Idea Sellers

Sales Performance & Compensation Relationship in a Recession

2009-06-02T17:48:53-04:00

There are two types of business owners:

1. Those who view their sales team as an asset.
2. Those who view their sales team as an expense.

Type 2's do not understand the value and contribution of their salespeople. They do not realize that every other function in their company, from accounting to maintenance, is pre-determined by the sales function. If there are no sales, and related profit contribution, there also is little or no operating capital to operate the business. It is a simple model.

In a recession, particularly a long and nasty storm like we are currently experiencing, Type 2's are quick to reduce what they perceive to be a high-overhead item on their balance sheet... cost-of-sales. They want to immediately slash sales commissions, sales expenses and perks for these "non-essential" tasks. This a sure method of losing market position and ultimately experiencing business failure.

"While radical surgery may be financially prudent in the short term it becomes a self-fulfilling prophecy: first sales decline, then performance suffers and finally moral drops, completing the downward cycle" -says Steve Rosen.

What Type 2's fail to realize is that they will ultimately lose all of their experienced and well-trained salespeople and customer service people to new employers. These new business owners are typically Type 1's who will truly value their contribution and reward it accordingly. These owners view their salespeople as valuable assets to their company.

Stop and think. We all know that many businesses are suffering, revenues and profits are declining and companies are struggling. Running off your sales force by making foolish decisions is operational suicide, both in the short and long term. If you selfishly deprive your salespeople of the means to make a living, a living that they determine by their own selling efforts, you are certainly ensuring your own business ruin.

Get aggressive. Buck traditional thinking. Provide additional selling incentives, training and coaching and watch your sales performers do what they do best...sell.

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...........................
Daniel Sitter
Author

Stumble It!

Your Actions Impact Referrals, Directly Affecting Sales

2009-02-17T12:40:26-05:00

We don't often directly associate our company's policies and actions with sales growth. That is a mistake. Everything your company does has an impact on sales at some level. Whether that effect has a positive or negative impact is a consequence of the choices we make and the action we take.

Burgin Roofing, a local privately-owned company in Columbia, SC is a prime example of a firm that continues to grow because of the policies and actions employed everyday. Their strategies are not revolutionary. They are not complex. They market themselves as "Your Neighborhood Roofer." Their customers cannot say enough good things about them and are happy to provide what appears to be an endless stream of referrals to new customers. Take a look at their service statement taken from their web site:

"Due to our affinity for quality and precision,
we guarantee exact results with meticulous
attention to detail.

Our highly-trained roofing contractors will
work one-on-one with you to help you make an
educated purchase and decision based on your
individual needs, taste, and budget.

We are dedicated
to excellence; providing you with outstanding
customer service, quick turnarounds, competitive
rates, and your 100% satisfaction."

Three years ago, Stuart Burgin's company provided me a quotation for my new roof. I had received a total of four proposals from established local companies. Burgin's quote was the second highest of the bunch. Upon closer scrutiny, I discovered that they only utilize premium architectural shingles, have dedicated crews with great experience and their existing customers highly recommended them. I chose them for the job and have had no regrets. I happily refer others to them as well.

Last year, my neighbor informed me that he needed to have a new roof installed. I of course, referred him to Stuart Burgin's company. He did his due-diligence and also selected Burgin for the job. While their crew was across the cul-de-sac, I contacted their office and asked if someone might come to my house before they completed their job and replace a broken shingle on a dormer window on the front of my house. Through no fault of theirs, It was damaged by a tree branch in a recent storm. I had no idea what the cost would be, but felt comfortable that it would be small, especially since their crew was already here and I had several spare shingles.

On the second and concluding day of my neighbor's roof job, the crew chief came to my door to inform me that he would take care of my roof issue. I showed him the problem, directed him to the shingles and left him be. Thirty minutes later, he was done and gone; the job well done. Great customer service.

I have not received a bill for that work. They provided a needed service for me at no charge, even though three years have passed since the original installation. What a testament to their reputation for service as well as their pride in their finished work. Why would they want a blemish on a dormer window roof at a prior customer's home to mar an otherwise stellar job? They know the value of a job-well-done as well as the value of a satisfied customer. I will certainly continue to praise and recommend Stuart Burgin Roofing.

Let your policies and actions speak for the character of your company. Such character encourages priceless referrals and steady sales growth, even in today's economic environment.

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...........................
Daniel Sitter
Author

Stumble It!

Thank Heavens for This Economic Crisis!

2009-02-04T20:27:11-05:00

Yes, thank heavens for this economic crisis! You heard me right. I am actually grateful for how it has impacted me. As it turns out, this horrible recession has revealed to me just how deep a sales rut I have allowed myself to fall into. A rut! I am not in any rut! Although that sounds good, and the actual possibility of becoming engulfed in a sales rut is virtually impossible, the rut is, in essence, a reality. The good news is... I have discovered it sooner rather than later. How's that for recognizing the silver lining hidden behind the ominous gray clouds!

Despite my planned intentions, my ardent selling efforts to the contrary and some recent sales successes, I unknowingly have arrived at a place that can only hinder my sales progress if left unattended. My previously industry-diverse customer base has proven grossly insufficient at generating enough sales opportunities to thrive upon in this economy. At least I previously thought my selling base was diverse enough.

In reality, my customer base is now revealed to be horribly top-heavy with regard to the automotive industry. Recently, I have been working with numerous Tier 1, 2 and 3 suppliers to the major car companies, many of which provide goods and services to each other. Right now, many are idled, some are closed and some are operating at significantly reduced capacity. Not very good news. Although my selling diversity extends to the food processing industry, pharmaceuticals, chemicals, plastics, power generation, bio-tech and others, those various industries combined make up a mere 45% of my base. That market positioning carves a deep rut in the current economic road. Yes, it is now time to expand my comfort zone once again and further diversify.

How does one accomplish this? What action steps are necessary?

1. Take inventory of my customers. What shape are they in?
2. Where is most of my income currently derived?
3. As is, what are the prospects of both sustaining current sales levels and experiencing sales growth?
4. Define my short and long term sales and profit expectations.
5. What industries are thriving? What do I have to offer these industries?
6. Focus on "Green," cost-savings and error-proofing manufacturing strategies.
7. Assess my goods and services offering? Which are most unique and most profitable?
8. Prioritize my offerings by value, uniqueness and profitability.
9. Match these key, profitable goods and services with select targeted customers.
10. Design a sales plan for penetrating these accounts.
11. Filter my action strategy by "Green-ness," cost-savings potential and error-proofing customer operations.
12. Take immediate action.

These action steps are actually an ongoing process and must be revisited at least monthly.

Some people may just complain. Some will blame the economy for their woes. Others may accept their situation and frantically await better days. Some will continue with their current strategy and hope for different results. Still others will hope that things will simply get better soon. The fact is, your attitude and actions will determine your stress level and economic gains or losses in this currently turbulent business climate. Do you think this 12 step agenda might help? If not, what is your action plan?

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...........................
Daniel Sitter
Author

Stumble It!

Salespeople Forged by Fire

2009-01-20T10:20:41-05:00

Hot fire and pressure forges hard metals in preparation for a tool's function, providing the durability and long life expected. There would be little endurance if not for the conditioning provided by the fire. The heat and pressure forever alter the composition of the metal, enabling it to be far more useful that it would be otherwise. The same is true for people. Be thankful for the tough times. The old adage says "that which does not kill me only serves to make me stronger."

Sales Manager Mark Maloney states "As everyone knows today's economy presents all of us with significant challenges. Faced with present prospects many companies are cutting back on investments and staff, waiting for the current business cycle to shift in the other direction. As a case in point we have learned that our major competitor has recently decided to make across-the-board personnel reductions, and is likely curtailing sales related expenditures such as promotions and travel to distributors and sales territories.

Conversely we believe that difficult business cycles represent excellent opportunities to lay the groundwork and actively prepare for the better times that lie ahead. Since our philosophy on how we approach such business conditions differs from that of our competitor, we believe it likely that they have made themselves even more vulnerable and that now is an ideal time for us to position ourselves for growth in markets previously controlled by the competition. We are asking that all of our distributors take proactive measures."

There is always opportunity available to us, even in the worst of times. Sales success can often be found in a singular, simple distinction: Is your glass half empty of half full? Today, one Realtor might say that she can barely make a living because of hard economic times while another might be overjoyed because he is in the midst of a buying frenzy and having his best year ever! How's your business? Have you found your opportunity or are you stuck in the well-publicized rut?

Matthew 7:7 states "Seek and ye shall find: knock and it shall be opened to you." Aside from intended spiritual implications, this familiar passage holds extraordinary value for salespeople and business-persons looking for alternate opportunities. Sales success requires ongoing, positive activity.

I remember visiting a metal-working company during a prior recession. Their primary business was manufacturing brass automotive components. Their sales had declined and the economy was forcing the owners to make unusual and difficult decisions. Instead of laying off skilled and loyal employees, they diligently searched for a new market and successfully found an opportunity to provide a new customer with brass handles for fireplace pokers. This new customer "carried" their company until the economy began to improve and their automotive business resumed. They adapted.

Turn off the news, stop whining and get busy. Follow Mark's advice and become proactive. There is plenty of opportunity available, but only if you are earnestly searching for it with eyes and ears wide open! That means constantly expanding your comfort zone through action and education. Persist, move forward and eventually win.

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...........................
Daniel Sitter
Author

Stumble It!

Good Salespeople Are Hard to Find

2009-01-12T11:06:38-05:00

In his latest article for Salesopedia, Mark Hunter writes about the widespread and growing need for effective salespeople and the simultaneous yet inverse policies of many employers that inhibit salesperson's growth and compensation. "I recently read a survey conducted by the employment organization, Manpower. They polled 32,000 employers in 23 countries. The results indicated that the number one position they had trouble filling was not specialized skill such as an engineer or accountant as some would expect, but, rather, sales representatives" states Hunter.

Successfully selling in specialized industries requires not only stellar sales skills but experience and industry-specific knowledge. Employers and salespeople alike need to focus on the salesperson's personal development, selling skills enhancement and their industry-specific training as well.

Long before a company or industry inspires a salesperson, selling skills mastery and ongoing personal development must precede an actual career choice. Success is highly probable for the individual who is properly prepared when opportunity arrives at her doorstep! That preparation later transforms into growth that must continue throughout ones career. Many salespeople and employers make the fatal mistake of becoming so busy working on their business, that they neglect working on themselves. They get "caught-up" in the busyness of everyday issues. Slowly, but surely, this error will catch up with them.

Last week, President-Elect Obama met with four past presidents for an unprecedented "mastermind" lunch session. Napoleon Hill coined that term as he wrote his timeless masterpiece, Think and Grow Rich. He describes a meeting of diverse experts to apply their vast collective knowledge to a desired task. Obama displays an uncanny confidence and demeanor that allows him, despite his own intellect, to seek the wisdom and counsel of others. Do you think such an action step, associations and activities might benefit you as well? Who do you associate with? What do you read? Watch? Listen to?

Sales training and personal development must be forefront and continuous. They must become a regular component of ones life. There is an old saying "if you are not growing, you are dying." Nothing could me more true, especially today. We must continue to regularly expand our comfort zone, both personally and professionally.

Available information is doubling annually. Communication is now instantaneous. The rate of change is a blur! In fact, if your strategy includes a plan to simply keep up, you WILL be left behind. You MUST adjust to a pace that keeps you ahead of the curve. That requires continuous learning, effective personal development and constant expansion of your comfort zone.

Whether you sell products and services for a living, inspire others in any manner or direct operations, you are regularly "selling" your ideas and philosophies to others. You are influencing change. Take charge, and you control your destiny, to do otherwise means that you become a part of someone else's agenda.

Learn continuously. Develop and expand your skills. Pay attention to change and do not become intimidated by it. Dive into into the opportunities before you and see your sales career prosper accordingly.

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...........................
Daniel Sitter
Author

Stumble It!

Empowering Your Resolutions This New Year

2009-01-01T18:58:11-05:00

Empower yourself with action; a great saying with plenty of drive attached to it. Action is absolutely necessary towards the accomplishment of our goals, as long as we are acting upon the right items that will provide the expected return on our time and energy investment. Long before the action takes place however, careful thought is mandated.

This week, many of us will make resolutions for the new year. We will decide upon those items that haunt us, needing change. Do we want to learn a new language? How about dropping a few pounds? Painting the house? Reading a sales training book? Learning to ski? Writing a new book? Riding a motorcycle? Learning to learn faster? Updating your will?

Resolutions are great, but often lead to disappointment. Their chance of success however, grows astronomically if we will simply will make them one at a time. Do what you resolve to do! Then and only then move on to the next goal on your list.

Resolutions are actually goals with a dose of guilt attached, or that is what they frequently become. Guilt is often the emotional energy driving the desired outcome. The problem is that guilt is a negative emotion, the type that often runs out of stream yet still nags us long afterward. Guilt never goes away until we honestly deal with it.

I do not pretend to be a psychologist, but I will offer coaching advice. My suggestion is to analyze your actual reasons why you are making a certain resolution this new year. Your goal must be something personal that inspires you. Inspiration is a great, natural motivator. Inspiration eliminates guilt. Your real "reason why" will predict your level of successful outcome

If your goal is to sell yourself on the reason why you must achieve a certain goal, your "why" must be so large that there is no room for alternatives. This will inspire you and drive you when the going gets tough. If yours is a flimsy "why," you are better-off not even getting started, as failure is surely imminent. Your all-consuming "why" will always lead you towards your goal. Keep your eye on the target and despite all pitfalls, you will successfully find your way to the success you seek.

Make your New Year's resolutions count for something this time. Believe in yourself, trust in your abilities and let your "why" be your guide. Then do what you resolve to do. You cannot fail.

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...........................
Daniel Sitter
Author

Stumble It!

No Room for Panic in Selling

2008-12-08T15:26:52-05:00

Panic mode. That is the current situation in many industries and companies. It may even be a new component of your company's current operating philosophy. It might possibly describe your mental state when you arose this morning. Regardless, if President-Elect Obama is indeed correct, and the economy may get worse before it gets better, entering panic mode now may prove to be somewhat self-destructive.

Panic is not a healthy emotion. Panic mode is a negative, pessimistic and destructive state of mind. No good decisions or policies can arise from it. Instead, one must pause, step back in a more relaxed manner and re-evaluate both the big-picture and immediate snapshot. Gathering all pertinent information in a rational manner is of primary importance and is the constructive thing to do. Furthermore, there are also healthy questions that one can ask of one's self:

1. Objectively, what is the current situational environment?
2. What is the maximum negative impact on me?
3. What steps can I take to minimize damages?
4. What good can be found at this time? What am I optimistic about?
5. What steps can I implement right now to improve my situation?

At the very least, pausing long enough to evaluate each of the above questions allows one enough breathing room to slow panic impulses and remove negative subjective feelings from the economic equation. Remember, "this too shall pass." Regardless of the duration of our current circumstances, time will ultimately shift these very circumstances.

Salespeople must divest themselves of panic. I realize that this is often far easier said than done. This particular emotion however, quickly translates into desperation. Such strong negativity is easily "felt" by others and will only serve to further frustrate our sales efforts. Buyers generally do not buy unless they feel good about their purchases as well as the others involved in the transaction.

This is a time where salespeople need to substantially increase their empathy, taking on an even-greater consultative role, becoming more of a coach for their customers. Our "calm" and reassuring level of support will ease their mind regarding their purchasing decision. Yes, this strategy may lengthen the sales cycle, but it ultimately will allow the sale to occur. The buyer will be far more comfortable coming back to such a salesperson for satisfying their future needs and be more likely to recommend them to others. Such customer loyalty is priceless.

Get coached yourself! Find a sales mentor who understands this philosophy or read articles and books that will assist you in this endeavor. Learn these new skills. This investment in yourself will pay you back immediately. Learn how to become a better sales consultant and coach your way through this recession.

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...........................
Daniel Sitter
Author

Stumble It!

Dabo Swinney's Incredible Sale

2008-12-01T16:28:25-05:00

College football fans everywhere love long traditions and exciting rivalries. Here in South Carolina we have both represented in many of our fine schools. None however are more celebrated than the chemistry between Clemson and the University of South Carolina (USC).

This year, Clemson has faced a mid-season coaching change that has great impact for both the team and the community. The big question in Clemson, South Carolina for the last several weeks is who will succeed former Tiger head-coach Tommy Bowden?

Forty year old Dabo Swinney, named interim coach just several weeks ago has now been offered the head coaching spot at Clemson, replacing recently ousted Tommy Bowden. Swinney, a six-year veteran of the coaching program and a proud Alabama alumni, is a well-respected area favorite. That's quite an achievement for a young guy facing stiff coaching competition from across the country.

The Bleacher Report recently cited five reasons why Clemson should elevate Dabo Swinney to head coach for the Tigers:

• Familiarity with the Program
• Energy
• Recruiting (He has demonstrated great ability in this critical area.)
• Terry Don Phillips (Clemson Athletic Director - appears to favor him.)
• Clemson Tradition (He's reminiscent of their beloved coach, Danny Ford)

While that general assessment appears valid, every football fan knows that the selection of a new head coach is always a process under great scrutiny from a myriad of interests. Regardless, Swinney must have read my book, Superior Selling Skills Mastery, as he masterfully achieved what he wanted and appears to have pleased most everyone in the process!

Let's examine Swinney's classic sales techniques:

1. He has absolute love and devotion for his school and their football program.
2. He has received the respect of his peers and opponents.
3. He has successfully positioned himself for success.
4. He stepped-up when called upon.
5. He immediately went to work to prove himself worthy.
6. He asked for the position.

Salespeople: Love what you do and respect those with whom you serve and interact. Always do the right thing, even when it's hard. Position yourself to be in the right place at the right time. Never hesitate in your decision making. Work hard and elevate the interests of your customer, finding ways to serve her interests as well as those of your company so that everyone wins. Be professional. Always ask for what you want. The answer is seldom "yes" unless you ask.

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...........................
Daniel Sitter
Author

Stumble It!