Is E-Commerce Good For Everybody?

According to a recent article in Industrial Distribution, it is. In the article, the analyst firm McKinsey & Company state that Covid-19 has changed Business-To-Business (B2B) sales forever. Here are a couple of takeaways from the article:

• More than 75% of buyers and sellers say they now prefer digital self-serve over face-to-face interactions.
• Only about 20% of the buyers say they hope to return to in-person sales.

This is where JBL Solutions (Dataweld) can be a huge help. Our team has been working to answer the questions that will help you to get started with your online store.

Questions like:

1. What do you, the compressed gas distributor, need to know about E-Commerce? 

2. What kind of information do you need to help you make the right decisions?

3. How do you even know where to start?

4. Who do I really want to sell to?

5. Do I want to sell to the world or just to my existing customers?

6. How do I determine which items to sell online?

Want to learn how the team here can help? Andi would be happy to answer questions and you can reach her by phone at 318-317-7977 or by email at andi@jbl-solutions.com.

Snail Mail?

A major news network posted this headline on their website:

“Postmaster General’s New Plan Could Include Slower Mail and Postage Hike”

This probably isn't surprising to most of us. More and more of us receive bills via email and make payments online. Even with an increasingly larger population the volume of business mail is decreasing.

In these changing times, there are a few things that can be done to lessen the impact of slower and more expensive mail delivery.

1. Email your daily invoices and statements. We often hear distributors say “my customers want a paper copy”, but every business should be doing everything they can to email as many invoices as possible to their customers. The days of mail being delivered in two or three days are rapidly disappearing. Need another reason? Emailing invoices improves critical cash flow by getting them to your customer in seconds not weeks.

2. Encourage customers to pay with a credit card. Accepting payments with a credit card improves cash flow dramatically. It also streamlines the back office payment receipts process and eliminates the dependency on a mail system that is increasingly slower and more expensive.

3. And finally, stay tuned for future enhancements. JBL Solutions is working on additional enhancements to the software that will reduce dependency on the postal system, lower costs and speed up internal processing.

Have questions? Give us a call or send an email to this email. We'd be happy to answer questions about emailing invoices and statements or how to integrate the use of credit cards into your payment receipts system.

COVID-19 Accelerates Shift to Cashless Society

A recent survey shows that the COVID-19 pandemic is accelerating the move to digital banking. More and more people are turning to online, mobile, and contactless payments to avoid the use of paper money. The move by many banks to limit in-person visits in an effort to minimize the spread of COVID-19 has been a major factor in the acceleration.

What does this look like:
We have all read how millennials are driving the movement to digital banking and cashless shopping, but, when it came to this topic, the survey proved interesting. It wasn't really a surprise that 45% of consumers have changed the way they interact with their banks. What was surprising was that Baby Boomers led the way, followed by Gen Xers, Millennials, and Gen Zers. Social distancing has also pushed the movement to mobile wallets and contactless payment methods. While 45% of consumers have used mobile payment wallets, the number of consumers using cash or checks dropped to 16%. Another key finding was that 40% of those surveyed preferred online shopping as compared to in-store shopping.

What to remember:
As they say in business meetings, “What are the take-aways?” The biggest take away is that the COVID-19 pandemic accelerated a movement towards digital banking, payments, and shopping. The movement was already there, the pandemic just brought it into the spotlight.

What's next?
The good news for you as a DataWeld customer is that everything needed to take advantage of this movement is already in place. Online shopping, online payments, and cashless payment options are all mature products ready to be implemented.

Give Andi Striegel a call if you would like to get on the band wagon and offer customers cashless payments and digital shopping. Andi can be reached by phone at 318-317-7977 or by email at andi@dataweld.com

Amazon’s B2B Growth Projected at 115%?

CNBC published a story in December that had some pretty startling numbers. We know that Amazon is growing like crazy, but their retail growth, over three years, is projected at 28%. Their web services are projected to grow even faster at 48%. What really is amazing is that the prognosticators (those guys who do this for a living) are saying the B2B division of Amazon will grow an astonishing 115% over the next three years. That's a huge number, but why should you, a gas distributor, care? That growth will be partially at the expense of distributors just like you.

Amazon wants the same customer that you sell to every day. The guy who buys gloves, helmets, welding tips and all the other things sold to your customers. Here's a test for you, using Google, search welding gloves and see where Amazon shows up. They're right there on the first page with Home Depot, along with a dozen other big players, and they're all targeting your customers.

The article went on to say Amazon’s B2B division will exceed $1 billion in revenue in the next three years. You may not care if your spouse is ordering from Amazon, but what happens when your best customers start buying tips, helmets, and gloves from Amazon?

We hear all the time from distributors “My customers don’t want to buy online”. Amazon is proof that those customers do want to buy online. If they didn't, Amazon wouldn't be experiencing such wild growth.

How do you compete? It's simple, give us a call. DataWeld has everything needed to have your company up and running with its own Amazon-like store in no time. We can create the store, help market to your customers, put inventory on the store, and even put the internet orders right into Cyltech with no data entry.

Don’t be a casualty of Amazon’s aggressive growth. Fight back. Give us a call at 318-317-797 or email us at inform@dataweld.com.

Is cash dead?

Sweetgreen (www.sweetgreen.com) specializes in salads. Their uniqueness is that they locate themselves in densely populated areas, like downtown areas of larger cities, where there is a lot of foot traffic. If you want a salad for lunch, you can order it ahead of time using their app and tell them you will pick it up at 11:30. You pay for the salad using their app and at 11:30, you walk in, pick up your salad and leave. No waiting in lines. In some stores they don’t even have sitting areas.

If you choose to not pay for the salad when you order it in the app, then you'll need to have your credit card ready when you pick up your salad because they do not accept cash. That’s right… no cash. You can either pay for your salad with your credit card stored in the app or you can pay with your credit card when you pick up your salad. But don’t walk in with a $20 bill or heaven forbid try to write a check, because you won’t get your salad!

So, what does any of this have to do with you? You don’t sell salads. You sell welding rods. The point is that what Sweetgreen is not so subtly saying, is that cash is dead! Yes, you may have a wad of $20 bills in your hand and your checkbook in your pocket, but the diagnosis is in. Cash is dead or at best it is dying a fast death.

Again, what does this have to do with you? Everything. When you look at your customer base, you have a lot of baby boomers who are used to paying with cash or writing you checks. Talk to the people replacing the baby boomers, the millennials, and they don’t have a checkbook or carry cash. They pay with a credit or debit card. It does not matter if the millennial is standing at your sales counter or you delivered the product to them, they don’t want to write you a check.

That’s where DataWeld’s state of the art credit card enhancements come to the rescue. You can accept debit or credit cards virtually anyplace your customer wants to use one. Credit/debit cards are built into point-of-sale. Your customers can call you on the phone and easily pay an invoice with their credit card stored securely on file. Your customers can even say “store my card on file and automatically pay my cylinder rental invoice when it is due.” And so much more.

Sweetgreen is one more example of companies across the United States ringing the bell and loudly shouting “Cash is Dead!”. If you want to make sure you can offer your customers the latest in card processing technology, give us a call at 318-317-7977 and talk to Andi. She will answer all your questions and explain how you can get started.

Words to Avoid

There are definitely words to avoid when sending any type of marketing email. Now, most of the words or phrases that will be listed here could be used under certain circumstances, but only when used appropriately. In other words, just because a word or words are in the list doesn't mean that they should always be avoided. The idea is to be improving the word choices made and to make your writing efforts as effective as they can be.

What does this look like?

• Dear friend... This is impersonal. If you're going to use an opener similar to this, then it's best to make sure that first names are in the email list and, of course, are being used. This may be difficult given that often the names can be elusive... If you don't have the name, then it's better to jump straight into the content.
• Click here: I'm guilty of this... It's easy, it gets the job done, but there are better ways to get this point across. Try using phrases like Learn More, Take Our Survey, and Contact Us. The idea is to find the best word or words for the job and not simply the ones that complete the task.
• Free: This is definitely one of those words that can be used, but that should be used sparingly. Unfortunately, even when this may be the best word choice to convey the message, it tends to trigger spam filters. This is due partly to how many times that it's been used improperly (i.e. in spam emails). The rule of thumb is to use this word only when necessary.
• Great offer: It may be, but there’s probably a more elegant way to say this. Spend some time thinking through new ways to describe what you're promoting and the problem that it's going to solve for the customer.
• FWD: or Re: This one should go without saying, but I've seen lately where companies are using this as a tactic to get opens. This is because people are generally more likely to open the email because, chances are, its from someone they know. Obviously, this should only be used when actually forwarding or replying...
• Guarantee or Risk Free. If this is true, then sure, go ahead and use it, but there may be a better way to phrase this message. While a guarantee is generally possible, spammers know this and tend to use it, which causes issues for those legitimate emails. Also, most things are not completely without risk and, given that spammers tend to use this one, unless its necessary, we recommend avoiding the use of this particular word or phrase.

What to remember: Instead of defaulting to generic words or phrases, try to come up with more creative ways to convey your message.

Where to store?

I know I keep writing about topics and saying things like "it depends" and, fair warning, I'm about to do that again. Where to store information, whether financial, proprietary, or just basic documentation, is worth thinking about. When the company is small, finding anything, is relatively quick, even if you have to go through all the files. This is mostly because there's not that many files, but what happens when there are a massive amount of files and you need that very specific file and you need it yesterday? This is where planning and organization come into play.

What does this look like?
First off, there's no way to cover this topic in depth in an article this size. Therefore, this will be a brief overview with general guidelines. Regardless, these principles are good for any size company or organization.

• Financials? This depends a lot on how risk averse you might be. For instance, disk space is cheap, so holding on to information (assuming it's organized properly) is not a problem. Of course, you will want to hold on to anything reported to the IRS, but for how long? Again, with space and secure offsite backups being so cheap, I would say there's no reason to get rid of the information. Simply organize it by year and then leave it alone. Here comes the risk aversion part. Off-site backups generally require an internet connection, which, let’s be honest, is there most of the time, but an external drive does not. So do you also save the financial information to an external drive? If so where do you store it? Preferably in a safe behind a locked door. At the end of the day, it depends on whether this seems important enough for you to take the extra step.
• Proprietary Information: Again, how risk averse are you? In some cases a secure file on an internal sever will suffice, but what if you need them and cannot access the internal server? A little planning and preparation using a thumb drive could solve this problem for the occasional instances (assuming this isn't too risky for you). However, there are plenty of companies that simply increase their security protocols or pay for an off-site server that has the appropriate security in place for their particular circumstance.
• Basic documents? This one is a little easier. The recommendation would still be to organize the files in an appropriate way and to have an offsite back up. The offsite backup is less critical in this instance, but still good to have and is very cheap insurance. With options like Google drive, not only do you have a backup, but all files can be accessed from anywhere. This is a great option for when someone is at a conference, customer site, or working from home. Also, collaboration becomes more efficient because location doesn't matter any more.

What to remember: Decide how risk averse you are and then set out from that point designing, organizing, and, of course, backing-up.

When to run the numbers?

When should we sit down and handle some of those bookkeeping tasks? Everyday? Every other day? Once a week? I think this depends on what works in your specific scenario. Every company is different in the sense that we all have a different amount of team members, different skill sets, different obligations, etc. I'm not sure there's a best answer, but I do think that there's some good advice out there that can benefit everyone or at least some of us...

What does this look like?

• Don't be in the extremes. We don't think it has to be done every day, but it also should not be put off for once a month or, as I heard recently, a few times a year... i.e. find somewhere in the middle
• As a rule of thumb, make sure that you meet the deadlines. While this may give some people to much freedom to put off those entries longer than they should, if you're meeting the deadlines, then you're at least on the correct path.
• Use the system that actually works in you business. As we stated in the beginning, each company has a different number of team members and differing skill levels. Different people will get task done in different ways and in different amounts of time. Therefore, find a system that suits the skills and abilities of your team as it currently stands and, when the time comes, adapt.
• Plan. Bring up a calendar, "mark" down the important dates, and set a schedule that is manageable for your team.

What to remember: Again... every organization is different; therefore the best plan is the one that you'll actually use, the one that your team can actually implement, and the one that accomplishes the goals of the company. Consistency is key.

Receipts, Invoices, and Statements

What do you need and when do you need them? The basics are pretty straight forward, but there are some ideas and opportunities that can be missed. In this article we're writing about some things that should be there and some opportunities worth exploring.

What are the basics?

• Receipts: The obvious part, this verifies the purchase. What should it include? Date, receipt number, the work finished or the product sold, what type of payment (whether it was a full or partial payment), the total amount, and of course the terms for anything pertinent to the sale (how long they have to return the product, how much of a refund they can get, terms of payment plan, etc.).
• Invoices: Maybe they didn't pay everything of even anything up front and now it's time to invoice them for what's owed. An invoice looks much like a receipt, so they will include many of the same things. You'll want to include details of the product or service provided. Of course, given that the invoice is usually a larger format you'll be able to include more detail. That is of course if you want to... You'll definitely want to include the date, invoice number, when the payment is expected and any terms that may have been negotiated, as well as total amount.
• Statements: We've made it to statements. These should include a history of the account activity, sales and or invoices, payments and credits, balance due, and aging. Including the terms once again isn't a bad idea either. Things to consider would be the time frame for aging. Do you stick with the traditional 30 days, shorten it to 15, make a hybrid? Regardless this should be consistent and laid out on the invoice and/or receipt. Less detail is typically needed on a statement, but you may find that your particular customers like having more detail. Experiment and figure out what works. You obviously want this process to be smooth, so anything that helps should be included.
• What happens when they don't pay? This can be a tough subject to talk about, but we recommend having your policy on the invoices and statements. Hopefully this conversation doesn't happen too often, but being prepared means everything is in place and that there will be less worry if and when the issue does arise. It's a good idea to decide beforehand whether or not you're willing to send someone to collections. If yes, then who will you use and what are your parameters? Implementing good practices will hopefully help to eliminate any issues.

What to remember: Think outside the box, do your research, be open minded, and try something new.

Why do we track money?

This may seem obvious and, in some respects, it is, but there's more depth to this topic then just simply keeping track of the dollars. At a bare minimum we have to know the profit, revenue, and of course losses in order to report taxes at the end of the year. But, as was just stated, knowing the numbers helps the company to not only avoid an awkward conversation with the IRS but to plan more effectively, operate smoothly, and become a sustainable business. It's not enough to just be able to purchase resources, pay vendors, and make sure the lights stay on. When you know and understand the numbers, the business can thrive.

What does this look like?

• Tracking the money helps us to make decisions. Assuming that you don't make decisions based on a whim, knowing the numbers and having a plan for various situations means that you can make purchasing decision quickly. This could mean on the fly (but with confidence) or it could mean that, instead of searching to find the numbers, you simply turn on the computer, look at the current figures and make the decision.
• Gives insight into whether or not there's enough capital to make investments. Again, if you have all the numbers in the system, then making a decision about an investment will be easier. Keeping track of the data, not wondering whether or not all the data is there, can build confidence. This again means that you can make decisions quickly, hopefully not losing out on that excellent deal.
• Lenders may want to see the numbers. Whether it's capital investment from a bank or outside investors, the same thing that makes you feel comfortable will make others feel comfortable when it comes to investing money. Having all the numbers in place inspires confidence and shows that you're organized (and in turn less likely to make rash decisions).
• Knowing the direct and indirect cost of operating/producing product. We've written about this before, but just because a product is selling doesn't mean that it's profitable or even profitable enough to keep around. Does the product make enough to warrant the company continuing to sell it? This can't be known without first knowing all the numbers surrounding the product.
• Seeing the trends of when money comes in and when it goes out. This information can bring peace of mind. Every business has seasons. It's definitely possible to simply look at the industry trends, but what if your company is different? Tracking the seasonality of money flow can lower the stress level and help with planning throughout the year.

What to remember: Track as much as you can, but don't over analyze the numbers.

Let’s Talk Backups

I don't know why, but now feels like a good time to talk about backups. This is something that we talk a lot about and for a good reason, it's incredibly important. I know everyone is busy, certain things get pushed to the side, but this particular item should never be put off. It's cheap insurance and one of those things that, while we hope we never need, becomes extremely valuable when the server/drive/etc. crashes or simply doesn't work.

What does this look like?

• Backups should be daily. This should be a no brainer given how easy backups are to implement these days. Now the other thing that many of us forget about is checking to make sure that the backups actually worked. Whether they're checked daily or weekly (We wouldn't recommend any longer than that) is up to you. Something to consider when choosing the time frame is: How difficult will it be to recreate or recover a weeks worth of data?
• Clean the tape. If you're using tape drives, then you should be cleaning them on a regular/scheduled basis. The recommended schedule for this is monthly. As a reminder, only use the approved cleaner for your tape drives.
• Reboot the system weekly. Some would say why? If everything is working properly, then why reboot the system? According to the manufacturers, a server may run for weeks or months without a single problem and then one day start to have issues. Rebooting the system (some would recommend weekly) can help to reduce the potential occurrence of any issues. Given that this can be scheduled and run automatically at a time when the business isn't operating makes it a no brainer (i.e. set it and forget it).
• Remove the drives and have copies. If you're using an external drive as the backup source, whether a thumb drive or something a little larger, remember that they can be just as easily affected by a virus. Have multiple drives and keep at least one disconnected at all times.

What to remember: A to-do list and a little maintenance will go a long way in keeping the equipment running smoothly.

We just launched an Online Store!

We now have an online store! Not for us of course, but for you. We've built up a platform that can house inventory (so that your customers can order online) and link directly into Cyltech 2. This is grossly oversimplifying the capabilities and the long term plan, but suffice it to say, we're excited about this new offering.

What does this look like?
Well for starters, it offers:

• A great customer experience! Your customers can purchase online anytime. We get it, we've all been there, someone shows up to the store and there are a 1000 customers, the roof is on fire, and only one person to help... that’s where being able to purchase online becomes so beneficial. Customers can place their order from anywhere, on any device, at any time.
• Slow moving stock? Sometimes, because of the issues listed above, we don't get to find out and/or tell the customer about a great deal we have for them. Now any slow moving stock or clearance items can be put online so that the customers can see them (and the discounted price).
• Better information. Do you ever sit there and think that you could have explained the product better to the customer? Maybe if you had just that extra second? Now you do. With an online store, more detailed information, like recommended products and upsales, can be put in front of the customer. How many times have you realized that there was a part you needed when purchasing a piece of equipment?
• Web Presence. Websites are great, but what I've found over the years is that sometimes all a business needs is a web presence. Our new online store can play that role. A web presence is a bit ambiguous of a term, but I consider it a place where your customers can find you. This might include and About Us page, how to contact the company, list of locations and products, and anything else that might be critical to helping the customer stay connected with your company.

What to remember: An online store isn't necessarily for everyone, but we think that it can be a great option and tool to help boost sales and create an exceptional customer experience.

Need out of debt?

There are differing views on debt, but that's not what this article is about. If you're looking to eliminate or at least reduce the company debt load there are a few things that can be done to help. Obviously, every company's situation is different, but the following are some general guidelines for reducing, or eliminating altogether, the company's debt load.

What does this look like?

• Have a Budget
• Cut out the unnecessary expenses
• Put the brakes on investing capital back into the company
• Push Sales and Marketing
• Eliminate the smaller loans first

What to remember: Everyone has an opinion on this subject... but it's likely that the best plan for getting out of debt is a plan that you'll actually start and stick with.

Money Wasters?

There’re a few things that seem to be common money wasters in our lives and businesses. The thing is that these items are different for different people. Some may find coffee a waste of money but will go out to eat for lunch every day. It's all about perspective. I prescribe to the thought that, assuming there's a budget and you can afford to make the purchase, to buy your coffee and/or your lunch, but to realize that you can't have everything. If you want to stop for coffee every morning, then you may have to give up something else. Regardless, the following are a few ideas to get the wheels turning and possibly a conversation started.

What does this look like?

• Location. A great location is awesome, but you may be able to save a substantial amount by moving into a slightly less desirable area. I don't mean into a bad area or one that makes no sense for the company. For instance, where I am, real estate in downtown is drastically more expensive than the area I'm located in, which is just barely ten minutes outside of downtown. Therefore, I'm very close, yet I saved money and got more for my money.
• Quality is important. I'm not saying to waste money on "designer". What I am saying is that a quality item tends to last longer and require less maintenance. This means less downtime and more time building up revenue. There's definitely a balance, but cheap (not to be confused with inexpensive or a good deal) tends to cost more in the long run.
• Continuing Education. I believe it was Mark Cuban that said something like if you take a course, that seems expensive, but you get one idea that propels the company, then it's worth it. Investments in education can encourage not only yourself, but also your team to be thinking of ways to improve/become more efficient and give them the tools to do so. This has the potential to help the company sure, but it also helps to build unity and make the team stronger giving the company a stronger foundation.

What to remember: Every company needs to assess what they're spending money on, know that what one company spends money on may look very different from another, and to always be open minded to new ideas.