Challenges, Disappointments, Opportunities

Filed Under (OP News & Views, OP Sales Training) by Don on 09-03-2011

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Such is life in sales.  Although the economy seems to be the biggest disappointment, we as sales people are our own biggest challenge.  With gas approaching four dollars a gallon it is easy to make the excuse “I can’t afford to go out and make sales calls”.  But sitting at home making excuses doesn’t bring in any new business, grow your existing business or continue to build your business relationships.  You need to work smarter, get better organized and remain focused on your goals.

Thinking of working smarter, we rolled out to our group not long ago a data mining program that I am truly impressed with.  If I would have had such a program years ago when I was an outside rep it would have made my life and job so much more productive and easier.  After many months of discussion and consideration we added the Sales-i program to our back-end system.  Sales-i sorts and extracts customer and product information from our system we could never access before.  We always knew this information was there but didn’t have a way to extract it, Sales-i does that and much more.  It is more than a usage report, it categorizes the product categories and tells you how much business potential you are getting or missing in each account.  It shows you your margins on products and you can set up alerts that will email you when your customer hasn’t made a recent purchase, or about anything else you can imagine.  If you have a sales team I highly recommend that you take a look at Sales-i.

I would also like to give two thumbs up to our Salels-i trainer, Jeff Gardner from Maximum Performance Group. I had Jeff come to our office for hands-on training for our team and it made a huge difference.  Jeff is more than a trainer, he is also a sales person at heart and understand the challenges the OP sales rep has.  Jeff was a worthy investment and a fine person to have support your team.

There are many opportunities out there as there are challenges to meet them.  Disappointments, well we all have some.  Customers don’t seem to have loyalties much any more, sales people want all the commissions without doing the work, and I still hate selling copy paper.  However, I’m spending more time coaching and field training our reps which I love to do.  It gets me out of this miserable office (I hate being tied to a desk!) and I love to meet new people and help the reps with prospecting and developing new business within existing accounts. Remember, work smarter not harder and utilize the tools available to help you get new business and remain at the top!

The last word: “You are the only person on earth who can use your ability.”Zig Ziglar

Are You Suffering From Margin Creep?

Filed Under (OP News & Views, OP Sales Training) by Don on 08-09-2010

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I suppose you are familiar with price creep.  This is when a retailer takes a product and places it on sale and when it comes off sale the price has ‘creeped’ up higher than the original selling price.  For example if the product originally sold for $14.99 and the sale price was $10.99, when the item comes off sale the new selling price is now $15.49.  This is the most subtle way stores increase selling prices to an unwary buyer.  This type of price increase is especially popular in grocery stores.  So price creep is when the price gradually ‘creeps’ up at a rate nearly undetectable.

Margin Creep is similar.  For my definition: Margin Creep is a gradual downward trend in profit margins due to several causes.  Margins are gradually creeping downward as reps try to be more competitive and gain new business, or the marketplace has become much more competitive and margins have creeped down as a dealer attempts to hold selling prices while his costs (direct or indirect) are rising.  The danger in this is obvious in most ways but what I’m beginning to see is reps are selling products at lower margins for no justifiable reason.  I discovered a rep actually lower an already quoted price that had been accepted by the buyer simply because they discovered that the manufacturer had a ‘special’ deal on that item for the period.  What could have resulted in a 40%GPM unfortunately wound up with a 21%GPM.  I don’t know about you but when I was a commissioned rep I would much rather have commission on a 40 margin than I would a 21 margin!  When I asked  “Why?” there wasn’t a valid reason but it was too late to back out because the customer had already been informed of the price change.

In this case special pricing from manufacturers are designed to help gain new business, introduce new products and obviously support and drive up new sales.  So as managers and owners, how are we supposed to deal with these kinds of issues?  Do we not inform the reps until after the billing is done and then show them the extra dollars they made or do we take advantage of how special pricing deals are designed to work?  I did a little experiment, I let a rep quote and win a furniture job that had an extra margin discount from the manufacturer and I intentionally did not tell the rep of this extra margin that was available.  The rep did a good job selling the customer and won the business.  The job was quoted at an 18%GPM.  The customer was satisfied with the quote and the work after the install was completed.  When the billing was generated the result was a 35%GPM.  More money for the rep and for the dealer.  So, what does the future decide?  You make the call.

The last word: “Don’t lower our expectations to meet your performance. Raise your level of performance to meet your expectations. Expect the best of yourself, and then do what is necessary to make it a reality.” -Ralph Waldo Emerson

Five Selling Skills for a Down Economy

Filed Under (OP News & Views, OP Sales Training, The Competition) by Don on 22-06-2010

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Greetings!  First off, let me apologize for my absence these past few months.  Work has been hectic, frustrating, sometimes rewarding and always challenging. 

Our big box competitors have turned up the heat on the independent dealers trying to capture new business in this down economy.  The result has been margin depletion’s and buyers are using multiple vendors in an effort to get the best price on every product they procure.  Service seems less important to many buyers and price is the driving force behind where and from whom customers make their purchases.  I’ve been spending more time out in the field with reps making cold calls and spending time with long time customers.  I’m finding that the long-time customer/buyer that has been loyal to you is now being directed, and sometimes forced, by management to base their buying decision solely on price.  Even when the loyal buyer wants to continue to buy from you their managers are holding them accountable for finding and procuring the cheapest price.  Don’t take the loyal customer for granted.  They are being pressured to buy on price, not service.

Getting in the office to see new prospects is even more difficult.  Cutbacks in personnel is causing employees to do the jobs of two, three and even four people.  Tensions are high in many offices and a cold-calling sales rep walking into the office is not welcomed.  Here are my suggestions for selling in 2010 and beyond. 

Pre-Call Permission- Don’t walk in unannounced off the street.  Spend a day in the office and make your prospecting calls and ask permission to stop by the prospects office at a convenient time to leave your information.  This breaks the ice when you walk in and gives you a name to ask for in the prospects office.  You can gather more information while you’re there.  Be brief and respectful and make an appointment for your next call after you determine the decision makers identity.

Patient Persistence – It is a rare thing to open a new account on the first or second call.  Where it used to take five calls on average to open a new account it now takes eight or ten calls or more.   Nearly 80% of reps quit after the fourth call.  Persistence pays dividends in the form of new business but it is the persistence that wins the business.  Don’t be a quitter, be the winner! 

Network the Customer – It is increasingly important that you network within your customers office.  When you call on your customer(s), greet and introduce yourself to everyone in the office.  From the front office to the warehouse be on a first name basis with everyone.  Not only will you gain more sales but you will create a rock solid relationship with the people that will give you insight into their business and keep you in-the-know when your competitors come knocking at the door.  The cost? Minimal.  The result? Priceless!

Survey your customer – Easy to use products such as Constant Contact make it simple and affordable to survey your customers.  Your customers are a wealth of information.  Information you need to know to be more successful.  They can tell you about changing buying habits, preferences, and other valuable information.  Keep your survey limited to ten or fifteen questions (to keep your survey brief) and be certain to include a comments field on every question.  This is very important because not all questions are so cut and dry “yes or no”.  We all love to share our opinion and you will be surprised at the depth  of information you will get with this simple add-on.  I can bet some of the replies you receive will surprise you!

Know your customer- If you can’t tell me in one minute what your customers business is, then you are going to fail.  Be specific, such as if your customer is a law firm don’t just tell me they are lawyers.  What kind of lawyers are they? Civil, litigation, divorce, children’s, criminal, traffic, insurance, what kind of practice is their firm?  Why?  Because each of these have common items and also unique items based on their type of practice.  Same thing for a doctor’s office or and accounting firm.  This depth of knowledge will tell you what kinds of products they use or may provide a solution to a problem they have.  For example we recently visited an accounting firm that used open file storage and I noticed that many of their files were beyond their capacity and falling out of the file folders.  Although they used box bottom files they used a crude form of end-tab filing that didn’t perform.  So I suggested a Smead End Tab Expanding File Pocket.  I volunteered a  few samples for them to try.  As a result they loved the product and it was a considerable upsell from their previous failing folders.  Be observant, ask questions and provide solutions.  Stop being an order taker and be an order maker!

There’s my nickels worth and I hope you get at least one good take-away point.  How about you?  What has changed in your market and what works for you?

The last word:  “You were born to win, but to be a winner, you must plan to win, and expect to win!” -Zig Ziglar

Those in the Know, Know This

Filed Under (OP Sales Training, The Competition) by Don on 18-03-2009

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Key To Success

In this economy, or any other, there are basic things a good rep must know.

Know your product.

Know your customer.

Know your target market.

Know yourself.

In the current economy the relationship is King and price  is Queen.  What will get you the business is what makes you different than all the rest.  Any idiot (no offense intended to all the idiots) can give the product away at overly discounted prices.  That doesn’t take intelligence.  In tough times being differentiated is a key success factor.  Customers and prospects don’t want fluff  they want genuine value and a relationship with someone they can trust who will look out for their interests and help identify areas where they can save the customer money and be different than the competitors. 

Using my ‘King & Queen” analogy you need to realize that you are living in a castle owned by the customer.  Without the customer you have no place to live so it makes sense to take care of that which puts a proverbial roof over your head!  Customers will ask for deeper discounts and you will have to make a decision on what to do.  However, customers also understand that you have to make a profit so be careful how deeply you discount your wares.  Offer greater overall value and differentiate yourself from your competitors and you will not be forced to unnecessarily discount your prices so heavily that your profits dwindle and your business suffers.  Recessions are tough for everyone and businesses are looking for bargains.  Buy smart, sell smart and position yourself as a provider of value and trust and your customers will remember you long after the recession is over.

The last word: “The hopeful man see success where others see failure, sunshine where others see shadows and storms.” -Orison Swett Marden