Sunday Sales Blast 7/29/18

Amazon quietly signed a $5.5 billion deal to sell its products to American cities — here are some of the biggest spenders

  • In 2017, Amazon signed a national contract with a co-op that buys products (e.g. school and office supplies, electronics, and library books) for 1,500 cities, counties, and school districts across the US. Public funds, often through taxes, pay for these Amazon products.
  • The co-op says that Amazon could receive up to $5.5 billion over the next 11 years.
  • A new report from the Institute of Self Reliance looks at purchasing totals from 60 cities, counties, and school districts in 2016.
  • The report's authors argue that relying on Amazon to buy public goods undermines local retailers or national chains with local stores.

When cities, counties, and public school districts need to buy office and classroom supplies, computers, musical instruments, and library books, they often consult purchasing co-ops. One of the largest of these co-ops is US Communities, which negotiates contracts with retailers. Cities then use public funding to buy the products.
In 2017, Amazon signed a contract with US Communities to provide its products to 1,500 public agencies, ranging from Atlanta Public Schools to the Mesa, Arizona police department. According to the co-op, Amazon could receive up to $5.5 billion over the next 11 years (or $500 million a year) as a result. While not every Amazon product is available through the deal, it includes a range of categories for products from Amazon Basics and various brands.

What does this have to do with the Jan/San market? It is just a matter of time till Amazon does the same thing with cleaning supplies. What are you doing to prepare for that?

Do This 1 Thing During Vacation to Come Back Recharged

Americans forfeit roughly half of their earned vacation days--this despite the fact that working in high-stress jobs can increase the number of health ailments that one faces. A 2014 American Psychology Association report found that stress is linked to an array of psychological symptoms that include irritability, anxiety, and decreased motivation. According to the APA’s report, 60 percent of stress is reportedly caused by work.

Steven Kadoch, managing partner at Ultimate Jet Vacations, a 2017 Inc. 5000 company, says that getting out of the office can help you think of the big picture and what’s next for your professional or business life. Kadoch emphasizes the importance of building a personalized vacation. Whether it’s a trip to an all-inclusive resort in Cabo or a safari in Tanzania, Kadoch suggests not rushing through the process, but instead planning your vacation in a very individualized way. “Think about what you and your family enjoy, not just that hot spot where your friend went and how much they spent.”

When we are on vacation and feel some sense of distance from the hustle and bustle of our daily routine, Kadoch says, life feels good again and gives us the chance to come back to work with more energy and focus. And seeing vacations as Ross does--as a non-negotiable requirement that we need to “grow, expand, recharge, and renew”--can lead to improved outcomes for your clients, your employees, and your personal relationships.

Summer is almost over, book some vacation days.

Have a great day and an even better sales week!

Scott Jarden