PETS vS.iPads

T H E O R I G I N A L M A G A Z I N E F O R A N I M A L H E A LT H R E TA I L E R S
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HELPING YOU GROW YOUR BOTTOM LINE
WINTER 2012-2013
VOL. 11 / ISSUE 4
www.durvet.com
YOUR COMPETITVE
ADVANTAGE
How one dealer has thrived
NEW
MEDIA
NEW
MESSAGE
How To Use High Tech For
Effective Marketing
PETS
vs. iPads
Do Kids Prefer High Tech
Over Cold Noses, Warm Hearts?
New Products for Winter page 20
WINTER 2012
V O L . 11 | I S S U E 4
UP FRONT
News and trends in retailing
4|
Durvet Expands Headquarters
For The Future
Ongoing expansion and innovation projects
are designed to improve efficiency and provide
better service.
6|
Pet Market Savvy:
Your Next Target Market?
Put the bulls eye on kids: They have a broader
range of interests, but they still have that
natural human affinity and affection for pets.
PUTTING THE
INTERNET TO WORK
Making websites and social media
more effective
14|
Match New Media With Tried
And True Marketing
Old communication methods take on new life with
the Internet.
I M PA C T
Facts, tips and ideas to help your business
8|
Success Trajectories:
Actions Business Leaders Take
Managers try to make their companies better;
leaders grow them into new businesses.
16|
In Tough Times, Take A Hike
A critical tour of your facilities reveals
solutions to problems.
16|
Sales Edge:
Keeping Your Team Sharp
CONTENTS
F E AT U R E S
Dealer
1 0 | Arkansas
Unfazed By
Recession or
Competition
More than doubling its sales revenue in the last
five years, Eppinette Feed and Ranch Supply
has thrived in the nation’s worst economic
downtown since the Great Depression by
thinking big, borrowing pages from big box
playbooks and taking on all competitors.
E V E RY I S S U E
2| PRESIDENT’S
MESSAGE
A message from Bob Hormann
Food movement activists argue safety is the top concern of
American food shoppers – but consumers say taste and price
are what move products from shelf to shopping cart.
3| FIRST GLANCE
A look into what’s new in the industry
The policy and advocacy arm of Consumer Reports calls for a
major reduction in the use of food animal antibiotics, but its
view comes from a narrow perspective
20| NEW PRODUCTS
An overview of new animal health products.
!
ON THE COVER
The natural affection and
affinity children have for
animals is a fact of life, and
isn’t about to fade away. But
kids these days have lots of
attractions and distractions
in their lives that kittens and
puppies must contend with
for their undivided attention.
HELPING YOU GROW YOUR BOTTOM LINE
W I N T E R 2 0 1 2 | V O L . 11 | I S S U E 4
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NSTIEDNETNST ’ S L E T T E R
VOL. 9 | ISSUE 3
WINTER 2012
Consumers Are
All For Safe Food,
Especially If
It’s Tasty
Ongoing research shows consumer attitudes about
the U.S. food system are as numerous and varied
as the thousands of products and brands available
in any supermarket. If you listen to the voices of
food movement activists, food safety tops the list of
concerns Americans are most worried about. But
a current survey from the International Consumer
Attitudes Study (ICAS) boiled all those moods down
to the three factors that most influence the purchase
of food: taste, cost and nutrition. In that order. The
ICAS said 98 percent of Americans feel that way.
So what about food safety? Well, the issue gets
plenty of volume in the media, but apparently only
lip service once shoppers head down the aisle. In a
survey conducted last year by Deloitte LLP looking
for consumer feedback on Congress’ Food Safety
Modernization Act of 2011, almost 75 percent of food
shoppers said they were more concerned about food
safety now than they were five years ago. At the same
time, however, two-thirds of them were not even
aware food safety legislation had already been passed
on their behalf.
And the most recent study – the 2012 Consumer Trust
in the Food System Research – presented this past
October by the Center for Food Integrity (CFI) found
that a third-to-half of American consumers will readily
set aside their fears about many food products once
they’ve been given the facts by scientists, universities
and government agencies. (Go to www.foodintegrity.
org to download a summary copy of the research.)
A case in point was California’s Prop 37 that would
require extra labeling for food products containing
GE and GMO ingredients. Early in the campaign
proponents framed the ballot measure as a food safety
issue. It looked like a shoe-in for approval with 70
percent of Californians in favor of it. Then a major
education effort led by scientists and industry to
inform voters on the ‘real science’ and the benefits of
GE and GMO agriculture production turned the tide.
Californians rejected the proposition 53.1 to
46.9 percent.
A Lesson For Dealers
If there is one constant emerging from the results of the CFI’s annual consumer
research, it is this: education pays. It paid off for the technology sector of the food
industry during the Prop 37 campaign when agribusiness companies like Monsanto
and DuPont Pioneer Hi-Bred teamed with the scientist/university community to prove
the efficacy and safety of biotech products.
Five days before the general election, Dan Cosgrove, vice president of biotech business
development for Pioneer Hi-Bred group, told the Agriculture Business Council of
Kansas City and ProfitBuilder that no other industry has a ‘purpose’ equal to that of
agriculture. “Feeding the world is the most important business there is,” he said. No
matter what part of the industry your focus is – farming, raising livestock, producing
seed and crop supplies, food processing, distribution or retail – that importance of
purpose is shared equally, he stressed.
The fruits of continuing education are there for the picking by dealers and farm
store retailers. If you provide additional information in your merchandising efforts
that highlight product details such as design appeal and aesthetics, value and cost
effectiveness and utility (sort of like the “taste, cost and nutrition” metrics consumers
apply to food), your customers will develop a stronger brand understanding and
loyalty. That translates into a stronger bottom line.
At Durvet, we endorse the concept that training and education pay dividends. Lately
we’ve taken that lesson to heart. We just finished the fourth major facilities expansion
at our Blue Springs, Missouri headquarters. (See story on Page 4) The ultimate goal
for all these projects is to provide better service for our customers. Usually that
involves expanding warehouse space. This time around we’ve focused on expanding
and enhancing our office and conference facilities with the express purpose of offering
more product and sales program training and education not only for our reps but also
for dealers and their staff to learn more about our product lines.
If you have the opportunity, we’d love to have you sit down with us. In the meantime,
everyone here at Durvet wishes the best for you, your families and your staff in the
New Year.
Sincerely,
Bob Hormann
Bob Hormann, President of Durvet, Inc.
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FIRST GLANCE
PROFITBUILDER
DURVET DISTRIBUTORS
Search for distributor locations by zip code
at www.durvet.com.
Click on the DISTRIBUTOR button and enter your zip code.
A Publication of Durvet Distributors
BOB HORMANN
President
TODD R. MUENSTERMANN
VP of Sales & Marketing
BRADLEY CALDWELL, INC.
(800) 257-9100
BREEDER’S SUPPLY & EQUIPMENT COMPANY
(800) 432-9342
COASTAL AGRICULTURAL SUPPLY, INC.
(800) 856-6000
COLORADO ANIMAL HEALTH, INC.
(800) 235-2636
DUBOIS DISTRIBUTORS, INC.
(800) 264-3772
FULLER SUPPLY COMPANY, INC.
(800) 633-4960
IVESCO, LLC.(800) 457-0118
K & K VETERINARY SUPPLY, INC.
(479) 361-1516
LITTLE-WOODALL SUPPLY COMPANY, INC.
(800) 554-1049
MIDLAND VET SERVICES
(866) 723-5727
MID-WESTERN VETERINARY SUPPLY
(800) 392-8219
MIDWEST SUPPLY & DISTRIBUTING
(800) 397-6972
MISSISSIPPI SERUM DISTRIBUTORS
(800) 647-7137
MITCHELL’S ANCHOR SERUM CO., INC.
(800) 876-1290
NELSON WHOLESALE SERVICES, INC.
(800) 592-1428
STEVE REGAN COMPANY
(800) 888-4545
STOCKMEN’S SUPPLY, INC.
(800) 437-4064
VETERINARY SERVICE, INC.
(800) 350-1874
WESTERN RANCH SUPPLY
(800) 548-7270
WESTERN STOCKMEN’S, INC.
(800) 632-3005
MARK FICKEN
Director of Business Development
& Key Accounts
MARK NIBLO
Director of Strategic Partnerships
& Biologicals
JOHN MILLER
Operations Manager
VALARIE PARIS
Controller
BILL BOOTS
Biologicals Marketing Specialist
CAROLE FERNANDEZ
Pet Marketing Specialist
KERRY GLAKELER
Equine Marketing Specialist
DEREK SIMPSON
East Regional Sales Manager
JAMES WEATHERLY
West Central Regional Sales Manager
JON MOOSE
Western Regional Sales Manager
& Dealer Sales Manager
Board of Directors
BOB HORMANN
Durvet, Inc.
JIM BRADLEY
Bradley Caldwell, Inc.
FIRST GLANCE
There’s Resistance To
Agreement On Food Animal
Antibiotic Use
As the gavel came down at the close of the National Institute of Animal
Agriculture’s second annual symposium last month on the use of
antibiotics in food animal production, an opposition group to the NIAA’s
research was proclaiming “the overuse of antibiotics promotes the
spread of drug-resistance superbugs and makes antibiotics less effective
for people.” The Consumers Union (CU), the policy and advocacy arm of
Consumer Reports, called for a major reduction in the use of food animal
antibiotics.
It’s fair enough to say antibiotic overuse is causing resistance, but it
seems the CU is laying the blame for the current 95,000 annual hospital
patient deaths from drug-resistant bacteria squarely on food animal
agriculture. It claims 80 percent of all antibiotics sold in the U.S. are used
on food animals, mostly to make them grow faster or prevent disease in
crowded and unsanitary conditions.
[continued on page 04]
ERIC BRITTAIN
Coastal Ag. Supply
RICHARD BURTON
IVESCO, LLC.
ROB JAMESON
Stockmen’s Supply, Inc.
ED MCMILLAN
Outside Board Member
JOHN SCHEUBER
Veterinary Service, Inc.
Durvet, Inc.
P.O. Box 279
100 S.E. Magellan Drive
Blue Springs, MO 64014
Phone 1-800-821-5570
Fax 1-816-224-3080
www.durvet.com
© 2012. All rights reserved. Vol. 11, No. 4 WINTER 2012.
Published quarterly for farm, pet and equine stores and animal
health retailers. ProfitBuilder® will consider manuscripts and
photos for publication but shall not be responsible for loss or
damage. All materials must be accompanied by self-addressed
stamped envelope. Editorial content researched, prepared and
written by McLaughlin Writers Group, LLC. Lenexa, KS 66215.
ProfitBuilder® reserves the right to alter any submissions at its
discretion for use in the magazine. Send changes of address
to ProfitBuilder®, 100 S.E. Magellan Drive, Blue Springs, MO
64014, or email [email protected]. If you have any questions
or comments about the editorial content please contact Editor,
ProfitBuilder® at 1-800-821-5570.
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03
UP FRONT
PROFITBUILDER
[continued from page 03]
The message emerging from the
NIAA’s symposium, however, was
more contemplative, constructive and
clear: antibiotic use and antimicrobial
resistance are the concern and
responsibility of all public health
communities – human, animal and
environmental. The solutions will require
collaborative scientific research from all
of these sectors.
While the CU’s scope of the situation
had only the food animal industry in
its crosshairs, participants at the NIAA
rigorously discussed the latest research,
and reached agreement on numerous
points:
• Antibiotics improve human, animal
and plant health, and increase life
expectancy.
• Antimicrobial resistance is a constant.
History shows antimicrobial resistance
is not a new phenomenon but existed
before mankind.
• Antimicrobial resistance is a subtle,
complex, difficult and polarizing
issue. It is more than science and
evidence. It involves politics, behavior,
economics and conflicting opinions.
• Antimicrobial resistance is not merely
a consequence of use, but of use
and misuse. The animal, human and
environmental health communities
are all responsible for antibiotic
stewardship.
The finger pointing and blame for
antimicrobial resistance needs to end,
the NIAA speakers and organizers
said at the conclusion of the three-day
symposium in Columbus, Ohio. “Finding
a solution is not about compromise;
it’s about reaching agreement,” stated
Dr. Lonnie King, Dean of The Ohio
State University College of Veterinary
Medicine. “We [the animal, human and
environmental health communities] need
to focus on interests – not positions –
and initiate options for mutual gain. We
need to find common ground, something
we all can agree to when we disagree
on other issues.” ◊
04
D urvet E x p a nds H e a dqu a rters
For The Future
Over the 40 plus years since it opened its doors for business, Durvet’s facility
expansions and improvements have occurred like clockwork. While not exactly
governed by timetables set in stone, Durvet nevertheless seems to launch a major
construction, renovation or expansion project every ten years. Bob Hormann, president,
says Durvet leased space in Kansas City, the center of the a nation’s animal health
industry, when the company first got started in 1970. “Then in 1975,” he notes, “we built
our first facility in nearby Blue Springs, Missouri, and have initiated new construction
ever since at ten year intervals.”
A decade later in 1985 Durvet doubled the size of its first building to 20,000 square
feet. That expansion coincided with a ten-fold growth in Durvet’s sales over the period.
By 1995 when revenues doubled, Durvet acquired more land in Blue Springs and
constructed its current modern headquarters office that included 39,000 square feet
of state-of-the-art warehousing space and technology. In 2005, following a tripling of
sales, Hormann and his staff were at it again – doubling down on the square footage
to 78,000.
The most recent expansion, completed in early fall, actually arrived a few years ahead of
the usual ten-year scheme. This time around its focus was on office space. “Our overall
growth in sales and in the products and lines we carry was the big reason for our latest
construction project,” says Hormann, “we needed to bring in more people.”
Durvet has allotted 1,500 square feet of the expansion for three private offices and six
cubicles. It has also increased the size of the conference room by 50 percent. “We intend
to utilize the conference facilities for more product and program training sessions for
our reps,” Hormann says. “We are also set up to bring in dealers and retailers to learn
more about our product lines.” Additionally, he notes, the enlarged conference room
allows the various operating groups in the company to get together to discuss and
review their particular projects or plan and launch new ones. The IT equipment and
systems room also got a makeover. “Our auditors recommended the computer room be
enlarged, and the security systems be upgraded,” Hormann adds.
Although warehousing has usually been the focal point in most of Durvet’s expansion
projects to date, Hormann and his team took a slightly different direction this time.
“Instead of building out the existing warehouse,” explains Hormann, “we capitalized
on an opportunity to purchase three acres of land adjacent to our property.” He says
the warehouse is close to being maxed-out; and when Durvet is ready to expand, a
relocation won’t have to be considered. “We can build right here.”
Whatever the reasons for these facility expansions and renovations, in the end, says
Hormann, it is always for this purpose: “To improve efficiency, to expand our product
line and to provide better service to our customers. We are geared for the future.” ◊
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05
UP FRONT
PROFITBUILDER
P E T M A R K E T S AV V Y:
Your Next Target Market?
KEEP YOUR EYE ON KIDS
W
hen baby boomers were kids, what topped a lot of their
Christmas and birthday wish lists were ponies and puppies. Now as boomers grow older, dealer and pet store retailers wish there were more of them. Youngsters today have a
broader range of interests and activities that don’t include
feeding, walking and letting the dog or cat out. Their world is
connected by the Internet, smartphones, laptops and television, not enriched so much by the human-animal bond.
“The baby boomer generation has been great for the pet business,”
says Jennifer Boncy, a writer for Pet Business magazine, “but with
time, the industry will no longer be able to count on even this loyal
customer base.”
Along with a growing number of industry observers, Boncy is worried
that if five and 10 year olds today don’t develop the bond with
animals, the pet industry could be dealing with a smaller market and
a shrinking customer base.
“We know that the starter pets that we traditionally associate with
younger children—that segment of the industry has not been
growing,” says Steve King, president of the Pet Industry Distributors
Association (PIDA).
Manufacturers are also aware of the trend. Companies such as
Penn-Plax, a maker of pet supplies in a variety of categories, know
what is at stake. Paul Demas, project manager at Penn-Plax, says
it’s a priority at his company to appeal to kids. But it’s not easy.
“In a world where video games, iPads and other electronics reign
supreme,” he states, “we unfortunately see fewer children taking
interest in pets.”
All is not lost, however, as boomers ride off or walk their dogs into
the sunset. “We are living in a digital age, and kids engage in many
different activities, but that doesn’t mean it’s an either or situation,”
argues Allison Ellis, a youth marketing consultant. Although kids
have more recreational choices nowadays, Ellis maintains they have
no less affection for animals than previous generations.
But it will take a concerted effort at the retail level to ensure today’s
children become the reliable, lucrative pet market consumers their
grandparents have been. Retailers will have to get in the game,
working at a grassroots level, Ellis says, to inspire and educate
upcoming generations of potential customers.
She also points out there are many things dealers and retailers can
do to promote the natural bond children have with animals. This even
holds true for stores that do not carry live pets. She advises dealers
and retailers to start thinking of non-traditional ways to generate
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foot traffic, and this may mean partnering with other businesses or
individuals.
Here are a few ideas you can check out now and get involved with
to ensure the next couple of generations of pet owners are as doting
with their animals as the boomers have been:
• Pets in the Classroom. Established by The Pet Care Trust – a
non-profit organization funded, in large part, by various industry
organizations, including the World Pet Association (WPA) – the
Pets in the Classroom program gives grants to pre-K through
eighth-grade classroom teachers that allow them to buy a small
pet (or a reptile, fish or bird) and pet-care supplies for the
classroom. The program has currently placed pets in about 9,000
classrooms, and expects by year end there will 10,000 classrooms
hosting pets. The ultimate goal is to have 30,000 classrooms
participating, bringing pets into the lives of one million students.
For more information: www.petsintheclassroom.org. The WPA is
also involved: www.worldpetassociation.org. You can check with
either of these organizations to learn more about how you and
your store can get involved.
You can go directly to the elementary schools in your market
area to see if they are participating. If they are, offer additional
sponsorship support by providing feed and health care products
for the classrooms. Arrange tours of your store – sort of a field trip
destination – to further educate the youngsters on the care and
handling of their pets. Better yet work with the teachers to develop
extracurricular programs at your facilities where local animal and
wildlife experts hold workshops that promote the human-animal
bond.
• If your local schools are not involved in Pets in the Classroom,
you can take the initiative to be a coordinator or liaison between
The Pet Care Trust and the school. Depending on circumstances
in your school district, maybe it would be easier or more effective
to develop a similar program of your own or with the local chamber
of commerce.
• Consider carrying lines of pet toys and other products licensed by
the producers of children’s television shows. Kids will pick up
on the connection.
• Host live animal show-and-tell events and shelter adoption
exhibitions at your store. You can team up with animal authorities
and veterinarians to put on the show. ◊
I M PA C T
PROFITBUILDER
Success Trajectories: Actions Business Leaders Take
L ook , Listen , L earn
Dan Costa didn’t get a chance to go to college, but what he has
accomplished as an entrepreneur and businessman over the last
35 or so years is the type of textbook success story college students
read about in their undergrad business and MBA courses. Costa,
who recently founded Noble Equine in Modesto, California, and is
growing it into a supplier of a full line of gear and clothing for horses
and riders, is not just an investor. He is a creator, a developer and
what you could also call a visionary. Costa credits his success to
an ability to picture things others don’t. “It is easy for me to see the
future of a business,” he says.
Costa, however, doesn’t walk around with his head in the clouds.
While he keeps an eye out for opportunities, he also keeps his eye
on the business at hand. That’s a lesson dealers and farm store
retailers can take from his achievements. Not every brilliant concept
materializes suddenly from other worldly inspiration. Ideas usually
come from paying attention to everyday details, says Costa. If
you embrace ‘best management practices’ – inventory, cash flow,
employee productivity, product quality, merchandise display, store
layout and design and so on – you’ll be ready to jump on an idea
when it comes up. When everything is in order, it is easier to think
and act outside the box, to explore and chase after new ideas. By
taking care of routine business, he notes, you’re leaving yourself
open for new ventures.
L aunch
He knew from his experience in developing a line clothing for police
forces, the military and public safety first responders that riders who
are constantly in motion have special requirements.
Clothing companies, Costa says, especially those providing apparel
for rigorous activity, are wise to create special designs and use
engineering-type drawings to produce effective products. Style
counts, too, he also learned. For example, women weren’t happy
with the lines of all-purpose equestrian knives. “They wanted
something more feminine,” he says. “What was available was
too manly.”
“Our team of designers has worked in close collaboration with riders
across the country to develop products designed specifically for their
needs,” says Kelsie Costa, president of Noble Equine, “and after
numerous product development meetings and countless rounds of
designs, we are excited to be introducing our line of gloves, socks,
bags, and knives in March 2013.”
Besides getting input on product design from its customers, Noble
Equine is putting resources back into the equestrian community to
develop youth programs to foster interest and participation in
equine activities. Noble Equine earmarks 5 percent of its profits for
these programs. ◊
Here’s an example of what Dan Costa is talking about. Early in
his career when Costa was working in the restaurant business, he
noticed a lot of wasted food as preparers left a lot of the ingredients
on the cutting board. “If they were making fresh fruit juice they
weren’t squeezing it all out,” he recalls. “Same thing with fresh
strawberries: salad and dessert makers were only using half the
berry.” From that observation, he trained the staff to be less wasteful.
That particular experience also triggered an interest in supplies,
inventory and supply chain logistics; and it wasn’t long before he
built his restaurant business into an integrated restaurant and food
distribution operation.
Employee training remains a fundamental tenet in Costa’s business
manual. “Dealers and store owners have to train sales people,” he
says. One of the key things Costa looks for in a successful company
is the level of its customer loyalty. Besides the usefulness and quality
of a product, what generates customer loyalty is a high standard of
service, product knowledge and interpersonal skill from the sales
staff. “You have to spend what it takes to educate them on how to
sell and what they’re selling.”
But it is not just his vision that has catapulted Costa into the upper
echelons of American entrepreneurship. He listens, too. As Costa
was developing the Noble Equine business, he saw that women
were responsible for 90 percent of the equine purchases. So he
initiated focus groups to learn more about what they wanted and
needed. He learned many items such as socks and gloves were not
always providing the protection and comfort equestriennes wanted.
Photo courtesy of the Costa family
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F E AT U R E
PROFITBUILDER
Arkansas Dealer
Unfazed
By Recession Or Competition
It’s tempting to make a reference to David and Goliath when
talking about how independent, family-owned Eppinette Feed
and Ranch Supply in southwest Arkansas has held its own
and, more importantly, prospered in the face of gigantic challenges posed by a sluggish economy for the last four years and
increasing competition.
But Phil Eppinette is not likely to see himself in the smaller role of a
‘David’, even if the kennel and ranch supply operation he and his
family opened 12 years ago started with only $5,000 worth of inventory. “We have been surrounded by competition for the past couple
of years,” he says, noting many of these competitors started setting
up shop when the recession hit. The stores and outlets are located in
all quadrants of the compass, Eppinette explains; and one is opening
in his hometown of Eldorado.
So are Eppinette, his family and his staff of 12 intimidated? It appears not. “I do not plan to concede or give any of them anything
but a hard time,” he says, adding, “I look forward to the challenge of
keeping my fair share of the market.”
That’s not just bravado expressed in the face of mounting challenges
from new dealers and retailers to squeeze more business from the
current market universe of about 60,000 recession-worn customers.
The Eppinettes have even launched a bold strategy of their own,
recently opening an outlet store in Magnolia, located practically next
door to a major competitor.
“I plan to take back much more than I lose to my competition,”
he vows.
A Plan That Pays Off
Local dealers can be competitive and go toe-to-toe with independent
rivals and larger operations, Phil says, but they should have a plan if
they want to be successful. The Eppinettes put one together years
ago, and it has worked well for them over the 12 years since they
started their business in a tiny 800 square foot converted garage
behind their home.
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Photo courtesy of Eppinette Feed & Ranch Supply.
When they opened the doors to Eppinette Kennel Supply (as it was
known in 2000), the merchandise on hand consisted of a pallet of
dog food, a box of dog collars and a hand full of other canine supplies. Total value: less than $5,000. “I am not sure you can start any
smaller than we did,” Eppinette notes.
Probably not. But since then, Eppinette Kennel and Ranch Supply
has grown steadily. Total inventory worth has swelled to a current $1
million.
“To be competitive with the big stores, small dealers have to buy
smart and in volume from the right people or manufacturer so they
can offer favorable pricing and discounts,” Eppinette maintains.
To illustrate his point, he says his store purchases dog food by the
freighter load. He has also developed a private label canine nutrition
line, Kennel Pro, that allows customers additional choice and value.
“Some of the other stores and big boxes can be aggressive,” he
points out respectfully. “They thoroughly study the areas they intend
to move into and gain valuable knowledge about customers situations, circumstances and buying patterns.”
A key to success in an economy that has been down – and is recovering slowly – is to understand what your competition does well,
Eppinette suggests, and apply those strategies and tactics to your
own business model.
Over the years, Eppinette has been rewarded for sticking to his plan.
First year revenues were $80,000. Two years later and a move into a
3,000 square foot building, sales jumped to $400,000.
[continued on page 12]
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To order, please contact your Durvet distributor.
F E AT U R E
PROFITBUILDER
[continued from page 10]
In 2005, the Eppinettes took over a 6,000 square foot facility in a
better location and experienced a spike in sales to $2.9 million. In
2009, they built their present 16,000 square foot store and showroom. In 2011, his business closed the books for the year with sales
of $4.8 million.
is convinced small dealers need to maximize the size of their sales
area. “It allows customers to walk around, shop and ultimately pick
up other items.” If they are restricted to walking up to a counter and
asking for an item, you won’t enjoy much POP success, he points
out.
Note that Eppinette Kennel and Ranch Supply has recorded its most
dramatic revenue growth during the height – or some would say the
depths – of the worst economic downturn since the Great Recession.
Eppinette Kennel and Ranch Supply has come a long way, and so
has the inventory. In its 16,000 square foot facility shoppers encounter a wide spectrum of products and merchandise. Besides the largest selection of dog and pet supplies in the southwest region of the
state, according to Eppinette, the store also offers livestock feed and
supplies, Justin® and Nocona lines of boots, Wrangler® jeans and
shirts, Montana® Silversmiths giftware, a huge selection of tack and
saddles including the Billy Cook, Tex Tan and other lines.
Specifically, Eppinette has achieved this success by adhering to
these basic lynch pins in his plan:
• Purchasing inventory in volume, so lower costs and discounts can
be passed on to customers.
• Monitoring the promotions, programs and pricing of the chains and
big boxes, and then offering comparable deals and discounts.
• Developing consistent advertising and promotional campaigns in
the local media, particularly in newspapers.
• Conducting mega-sales events aimed at clearing inventory you
want to get rid of. “It brings people in who inevitably purchase
other merchandise,” says Eppinette, who further notes that when
his store offers 40 pound bags of dog food for $11.99 a “feeding
frenzy” of additional purchasing generally ensues.
Another pillar of success, which Eppinette describes as ‘key’ to competing with the big boxes, is a large sales area or, as he calls it, a
retail showroom. The ‘showroom’ concept may have been ingrained
in him from his experience as a finance manager at a Cadillac dealership before opening Eppinette Kennel and Ranch Supply. But he
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For critter and creature enthusiasts, Eppinette carries live pets such
as hamsters, guinea pigs, tropical fish, snakes, prairie dogs, spiders,
turtles, rabbits, various reptiles and birds. Says Phil: “These live pets
really drive pet supply sales such as cages, crates, bedding, heat
lamps, toys and food.”
Phil Eppinette has been holding his own against independent and
big box competition with such tactics as emulating their advertising,
promotion, inventory and pricing tactics. But, he says, if small, local
dealers still find the going rough, they have the competitive advantage: customer service. “You can always beat your rivals and the
chains with customer service – rethinking your store hours, staying
open longer, providing product education and training to employees
so they are knowledgeable and more helpful.” ◊
Trademarks belong to their respective owners.
I M PA C T
| Putting the Internet to Work
PROFITBUILDER
Match New Media With Tried And True Marketing
The ever evolving, rapidly developing high tech, high speed capacity of the Internet can be a little daunting when you’re setting up electronic
marketing and customer communication programs. Its lightning speed, limitless options and unfathomable short cuts (that everyone knows
but you) can be intimidating, especially if you’re technophobic. But the Internet is here to stay, and among its multitude of functions there are
probably several you can adapt to your communication needs at a level of sophistication you can be comfortable with.
It could be worse. Have you forgotten the cranky editor of the weekly shopper who wouldn’t allow you a minute beyond the deadline? The
production guy who couldn’t produce the concept you wanted? Or the big city advertising pros who regarded your business as small potatoes
compared to the national brands? Those were the days. Today you need to take advantage of the Internet.
“When you opened the brick and mortar shop,” says Shari Waters, a retail marketing consultant and contributor to About.Com Retailing,
“chances are you planned for a grand opening or ribbon cutting.” She recommends treating your website with the same pomp and priority.
“Whether you sell products online or have a one-page website, there are many ways to generate more in-store traffic from your online presence,” says Waters, who suggests retailers consider implementing the following Internet marketing programs (many of which ProfitBuilder
has been touting in this column for the last two years):
Press Releases: A marriage made in heaven between the most venerable forms of media communication
and the fastest, most economic way of distributing it. Media outlets depend on press releases every day.
The abundance of online news distribution services is now making it easier than ever for retailers to announce new product lines, special events and other shop news.
Press
Releases
Product
Feeds
Knowledge Sharing: Leading edge Internet retailers gain extra exposure by sharing their expertise and
knowledge through written content distributed free. Article marketing, as it is known, has the ability to
increase awareness of a retailer's presence, online and off.
Knowledge
Sharing
Newsletters
Newsletters: A key to keeping in touch with the customers you've managed to get in your store or on your
website, newsletters and email marketing are two of the most effective ways to retain them. Note: It takes a
lot of work; it can be more efficient to use a professional content service provider.
Link Directories: Submitting your business information and website to specialized link directories and
niche sites will help increase your link popularity and drive highly targeted traffic to your retail store.
Link
Directories
Search
Engine
Local
Listings
Commercials
Social
Networking
Affiliate
Programs
Giveaways
14
Product Feeds: A file generated from your website listing product details (pricing, descriptions, special
programs) and showing photos. To reach broader audiences, send product feeds to shopping-comparisonwebsites, search engines and to customers using feed readers.
Search Engine Local Listings: Google, Yahoo, Superpages and other directories and search engines
create tools for local shoppers to find your business, provide maps of location, hours of operation and even
coupons. Many of these listings are free with upgrade options for a fee.
Commercials: Radio and television marketing is expensive, but there is another option: Video marketing online lets retailers extend the reach of their message to a larger audience for little investment. Unlike
traditional marketing, producing a unique online ad or video to convey your message or brand your store
can have an extremely high ROI.
Social Networking: Facebook, MySpace and LinkedIn might not be the best venues for selling products,
but if that's where your customers hang out then you should be there, too. Blogs on these sites can help
retailers keep in touch with shoppers, make announcements or feature new merchandise and promotions.
Affiliate Programs: A popular and effective method of Internet marketing, a retailer pays one or more
affiliates for each sale or customer gained as a direct result of the affiliate's marketing efforts. The retailer
generally provides banners, buttons or product feeds for the affiliate's use.
Many retailers manage their own affiliate programs while others opt to use a third party to track sales,
orders and payments to the affiliate.
Giveaways: Pens, shopping bags and other items with logos and names are traditional marketing item
freebies. But they can be costly. By marketing online, retailers have the opportunity to stage contests and
offer coupon codes, product samples and other promotional items. ◊
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I M PA C T
PROFITBUILDER
In Tough Times,
Take A Hike
To Get Things Right!
One garden center owner dealt with the recession by taking
a walk. Not away from the situation, but right into the teeth
of the economic storm. In the case of Kathy Wheaton, owner
of Kathy’s Corner on Vashon Island in Puget Sound just
across from greater Seattle, she took a walk through her
nursery. “Not a regular walk,” she wrote in an article for
Green Profit magazine (September 26, 2012), “a real walk
with both eyes open, way open.”
Like most businesses large and small, the recession forced
Kathy’s Corner to reduce inventory, let staff go and generally
tighten the belt around the overall budget. She resolved
to do more with less. “Unfortunately, it showed,” she said,
noting at first she didn’t think it did. But she and her staff
realized that the cut backs – if they were honest about it –
were apparent. “If we really looked, it showed.”
What Kathy and her staff saw on the walk was a desultory,
under-stocked, untidy nursery. It was still a nice place, she
explained, but it lacked energy. “It was less,” she said, “A
good place, but not a great place, not the place it had been
and could or should be.”
B a c k To B u s i n e s s
After three years of encountering one fiscal obstacle after
another, Kathy had had enough. But not in a way you might
think. She wasn’t about to throw in the towel. As the old
saying goes, when the going gets tough the tough get going.
Last January Kathy rolled the dice. “I decided to gamble,”
she said. “If we were going to go out of business, it was going
to be on my terms.”
Despite the store’s exhausted savings and credit lines and
working with only half the staff on hand three years earlier,
Kathy decided she and her associates would “quit being
afraid.” And they got down to business.
First off, she hired two new employees, whom the garden
center really couldn’t afford. “But we couldn’t afford not to
have them.” Their primary job description: clean, stock and
smile. “They were just two people with no plant knowledge,”
Kathy notes, “but with great energy; it was a start.”
Not long after, Kathy’s Corner added another landscaping
crew and two more workers. At the same time, Kathy talked
with two of her vendors about extending terms, and boosted
the store’s inventory with “solid no-frills but good fresh
stock.”
[continued on page 18]
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Sales Edge
Keeping Your Team Sharp
ProfitBuilder provides sales tips, strategies and product insight to
help your sales staff reach the ‘tipping point’ where they sell better,
quicker and often. In each issue, we’ll feature a Durvet product,
and highlight its superiority and uniqueness. The feature product
in this issue is Spectra Sure® Spray flea and tick control for dogs
and cats.
Spectra Sure® Spray:
Turning flea and tick control upside down.
Situation: The non-profit Companion Animal Parasite Council
(CAPC) is forecasting an active winter season for tick-borne Lyme
disease among dogs throughout the country, with the heaviest
concentrations in the Northeast, Mid-Atlantic, Upper Midwest and
California. “Fleas and ticks don’t take the winter off,” says CAPC
veterinarian Dr. Susan Little, “so we can’t afford to take the winter
off from flea and tick control either because they’ll take advantage
of that.” The CAPC and parasitologists recommend year round
flea and tick control. For more information visit the CAPC website
www.PetsAndParasites.org.
The Edge: With the introduction of Durvet’s Spectra Sure® Spray,
it’s now easier for dog and cat owners to give their pets the most
effective, economical protection against fleas and ticks that comes
with the Spectra Sure® brand of fast acting, long lasting flea
and tick control products. Spectra Sure® Spray contains fipronil,
the same active ingredient in Frontline® Spray – but is available
through Durvet, Inc., at about half the price. Spectra Sure® Spray’s
quiet, no-pump dispensing mechanism allows pet owners to cover
their entire pet evenly and completely, leaving no oily residue.
This unique spray-release technology also lets pet owners hold
and aim the container at any angle – even upside down – to reach
difficult areas like the lower chest and abdomen.
For dealers, Durvet will be supporting the introduction with a
POP campaign promoting this theme: Spectra Sure® Spray Is
Turning Flea and Tick Control Upside Down. Displays and product
literature will highlight the ease, convenience and ‘dexterity’ your
customers will enjoy with a spray dispenser that attacks fleas and
ticks from all angles. Watch for more information to come.
Added advantage: With Spectra Sure® Spray’s bag-on-valve
dispensing design, you can assure customers they’ll enjoy aerosol
performance without the propellents; no CFCs are released in the
environment.
The Science: Fipronil – one of the deadliest chemicals you can
use against fleas and ticks – binds to the insect nerve endings,
disrupting the normal functions of the central nervous system.
Fipronil also provides month-long efficacy.
Bonus Tip: Spectra Sure® Spray may provide 90-day flea
protection for dogs. It is also waterproof, and remains effective
after bathing and exposure to water and sunlight. Spectra Sure®
Spray can be used on puppies and kittens eight weeks of age
or older.
Frontline® is a registered trademark of Merial.
Spectra Sure® Spray is not manufactured or distributed by Merial.
I M PA C T
[continued from page 16]
With her nursery lots filled and shelves
stocked with additional inventory, she then did
something unthinkable – at least in the minds
of less adventurous retailers. She raised prices.
“We looked at where there were holes in our
programs, and how we could do more to earn
that increase,” she explained. A value added
concept, in other words: “We weren’t just saying
the same thing is going to cost you more.”
Stay Positive
Looking back on the turn-around that took less
than half a year, Kathy seems to suggest it’s
a positive attitude and an optimistic outlook
that can make as much difference as instituting
conventional best business practices. Instead
of complaining about the state of the economy
and all the things they had little control over,
the staff at Kathy’s Corner focused on what was
good with the world. “We told good stories,” she
recalled, “not the sad, oh-my-God stories.”
And guess what happened? “It’s amazing,” she
said last spring. The weather improved, and
people were talking and commenting on how
good her garden center was looking. Business
at Kathy’s Corner soared 80 percent in April
2012 compared to April 2011, and the trend
was ticking upwards for May and the summer.
“Our landscape installation was up 300 percent,
and I had to turn people away.” Kathy is now
concerned about not having enough staff.
If other dealer, garden center and farm store
owners and managers are experiencing difficult
times for whatever reasons – the overall
economy, drought and other weather extremes
– or even if things are going fairly well, Kathy
Wheaton still recommends taking a hike. “Walk
around and find ten things that could be better,
cleaner, fuller; it doesn’t have to cost much, if
anything, to fix; sometimes just moving stuff
around works.” ◊
“Our landscape
installation was up 300
percent, and I had to turn
people away.”
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PROFITBUILDER
2X
NEW PRODUCTS
FOCUS® CAT VAX 3
PROFITBUILDER
COMING SOON
Our Newest PEAK Performer
COMING SOON
For Cats and Kittens
Broad Spectrum Antibiotic
Pond Health
SOLUBLE POWDER
Your Perscription for a
Healthy Pond!
AquaVet
Wormeze
Liquid 4 oz.
OXYTET 10
A palatable liquid wormer for
cats and kittens 6 weeks of age
or older. WormEze™ can be administered with food or
drinking water for the removal
of large roundworms – the most
prevalent intestinal parasite
afflicting cats and kittens.
This broad spectrum antibiotic
(oxytetracycline HCI) will be
available as a soluble powder
for drinking water to control
and treat specific diseases
such as bacterial enteritis and
pneumonia in cattle, sheep and
swine; and infectious synovitis,
CRD, hexamitiasis and fowl
cholera in poultry.
Cat owners will appreciate the fast-performing,
proven 3-way protection that Focus® Cat Vax
3 offers, as well as the giant over-the-counter
price savings. Illustrated, 5-step administration
instructions on the packaging make it easy for
them to immunize their kittens and cats in their
own home.
Aloe Advantage
MOCHA
MUSTANG
Coming Soon!
Spectra Sure® Spray
Display
Focus® Cat Vax 3 has been developed for the
vaccination of healthy cats, eight weeks of age
and older. Each package contains a one-dose
vial of dry vaccine, a 1 mL vial of liquid diluent
and a disposable syringe.
With a peppermint mocha flavor,
Mocha Mustang is an all natural
formula combining castor oil,
beeswax, jojoba oil, shea butter,
lanolin, mango and cocoa butter
with Aloe Vera extract and Rosemary extract for soothing, effective lip protection.
• Holds either 6 of each size – 6.5 oz. and 12.3 oz. OR fill it with 12 of
either size.
Pet owners will soon be able to purchase
convenient, effective and economical
injectable single-dose packaged, modified
live virus protection against the three basic
diseases their kittens and adult cats all face:
Panleukopenia (distemper), Rhinotracheitis
(FVR) and Calicivirus (FCV).
Available Spring 2013!
This full line of pond management products from Durvet uses
suspension, biological and copper sulfate technology to prevent and control algae and weed
growth. The products also accelerate decomposition of sludge,
muck, fish waste, leaf debris
and various contaminants; they
also control shoreline weeds.
Focus® Cat Vax 3 is the first injectable, 3-way
combination cat vaccine, packaged with a
syringe designed for pet owner use, to reach
the market in several years. Designed as an
annual adult booster, this shot will complement
the Feline Focus® 3 Drops immunization
program for kittens. Among immunization
methods and systems, modified live viruses are
recognized as the most efficacious – offering
rapid protection response and better, longerlasting immunity.
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Lip Shimmer for the Rider
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• Encourage stores to place the display in a second location in store,
such as near the register or on an end-cap.
• Durvet will provide displays to distributor sales reps to place at their
retailers carrying Spectra Sure® Spray. Please look for the displays in
early February.
HELPING YOU GROW YOUR BOTTOM LINE