Interpersonal Business

• They are very well organized, and have developed a high level of strong>consistency in servicing customers on a 6 to 8 week cycle.

• Finally, these individuals have been able to tighten their schedule enough to allow for just one more appointment each day on a consistent basis.

YOU WOULD ALSO FIND THAT THESE INDIVIDUALS IN VARIED TERRITORIES EARN 25% TO 50% MORE INCOME.

My initial goal is for you to develop the “thought process” that will allow you to write 20 orders per week. A full-time sales associate should expect to average at least 4 orders per day. TWENTY ORDERS PER WEEK should be a major and consistent focus. Initially, this may seem difficult, but analyze it as it relates to a typical day.

To adequately fill your schedule, begin by setting 2 to 4 appointments each day. Never leave without scheduling your next appointment 4 to 10 weeks in advance. Always be prepared with a “hook” or objective for the customer’s need to schedule their next appointment. This could be a reference to a new product introduction, an upcoming season, a need for inventory and best seller reorder, or simply to introduce a new manufacturer.

Suggest that it is in your customer’s best interest to see you on a much more frequent basis. This will minimize best seller outages, and promote better cash flow with smaller but more consistent orders.

How can your customers deny you more frequent and smaller orders?

You will find their orders to be similar in size and their annual sales will soar. In all cases, you have to develop the sense of urgency to schedule that next appointment.

If only 2 of your appointments result in an everyday and seasonal order, or orders with 2 separate manufacturers, you have achieved your initial goal of 4 orders per day. With the quality of manufacturers we represent, all of us should be able to schedule 2 appointments and average 2 orders with each appointment.

Set your objective to develop 80 customers who on the average will purchase 2 manufacturers from you. (Some accounts will purchase 3 or 4, others will purchase only 1.) Then, set a goal to see each of these customers on an average 8-week cycle. (Some you will see at 4 weeks, others at 10 weeks.)

THESE 80 CUSTOMERS AVERAGING 2 MANUFACTURERS ON AN 8-WEEK CYCLE WILL REPRESENT 960 ORDERS PER YEAR, OR 20 ORDERS PER WEEK.

It’s an interesting formula that works! It does not take into consideration new account development, additional seasonal orders and accounts that order on a more periodic basis, which will only increase your daily average above 4 orders. Begin by setting an initial objective of 3 orders each day with an eye toward that 4th order. If you are currently averaging 4 per day, is there an opportunity to achieve a 5th order?

This process has already been proven successful within our organization. The key element is not to rely on only two appointments each day to attain your goal. The objective is to consistently have 3 and 4 appointments on a daily basis.

It is accepted that manufacturers of everything from fork lifts to chewing gum all expect growth in a given year. These fundamentals, taken to heart, will provide you with the annual growth anticipated by this organization.

Now is the time to incorporate the elements of this program into your daily routine. This should not require additional hours beyond those of a territory serviced by a full-time sales associate. Please take this challenge to heart. It should be your highest goal. Define your target and expect it to happen.

Using a concept such as this will reinforce your objectives as a manager. Fairness and consistency are critical to any program’s success. Bring visibility to your objectives. Use them in your conversations and future correspondence. Take advantage of the fact that your sales force is focused on a single thought process. Finally, be sure to acknowledge and reward those who achieve their goal.

Personal Regards,

Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL/INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Dear Manager,
In the hiring process, we all hope to come up with that very special find: an individual who exceeds our expectations and achieves greater success than their peers. These types of relationships are rewarding at so many levels they can seem almost magic.

Early in my agency’s growth, I was very fortunate to have one of these individuals join me in Portland to assume sales representative duties for a number of accounts. This was an individual who challenged and rewarded our organization, enjoying success far beyond that of the previous representative. That previous representative was me.

Until that time, most of my company’s rewards had come from personal efforts. This individual’s performance taught me the pride and fulfillment we receive in another’s success. I often think of this relationship with gratitude, and used it as a model for my company. I could never have fully appreciated these achievements without having personally serviced the territory. It was a great lesson.

It seems common for management of both leading manufacturers and sales agencies to minimize the need for their own field-level sales experience. This background is essential to get into the heads of their sales people. Without it, managers may lack the perspective to understand the day-to-day realities of sales associates. These are often the same managers who will speak of a commissioned sales associate in terms of a sub rep. Sub implies they consider their associates something less than a full representative. Why would a manager want to give this impression?

Showing respect and maintaining accountability are two very key elements in any management/sales relationship. Often, management does not fully realize and accept that these qualities have to be established first in their own offices. How can a manager hold others accountable if they have not held themselves accountable for training, proper follow through and timely compensation of their associates? Strong management is consistent.

There is a single standard for both management and associates. It is a high standard of integrity and performance for all involved. Only then can we attract and maintain long term relationships with the very best, at all levels and in all positions, in our offices and in the field.

While working with a regional sales manager who was “at odds” with some of my associates, I developed a list of what I felt were reasonable expectations when working with my organization.

FUNDAMENTALS OF STRONG MANAGEMENT

• The most productive manager is one who can enhance and develop the best qualities in the associates.
• All sales associates have established their own style. It is our responsibility to enhance and develop their style rather than expect them to mirror our own.
• Mutual respect is the basic foundation of a successful working relationship. Confidence must be earned through follow up, empathy, encouragement and ongoing support.
• Assume a supportive secondary role when working with associates. Never compromise the relationship between customers and associates.
• Manage and motivate with knowledge, sensitivity and understanding of the associate. Align support through asking questions and a positive review of opportunities and concerns. Ask for their support in fulfilling your needs.
• Demonstrate an awareness of their reality. Encourage an independent ability to achieve your mutual goals. Show an understanding of, andsupport for, their other responsibilities.
• Challenge their own expectations while bringing out their best. At all costs, protect human dignity.
• Develop a work with rather than work for attitude. Never manage through intimidation or false power. An independent sales associate’s ultimate responsibility is not only to you.
• Approach concerns objectively. There is always more to the story. The wrong approach will diffuse your opportunity to resolve the initial concern.
• A candid and productive relationship is always based on trust. <strong>Never compromise that trust.
• Ask rather than demand, and anything can be accomplished.

These fundamentals are very basic, and can be understood by all. When applied at all levels of an organization, all individuals derive a greater sense of confidence in their ability to fulfill both personal and organizational expectations.

Only in the success of those around you can you be considered a success. In essence, their success must come first. There needs to be a single priority for all sales-driven companies: creating an environment for accomplishment. This single priority allows associates to maintain full control of their own ability to succeed. This empowerment also gives the associate ultimate responsibility.

When I give a task to an individual, I need the confidence that it will be accomplished. No one has time to baby sit, play games or deal with false egos. This wastes time in areas of no benefit to the organization’s overall objectives. It must be assumed that tasks for both management and its sales staff will be completed in a timely fashion.

When assigning a project to a member of my staff, I look for their input with regards to their ability to accomplish the goal. This effort avoids future misunderstanding concerning my expectations. If a staff member is unable to reach the objective, it is understood that they will be able to come to me with a revised completion date. Never lose touch with the human element in meeting assigned objectives. Expected and unexpected events impact each of our “well organized days.” Should delays occur, a simple discussion or phone call shows commitment and sensitivity to the needs and expectations of both parties.

Early in a working relationship I will often follow up an assignment to insure its completion. This develops an awareness of my expectations and a stronger sense of responsibility to meet our mutual goals. No one likes the unexpected. Simple and reasonable courtesies can, in most cases, avert frustration. When the need for future discussion occurs, focus only on your objective and its positive conclusion. Failing to address these concerns will only show acceptance, and reinforce unacceptable performance.

With these high standards, those around you will flourish or they will not survive. In many instances, those around you will rise to the occasion and, in fact, meet the standards that have been set. When problems arise, discuss them directly with the individual involved in a timely and open manner. Delays only lead to misunderstanding.

Over the years, I have seen manufacturers implement national standards as a reaction to policy abuse by some of their sales agencies. Rather than establishing national policies to address specific problems, manufacturers need to work directly with those agencies who concern them. All agencies should not be held accountable for the poor management of a few. Watch for this pitfall in the management of your own organization.

Always maintain a high level of respect for those you work with. Let them know your expectations. Give them the tools and authority to succeed in their arena. When I work in the field with an associate, I explain I am there to literally and figuratively carry their bags. In respect to their territory, my purpose is to do whatever I can to assist in their current needs and objectives.

Managers should assist, guide and support. They should not feel responsible for solving all their associates’ problems. Associates have ultimate responsibility for their own success. Thinking on their feet, problem solving and overall territory management should fall squarely on their shoulders. This is exactly what the very best associates want.

Personal Regards,
Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL and/or INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Dear Manager,
In last month’s issue we discussed developing a marketing advantage. An essential step in the development and introduction of any product is in the advantage of a competent marketing individual to insure your products have established their market. It is my belief that the most difficult position to hire in any organization is the individual asked to be your marketing guru.

Do not confuse these dramatically contrasting forms of marketing. Gut approaches business with a sense of awareness, feeling and passion that only a few around him will understand. It’s as if Gut has a sixth sense relating to the objective; they hear a voice that no one else can hear. By contrast, Pants hears no voice. In fact, this individual is convinced there is no voice, and has concluded that good fortune and timing are the makings of successful marketing.

At a recent trade show I had the opportunity to meet with two individuals who best illustrate this marketing dynamic. In my conversation with Pants, he suggested that there was no possible way to figure out the needs and wants of the consumer, let alone the whims of his retailers. “My only success has been to throw it on the wall and hope something sticks. Good fortune is the name of the game with relationship to new product.” As I suggested to him on that day, this is a cop out.

I have had the opportunity to work with a number of organizations who are certainly aware of the role fate can play, yet would never consider relying upon it! These organizations consistently hit the mark relating to what the market is asking for, creating their own success through innovation. These are the organizations where an annual sales growth of 30% to 50% is not uncommon. I have seen this reality occur time and time again, how can anyone suggest it doesn’t exist?

In my conversation with Gut, he told me he had just survived a difficult year in which the market had changed and, in hindsight, some bad decisions were made. He immediately went back into the field, working many shows to regain an accurate pulse on the market. I have to ask, how often do marketing people come to a trade show or work in the field to gain feel for the market? I rarely see them.

Gut has aligned himself with individuals who understand the nuances of product development. He is constantly thinking past the obvious and creating first and second generation ideas relating to his product. With every brainstorm he not only asks but listens. He relies upon his peers to provide him with current information and additional perspective. Once the analysis is complete, and the thought has stuck in his head, rather than on the wall, he goes with it. After a difficult year, Gut is not only back on track, he’s near the top.

Allow me to clarify. Who am I to suggest that Pants has no gut? My only criticism is that Pants denies the existence of a gut. Once again, we cannot fully understand what we have not personally experienced.

THROW OPEN THE GATES
I recently saw a televised interview with Bill Gates who, along with Paul Allen, founded Microsoft. Is there any question that Bill Gates has a great gut? He not only hears a voice, but hears one that is decades and generations ahead of its time. Who has accomplished more in business and industry over the past twenty-five years?

In this interview, Gates referenced the need for business to constantly re-invent itself. He went on to suggest that every business needs to “obsolete itself as quickly as possible!” Obviously, he was suggesting that business not only stay with the times, but to reach ahead of them, re-inventing itself along the way. While the electronics industry is extremely fast paced, particularly in today’s market, has Bill Gates offered up new principals that would only apply to his industry and not to our own? Absolutely not.

If this is true, why are companies reluctant to re-invent themselves? Why do I see companies become more conservative, losing their entrepreneurial spirit and allowing their presentations to become dated? Are they simply waiting around to catch the next wave of good fortune?

It always has, and always will, come down to creativity, design and innovation. If you no longer have it, then find it. I often hear reference to a product as having reached a mature market. I genuinely believe this is a very kind way of suggesting that a product is stale or, in fact, the market would not be mature. The time to re-invent yourself is at the top of the curve rather than waiting for more desperate times. At the top of the curve, excitement is high, cash reserves are strong and you hold a significant role in the marketplace. New introductions will be looked upon with a level of enthusiasm similar to that for your current offering.

At the bottom of the curve, when your product has been perceived as being dated, excitement will be low and cash reserves will have dwindled. Once again, your new introduction will be looked upon with a level of enthusiasm similar to that for your current offering: dated and of little relevance.

With bottoming-out comes a very clear resolution relating to your options: get your eye back on the ball, or kiss your ass good by. It is now time for a transfusion of new ideas providing energy and a spark to the organization. The need to find that marketing guru may become a bit more obvious, and accepted with a greater awareness and understanding than in the past.

Managers may have sold themselves on the conclusion that there are historic factors that inhibit sustained growth. They might even reason that for there to be a bottom, there must also be a top!

With time, challenges mount, expectations grow, and the price for success only multiplies. There may be a time when the price becomes too high. This is certainly acceptable, as long as in the same breath we have not placed responsibility and blame on the influence of outside factors.

There are no true limitations, only those that are self-imposed. Do not confuse limitations in ones own capacity with any inherent limitations of the marketplace or in that of your organization.

In the lifetime of ones business career there is only abundance.

Personal Regards,
Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL and/or INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM

Dear Manager,
As managers, we have observed, asked to be involved with, and participated in an abundance of products and services. As students of the marketplace, we have witnessed quality products that failed under their own weight, while other less promising products flourished and succeeded. How can this happen? This scenario is much more common than we are likely to acknowledge. While some individuals rely on timing and blind luck, there is no question that management can take control and react to these factors with effective marketing.

With this issue, and continuing with the next issue, I will discuss those aspects that ultimately determine a product’s success … or something less. No more excuses! If you are unwilling to properly market your product or service, send the investment to charity and leave your product on the drawing board.

I was at a recent trade show and, with some wonder, found myself uninspired by the majority of the exhibits and the products on display. If one of my objectives was to develop contacts with new manufacturers, why would I be interested in taking their products seriously if they obviously had not? Finding a product and an individual with a creative flair and sense of awareness of presentation was like finding an oasis in the desert.

One of the first tenants of marketing is exceeding your customers’ initial expectations. We all know the value of a first impression; nine times out of ten it will be your last. Without loosing touch with fiscal responsibility, I have always believed in establishing a perception that my product or service was bigger than life, or at least much larger than my competitor’s accountant or banker would be willing to testify.

I do not believe in putting the cart ahead of the horse, or in risking the financial future of your company. I do believe there are ways to direct resources where they will make the greatest impact. You must, first of all, give yourself a realistic opportunity to put your right foot forward or, like many others, you will be left at the gate. Let’s take a brief look at the five P’s that we, as students of marketing, will need to embrace.

PERCEPTION plays a much greater role than we can possibly realize. The perception of your product in the chain of players to the marketplace will need consistent review. Of the five P’s, this is the most difficult aspect to control. It requires some of the greatest input, and is, at some level, impacted by timing and pure dumb luck. Your only hope is to never underestimate its role! Since we will never fully understand its reality, for this reason alone we must always, always, (did I mention always) exceed what we believe to be another’s expectation. Bigger, better, faster, and aesthetics of design will need to play a major part in your initial planning. Anything less, and you are assured to fall short of your potential.

PRODUCT, unlike perception, is totally within your control. Pay close attention to your competition. Gain as much surface and inside knowledge as possible. Determine your competition’s strengths and weaknesses, their victories and their failures. Next, not only determine the features and benefits of your product, but relentlessly improve upon them prior to its launch. No one needs another me too product. The elements of creativity and innovation will drive your product and insure its profitability. Price takes a secondary role to these factors, margins of profit will soar, and competitors will be eating leftovers.

PRESENTATION of your product is critical. Have you analyzed the physical dimensions, colorations and packaging of your product? Are they eye-catching? Will they bring a smile and set you apart not only in some ways, but in as many ways as possible, from your competition? There can be a tendency to sell yourself on the obvious features of your product without fully understanding and appreciating the benefits of another.

Remember, your product will need to be clearly superior to supplant the relationships established by your competitor. Does the product inspire enthusiasm and excitement, not only in your customer, but (and this is equally important) in the individuals being asked to sell them? Can you provide merchandising techniques that will insure multiple unit sales to the consumer or to those retailing your product? If the unit sale is $10.00, why not provide an innovative self-merchandiser containing twelve, providing a single decision for $120.00! Multiply this by variations in size, color and seasonality, and you have begun to create a complete concept.

Do you have a larger and more expensive version to establish as a cadillac or centerpiece, to give a focus to your over all presentation? A number of years ago, I represented a factory who had developed some of the first generation, highly authentic latex Halloween masks. This was at a time when the adult Halloween market was just beginning to expand.

The average retail price for these masks was in the $30.00 to $50.00 range, a substantial commitment in the early 70’s. I would always encourage my retailers to purchase at least one mask that would retail at $100.00 or more. The mask would not only draw attention to the more moderately priced masks, it would create the perception of a ridiculous extravagance for use on a single occasion. Many customers would scoff at $100.00 and feel they had been much more prudent and conservative having spent only $50.00. Bingo! Without the $100.00 mask, the $50.00 mask would have become the cadillac. Invariably, Mr. or Ms. Moneybags would come in and purchase that $100.00 mask.

PROMOTION of your product must make a statement for it to have any chance of success in the marketplace. To accomplish this, develop a package assortment to encourage and reward full participation. Once again, if you are not willing to take your product seriously, then why should anyone else? Consider free displays, freight allowance or extended terms to encourage a full commitment. This is also a great time to promote multiple levels of participation.

Remember our cadillac mask? While you may assume it will have limited participation, always establish an upper tier of partnership. This develops the foundation and acceptability for the mid-range tier that you absolutely believe in. In selling your product always begin with your premier program. I will never forget promoting one of my manufacturer’s top-of-the-line programs to a customer I had never been able to sell. The customer leaned across his desk and said, “I’ll take two.” I nearly lost my breath! It’s a matter of believing in your product, and translating that belief to your customer.

In certain controlled circumstances, you may also wish to provide a guarantee. This will certainly test how much you believe in your product! I recently developed a guarantee program for a product that had proven itself well beyond all expectations. It became time to put its placement into warp speed.

Arming a number of my sales associates with my personal guarantee, they were each asked to open ten new accounts. As the final option in their presentation, they could give the opportunity to provide a full guarantee. In a six week period, we opened over sixty new accounts. Now, months later, I have not had to fulfill a single guarantee. I believe this to be unusual, yet even with a 10% to 20% return, I would have gained eight to nine new accounts for each program accepted in return. In this instance, ten for ten is even better!

PERFORMANCE is the final step. There is absolutely nothing more frustrating than having a product that executes all of the previous elements, only to have a factory drop the ball by not performing with fulfillment. Late or ineffective sales materials, false starts on release dates, and promoting a product months, or even a year, prior to its launch will only compromise both anticipation and enthusiasm in the marketplace.

In the release of a new product, you are effectively selling more “sizzle than steak.” Think about how long your sizzle will last, and coordinate your release based upon it. Be as sure as humanly possible that all aspects of your launch are in order. Think about NASA without enough fuel or a last minute shortage of spare parts! It’s a scrub. If need be, be more conservative with your release calendar. Commit an additional thirty days to your release to insure against contingencies. At all costs, avoid shooting yourself in the foot!

Certainly timing and luck play a role, yet a much larger factor is determined by the marketing advantage developed by the management team. For this reason alone, we see less deserving products flourish and quality products fail.

Personal Regards,
Keenan

INTERPERSONAL© is published by INTERPERSONALBIZ.COM, Keenan Longcor, Editor, ©2008. Duplication of this publication is permitted for both personal and business use. Excerpts may only be quoted with acknowledgment of INTERPERSONAL and/or INTERPERSONALBIZ.ORG as the source. For re-publication rights, please contact the editor at KEENAN@INTERPERSONALBIZ.COM