Whats In-Store For You? With an in-store demonstration business, you can sample your way to success.

With an in-store demonstration business, you can sample yourway to success.

From pizza to perfume to espresso machines, products aredemonstrated in supermarkets, department stores and discount storesacross the country. Most in-store demos are done by independentcontractors who accept assignments from demo-service businesses. Ademo service may be the ideal start-up business for you if you havegood people skills and high stamina but little capital.

Katherine and Jeff Wise, founders of SalesTalk Inc., began doingin-store demos with hard goods, such as small kitchen appliancesand vacuum cleaners. Food demos soon followed.

A decade ago, Jeff was president of a firm that demonstratedfood mixers in stores. When an industry contact needed an ice creammachine to be demonstrated, Katherine formed SalesTalk Inc.,recruiting friends, cake decorators, caterers and in-storedemonstrators to join her as independent contractors. A growingreputation brought further clients. A year later, in 1987, Jeffquit his job and joined SalesTalk full time. In 1990, realizingfood demos were a major market, the Wises bought out grocery-democompanies in Texas and Washington from contacts made through theField Marketing Services Association (FMSA), an organizationrepresenting 200 demo companies.

Jeff stresses the importance of "hustling" for morevolume to compensate for rising labor, insurance and other costs."We began to expand so that we could serve our clients inother parts of the country, and we now do demos in all 50states," he says. "In 1992 and 1993, Inc. magazinerecognized SalesTalk as one of the 500 fastest growing companies inthe United States."

Today, with offices in California, Washington, Georgia andMinnesota, SalesTalk Inc. has a pool of 20,000 demonstrators; someare independent contractors, while others are employees, dependingon each state's requirements. Top Priority Sales, anothercompany owned by the Wises, has an exclusive nationwide contractfor non-food demos with PriceCostco, a discount membershipwarehouse chain.

Carlienne A. Frisch, of Lake Crystal, Minnesota, writes onbusiness and travel topics. She has also worked in public relationsfor nonprofit organizations.

A Piece of the Pie

If you're looking to start your own demo business, ratherthan purchase an existing one, you needn't have a mountain ofstart-up capital. Maggie Dahl, 36, began Minnesota-based DemosUnlimited of Mankato on the proverbial shoestring.

"I got the idea while handing out pizza samples in asupermarket for my husband, who's a pizza company salesrepresentative," Dahl says. "I saw the need for trainedin-store demonstrators when the supermarket manager complimented myprofessionalism and asked me to do all of the store'sdemos."

Kevin Hormann, manager of Mankato's Hy-Vee supermarket, saysin-store demos increase a product's sales because consumers cansample the product and can ask the demonstrator questions about itbefore buying. Stores that use a demo service have no labor ortraining costs, since the demonstrators are hired by thedemo-service company.

Without a track record, a start-up demo service might have tooffer a free demo to supermarket managers, who, if satisfied, mayconnect the entrepreneur with food distributors and manufacturers.With references from the supermarket manager, Dahl started herhomebased business by mailing demonstration proposals to othersupermarket managers in Mankato, recruiting neighbors andacquaintances to work as demonstrators, and holding a trainingsession.

Dahl began with a typewriter, a phone, and access to a copier,later adding a computer and fax machine. She developed a corps of300 in-store demonstrators to serve various supermarkets anddiscount stores in southern and central Minnesota and westernWisconsin.

"People skills are very important," says Dahl."You must adapt to various community atmospheres. You needpatience, tact, organizational ability, and plenty of stamina. Youmust be willing to work up to 60 hours a week the first fewyears--something I didn't realize when I began."

Dahl developed markets in new communities during the day andworked on established accounts each evening. She then hired ConnieMettler as a field coordinator, and demonstrator Pat Redig as anoffice manager. In 1987, when Redig bought into the business, sheand Dahl moved the office to a downtown location. The companyincorporated for liability and tax benefits, and carried liabilityinsurance.

Demo Duties

Together, the three women grew the business, each handling herown separate responsibilities. Redig arranged demos in existingmarkets, called demonstrators for assignments, and prepared companybillings. She sent preliminary information about each demo productto the demonstrators. After completing a demo, the demonstratorsfilled out an activity report and sent it to Dahl and Redig, whopaid their demonstrators biweekly.

As the field coordinator, Mettler recruited, interviewed,approved and scheduled new demonstrators. She also coordinatedorientation, which included an explanation of operationalguidelines, the company's history, the process of arranging andassigning demos, dress code, demo setup, procedure and cleanup, andthe tax status of self-employed persons. Mettler worked side byside with demonstrators on their first few assignments. She alsovisited each store at least once a month to check the performanceof the demonstrators. By providing references to store managers innew market areas, Mettler was able to generate new bookingassignments.

The company's decade-long record of providing professionaldemonstrators reduced the need for travel. "I used to meetpersonally with representatives of companies we hadn't servedbefore," Dahl says. "Later, representatives of newclients just sent me product information, often including a videofor us to show demonstrators."

A Taste of Success

Demo-service businesses usually collect their fees from foodbrokers, distributors or manufacturers. That isn't always easy,according to Darla McCrary, owner of All Store Demos and MarketingServices Inc. in Greenville, Texas.

Employed by a food broker that hired demo services before shestarted All Store Demos in 1987, McCrary was therefore familiarwith the trade. "I ran ads in newspapers and recruiteddemonstrators already working in stores," says McCrary."Now I have access to about 2,000 demonstrators, servingTexas, Oklahoma, Louisiana, Kansas and Nebraska. I recruited sixbusiness acquaintances as territory managers. I already hadcontacts and a background in groceries."

McCrary warns newcomers to the demo business: "Cash flow isthe number-one problem. Waiting 60 to 90 days for payment can putyou under. I'd like to see an industry policy where demoservices get 50 percent in advance."

The FMSA offers national and regional conventions, trade shows,seminars, workshops and a quarterly newsletter, TheCommunicator. To contact FMSA, write to P.O. Box 511,Farmington, CT 06034, call (800) 338-6232, or fax (203)677-5365.

Contact Sources

All Store Demos & Marketing Services Inc., 4216Wesley St., #100, Greenville, TX 75401, (800) 950-8396.

Demos Unlimited of Mankato, P.O. Box 265, Mankato, MN56002-0265, (507) 345-4005.

SalesTalk Inc., P.O. Box 50037, Palo Alto, CA 94303.