Archive for June 1st, 2009

Action Plan Online, Part 4 of 10

Author: Alberta Venture

How to land contracts with big customers now




Know Your Market to Land Large Clients
Reconnaissance tips from a sales pro

Sales veteran Allen Harris has sold to major North American retailers for over 20 years. Before he touches the phone to place a call to a buyer, Harris makes sure he knows his prospective client inside and out by conducting some in-store reconnaissance. Here, three tips from his arsenal.

1. Stack up the Competition
Most salespeople and business owners know the ins and outs of their own product, but fail to research their potential customer thoroughly. “I think the most important faux pas made is that the supplier or manufacturer or salesperson isn’t aware of a company’s needs,” Harris says. You should know the sorts of products the retailer stocks and who you’re competing with for shelf space. Try to anticipate potential barriers. For example, maybe the retailer doesn’t have anyone shipping product to them from Alberta and the buyer is worried it will be too expensive. Collect a shipping quote for them; it will eliminate any hesitation that might distract from your initial pitch.

2. Assess Quantity
You should also look at the quantity of products like yours on the shelves. Note if there is a surplus or a shortage. If there are many similar widgets, you need to know why your product is different and be able to articulate it to buyers. If there’s a shortage, it may be because similar products didn’t sell well in the past. You need to show them why your product will fare better.

3. Hidden Factors
Pick up all the other products in an area – plumbing, say – and note who manufactures it. Some stores may receive nearly all their products in that area from one supplier. “If Canadian Tire is buying 90% of their plumbing items from one manufacturer, they may pay less, or pay more, for certain items,” Harris says. That will affect how they view the pricing of your product: they may see it as a steal or a rip-off. There’s not much you can do about that, but it may help you understand how the buyer greets your sales figure. If you do your homework you’ll get an idea of what sort of margins the store works on, and that will help you set an appropriate price.

Interview by Lindsey Norris

RELATED LINKS
Action Plan in Print
Part 4 of 10: Think Big
If business is lagging and your customers are reducing their orders, it may be time to try to land a bigger fish. A contract with one large customer can be worth more than those with a dozen smaller companies. More >

Revitalizing Morale
Audio

June’s Action Plan Podcast: How one company managed to score major contractors with megacorps

Tip Sheet

6 Tips for Landing Large Clients

1 Make sure your profit margin can absorb the extra costs of exporting
2 Don’t be afraid to negotiate the contract
3 The government wants to help you export; take advantage of seminars and workshops
4 Hire a freelance salesperson who already has buyers’ ears
5 Don’t neglect your existing clients while you’re courting larger ones
6 Don’t let a cultural faux pas skew your deal

It’s Lonely Being Kearl

Author: Alberta Venture

Imperial Oil’s greenlighting of the Kearl oilsands project on May 25 should not be viewed as an inflection point for oil and gas investment. It’s a huge project and a welcome chunk of work for northern construction hands and contractors, but we’re not about to see the energy industry and investors pile back into the oilsands. As usual, Imperial is running against the herd.

Michael McCulloughI remember interviewing then-chairman, president and CEO Tim Hearn in August 2005, just as Imperial was moving its head office to Calgary from Toronto. At a time when oil prices and share prices were headed steadily up and companies were falling over each other to announce projects that could never be built in a common time frame, here was Hearn fretting about a possible return to $30 oil and saying the company didn’t have enough cost certainty to commit to either Kearl (which didn’t have its regulatory approvals yet) or the Mackenzie gas pipeline. At a time when as many as nine new oilsands upgraders were announced for northern Alberta to much fanfare, Imperial was already saying it had no plans to build one for Kearl.

Whatever you think of Imperial’s (or its parent, ExxonMobil’s) environmental stance or record of corporate citizenship, you have to admire its good business sense, long-term thinking and willingness to be a contrarian actor, which we are seeing once again with the Kearl announcement. By giving Kearl the go-ahead now as opposed to a year ago (it was approved by federal and provincial regulators in 2007), Imperial is saving as much as 40% on labour and materials costs and you can bet the company will stick pretty close to its $8-billion budget for the first phase. Plus, it will almost certainly be the only major new capacity to come onstream in the non-nationalized world in 2012, when we quite possibly could be into a new, higher and more prolonged oil price run-up.

Good on Imperial. Good on the workers in Fort McMurray. Good on the Alberta treasury, whose other resource revenues are tanking. And if Kearl, along with existing oilsands projects, runs into a raft of punitive new emissions regulations emanating from the United States, my guess is Imperial, of all companies, has a backup plan. As Hearn told me four years ago, “Our business is about dealing with hard and difficult things. That’s what we do.”

10 Best Communities

Author: Alberta Venture




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Speaking to Power

Author: Alberta Venture

How female leaders rose above gender to storm the glass ceiling, and what they see for the next generation

by Stephanie Sparks

Luck is when your lottery numbers are called. Luck is when Publishers Clearing House brings an oversized cheque to your home. Luck smacks of a randomness that requires little effort on the part of the fortunate individual. And luck has no bearing on the rise of a successful female leader in Alberta’s business community. That requires hard work and focus, and a secret ingredient important to all businesses of today and tomorrow.

Only the women who have scaled the corporate hierarchies and lived to tell their tales know the secret of female leadership. To break through the glass ceiling of some of the province’s top companies they didn’t need protest signs, charred bras or affirmative action suits. It’s not what unifies these women; it’s what sets them apart from their male counterparts and even from each other. It’s the variety of perspectives they bring to their professional endeavours. Really, it’s about their diversity. And luck? Ha.

These women cannot be generalized into the demanding dictator, the touchy-feely team leader, the collaborative commander or the super boss; they are as diverse in their leadership styles as they are in their histories and hopes for the future. Each is a leader, not just of her present board, university or corporation, but of the young women and men of the next generation. In spite of the still miniscule number of Canadian females in senior executive positions, the following women have successfully risen to the upper echelons of their companies. And it took more than just luck.

At least until Bernie Kollman explained her strategy.

“It was a combination of good luck and good timing,” she says of her ascent to become IBM Canada Ltd.’s vice-president, public sector Alberta, in an industry not lacking in men. She adds that she needed hard work, dedication and loyalty.

While she attributes a portion of her success to luck, Kollman is being modest. She rose through the IBM ranks since graduating from the University of Regina in 1986. She says her results do the talking for her, not her gender.

“My friends will tell you I’m an adamant supporter of not generalizing by gender. I’ve had difficulty along the way, but so have my male counterparts. I work in a male-dominated industry. I’ve always worked where I’m a minority, but I don’t ever feel that way.”

And whatever progress they’ve made towards equality at work and in the home, women continue to be in the minority at the top rungs of business. In the annual Rosenzweig Report on Women at the Top Levels of Corporate Canada released in early 2009, only 7.2% of top executives were women. To find out what barriers still exist and what the next generation of leaders can expect, Alberta Venture spoke to some of the province’s most powerful women. Their stories are telling and their perspectives are often unexpected.

Margot Micallef, chair and CEO of Vista Radio Ltd. and president of Oliver Capital Partners Inc., entered the business world when she was 25 years old. “I didn’t know there was a glass ceiling, so my attitude was I could be anything, go anywhere, do anything.” Her gender did make her advancement challenging, but it didn’t stop her. “The most blatant experience I had was when I was working on a file with a more senior – male – partner in my law firm, and one of the bidders on a property we were selling refused to deal with me because I was a woman.” If he wanted to bid, he was told he would have to deal with Micallef, who was running the file. “And that was that. The reluctant and sexist bidder dealt with me and we just moved on. If the hurdles were all that blatant, it would be very easy to overcome them.”

Other challenges are not as malicious but just as discriminatory, as Peace Hills Insurance CEO Diane Brickner discovered at a previous insurance company, where she worked as an underwriter in the mid-1970s. When an opening for a field representative’s job became available, Brickner jumped at the chance. “It was a road position, and you had a company car and an expense account and you had a particular territory.”

Her boss at the time refused her the position. “I remember him calling me into his office to say, ‘I just can’t give you the job. What would happen if you were on the road and you had an accident or a flat tire? You would be in a hotel room by yourself.’ I wasn’t offended that I didn’t get it – it wasn’t that he thought I couldn’t do it, but he was just worried about my safety and he made that very clear.”

Retail Therapy

Author: Alberta Venture

After ushering in the era of the modern Alberta mall more than 50 years ago, Edmonton’s Westmount Centre is showing its age. But, after a series of ill-conceived reinventions, is it past its prime or just older and wiser?

by Jennifer Cockrall-King

The morning of Aug. 18, 1955, thousands of Edmontonians gathered as Mayor William Hawrelak, Vancouver-based department store baron W.C. Woodward and Detroit-based retail magnate Stanley Kresge presided over the ribbon cutting and grand opening of Westmount Shoppers’ Park. Chiefly designed by Edmonton architect Alfred A. Minsos, with Vancouver architect J.C. Page in charge of the Woodward’s units, the building’s long, sleek lines were of-the-moment, mid-century modern and the flat roof mimicked the then-uncluttered Edmonton horizon. Built at a cost of $5 million by an American developer, it was the kind of price tag that made headlines, in very large type.

The Edmonton Journal, in fact, ran a 28-page special section the day before the grand opening. No ink was spared trumpeting Westmount Shoppers’ Park’s novel concepts (Escalators! Parcel pick-up for groceries and other bulky items! Free parking!). “The centre is designed for the convenience of the Edmonton housewife and features outlets for almost every type of merchandise available in the city,” rang the caption below a photo of the expansive parking lot and floor plan drawings on the front page of the section. Meanwhile, on local television, a black-and-white ad showed a typical Edmonton housewife (identified by the dress and high heels) driving to Westmount Shoppers’ Park, picking up the dry cleaning, buying a greeting card, browsing for shoes, purchasing bread and filling a prescription. A ticking clock on the screen showed that these errands took a mere 17 minutes.

Woodward’s department stores and “food floor” anchored the north and south ends while the S.S. Kresge Co. store ballasted the mall’s middle. With 40 other retail shops and services, a mammoth asphalt parking pad to accommodate 3,000 drivers in a catchment area that, thanks to emerging car culture, easily included 127,000 Edmontonians, this 30-acre marvel was a testament to the city’s post-war prosperity and a vanguard of the future of retail that would sweep across North America. Westmount Shoppers’ Park was not only Edmonton’s first shopping mall, it was Alberta’s.

Fast forward 54 years and Westmount Centre, as it is now called, appears to be at a crossroads. The years, not to mention several ownership changes and almost as many facelifts, have not been kind to this retail pioneer. By the early 2000s, it had become a dollar-store mall known for its curious mix of parsimonious mall-goers: retirees gathering for coffee at Smitty’s and McDonald’s, and high school kids from adjacent Ross Sheppard High School hanging around in the food court. But there’s hope once again for Westmount Centre. In 2007, First Capital Realty Inc. (TSX:FCR), a subsidiary of Gazit-Globe Ltd., an Israel-based, worldwide real estate investment company, paid $70 million in cash for the property. Experienced owners and property managers of more than 170 neighbourhood and community shopping centres in Canada, First Capital promptly began $21 million in upgrades and changes.

But as other Alberta malls are currently splashing out sums of hundreds of millions, is a mere $21-million spruce-up for Westmount enough? Can First Capital succeed where other owners and management companies, intent on restoring the venerable mall to its former glory, have repeatedly failed?


Westmount Shoppers’ Park was the retail prototype that started it all, but the mall in Alberta has undergone rapid evolution since then, as shown by the time-line below. Clicking on the arrows will take you to the next slide or the one previous.



Have you always just assumed you’re working in the best place for your business? Ever considered a move? Planning to open a new location, start up a business or buy an existing one?

If you answered yes to any of these questions, then our Best Communities for Business database is a good place to start, if only to get an idea of what else is out there. We surveyed more than 30 Alberta communities, comparing rental rates, land costs, taxes, licensing fees, market size and growth rates, transportation access, average incomes, cost of living, post-secondary institutions, capital projects and more. Just click on any of the towns and cities on the map below for the most up-to-date information.



#1 Overall for 2009
10 Best Communities

All Communities
5 Most Affordable

5 Growth Nodes