228 ENTREPRENEURSHIP
tinctive characteristics, so promotion strategy tends to be complex—complex enough to
be a source of SCA.
The design and execution of a promotional strategy depends on the other three major
variables: price, product, and distribution. After consideration of these three, the ven-
ture designs a promotional strategy that is either a pull system or a push system. A pull
systemdraws customers into contact with the firm and its products. For example, whenE-Commerce Makes Selling Easy
Sue Wilson, Janet Rickstrew, and Mary
Tatum were already avid do-it-yourselfers
when they met playing basketball at their
local recreation center. But they were also
frustrated DIYers because the hand tools they
were using were too large for their hands,
and the instructional workshops offered by
the chain hardware stores were geared
toward men. After attending a direct sales
party for kitchen tools, the three friends
decided to start a company selling tools
specifically designed for a woman’s smaller
hand and marketed through enjoyable and
relaxed “tool parties” in people’s homes.
The entrepreneurial trio recognized from
the start that education was the key to the
success of Tomboy Tools, Inc. (www.tomboy-
tools.com). “We chose the direct sales indus-
try because it allowed us to combine great
tools with educational demos and techniques,
which help to empower women to become
confident and competent homeowners,” says
president and CEO Wilson. Women can learn
how to repair a leaky faucet, patch drywall, or
install ceramic tile at a Tomboy Tools party
before purchasing the tools to make those
jobs easier. In the tradition of Tupperware
and Mary Kay, customers can purchase addi-
tional tools at a discount when they host a
party to share the Tomboy Tools motto—
“Women – Tools – Knowledge — Pass It
On”—with their friends.
According to the Direct Selling
Association, 55 percent of adult Americans
have purchased goods or services from a
direct sales representative, primarily duringin-home demonstrations or parties. Direct
sales totaled $29.73 billion in the United
States in 2004, with personal care items like
cosmetics and jewelry leading, followed
closely by home and family care items such
as cookware and appliances. It is not surpris-
ing, then, that almost 80 percent of direct
sellers in the United States are women.
Direct sales can be “great for entrepre-
neurs because they don’t need a million dol-
lars to get started,” notes Amy Robinson,
spokeswoman for the DSA. Andrew Shure
relies on the Internet to recruit both represen-
tatives and customers for his new line of nat-
ural lifestyle products for pets
(www.shurepets.com). Thanks to the Web, he
doesn’t have to plead with storeowners for
shelf space as he did earlier in his career
when he marketed toys to retailers. “In
today’s environment, it’s as easy for people
to find us in Nevada as it is in Chicago,”
Shure says.
Natural health and beauty products entre-
preneur Nadine Thompson uses conference
calls and emails from home to communicate
with her 9,000 sales consultants. Thanks to
e-commerce, her Warm Spirit Inc.
(www.warmspirit.org) chalked up $6 million in
annual sales after just five years of operation.
“It’s a great way to work a business,” says
Thompson.
SOURCE:Adapted from Gwendolyn Bounds, “Direct-
Sales Operations Gain, with Boost from the Internet,” The
Wall Street Journal,October 26, 2004: B4. Retrieved from
the Web. http://www.dsa.org, http://www.tomboytools.com,
http://www.shurepets.com, and http://www.warmspirit.org.STREET STORY 6.2