|
SMALL BUSINESS
|
|||||||
| INTERNATIONAL INDUSTRIAL FAN South Boston Industrial fans |
The BusinessInternational Industrial Fan Inc. of South Boston is a 45-employee company that makes custom-built, heavy-duty fans. Customers are usually industrial manufacturers of products such as paper, chemicals, textiles or cement. The PlayersChris Duffer, manager of the company's one-person sales department, and Ken Wessel and Dave Evans, project managers at the A.L. Philpott Manufac-turing Extension Partnership in Roanoke and Lynchburg, respectively. |
| The
Problem International Industrial Fan needed new customers but wasn't having any luck finding them. Its main advertising tool -- setting up booths at three or four trade shows around the country each year -- was costing thousands of dollars but yielding few leads. |
|
 artwork by Chris OBrion |
The Background The
company markets its products through a network of
26 independent sales representatives around the
country. The company was founded 40 years ago and
is well-established in the market, but demand for
its fans wasn't getting stronger. Duffer says
that while the overall economy is healthy,
"it's not in the industrial sector. Our
market is very narrow." Instead of mass
producing a basic line of industrial fans, the
company offers project-specific solutions. It
handles every step of production, from design and
construction to testing. Fans range from a $1,500
to $1 million, but "pretty much every order
is a custom [job]," Duffer says. |
| Setting up at trade shows was costing the
company about $10,000 per show for travel and
other expenses. "By the time you rent a
booth and put people in there and go stay a whole
week, you've spent major dollars," Duffer
says. "Most people that come to [trade
shows] are just looking for a week off. You can
wine and dine them all you want, but you will get
maybe one customer." The Solution Duffer asked Philpott's Wessel for advice. Wessell consulted industry sources and developed a list of companies nationwide that have a similar profile to International Industrial Fan's customers. The Philpott team then hired telemarketers to call the companies and ask if they were planning an expansion or renovation and if they were likely to seek bids for heavy-duty fans within six months. About 30 percent of contacted companies requested further information about International Industrial Fan -- a very high hit rate, according to Evans. Those companies were sent newly designed literature on International Industrial Fan's products, which Duffer commissioned from an advertising firm in Roanoke, and their names were passed to sales representatives for follow-up calls. The result was a 47 percent increase in sales in 1998 over 1997. The telemarketing program cost the company about $9,000, which is cheaper and more effective than trade shows. Evans is still working to boost the company's market share. He's searching for additional sales representatives to work in regions of the country that are not currently covered, and plans to identify six representatives for Duffer to interview. "What we're looking for is somebody that really understands their particular business," he says. Philpott is also reviewing a list of current and former customers to see if there's a need for spare parts or modifications to original products. "There comes a point where you don't need new customers. What you need to do is develop your old customers," says Duffer. "It's cheaper." Virginia Business collects tales of innovations from small businesses statewide. If you have a case study in problem-solving, e-mail lugincius@va-business.com or call (804) 649-6232.
|
