Standardized your Product Offering

9-16-2010

We are still in a recession and you may have seen the number of competitors in  your space drop off but still... you have to keep your pencil sharp and contain if not LOWER your cost to increase your market share.

To win more sales you either have to be more professional than the other guy, offer better service than the other guy, have a better product than the other guy or offer a better price than the other guy. You probably should do all four!

But how do you lower your costs? One of the easiest ways is to standardize your product offering. By doing this you purchase more of your products from just a few vendors. This gives you "buying power."

Looking at it from the vendors point of view, if you have a customer that commits to buy from you at least a set amount each month then you are willing to give them a price break over the occasional customer.

This situation is a win-win for both the vendor and your company. In the end it's your customer that will win by getting a quality product at a reduced cost. More customers = greater market share.

So yes we are in a recession, business is tough but there are things you can still do to control costs. The #1 item to look at is standardizing your product offering.

What is the appropriate number of calls you should be making when following up?

7/6/2010

On my 11/30/2009 weekly sales tip I wrote that you just have to keep calling. On 10/26/2009 I wrote that when times are tough you need to turn to your current customer base. I have also written and taught in my Atlanta Sales Training classes that if the client has a time sensitive deadline you have to keep calling no matter what.

The appropriate number of calls (calls = touches: meetings/phone calls/emails/drive by/etc) really depends on the situation. Each situation has its own number that is appropriate.

It would be easier to tell you what is not appropriate - An unrelenting assault on your current customer base is NOT appropriate.

Here is a real life example. A year ago I bought two new A/C units from a large local company that has the word "Peach" in their name. I bought from them because they were recommended by a neighbor. The price of their two units was about the same as the other competitors I reviewed before the purchase.

Everything from "Peach.." was great. Good installation, professional service techs, GREAT after the sale problem solving. And then...

And then the after the sale follow up calls started coming in. Literally two weeks after the installation they unleashed their in-house sales call center on me.

THEM: "Mr. Peterson this is ABCD from "Peach..." its time for your service. We can have a service technician out there on Tuesday."

 

ME: "Time for my service? I just bought the thing."

No kidding, they were trying to trick me into a service contract  ("...it's time for your service") right after the purchase and they have been calling about 4 times a quarter ever since then.

I have received countless phone calls since the initial installation. Sometimes I pick up the phone because I know they will call every day until they reach me!

Calling your current customer base is a necessity. However it should be limited to these types of calls:

1. You have something of value to tell them (warranty expiration, new efficient add-ons, product recall, change in government regulations, etc).

2. You are following up and genuinely interested in their well being. ("Just checking in to make sure the unit or service is performing as expected.")

3. Thanking them for being a long standing customer.

4. Surveys to determine your company's worth or Net Promoter.

5. Referrals

When is it not appropriate:

1. When you have an agenda you plan on forcing down their throats.

2. When you have an agenda you plan on forcing down their throats.

3. When you have an agenda you plan on forcing down their throats.

4. When you have an agenda you plan on forcing down their throats.

5. When you have an agenda you plan on forcing down their throats.

Customers are expensive and should be treated with care. "Kid Gloves" come to mind. Just think of the opportunity cost (loss) that these calls are creating with me.

What is the chance that I would ever recommend these guys to another neighbor?

PS: I just got another email from them I can't count how many of those I have received this year.

PSS: My next door neighbor went with a competitor called "CoolRa.." Hmmm I wonder why? I wonder if they service Lennox A/C units?

You got to be thinking: Are the marketing people at this company really this stupid or are the sales managers so far behind on their numbers? It's has to be one of the two.

New to Sales Management? What do you need to learn first?

6/22/2010

Hands down... you need to learn "how to" hire new sales representatives. Once you have made that switch from employee to hiring manager you will quickly find out that 1 or 2 great salespeople can produce exceptional numbers for you every month.

But you will also find out that 1 or 2 other non-performing sales representatives can consume your entire month with everything from tardiness to stealing accounts.

You think I'm kidding?

Learn how to hire new sales associates or your entire life as a sales manager will be miserable.

Here are some tips that you should start including into your new hire sales process today:

1. Only interview qualified candidates.

   • Set minimum standards such as:

     • Prior sales experience in your field.

     • Past sales volume.

     • Length of tenure in proceeding job.

     • Past earnings.

     • Number of accounts handled.

     • Number of phone calls made.

     • Minimum physical requirements clearly needed for the position.

     • Good team player.

     • etc

   • Do not interview anyone that falls outside of your personal minimum standards.

2. Interview at least 5 qualified candidates for each position before making any decision. If you have time to interview 10 then all-the-better.

   • Ask all 5 candidates the exact same questions.

   • Write down their answers immediately.

   • Score the candidates based on the answers given.

3. Set up 2nd interviews with another Sales Manager for an unbiased opinion.

   • Listen to their opinions.

   • Ask for a 3rd opinion if you are still unsure.

4. Above All: DON'T SETTLE

5. Get real references.

   • Ask hard questions when talking to references.

   • Don't let the references off too easy try to tie them down to exact numbers.

I think most hiring managers will always look for referrals from current sales representatives when searching for the next candidate. Like minded people tend to gravitate to one another. So good salespeople tend to know good salespeople.

However... stick to your bare minimum standards before making any offers. If they don't look like a close fit (doesn't have to be an exact fit but it should be very close) then take a pass and go on to the next candidate.

Sales Training from a Sales Managers Point of View.

5/10/2010

Atlanta Sales and Consulting's focus and its mission statement is to make an immediate positive impact on your sales team's results.

When I say that to prospects, colleagues and associates I can tell that it arouses interest

but it also arouses skepticism. You can see it in their eyes... "what makes this person think that he can make an immediate positive impact on MY sales team?"

I can see them thinking that and I can understand their skepticism. After all there are so many sales trainers in the world that have trained countless sales teams yet nobody ever claims to make an immediate positive impact.

Most sales trainers leave you with the understanding that if you practice what they preach then you will get better. The story goes that if you just catch on and use at least a little of what they preach then you will improve.

I agree if you were to actually practice what the sales trainer preaches you would get better. The problem is the sales trainer isn't with you any longer your Sales Manager is, so it is up to the Sales Manager to continue the training.

Today's Sales Trainers have bought into franchises, and purchased training seminars from their corporate offices. They think in terms of the sales process as a whole. The franchise sales trainers approach is to teach the reps how to open, probe, pitch, and close in two days and everyone will be happy.

My approach is different. What I do is interview the Owner, VP of Sales, Sales Manager, and the Sales Representatives to find out what needs to be done in that organization. Then I design the sales training around the current issues.

I do teach all of the basics of Open, Probe, Pitch and Close but the focus is on what needs to be corrected on the team that I am training.

I approach the training from a Sales Managers point of view...

If I was just hired as a Sales Manager and I obviously had to make my numbers then what would I do today to fix the team in order to hit those assigned numbers?"

It is a pretty simple approach if you think about it. The Sales Manager is the line officer of the sales department. It really is up to him or her to produce the sales. If you want to produce the sales then fix what is broken and you will have an immediate positive impact of your sales team.

To review all sales articles by David Peterson click here