An Interview With Mike Poore, President of Feed Master Inc.

By Carr Winn

SEMA News: When did you decide to go to the SEMA Show, and what type of pre-planning did you do?

Mike Poore: I called at 12:00 p.m., the day before the Show and asked: ‘Are there any spaces, by chance?’ They said, ‘Yes, we have a cancellation, and we’ve got a good spot. Would you like to have it?’ I said, ‘I’m going to the bank to get cash, and I’m going to load up my little PT Cruiser.’ Got there about 8:30 p.m. I probably spent about an hour in the evening from 8:30 p.m.–9:30 p.m. setting up. Then I came back the next morning when [the SEMA Show] kicked off. I was still ordering carpet and chairs, and all that was being put in. If you were to go into any of the programs [Show directories] and stuff, no one would ever know I was even there because I booked the day before. So 2011 is really my first year, in a sense. I didn’t get a chance to put my product in the New Products Showcase or any of that kind of stuff last year.

SN: Why did you decide to go to the SEMA Show?

MP: I’ve sold tools to Russia, Peru, Australia and Canada, and the tools would never have hit those markets had it not been for the SEMA Show. I had never done a big show before. Thank God my product is a niche product that nobody else has, and they’ve got to come to me to get it. It’s like having the first ball-peen hammer ever made. I probably did about $30,000–$40,000 off the Show last year. This year, I will double that or even more because I’m more organized now, and I know what my price points are for the wholesalers. I had a big learning curve last year, but I’m there now.

SN: Once the Show opened, what was it like in your booth?

MP: I stayed packed the whole Show. I’m a salesperson. Most inventors of products are not salespeople, and that’s the problem they have. They’re great inventors, they’ve got great product, but they just don’t know how to sell it. I would say to anybody brand new, make sure that if you’re the owner and the inventor of your product that you stay in your booth the whole Show. Do not leave and go walk around because these are all prospective buyers. When they snap a card to you, make sure you grab their hand and pull them into your booth. Spend 10–15 minutes with them. A lot of guys would walk by and I would say, ‘Hey, come over here, let me show you something new. It’s not going to cost you a dime. Check it out.’ You know, those turn into sales, so you’ve just got to be there.

You can have the best booth and you can have it decorated the best, but you’ve got to be able to sell your product. Scatter your product out so they can touch and feel it. A lot of products are just sitting on tables and on countertops, even in the booths. People are handing out business cards and flyers, but I would just like to say to the people getting a booth, really be active in selling your products. Even though I didn’t know sales and marketing, I knew you had to go to the buyer because he has the keys to the safe. If you can’t get the buyer, you’ll never sell your product. Go directly to the buyer.

SN: Is there anything you didn’t have last year or that you weren’t prepared for?

MP: The year before, I was traveling across America. I think I was in Orlando, and people were saying, ‘You’ve got to go to the SEMA Show.’ I wish I had gone a year prior because I would be even further along.

	The Feed Master Wire Feed Tool made its debut at the 2010 SEMA Show. It is designed to help insert wires, cables and hoses inside plastic split-loom tubing.

SN: Ultimately, what’s the most important thing for exhibitors to focus on?

MP: The follow-up afterward. That’s the most important thing in business if you want to keep your customers. I tell people this every day: Make sure you call that customer back. Make sure he knows you care about him. Make things personal. That’s how you
conduct business.

If you don’t do your sales follow-up between the time you leave the Show until about the end of January, that’s the end of your sales from the Show. You’ve got a two-month window. Something else I would say to the new guy: When you come to the Show, have a bunch of product sitting on standby, waiting to go out the door. I pre-ordered 5,000 more products and had them packaged, and they’re sitting in my corporate office right now waiting for this year’s Show. I think being quick, on top of your toes and having those products ready makes a big difference. 

Law and Order is an update of some of the most recent federal and state legislative and regulatory issues that could potentially impact the automotive specialty-equipment industry. These include issues affecting small-business owners and their employees.

State Update

California Air Resources Board:

Legislation that would give small-business owners a voice on the California Air Resources Board (CARB) was passed by the Senate Environmental Quality Committee and will now be considered in the Senate Appropriations Committee. The California Assembly has already passed the bill. Introduced by Assemblymember Curt Hagman, who represents the Diamond Bar district in which SEMA headquarters is located, the bill would create a requirement for one CARB member to have been a small-business owner within the past five years. CARB is a department within the California Environmental Protection Agency that is charged with the task of attaining and maintaining healthy air quality, protecting the public from exposure to toxic air contaminants and issuing air pollution rules and regulations. The current 11-person board does not represent the interests of small businesses that comprise the regulated community. In light of hard economic times and California’s continued commitment to clean air and green business practices, it is essential that small-business owners be included in important discussions and decisions made by California Air Resources Board. This measure recognizes that the regulations issued by the board directly affect small businesses and would ensure that the rights of small-business owners are represented.

New York

One-Time Fee:

Legislation to provide historical-vehicle owners with a one-time registration fee of $100 upon initial registration was passed by the New York Senate. The bill, supported by SEMA, will now be considered by the Assembly Transportation Committee. The reduced registration fee would be available to owners of historical vehicles owned and operated as exhibition pieces or collectors’ items and used for club activities, exhibits, tours, parades, occasional transportation and similar uses. Under current New York law, a historical motor vehicle is either a vehicle manufactured more than 25 years ago or one that has unique characteristics and that is determined to be of historical, classic or exhibition value. The $100 one-time fee would replace the current annual fee of $28.75.

New York Collector Car Appreciation Day:

Pennsylvania

Year-of-Manufacture Plates:

A Pennsylvania bill that would provide vehicle owners with the option to use vintage, original model-year license plates on antique and classic vehicles has passed the Pennsylvania House of Representatives and is now awaiting consideration in the Senate Transportation Committee. An application fee of $75 would be charged for a request to use year-of-manufacture plates. Under the measure, vintage plates must have been issued by the state of Pennsylvania between the years 1906 and 1975, must be provided by the vehicle owner and legible from a reasonable distance. Under current law, antique-vehicle owners may only apply for special antique, classic or collectible plates that bear the designation “antique vehicle.” These plates would still be available to state hobbyists if the bill is enacted into law.

Texas Street Rods/Customs:

After an effort that stretched into two legislative sessions, SEMA-model legislation to create a vehicle registration classification for street rods and custom vehicles (including kit cars and replicas) and provide for special license plates was signed into law by Governor Rick Perry. Slated to go into effect on September 1, 2011, the new law defines a street rod as an altered vehicle manufactured before 1949 and a custom as an altered vehicle at least 25 years old and manufactured after 1948. The law also allows for the use of non-original materials and creates a titling and registration criterion that assigns these vehicles the same model-year designations as the production vehicles they most closely resemble. In addition, the law holds street rods, customs and replicas to only the equipment standards specified by law during the model year listed on the title and exempts them from the state’s emissions inspection program.

Federal Update

Patent Law Changes:

The U.S. House of Representatives approved legislation to overhaul the federal patent system. The Senate passed a slightly different version of the bill last March. The two bills must now be reconciled into a single measure. President Obama has indicated his support for the reform measures. Under current U.S. law, patents are granted to individuals who can prove that they were the “first to invent.” Both the House and Senate bills would switch the United States to a “first-inventor-to-file” (FITF) system, a method used by most other nations. One major drawback to the current system is that it provides an incentive for individuals to claim credit for a patent and demand royalties and damage awards years after a product has been on the market. On the other hand, it has been considered advantageous to small businesses without the resources to get to the patent office first. Lawmakers have been refining the legislation for about five years to address small-business concerns. For example, a new “post-grant review” procedure would be created, allowing third parties to lodge objections on any grounds during the first nine months after a patent has been issued. The U.S. Patent and Trademark Office would resolve these disputes, potentially reducing litigation costs associated with court challenges. The legislation represents the first significant change to the U.S. patent system since 1952.

Debit Card Fees:

The Federal Reserve Board issued a final rule to limit swipe fees imposed on retailers when accepting debit card payments at $.21 per transaction, effective October 1, 2011. Banks and payment processors may also charge $.01–$.03 more to cover fraud prevention and other adjustments, bringing the total potential fees to $.24. The limit is higher than the $.12 fee proposed last winter but less than the current average of $.44. The Federal Reserve was authorized to regulate debit card fees under last year’s financial reform bill based on what it believes to be “reasonable and proportional.” However, the Federal Reserve’s power does not extend to credit card fees. Credit unions and small banks with less than $10 billion in assets are exempt from the swipe card limits, although merchants are not required to accept their cards.

Ethanol:

The U.S. Environmental Protection Agency (EPA) will require that an orange and black label be placed on fuel pumps dispensing E15 gasoline, warning consumers not to use the fuel in vehicles older than model-year ’01 since it could cause damage. SEMA continues to oppose the EPA labeling program, since it places the burden on the motorist not to misfuel. The EPA agreed with SEMA that ethanol’s corrosive effects pose a hazard to older cars. The EPA’s decision to issue a waiver allowing the sale of E15 for newer cars is still subject to lawsuits and Congressional actions to delay or overturn the decision.

Mileage-Rate Deduction:

Soaring gas prices caused the Internal Revenue Service (IRS) to increase the standard business-mileage deduction by $.041/2, from $.51 to $.551/2 cents for all business miles driven between July 1 and December 31, 2011. It is unusual for the IRS to make a mid-year adjustment. The mileage calculation also includes all other aspects of buying and operating a vehicle, such as depreciation, insurance, tires, etc. Businesses and individuals who use their cars for business have the option of using the standard rate in lieu of keeping records of their actual expenses.

A House Natural Resources Subcommittee held a hearing entitled “Opportunities for Outdoor Recreation on Public Lands.” The main topics of discussion were protecting recreational access to federal lands and recognizing the economic benefits derived from such activities. The hearing included testimony in support of multiple-use federal lands and responsible OHV recreation. The BlueRibbon Coalition, of which SEMA is a partner, spoke on the need to reopen the Clear Creek Management Area (CCMA) in California. Currently closed due to an “emergency closure” in 2008, the CCMA includes more than 75,000 acres of land containing off-road trails. The Coalition testified that the decision was based on inaccurate data and false assumptions and recommended that the land be designated as a National Recreation Area with prescribed OHV uses.

The SEMA Action Network’s (SAN) monthly legislative newsletter, Driving Force, took home the gold medallion in the “Best Single Issue: Newsletter” category during the 20th International Automotive Media Awards, which took place on June 20 at the Automotive Hall of Fame in Dearborn, Michigan. The International Automotive Media Competition, a function of the International Society for Vehicle Preservation, is an awards program. The purpose of this peer-judged program is to recognize excellence in all forms of automotive media. The SAN provides legislative updates and feature articles to members through the Driving Force on a monthly basis. The SAN is a unique partnership between car clubs, individual enthusiasts and members of the automotive specialty-equipment industry who work together to promote pro-hobby legislation. “As the leader in legislative advocacy on behalf of the automotive hobby, the SAN relies upon Driving Force to reach thousands of enthusiasts regarding government activity in the states and in Washington, D.C.,” said Steve McDonald, SEMA vice president of government affairs. “This recognition is a testament to its continued effectiveness in providing enthusiasts with the information they need to help effect pro-hobby governmental policies.”

Membership in the SAN is free. To join, visit www.semasan.com.

They will be surrounded by nearly 2,000 businesses that would love to receive publicity, so they will go to those companies whose products they find interesting. SEMA has tools that will help ensure that they know about yours.

2011 SEMA Show Directory

Media and other SEMA Show attendees find booths, learn about companies and establish contacts using the SEMA Show Directory and the SEMA Show Pocket Guide. Most take the directory and guide back to their offices and refer to them throughout the year when they look for story sources. In order to be included in these two printed directories, your SEMA Show exhibitor booth space must be reserved by September 2, 2011. If you have any questions or need assistance regarding your company’s directory listing, contact Marel Del Rio at 909/978-6740.

PR Contact Information

SEMA also publishes a list of exhibiting companies’ public relations and marketing contacts so that the media can connect with the right person at each company for information or to set up interviews. To be included in the list, e-mail the following information to pr@sema.org with the subject line “Exhibitor PR Contact Info.” Include the exhibiting company’s name, contact person’s name, contact company (if different from the exhibitor, such as a marketing or PR firm), phone number, e-mail address, a SEMA Show onsite mobile phone number and exhibitor booth number. The deadline to submit this information is September 16.

Media Conference

		The SEMA Show Media Center Sponsored by Continental Tire serves as “home base” for thousands of editors and reporters during the Show.

Ideas Alive: Featuring the New Products Showcase

Entering a new product in the Ideas Alive: Featuring the New Products Showcase is a terrific way to introduce media members to your company. The display provides all exhibitors with an easy and affordable way to gain product exposure, and now there are three ways to participate: new products, first-time exhibitor products and featured products. To participate in the program, fill out the New Products Showcase entry form by October 7. The first entry in any category is free, and all additional entries are $75 per product category if received by October 7. After October 7, the fee is $150 per product category, and entries submitted onsite will be accepted based on space availability.

Celebrity Appearances and Famous Vehicles

Scheduling a celebrity appearance is another great way to generate media traffic to your booth. SEMA publicizes celebrity appearances—both human and vehicular—on the SEMA Show website and in association publications, including SEMA News and SEMA eNews. To have your celebrity or famous-car appearance publicized, visit www.SEMAShow.com/celebrity. The earlier the information is received, the more opportunities it will have to be publicized, but the deadline for submissions is September 2. For more information, contact SEMA Trade Shows Specialist Lisa Schafer at lisas@sema.org or 909/978-6742.

Exhibitor Product Training Session

Exhibitor Product Training Sessions allow exhibitors to explain and demonstrate product applications and uses, but they are also an excellent way to inform media members about products that may be covered in technical or how-to stories. The training sessions are included in the schedules published on www.SEMAShow.com as well as in printed publications, such as the SEMA Show Pocket Guide. The charge to the exhibitor for each 30-minute time slot is only $125, and admission is free to all attendees. Visit here for additional information.

To receive the latest updates about the 2011 SEMA Show, subscribe to SEMA eNews. Here is more information about working with the media at the SEMA Show.

Essentially, merchants use the service to offer special deals to consumers who “check in” at the store’s brick-and-mortar location with foursquare-enabled cell phones. The latest enterprise to join the party is American Express, which rolled out a campaign with foursquare in June that automatically processes discounts and specials for AMEX users who check in and make a purchase at participating retailers.

Some of the deals are fairly aggressive. Sports Authority, for example, is offering a spend-$50-get-$20-back offer to foursquare users who make a purchase under the American Express promotion.

“The success of our pilot just a few months ago proved that American Express’s digital capabilities and foursquare’s expanding application created something extremely powerful,” said Ed Gilligan, American Express’s vice chairman. “We’re thrilled to take this partnership to the next level. For us, this is just the beginning.”

As with all foursquare promotions, consumers take advantage of the offer by downloading an application from foursquare’s website, which enables them to check in with all participating merchants. Users generally redeem foursquare offers by showing their cellphones to a store cashier, who reads a coupon code off the phone and then punches it into the register for the discount. But the American Express promotion is more elegant: Store personnel simply swipe the foursquare purchase with the American Express card, and the special discount or other deal is automatically processed by American Express.

The card company is able to pull this off by requiring shoppers to register for its promotion at the American Express website. Once registered, card members “load” the specific store specials they want to redeem right onto their cards, and American Express takes care of the rest.

During the past two years, increasing numbers of businesses have made foursquare popular by texting electronic coupons and similar specials to passersby’s foursquare-enabled cell phones. For some, the effort has resulted in significant gains in spontaneous foot traffic. In addition, foursquare has attempted to stoke interest by offering a number of other pre-designed sales incentives. These include deals for “swarms” of friends who visit a store simultaneously, and “flash” specials good for only a short period of time.

The service is also imbued with a sense of play. Members can use foursquare to alert other users to their precise whereabouts for spontaneous meetings. And they can post reviews of restaurants, nightclubs and other gathering places on foursquare, which can be shared with the foursquare community.

Not surprisingly, some of the biggest guns on the web are trying to elbow in on the upstart’s success. Facebook offers a similar check-in service that it calls Places. And Google features check-in social networking as part of its Latitude service. Other key players scrambling for market share include Gowalla, Yelp Check-ins, Groupon Now and Loopt.

Some consultants see this phenomenon in GPS social networking as part of a larger trend in which digital media is expected to devour an increasingly larger share of local advertising dollars.

“Our analysis indicates that as advertisers move to online, mobile and, particularly, the variants of social media, we are fast approaching a tipping point where digital media will soon become a dominant segment of the local advertising marketplace,” said Tom Buono, CEO at BIA/Kelsey, a market research firm.

Overall, BIA/Kelsey predicts that digital media—delivered to consumers via mobile, Internet or other electronic methods—will grab 23.6% of all local ad spending by 2015. Fortunately, testing the waters with foursquare and similar services generally takes only a few minutes and can translate into substantially increased foot traffic and sales—although, to be fair, it can also be a complete dud.

With foursquare, retailers sign up for the service by logging on to the foursquare website, searching for their store in foursquare’s directory and claiming the establishment as their own. (If your store is not listed, you can easily add it yourself.) Once you’re verified as a bonafide rep of your business, you can try out the service by activating predesigned foursquare specials that have a proven track record with other retailers.

The company even offers an online dashboard, which can be used to track and distill the specials that work best for your store. Featured reports include accounts of total daily foursquare check-ins over time at your store, your most recent visitors, your most frequent visitors, the gender breakdown of your visitors, the time of day people are checking in and similar stats.

		Foursquare co-founders Naveen Selvadurai (left) and Dennis Crowley.

• Friends Special: Friends who arrive simultaneously as a group at your store get a discount or other reward.
• Swarm Special: Designed for the more adventurous, this special rewards a pre-determined number of complete strangers with rewards for “swarming” your store at a specific time.
• Flash Special: Perfect for foursquare types passing by your store, this special offers a discount or reward that may last only a few minutes.
• Newbie Special: Any foursquare member who checks in to your store for the first time gets a discount or other reward—one of the easiest ways to create new customers.
• Check-in Special: A coupon or reward for anyone who checks in to your store, whether they’re completely new or a longtime customer.
• Mayor Special: One of the most commonly used promotions, this generally rewards a person who frequents your store more than any other customer. The concept may sound goofy, but there are people who consider jockeying for Mayorship of a store as an
  all-consuming, never-ending, competitive sport.
• Loyalty Special: This rewards customers who repeatedly check in and buy a predetermined number of times or repeatedly check in during times when business is slow and similar variations.

Given the ease of entry, experimenting with GPS-driven services such as foursquare seems like a no-brainer. For the rabidly interested, there’s even a new online trade magazine devoted exclusively to tracking the burgeoning business of location-based services and advertising called Streetfight.

International Buyers’ Guide

Show exhibitors looking to export should sign up for a free listing in the 2011 SEMA International Buyers’ Guide using the online form. Beat the early September 2 deadline to include your company in the directory, which will be provided to international buyers at the 2011 SEMA Show and all year at major overseas trade shows. This benefit is available only to 2011 SEMA Show exhibitors.

Seminars

Attend three international seminars taking place Monday, October 31, at the start of SEMA Education Days.

• 11:00 a.m.–12:00 p.m.: Beyond Borders: The Logistics Behind Global Growth

A panel of industry experts will provide a high-level overview of trends in international markets and provide best practices for international logistics. Learn what to do from real-world case studies—and what pitfalls to avoid when shipping product overseas.

• 1:00 p.m.–2:00 p.m.: Selling Into the Brazilian Market: Insider Tips

A new SEMA survey will be released on the specialty-equipment market in Brazil later this year. Learn the latest trends, applications and perceptions of U.S. brands. Hear from local distributors and media.

• 3:00 p.m.–4:00 p.m.: Opportunities for SEMA-Member Manufacturers in the United Arab Emirates

The United Arab Emirates and surrounding countries provide some of the best opportunities for U.S. manufacturers. Off-roading, car collecting and motorsports are growing in popularity. Learn how to cash in on this lucrative region.

International Happy Hour

More than 1,000 companies are expected at the 2011 SEMA International Happy Hour. The event provides an excellent opportunity to network with buyers and distributors from around the world. Top international media from key overseas markets will also be in attendance.

Global Media Awards

The eighth annual Global Media Awards will once again be selected by a group of top automotive journalists from more than 20 countries who will each name 10 products from the New Products Showcase that they think will most appeal to consumers in their home markets. Winning companies receive a Global Media Award, which signifies the global appeal of their products, and the companies will be recognized at the International Happy Hour. To be considered, make sure your products are featured in the New Products Showcase. (Visit www.SEMAShow.com/exhibitor-manual and select the “New Products Showcase” link under “Marketing, Advertising & Sponsorships” to get started.) Go to www.sema.org/sema-news/2011/2 to see the SEMA News story about last year’s winners.

Center for International Commerce

		The SEMA Center for International Commerce is just one of the valuable resources that will allow SEMA Show exhibitors to connect with international buyers.

U.S. Export Pavilion

The U.S. government is sponsoring a U.S. Export Pavilion at the 2011 SEMA Show to highlight programs designed to help U.S. companies expand into global markets. From using the latest export statistics to finding the easiest shipping methods, companies can talk to trade experts to plan an export strategy to target new markets and find new buyers. Visit booth #38129.

Companies today receive international sales inquiries every day, but some worry about complying with the latest export regulations or ensuring payment from unknown buyers. More and more companies are learning that federal government programs exist to help them expand their international sales and navigate the export process. At the U.S. Export Pavilion, U.S. government agencies will demonstrate their services and talk to companies interested in exporting their products internationally.

The objective of the Pavilion is to educate and assist U.S. companies on all aspects of exporting, including but not limited to:

• Researching export markets
• Accessing and using official U.S. trade statistics
• Understanding how to properly classify export commodities
• Finding international buyers
• Complying with export regulations
• Financing international transactions
• Shipping products internationally
• Understanding the Commerce Control List
• Filing information in the Automated Export System

Exhibitors who stop by the Export Pavilion will receive a three-month trial offer to USATrade OnLine. This Internet-based product includes all access to the entire foreign trade database for the United States. It incorporates detailed information on every good imported into or exported out of the United States. This is a powerful tool that will help U.S. companies determine where there are export markets for their products and in which markets they can be competitive. For more information on any of these programs, contact Linda Spencer at lindas@sema.org.