they think they can be any better at baby merchandise if Wal-Mart and Target are going after that market as well. Even the announcement causes one to pause and ask, "Why would someone want to buy a looser and go through the same thing Toys-R-Us is currently experiencing?" Certainly, if they want to sell, it would make more sense to find a way to put some lipstick on the pig and make it more attractive to prospective buyers.
As I was thinking about Toys-R-Us, my mind raced ahead to thinking about the power tool industry. TTI has become the Wal-Mart of the power tool manufacturing industry. Pentair put some lipstick on their Tool Group and sold it to Black & Decker. Meanwhile Atlas-Copco is trying to sell their power tool companies including Milwaukee Electric Tool Company. While no one has actually said it, could it be that Pentair and Atlas-Copco weren't making a decent return on power tools and decided to sell out without telling the world why like Toys-R-Us did?

Books for bringing the next level of democracy to organizations

2004-08-11T10:43:00.000-04:00

I am just finishing the book "Presence" by Peter Senge, C. Otto Scharmer, Joseph Jaworski and Betty Sue Flowers. If you can cut through some of the early "hug-a-tree" stuff, there is a gold mine of information to think about as it relates to the demonstrated failures or so many of our institutions and the possibility that exists for making them better by looking at the Whole rather than the parts. This work is a logical extension of the work of Dee Hock in "Birth of the Chaordic Age" and the work of Margaret Wheatley in "Leadership and the New Science."
If you are in a leadership role today and thinking about the future of your organization, I highly recommend these books for your reading list.

Hardware Thoughts

2004-08-06T07:14:00.000-04:00

The last couple of days, I have called a number of people in the industry to try and find out what people are thinking. Most are still struggling with the price of steel. Some took price increases earlier and now realize the increase wasn't big enough to cover the latest increases. Others have held off and are now faced with the need to increase. Acceptance may be more difficult in the Industrial and Automotive area as those segments have not been as strong as Hardware. (One friend reported that at least one GM supplier closed his doors when he could not get a price increase based on increased steel prices.) Another manufacturer reported difficulty getting steel outside his regular contract.

Rising oil prices are going to have an impact on our business. Not only can we expect higher freight costs, but we can expect increases in energy intensive products as well as expecting other forms of energy to cost more as demand is increasing across the board. As we look at rising energy costs, it is going to be extremely difficult to go back and get another increase anytime soon.

I have also been talking to folks about the Hardware Shows. There is no excitement about returning to Chicago in 2005. Some are considering Las Vegas, but more companies are looking at Functional Shows like the World of Concrete, the Builders Show, etc. My guess is that most of the activity will center on these functional shows until someone comes up with some kind of show that will draw the 20,000 hardware store owners.

Power Tools and Buggy Whips

2004-08-04T06:59:00.000-04:00

The sale of the Pentair Tool Group has been on my mind for the last couple of weeks. Finally the pieces started to come together and my old paranoia helped me make this comparison.
First, you have to understand that I started my working career in the textile industry and watched that business move off shore. Then I moved to the bicycle industry and watched that move off shore as well. So my current views are tainted by what I have seen before.
For those of you who are subscribers to my newsletter, you may remember my article about TTI, "The Prototypal Chinese Manufacturer." That article was my first clue that something is going on in this industry. My next clue came several months ago when Atlas Copco announced it's intention to sell off it's power tool division including the power house brand Milwaukee Electric Tool Company. Finally, the sale of the Pentair Tool Group to Black & Decker sealed the thinking.
Power Tools have been the whipping boy of the hardware industry for some time now. They have been used as price leaders to get people into the stores for so long that I doubt anyone is making any money. Several years ago, I was talking to people at Skil-Bosch about a new battery powered tool and they told me that inorder to maintain their volume with the retail community that it was imperative that they reduce prices by 10% to 15% every year. New products were critical, but so was the ability to cost reduce the products.
The rise of TTI, the sale of Pentair Tool Group to Black & Decker and the offering of the Atlas Copco Power Tool Division all lead me to believe we are watching the demise of another domestic industry. High volume power tools produced in the United States are rapidly becoming a thing of the past.
The good news in this is that our cost to purchase power tools may in fact continue to decline. The other piece of good news is that there will probably be an opportunity for manufacturers to produce high quality, niche products in this country as the far east will concentrate on high volume, long lead time products. At least that has been what has happened in other industries that I have watched.

U.S. Hardware Industry Association

2004-07-26T08:05:00.000-04:00

As a veteran of the Hardware Industry (nuts and bolts, not computers and hard drives) for many years, I am constantly striving to learn more and increase my value to my active and prospective client friends. Recently, I came across the "U.S. Hardware Industry Association" with the URL of www.associationhardware.com . This was a new one to me, so I explored the site. It appears to be nothing more than a gimmick to get you to join with some supposed travel benefits or price discounts but no substance that I could find.

I would be interested in finding out if anyone out there knows anything about this organization, especially since they also seem to be the association for a large number of other industries?

Black & Decker to acquire Pentair Tool Group

2004-07-20T06:21:00.000-04:00

BIG NEWS in the Hardware Industry. Toolmaker Black & Decker currently manufactures power tools under the BLACK & DECKER label as well as the DEWALT name is about to acquire the Pentair Tool Group that includes PORTER-CABLE, DELTA and DEVILBISS. The acquisition of Porter-Cable adds to B&D's stable of corded and battery powered hand tools. Delta brings a whole stable of new stationary products and DeVilbiss makes them a leader in the air tool business which is a whole new category for B&D.

Happy Independence Day

2004-07-02T07:26:00.000-04:00

As we all get ready for the long weekend, I think it is pretty amazing that we are also watching the first few days of freedom for a country that has for so long been under the thumb of a tyrant who is now coming to justice. Our founding fathers were brilliant in their understanding of man's need for freedom. I am absolutely convinced that the need for freedom is one of those universal truths.
Michael Moore can rant all he wants, as he is living proof of how great this country is that it will allow him the freedom to bash the very country that provides him with the opportunity. Michael appears to hate America while he hides behind the freedom that is America, I choose to love America and am so very proud of our freedom and what has been accomplished here. I pray for the people of Iraq as well as other countries where people are yet to be freed. I pray that freedom comes quickly and that they will gather the mantel of responsibility and demonstrate the importance of freeing their brothers and sisters all around the world. Freedom is the key to Peace on Earth and is absolutely required if we as individuals are ever to achieve our true potential.
God Bless America!

Appreciative Inquiry

2004-06-24T21:44:00.000-04:00

I just spent three days at a Roadway Express, Appreciative Inquiry Summit. It was a truly educational experience. The process is geared to give companies a competitive advantage that will last for 7 years or more when fully implemented. I congratulate Roadway Management for having the intestinal fortitude to step out into a new arena and work to empower their workforce to achieve a competitive advantage that no other company in the industry is willing to undertake.
It was inspiring and I felt very proud for the employees of the company.
Three cheers for Roadway Express!

Little Big Box from the Ocala Star Banner

2004-06-21T10:23:00.000-04:00

There is an interesting article entitled "Little Big Box" in the Ocala Star Banner.
It is the story of an independent competing against the big boxes.
This is the kind of story we need more of to help other independents summon the resolve to find a way to compete.

"Trusted Writer"

2004-06-11T07:04:00.000-04:00

Received an e-mail this morning from Impact Articles. I had submitted several articles to them and I was advised that the staff had reviewed the quality of my writing and has awarded me "Trusted Writer" privileges.

This is an interesting website filled with articles about Business, Marketing and Coaching. If you get a chance, please visit the site and check out the many fine articles that are available there.

Negative Web Sites

2004-06-09T06:54:00.000-04:00

I found these Hardware related websites a couple of years ago. It is interesting that they continue on to this day. I guess it just goes to show that when you get on the wrong side of people, it can have some very serious side effects.

Check out www.stanleysucks.com or www.big-box.com to get an idea of how angry constituents could target your business!

Collective Intelligence - Collective Wisdom

2004-06-07T18:17:00.000-04:00

I spent the bigger part of the day working on the July issue of the "Taking Aim" newsletter. (Feel free to sign up for this free newsletter at cannonadvantage.com. For July, I have concentrated on Collective Intelligence and Collective Wisdom. This area of exploration fascinates me and there is so much about this area of exploration that fits with my real life experiences that I am drawn to it like a moth to the flame.

I refer to a number of references, but one that I left out of the article is a website named collectivewisdominitiative.org. This is a great site filled with stories and people who are actively engaged in the exploration of this emerging subject. If this is of interest, check it out.

The Prototypal Chinese Manufacturer Revisited

2004-06-03T15:10:00.000-04:00

Back in June of 2003, the "Taking Aim" newsletter featured an article entitled, "The Prototypal Chinese Manufacturer." Today, the financial news services anounced, "Techtronic Industries - Share subdivision effective on 31st May, 2004." In other words, not only has the stock appreciated, but now it is undergoing a 2 for 1 stock split. TTI is an amazing supplier of home improvement products with 16,000 employees worldwide. Brands include: Ryobi power tools, Homelite and Ryobi outdoor power equipment, Regina, Royal, Dirt Devil and VAX floor care appliances. They have been experiencing double digit growth annually for the past 8 years. Check out http://www.ttigroup.com .

Industrial Supply Association

2004-05-31T09:28:00.000-04:00

The world of trade associations and trade shows is changing. Some participants are stuck in the old ways and some are searching for the new way to serve their industries and their members. Congratulations to IDA and ISMA (formerly ASMMA) for taking the bold step of combining a distributors association and a manufacturers association into a single association under the name Industrial Supply Association. The leadership of the two groups are to be congratulated. This was a difficult decision and there are no guarantees of success, but they made a decision rather than letting both associations continue down the same old path.
The future is unpredictable and more so now than ever before. Change is coming at such a rapid pace that anticipating the future is impossible. Consequently the future of the new association is unclear at best, but the cooperation that brought both associations to this point is a very strong base upon which to build in this time of heightened uncertainty.
Congratulations ISA!!!!

E-Commerce

2004-05-28T17:59:00.000-04:00

I just put the final touches on the June issue of the "Taking Aim" newsletter. The main topic is about E-Commerce. There is also a note about an article in the Harvard Management Update where they quote yours truly. Kinda of neat being quoted in anything from Harvard. It should be available on my website, just click here.

Like you, I am looking forward to the long weekend, the race in Indy and the following race in Charlotte. Hope you all have a great Holiday weekend.

Interesting Hardware Day in the News

2004-05-27T20:08:00.000-04:00

The Wall Street Journal reported the following:

Wal-Mart was cleared to build a Chicago Store!

Home Depot increased quarterly dividends by 21% and is increasing the stock buy back program.

Auto Zone sales were up 5.6% in total while same store sales were up 2%.

Hardware Show Alternative

2004-05-26T16:43:00.000-04:00

The Chicago and Las Vegas Hardware Shows are behind us. I have already reported my thoughts on the the shows. With the Industry going through transition, it makes sense to explore all opportunities. Several years ago, I attended the National Retail Hardware Association Convention. I had a chance to catch up with old friends from the Co-op corporate offices and to meet many independent hardware retailers. It was a great experience for me and a handful of manufacturers. I remember thinking at the time what a missed opportunity for manufacturers to get close to the people who are actually selling their products. Today it looks like a golden opportunity.

The 2004 Convention is scheduled for July 12th to 14th at Resort Semiahmoo in Blaine Washington. As a manufacturer, unless you have a crystal ball already pointing out the best path to the future, it might be wise to take a look at this opportunity.

Hit the mute button

2004-05-23T16:34:00.000-04:00

The older I get the more I am starting to realize that there is more to life than work.
Reflection is incredibly important in trying to make sense out of what we do and why. It is also important in undersanding who we are. For too long, I have been a human doing instead of a human being. I have been succesful in separating my weekends from my work (for the most part), but I go into a different doing mode that is focused on the house and yard. Slowly and with difficulty, I am trying to set aside 50 to 20 minutes a day for meditation. Sometimes it is in the form of just sitting quietly. Other times it is in the form of a walk. Still other times, I a blessed with access to a labyrinth nearby to walk. These times are when I hit the mute button on doing and just exist. These times and early in the morning are the times of inspiration for me. I gain insights into problems and steps to move toward solutions. I frequently gain from muting the outside world, but something in me fights against the "waste of time" of just being. It is a battle between my internal, trained monkey, worker constantly having to do something and the reflective being within that provides real wisdom.
It is my intention to frequently mute the voice on this blog and be a human being rather than a human doing. Don't think I have quit, but rather that I am out getting my bateries charged.

Atlas Copco to sell Power Tool Division (Milwaukee Electric Tool)

2004-05-20T10:41:00.000-04:00

Wow! Big news in the Hardware Industry. Read the whole story at www.manufacturing.net/ind/ - 65k - May 19, 2004 . While the article talks about the profitability of the division, you kind of have to wonder a little about the impact of the Big Boxes on Atlas Copco's decision to sell. We know that Pentair (Porter Cable and Delta) has been having some financial troubles for a while. Black & Decker's earnings have not been so great either (DeWalt). Skil- Bosch has been very quiet as well.

It is common knowledge that power tools have been used as price leaders at the Big Boxes for some time and more Power Tool business is shifting to overseas production. Could this be the reason for the poor financial returns and the decision to sell? Will this be the precursor of things to come in the Hardware Industry.

Hardware Show Wars

2004-05-19T19:56:00.000-04:00

In the Hardware/Hardlines Industry (hammers and screwdrivers and such) there has been a war brewing between The American hardware Manufacturers Association and Reed Exhibitions.

Round 1 of the Hardware Show Wars is over. The AHMA Show in Chicago in its present form is dead. It will take a total remake to have anyone consider spending the money to attend the Chicago Show in 2005. Even the food concessions were closed in 2004.
The Reed Hardware Show in Las Vegas had more exhibitors, more attendees and open food concessions. The show had plenty of problems including a confused new products area. Lawn and Garden and Home Decorating dominated. There were lots of Red badges even if some were on people other than buyers. Whether or not this show will be good for the traditional hardware/tool people remains to be seen. Venues like the Homebuilder Show, World of Concrete and others currently look like better options to me as they get the manufacturer closer to the end consumer.

Hello & Welcome

2004-05-19T17:56:00.000-04:00

I have wanted a blog for a long time and only now found an easy and inexpensive way to accomplish that objective. I hope that my posts will elicit a dialogue that will be of interest to many.

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