Risk & Business Magazine F.A. Peabody Insurance Fall 2016

FEATURE STORY W e recently had the chance to speak with Jim Estill, CEO of Danby Appliances, to discuss marketing and business strategies that he believes are vital to achieving business success. Jim is an engineer by education. While in his final year at university, he started a company, EMJ Data Systems Ltd. (EMJ). Jim wanted to design software and circuit boards, but first he needed a computer. The salesperson said Jim would get a better deal if he bought two. So Jim bought two and sold one. Then he bought another two. Then he bought some printers and some monitors, then some software, and soon he became a computer distributor. are fewer channels that need to be crossed. Smaller companies can act lightning fast. In the appliance and technology business, this is a huge asset. Things change so rapidly that moving fast and being first to market is a huge advantage. Larger companies do not react quickly. Develop a reputation for being first—it gets the attention of customers. • Welcome smaller opportunities: Gorillas tend to say “no” to manufacturers who they think can’t satisfy their volume needs. But a small opportunity rejected by a gorilla can be a very profitable opportunity for a guerilla. For Danby Appliances, a $1 million–$5 million product line is an opportunity big enough to get our attention. In your business, look for the right-sized opportunity for you. Frequently, it is the smaller opportunity that has the most promise. The gorillas will leave you alone. There is always a right-sized opportunity for a company of any size. Knowing your rightful place in the market can help you to thrive. • et focused: Higher focus means G you know more, stock more, and sell more products. The smaller your product line, the more powerful your company becomes. Danby Appliances knows a lot about a little. That means we know the products we sell better than a gorilla does, and we become a sales tool for the reseller, not just an order-taker. Could you become more focused and specialized in a business area by giving up on a part of your business? Danby Appliances knows compact appliances and, therefore, is one of the leaders of the industry. If Danby Appliances suddenly decided it wanted to jump into the auto parts industry, our focus would shift and our appliance sales would likely suffer as a result. • Be more flexible: We can adapt more easily to our customers and suppliers. We try not to be ruled by policy. The bigger a company gets, the more likely it is to have policy restrictions in place. A smaller company can be more flexible. Because Danby Appliances is a smaller company, we can look at each product warranty claim on a This experience taught Jim one thing—that he is much better at sales and marketing than design. Jim has brought this experience with him to Danby Appliances, which sells over two million appliances annually. WHAT IS ONE OF THE MOST IMPORTANT MARKETING APPROACHES SMALL BUSINESSES SHOULD BE TAKING? Guerilla marketing. I love marketing and branding and have studied it extensively. I started EMJ from the trunk of my car and managed to make this company a $2 billion operation. I achieved this through what I call guerilla marketing and have brought these same tactics to each company I have ever been a part of. Guerilla marketing is important to every small business. In the early years, we made our living as guerillas, i.e., freedom fighters. By “guerilla,” I mean we fight for business against big gorillas in the field. If you are in a business where some of your competitors are much larger, you may be able to benefit from using guerilla marketing tactics. The principles of running a guerilla organization differ from running a gorilla organization. As a guerilla, we hide from our competitor; we do not try to crush them. I even go so far as to examine what they do well and let them do it. At the same time, I look for underserviced markets and get to these markets fast. At Danby Appliances, we use guerilla marketing and business tactics every day. When we look at the big picture, we see Danby Appliances as a relatively small appliance company, despite being in the appliance industry for over 65 years. A fair chunk of Danby Appliances’ success can be attributed to the guerilla marketing tactics we use. Here are my favourite guerilla tactics: • Act fast: The size of your company can be used to your advantage when your company is smaller than your competitors as there FALL 2016 | 17

Risk & Business Magazine F.A. Peabody Insurance Fall 2016 | Page 17