The Buzz Newsletter – March 2018

Click on a recruiter’s name and/or industry to read newsletter.

Prudence Thompson – Electrical Distribution Newsletter – January 2018

Pati Kelly – Wire/Cable Newsletter – January 2018

Ted Konnerth – Leadership Newsletter – January 2018

Brooke Ziolo – Lighting Newsletter – January 2018

Rob Wieska – Power Distribution Newsletter – January 2018

 

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Ask the Expert – March 2018

Q: I interviewed for a sales position with a local supply house. The VP gave me his card with his cell number on it. I’ve not heard anything from them and it’s been about a week. Is it appropriate for me to text him?

A: That’s a tough call, I’d err on the side of caution and stick to a phone call or an email. If  you had met a few times it may be okay, but this early on, I’d suggest not.

 

Have a question? Click HERE to ask one of our experts!

Are Thank You Notes Passé?

As a recruiter I am always asked: Is that necessary? Do I send via email or snail mail?

The better question is: why would you not send a thank you note? It would be sad in this very competitive market, if you lost the job to someone only because that was the one thing they did, and you did not.

A formal handwritten note isn’t necessary, but I had a candidate who prepared and handed her interviewers thank you letters. Then she followed up with an email reinstating what they discussed. They hired her immediately because they were impressed with her thoroughness and attention to detail.

Send a thank you note within 24 hours of the interview. Yes, an email is fine. Three things to include:

● Briefly discuss how you fit the role you interviewed for and remind them of any specific topics discussed

● Include a reference to a specific topic from the interview to remind them who you are

● Be succinct and sincere and ask for the next step

 

 

Pati Kelly is a contingent and retained recruiter exclusive to the electrical industry with a specialty in Wire and Cable. To learn more about how she can help your company identify and attract talent, check out her biography, view her LinkedIn profile or send her an email at pk@egretconsulting.com.

Branding

Part 2: Candidates, Branding Yourself to Ensure a Solid Job Offer

Similar to Part 1: Branding Your Company to Attract Top Talent, candidates also have the opportunity to “brand” themselves.  Here are 3 things to focus on:

1) Prepare for the interview! I can’t stress this enough. Fully review the company’s website and the LinkedIn profiles for each person you will be interviewing with. Prepare a strong answer to why a company should hire you over the other candidates; what sets you apart from your peers. Be enthusiastic and ask for the job!

2) Respond in a timely manner, within 1 – 2 days. In part one of branding, I suggested a max of 1 week; but it’s crucial on the candidate side to be within that 1 – 2 day time frame because candidates typically have more competition. This includes confirmations on scheduling interviews, giving your recruiter feedback after an interview, responding to offers, etc. Delays in the process can signify many things; such as you’re not serious about the position, you have trouble making decisions and it will be assumed that carries forward if you are an employee, etc.

3) Think through the face to face interview. If the company asks you to book the trip, make reservations that same day and send your recruiter or the company your itinerary and receipts. If the company is booking the trip, provide all needed information to book a flight; such as which airport you fly out of, preferred flight times, your date of birth and the spelling of your name as it appears on your driver’s license or passport. If the trip requires a hotel stay, keep time available in case they want to take you to dinner. If the position requires relocation, researchwhich areas you would like to tour as prospective housing.

Each meeting and every person is an opportunity to show how great you are. This is a small industry and you may certainly cross paths again in the future. If you aren’t given or reject an offer, leave a positive impression; continuously brand yourself.

Brooke Ziolo is a contingent and retained executive recruiter working exclusively within the Lighting Industry. To learn more about how she can help your Lighting company, LED company or Lighting Design Firm attract talent, check out her biographyLinkedIn profile or email her at bz@egretconsulting.com.

Long Tail Markets

Long tail distributions are a relatively arcane fascination by statisticians. Roughly, a long tail mimics the 80/20 rule; also known as a Pareto distribution. But in a series of articles and books by Chris Anderson (editor of Wired), it’s clear that Long Tail markets have emerged as a very interesting observation of how the global culture and technology expansions have shaped consumer businesses. As a short example, Amazon has more revenue (and assumed profitability) from the long tail of its book offerings; than from the Hits segment of their offering. While Amazon is the place to go to buy the latest top 25 books on the New York Times’ list of best books; the larger market for Amazon is to suggest and sell you books that are far from a ‘Hit’. In short, niche products, sold to large numbers of buyers can be a larger and more profitable market than ‘Hit’ products sold to far fewer buyers who must have the current ‘Hit’. Which brings me to the electrical industry; of course.

Technology has transformed the electrical industry; whether from direct product changes to enable smart interfaces to technology solutions to buy products or to simply access new markets that were difficult from a pure bricks and mortar business model. Let’s start with lighting; as it has had the most apparent impacts from technology over the past 10 years.

We have over 1,500 lighting manufacturers in our database. Many of those ‘manufacturers’ are product resellers; they buy from contract manufacturers or Asian suppliers and either private label products or simply ‘distribute’ them to traditional buyers; including distributors or ESCO’s or others. Regardless of the complexity of defining what a manufacturer is any more, the key is that market share and market size is opaque. When I read analysts assessments of the handful of publicly held lighting manufacturers, I grimace when they talk about ‘market share’; as if it’s a real number. The publicly held companies all sell broadly recognized products; i.e. they all sell the Hits; and they also all benchmark themselves against one another as an indicator of ‘share gain’, or loss. I think lighting has become a long tail market; where market dynamics are now supported by a distribution and availability market that belies the true market size. Long tail markets are characterized as a niche market.

Of those 1,500 lighting manufacturers; the vast majority are small companies; from $5M to $50M. We have been tracking lighting companies more than $100M and we’re confident there are less than 25 companies that sell more than $100M of lighting fixtures, in the US market. This is an exact model of a long tail market. The US has seen a huge increase in new startup companies over the past 15 years; many of those companies were unsuccessful in garnering revenue due to the legacy channel structure; so, they created their own path. That path is the long tail market, and my suggestion is that the long tail market is larger than the short tail ’Hits’ market; which is largely dominated by the Big 6. The long tail market appeals to the remaining 1,400+ lighting manufacturers that no one talks about.

Technology in lighting has been transformative. First came the transition into LED; which paved the way for entry of hundreds of new companies that had the capability of supplying LED equipment. Then came controls and smart controls and now there is the integration of sensors to bring us IoT (Internet of Things; also referred to as IIoT, Industrial Internet of Things. With LED technologies of color, spectral control and digitization, new markets emerged: UV sterilization, indoor vertical farming, healthcare lighting, agriculture lighting, optical control innovations, and the enabling of building systems (DC power distribution and integrated building applications of security, asset management, emergency response, access control and more).

With each wave of technology and the subsequent emergence of new suppliers, came potentially lucrative long tail market opportunities. The concept of becoming a niche specialist is very appealing to smaller business owners. It’s more controllable, operationally simpler and more profitable. Selling fewer SKU’s to thousands of small buyers is dramatically different than being an industry leader who lives and dies on selling ‘Hits’, every day. And if you can partner with Amazon, or Grainger or Alibaba, you can create a continuous revenue stream of profitability; with or without the expense of a sales team. Long tail markets function best when they have exposure to online distribution of products.

As a side note, during a recent meeting with a client they mentioned that they do not have an Amazon relationship, but a few of their reps are selling their products through Amazon!

Long tail markets exist in other electrical products as well; breakers are a good example. There are dozens of suppliers of breakers who specialize in quick delivery of any breaker manufacturer’s C and D SKU’s. Their access to inventory is through buying out obsolete inventory, or project overages or manufacturer or distributor surplus inventories. The profit margins are higher and the number of customers they serve are magnitudes more than a traditional brick and mortar distributor location. The same concept also works in motor controls and automation equipment like PLC’s. Smaller product segments such as cable trays, or specialty connectors/boxes would work just as easily. The long tail markets tend to work under immediate payment terms, quick transactions and small order sizes. The legacy channel burdens of rep fees, ad dollars, incentives, rebates, payment terms and extensive warranties do not apply.

In short, the electrical industry has always had a foundation of viewing products through the mindset of serving the trades; the contractor who installs the product has had a strong influence on the design and quality and availability of those products. Long tail market strategy will successfully work in construction based markets, as the purchasing decision has already been influenced by the internet. While contractors tend to be characterized as price-sensitive; they’re also very sensitive to time; getting the exact solution quickly and without service issues is a cost-effective buying strategy today. Selling small orders to contractors; without incurring the burdens of legacy market forces is a viable and profitable approach to our market. Whatever the size of that market may be.

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professional recruiter electrical industry ted konnerth

Ted Konnerth, Egret Consulting Group’s founder and CEO, recruits on a retained basis, helping leaders in the electrical and lighting industry identify their next C and V-level hire. He is also the executive director for the International Retained Search Associates, allowing him to liaise with skilled recruiters around the globe. To learn more about how Ted can help your company attract talent view his biography, check him out on LinkedIn or email him at tk@egretconsulting.com.