Showing posts with label vacation. Show all posts
Showing posts with label vacation. Show all posts

Sunday, 21 August 2016

Fall Tune Up for Distributors

Let’s face it, summer time is filled with distractions.  Our
customers are distracted; they have vacations, kids playing Little League, golf leagues, cabins in the woods, lawns to mow and who knows what else.  This distraction is contagious.  Being people too, distributor folks get caught up in all the summer stuff. 

Sometime around September 1st, we snap out of our summer induced behavior and put our noses to the grindstone.  For the next week or so, we are going to talk about a few fall tune-ups for distributors.  Think summer end elixir for a better year end. 

If ever you planned to institute a new habit, this is the time.  For the next four minutes, let’s think about selling time.  We’ll ask a few questions:  How much time do our salespeople spend selling?  What distracts them? How might we put the beauty back into the process?

How much time do salespeople spend actually selling?
Based on observations of hundreds of salespeople and dozens of distributors, the answer is simple: not much.  Without getting into anything earth shattering, we can subtract vacation, holidays, training sessions, sales meetings and sundry interruptions.  Vacation, holidays and personal time for life issues alone typically account for nearly 8 percent of the work year.  Let’s add in a few sales meetings, training sessions, and off-site vendor meetings and we could easily come to some interesting conclusions.  First, let’s assume salespeople are paid to “sell,” yet they’re away from their job for more than 10 percent of the time.  Secondly, the seller spends just one day per week doing administrative “paperwork.”  We’ve somehow managed to drop time spent selling by another 15 or 20 percent.

 This brings the total time engaged in face-to-face selling activities down to 70 percent of the real year.  This is the functional equivalent of being paid regular wages for an 8 to 1:30 workday.  But those are just the mechanics.  For the next five minutes, let’s look at how we drop from 70 percent to the actual number, which experts have pegged at around 25 percent.

Salespeople, please continue to read…
This is not about sales department slacking.  While we may touch up against the need for planning, scheduling and effective use of time, this article isn’t about calendar management.  Instead, it’s about sales management.

What takes salespeople away from selling?
Operational issues are a major source of sales distraction.  Think back to the last time you went out with a member of your sales team.   Was a portion of the sales call devoted to discussing shipping errors, delivery issues or a poorly handled customer service issue?  Nothing sours a well-planned sales call like a little back peddling early in the meeting.  It’s hard to sell “ease of doing business” when you just cost your customer money based on something easily avoidable.

What’s worse for many distributor managers is this:  Most lack the data to determine if their growth problems are based on a sloppy warehouse and a crappy customer service department or an ineffective sales team.  Some wonder if customer issues with missed delivery dates or inaccurate shipments are just part of the “distributor sales game.”  With this in mind, one would wonder if gathering administration and logistics data shouldn’t be a standard procedure for every distributor.   We think it should be.

Pricing situations can spoil a selling situation.  While we could argue that price negotiations are an integral to selling, I believe we need to explore a couple of points. 

First, unless you have accurate pricing information loaded into your ERP system, just arriving at a valid price provides a selling distraction.  Each transaction requires additional research.  Every time a salesperson quotes an amount to a customer, a dozen questions flash through their mind.  Is the price right?  What price did we use last time?  Could someone in customer service have priced this differently?   Where do we sit compared to the competition?  And more.

Not only is time spent researching for the right price, we also create doubt and uncertainty.  When the salesperson guesses incorrectly, it creates additional distraction.  The salesperson spends even more precious selling time fixing the issue.

Secondly, when no selling process exists, the salesperson is stuck negotiating every single sale.  To summon up something said by my friend and pricing expert David Bauders of Cleveland-based Strategic Pricing Associates, you never see a dog beg just once.  His point is simple: If you give your dog table scraps one time, they turn into constant beggars.  When our salespeople lower their prices once, the customer becomes conditioned to request a lower price on each opportunity.  Negotiations take away from, you guessed it, selling. 

Unless the distributor employs a full-on pricing process, salespeople are left to determine price.  Customers bombard them with the message “your price is too high,” and it ruins the selling moment.  This constant bombardment of negative energy causes many sellers to lose perspective on the value their organization provides to customers.   Sales experiences, without the presence of value-creating solutions, are about as exciting as the paint page of the 1964 Sears catalog.  



Management teams syphon selling time on a regular basis.  Earlier, we listed all of the mundane consumers of time (vacation, sales meetings and so on,) but many times managers hurt their own cause by not thinking of the sales team when they set up meetings.  Any meeting scheduled for midday consumes the better part of a whole day, even if it only lasts an hour.  This is especially true when ending times are not strongly enforced. 

The office is not the salesperson’s friend, specifically, the practice of starting a business day in the office.  It puts the kibosh on selling efficiency.  Nothing cuts into sales time like being readily available at the launch of a business day.  Here’s why.

It’s natural for customers to ask for their salesperson on some of the most routine issues.  The sales DNA steers the seller toward helpful behavior.   They get wrapped up in lots of trivial tasks that should be funneled to someone in customer service.  What’s worse is this: Customer service people often don’t understand it’s their job to get the salespeople outof the office.  I have seen inside salespeople and customer service representatives complain when sellers refuse to handle incoming calls.  This quickly becomes a management issue.  You cannot afford for salespeople to handle things like order entry, stock checks and routine expedites.

How do we ramp up the real selling activities?
It’s a management-driven process.  First, you must ensure the distractions are removed.  Distributor selling today is a team sport.  Some of these are not directly tied to outside salespeople.  Metrics and measures must be inserted throughout the whole of the customer experience. 

You must develop performance expectations for all components of the selling machine.  Here’s a fact: Many sales types confuse routine reactive care with selling.  They feel good at the end of a long day of handling administrative tasks and minutia associated with their customers.  Customer care is important, but it’s not the best use of their time.  If they must step aside from real face-to-face selling, something is wrong in another department.

Finally …
I believe in data.  Hand waving and opinions are nice.  No discussion of politics, religion or Olympic figure skating should go without them.  In our world, I’ll take data.  I regularly require my clients to take inventory of their day.  How did they really spend their time?

Here’s how it works.  I ask every salesperson to log their day
in 15-minute increments.  Simply put, I want to know what they did from 8:00 to 8:15, 8:15 till 8:30 and so on throughout the day.  If they were talking on the phone, who were they speaking to and about what?  If they were at their desk, what task was at hand?

At the end of the week, I ask for tabulations.  How much time was spent in each of 10- activities?   I insist on real-time logs, but leave the tabulation to the seller.  The end result is always eye opening for the seller and their manager.   Most can radically improve their sales effectiveness.  Why?  Well, if your sales time is hovering at around 25 percent, just a few minutes a day can ramp you to 30 or 40 percent.  That’s a big jump.


If you would like to see the 12 activities we tie to times, drop me a line.  You can log the time spent under planning and process improvement.

Sunday, 31 July 2016

Dealing with Renegade Factory Salespeople

In a recent conversation with a very progressive distributor, we touched on an age old topic: the activities of factory salespeople.  To give you a flavor for the call a bit about the distributor. 
 
They are extremely qualified, technically competent and have demonstrated the ability to drive their business forward.  In a time when most distributors in their sector are struggling, their sales are still pushing upward; well ahead of the industry average.  At the highest levels, their supply-partners admire their work, but there is a strange disconnect at the local level.  The local factory sales guys don’t seem to get along with the distributor folks. 

Things get complicated from here.  The distributor, being technically qualified, well trained and totally familiar with their supplier’s products doesn’t need a lot of support.  In a couple of instances, it turns out the distributor team is actually more savvy on the products and applications than the factory sales team.  At a glance, the scenario sounds like the factory salesperson’s dream.  However, friction has developed between the groups. 

The root of the problem...  
The distributor salespeople don’t feel like the factory sellers bring value.  In fact, they believe the factory team slows down the selling process.  On the other hand, the factory guys don’t feel like they are being used properly and see this as a lack of aggressiveness on behalf of the distributor.  Communications suffer and ultimately the disagreement creates problematic “noise” in the relationship.

Complicating the situation, the distributor shares the line with other distributors, which creates some serious repercussions.  Lacking a connection (or sense of appreciation) with my distributor friend, the factory sellers focus their efforts on the other distributor.  In some regards, the factory team actually serves to “prop up” the lesser sales efforts of a weaker competitive distributor.  This happens in a number of ways, but here are a few examples:
·         Most of the factory generated leads go to the competitor.
·         When the factory person “stumbles onto” potential business it is steered to the competitor. 
·         Factory people provide technical services on behalf of the competitor and, thus offset the technology based resources paid for by my distributor friend.
·         Distributor activities reported up the chain of command at the factory paint a picture of aggressive action from the competitor.
·         Negative, or at best, neutral reports are provided back on the better distributor.
·         The response time on pricing required for special commercial situations are slow in coming and most likely questioned more strongly.  This impacts the good distributor’s ability to improve gross margins.

We must understand the whole situation…
Let’s walk a mile in the factory salesperson’s moccasins.  They have a job to do.  And, if my friend’s sales team won’t work with them, they are going to find another outlet; in this particular case – the competitor.  Getting uncharacteristically soft and fuzzy in my comments, they want to be appreciated.  If they feel the love from the competitor and not you, they will help the other guy and (perhaps unconsciously) do harm to your effort and definitely damage your relationship with their management many miles away.

Taking this point a bit further, these factory sellers will work doubly hard to justify their decisions in the field.  It’s a mistake to believe that routine reports and casual conversations with co-workers will not continuously play a narrative of their hard work, customer intimacy and strength in the market.  The customers they choose to introduce to management will be those of the competitive distributor, and probably carry loud messages of why they selected the other guy over you. 

Experience dictates all of this leads to unnecessary and unwanted friction between business partners.  Something needs to be done.  Even if you are right, you still loose.

An action plan….
No message of love and appreciation here, instead think of this as a business plan.  Three basic principles apply; invest, manage and harvest dollars. 

What is the investment?  A little time, some direction, a few compliments and a dash of activity.  Let me hammer out a few ideas:
·         Does the factory guy know on which accounts you are currently?  If they don’t, there is a chance they could inadvertently visit the prospect with the competitive distributor.  This could create a new competitor and might end up with the other guy getting price support which could be used against you.

·         Have you asked the factory guy for leads lately?  The other folks are probably getting the lion’s share of the leads now.  When you ask, promise to communicate results back and involve the factory sales guy in future activities.

·         Set target accounts together.  Assign some responsibilities to the salesperson and some to yourself, keep records and agree to the end results.

·         Schedule joint calls.    While every situation is different, I typically recommend starting off with three days per month.  Spending a day with the salesperson allows you to build a relationship, that’s a good thing.  Further, a day spent with you is a day not spent with the competitor.

·         Arrange for the factory salesperson to handle a few routine issues.  You probably know how to get literature from the factory.  You may even know who to call to get samples, demos and other sales tools.  Assign the action to them.

·         Involve the factory salesperson in lunch and learns, technical presentations and anything else where their presence can be viewed positively.

Now for the managing portion:
·         How can you help the factory salesperson meet their goals?  Get a list of the points on which they are judged.  Don’t expect all of these to be in full alignment with your own goals.  However, understand will help you get more from the vendor sales guy.

·         Keep track of the agreed upon activities.  If the factory salesperson misses a date, doesn’t come through with the promised sample or something else specific, keep a log.  This allows you to provide some level of critique and also understand their weaknesses. 

·         Provide praise, share the thrill of victory.  If they assist, even in a small way, in the capturing of a new account or gathering more business, make it a point to thank them personally.

·         Help them understand the value of working with you.  This comes in the form of periodic reviews of activities and successes.

·         When appropriate, praise them in front of their boss.  Nothing is better than a fat juicy compliment on your work to the big boss man.

The dash of activity:
Find ways to engage and keep them busy.  Remember, a day spent working for you is a day spent not working with the guy across town.  This is so very important, let me repeat.  Consume major portions of their time.

Finally, it is the real world, so let’s cover the two most common scenarios….
Let’s assume the guy is a total jerk and caustic to customers.  Working with him is painful.  Working with him may damage customer relationships.  His boss may or may not know the situation.  Complaining does little to move the needle ahead.  Specific examples allow you to provide feedback without looking like a whiner.  Follow the steps above and in short order, you will have a log of unfortunate instances to discuss.

Fortunately, most times the situation isn’t a complete fiasco.  The guy has some socially redeeming qualities, he just lacks the skills to work in your organization.  While it’s not your job to train factory salespeople, good things could happen.  The guy starts to get the picture and joins your team, leaving the clunky competitor in the dust.  You get an ally and another resource.  Life is good, we all live happily ever after….  Or maybe we just make a little more money, buy a vacation package to Bandera Bay.  Somehow, there aren’t that many unhappy people sipping cool drinks on the beach.



Tuesday, 14 June 2016

Someone Has a Case of the Mondays

"Sounds like someone has a case of the Mondays"


This is a funny line from a movie that often goes through the heads of anyone who works in a traditional or corporate type office.  Sometimes you’re just not looking forward to getting back to the grind.  Other times, you need a vacation from your vacation.  But basically, the premise of waiting 5 more days until the weekend can be a bit daunting.  


I just returned last night from a trip to Mexico City where relaxation was apparently not on the agenda.  Returning to the loads of email, stacks of mail, and a full voicemail, I can say I have a case of the Mondays…on Tuesday.


But I have to wonder, since my fine readers are from all over the world and work in so many different fields, maybe your Mondays signify something different: 







Maybe you’re the fresh new sales guy looking forward to your first sales call.



Maybe you’re in Purchasing and you’ve debated all weekend about implementing a pricing plan and today’s the day you are letting the boss see the margin increase.



Maybe you’re an HVAC distributor and you see all the emergency orders from the weekend as job security.



Maybe you’re in the warehouse and Monday is one of your main delivery days and keeping busy makes Monday seem like the shortest day.



What does a typical Monday look like for you?  Are you planning out your week while responding to messages?  Are you out in the field first thing, so you can catch others in the office while they are doing the catching up?  Or is your world completely different?



Tell us about your Mondays, noting your field and location.  You are welcome to leave your name and/or company anonymous in case your Mondays are filled with social media games.  



We would love to feature some of the comments in a future article, but will not print names.  We value your feedback and your privacy.


Has anyone seen my Swingline stapler?


Friday, 6 February 2015

Believer, Skeptic or Psychoplanner, Part 3

Part III: Key Topics to get the Planning Juices Flowing

Joint Planning with Key Supply Partners
Not all vendors are created equally. Some have the power to cause our business to accelerate; others don’t. We have proof that companies who plan with their supply partners grow faster than their competition. Lots of companies go through the motions of planning with their partners. If you would like to hear of our proof, give me a call.

Major Marketing Activities
These can be marketing activities, plans for customer presentations, open houses, trade shows and other such events. Often we observe distributors rushing into events they have known about for a very long time – just because they lacked planning.


Major Technology Initiatives
What major initiatives can fundamentally change the way you do business? Here we are referring to things like CRM System implementation, implementing pricing tools, rolling out a new software system or warehouse bar-coding projects.






Product Launches
Far too many times, distributors in our industry launch new products and nothing happens. Based on observations and reports from the field, very little planning is applied to the process. Before you launch a new product ask yourself a few questions about the plan. Do we have the stock on hand to support the initiative? Is literature in place? How many times have you allowed a supply partner to do the training only to realize the support materials were lacking?


Targets – accounts, products and line expansions
Research indicates companies who establish formal targeting processes are 47% more effective in reaching their sales and financial goals than organizations who leave targeting to their sales team (without a process). Do your targets have timelines, individual responsibilities, opportunities for review and measures of success?


Inventory Management
Seasonal shifts in demand, changes in technologies and
obsolescence of existing products sometimes requires more than just a single person’s input. Without a plan in place, less than ideal consequences arise. A process for measuring and monitoring the ever changing conditions around the Industrial Distribution must be incorporated into the inventory management to achieve maximum results.

Now a final word for our psychoplanner friends
You have read through this article. Little voices are going off in the back of your mind. One voice says, “I’m a planner. This is a bunch of hot air. Plans don’t need all these things to work.” But you feel a little discomfort because you remember times things didn’t work out like you imagined they could. The other voice is saying, “If I would have had reviews, I could have avoided a costly mistake.” Or they're saying, “The inside sales group just didn’t execute on the plan. Maybe I should have assigned Deborah to make sure things got done.”

No plan is a perfect plan. 
Following the best practices of other Industrial Distributors tips the scale in favor of accomplishing top notch results. What would happen if you started looking back to the best practice list on a regular basis? My guess is you would soon find yourself enjoying at least one of my old distributor friend’s plans. And you too could plan for a nice summer vacation.

If you are planning to improve your own planning process, shoot me an email. I have a list of other areas where planning can impact your business.  

Of course, you're also still welcome to check out my planning book on Amazon.