Interpersonal Business

Dear Manager,
Over the past five years we have seen a very clear and obvious shift in the marketplace for most consumer products. Customers we once relied upon for growth and expansion may no longer exist, let alone be expanding. The question now becomes are we willing to accept the market for what it is and adjust our strategies to pursue product placement in channels we have not considered in the past? Or, are we convinced the former market will adjust itself, bringing back the good fortune of days gone by? At the very least, we must transition our products and marketing to meet the needs of these various markets, or accept all consequences.

In recent years, I have seen manufacturers begin to address new markets by developing a much higher priority for field management to expand into what I will define as Key Accounts. For various reasons, there has been a reluctance for the field sales personnel to implement this strategy.

What is a Key Account?

• Any potential customer within your industry that has the capacity to make a major impact with your product or service in the marketplace. In consumer products multi-store chains including Drug, Department Store, Grocery and any other groups of stores that currently handle your products, or have the ability to do so.
• Single locations with regional or national distribution. This would include: large free standing independent retailers, mail order, catalog, distributors, shopping networks, major fund-raising organizations and the like. Think in terms of selling pencils to a local office supply versus the local school district.
• One of the best Key Account descriptions relates to the “special needs” of this type of account. This reflects on the type of very specific approach, maintenance, and immediate information this account relies on.

Why are these accounts not being fully developed?

• There is certainly a level of intimidation relating to this type of appointment and type of account. This is not the type of presentation that many of us make on a daily basis. For this reason, many of us fail to gain the confidence or the understanding to effectively meet their needs.
• The instant gratification that we take for granted with our independent accounts seldom applies in the development of Key Accounts. Rarely will we patiently accept an independent account that requires six to ten calls for a single placement or the development of a single purchase order.
• From the perspective of time, it can be very difficult to invest in areas that can be highly demanding yet, at times, hold limited rewards. It initially seems hard to justify these efforts, feeling that it comes at the expense of seeing our “regular” accounts. A relentless approach is required to establish these accounts. Are we willing and prepared to make the commitment?
• Many of us continue to fear the potential effect this type of customer will have on our independent business. As the marketplace has defined, we must accept and adapt to many of the dramatic changes, or have a very clear vision of exactly who and what we are trying to protect.

How do we develop this type of relationship?
I believe the biggest challenge is to first accept the obvious differences in selling this type of customer. Trying to fit the “Key Account” approach to business into our current sense of “Independent” reality will only promote frustration and disappointment.

These types of customers have a tendency to work with a much more limited number of factory representatives. Surprisingly, while relationships drive all aspects of sales, these relationships become increasingly important with the size and potential of the customer. Confidence and trust are essential; the stakes are simply too high!

Consider the buyer for a large organization whose first priority is to bring success to the organization and security to his or her position. The buyer’s options are to play it safe with the known potential of current vendors, or step outside with his or her neck on the line with a vendor who has yet to perform. There are clear benefits in either scenario, and all qualified buyers will proceed with an acceptable balance of the two. Simply remember, almost all of the down-side risk is with the new vendor.

This is the thought process we must understand and accept if we are ever going to overcome it. As a Key Account buyer, would you be willing to risk your job on taking a major new direction when its success is determined by not only the unknown potential of the product, but in the ability of your (new) sales contact to perform their responsibilities to your specifications? And you wonder why it can be so difficult to get that first appointment!

How do we begin to sell these customers?
Now that you have a greater understanding of their reality and what you are up against, with each step you must accept the need to overcome these obstacles by exceeding expectations. Begin by developing a target list of customers who either currently need or should need your products. When possible, visit more than one of their facilities to gain as broad of an understanding as possible relating to their operation. Often there will be an opportunity to speak with personnel who can share vital information relating to the priorities of the organization. Befriend those you can, asking for their assistance in developing your plan to proceed.

Commit to making ten or more calls on this buyer in the hopes of establishing a relationship. Often, an assistant to the buyer can be of great assistance in developing this contact. Remember, at this point you may only represent risk to the buyer. Your tenacious attitude will often demonstrate to them how genuinely sincere and serious you are. Buyers will routinely not return first calls, allowing the less serious to drop away. Send catalogs, drop off samples, do whatever it takes to get their attention. Eventually they will see you, it is their job.

How to prepare for this meeting
By now you will have a specific list of ideas and products for your presentation. Be realistic about the scope and potential of your initial presentation. Give them the ability to test you and your performance with limited risk. Your initial objective is a foot hold, not a full body take down!

Contact your factories, asking about similar relationships and success stories that may be effective in your presentation. Develop a full understanding of their competitive departments. In most instances, you will find that your buyer will have a very broad understanding of their business, yet because of their vast responsibilities, will have minimal ongoing knowledge of the specifics of the entire operation. Become an authority on their operation and its relationship to your product. Consider the value of strength in numbers. A qualified and “titled” factory representative can enhance your efforts.

Prepare both a formal and informal presentation. The formal presentation will reflect your knowledge of both their operation and your industry in a very professional manner. It will reflect on the ideas and proposals established from your knowledge of their business, and of similar operations that either you or your company have established. While this approach is effectively a shot in the dark, it will certainly establish you as a professional.

To get out of the dark, you must also prepare for an informal presentation. You can do so by asking questions and formulating, during your meeting, the answers to as many as possible. I tend to call this developing my lobby prepack. If your buyer suggests a current interest in a specific product or direction, immediately develop a program or prepack around it. Pay very close attention to their current priorities and dive head long into what would be perceived as an established program that, by coincidence, is tailor made to meet their needs. It’s amazing! From my experience, this is the most fun and creative aspect of sales.

Finally, address your understanding of the perceived risk in doing business with an unknown individual and product. Suggest examples of how you have assisted others in the past and how you will absolutely stand behind the commitments you have made in your presentation. While this may sound a bit overstated, causing the buyer to smile and downplay his concerns, you have just effectively lowered your single greatest hurdle to a mutually beneficial relationship.

As managers, we cannot be all things to all people in the marketplace. There is certainly the opportunity, however, to step outside our comfort zones to test, challenge and expand upon our current markets. While our best judgment will need to be used, our greatest opportunities should never be misunderstood.

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,
Many of us have gained a lot of experience as sales trainers. Out of curiosity, I sometimes ask new associates what type of training they received in their previous position. I am surprised that many have received very little sales training at all. More often than not, I hear stories of individuals who receive a few hours of introduction, some kind words, a pat on the back, and as many order forms as they can haul to their car.

As managers, the vast majority of our investment in our sales staff must come on the front end. Natural ability and prior experience should not be expected to replace solid training. With this issue I want to pass along some very basic training tips – the “need to know” lessons for establishing a new sales region. Even the veteran sales associate may want to take a look!

RELATIONSHIPS are your future. And, if you are a new sales associate, relationships are exactly what you don’t have with your customers. This is the single greatest loss in the transition of a sales region. Relationships can neither be formed overnight, nor formed over the phone. The first few weeks should be devoted to face to face meetings at the very fastest pace one can muster. You need to resolve the unknown in your customers’ minds. If there is any “damage control” needed in the region, this effort will stop it in its tracks. This aspect is clearly more important than initial sales success.

PRIORITIES are always a challenge for a new sales associate. Where do you begin your relationship building? Become relentless in your introductions to your key accounts. Your top twenty customers will often represent 50% or more of your total volume. These customers deserve your full and focused attention. In fact, these customers deserve much more. You should provide a level of service and attention over and above that provided to your other customers. As the “movers and shakers” in your region they hold the key to your success. Think in creative terms of how best to gain and sustain their attention.

ORGANIZATION should become the first feel-good aspect of a new sales position. There is so much to learn, so much you don’t know. Only when you feel organized can you even begin to make those first steps on your own. Being unknowing is certainly acceptable, being unprepared suggests you simply don’t care. Review all sales materials, prepare a mock presentation, organize your files and brief case … at the very least, look professional.

AVOID CONCLUSIONS. It is only human nature to try to form conclusions after one day, one week, one month. At this early stage you have no foundation or global understanding from which to form an analysis. Friends and relatives will ask for your conclusions. Don’t fall into this trap. Your future success is determined by your ability to put your best foot forward, each and every hour, five days a week. It is not determined by conclusions drawn after week one.

ACCEPTANCE and a quiet confidence are essential in the beginning. The words, “there is always more to the story,” should ring in your ears on a daily basis. Change allows partial truth to go unsubstantiated. Your lack of background will set you up as a foil on occasion – there is no getting around it. What seems to be a crisis may, in fact, be a test of your resolve. Accept that you will encounter problems … three tomorrow, and at least three next week. Don’t get thrown off balance, simply solve them one at a time as professionally as you can. The greatest advantage a veteran associate enjoys is a more balanced perspective on solving day-to-day issues. Keep in mind that yours is not the first problem your customer has endured. Remember, they are only asking for an acceptable conclusion.

DECISION making must become a way of life. A sales organization must give the tools and confidence to its associates to make strong business decisions. I have always rewarded initiative, regardless of the decision. No one intends to make poor decisions. When they occur, learn from them and move on quickly. Most decisions can be resolved with common sense. Sales associates need the power to proceed through their day.

NEW BUSINESS is your life line. With territory transition comes at least some ebb and flow in one’s established territory. Accept that your predecessor enjoyed a few relationships that you may not be able to maintain. In fact, they may have only purchased the products you now represent to support a dear friend or distant relative. There will also be customers who simply did not like working with the previous representative. Your goal is to minimize the former and maximize the latter! Approach all customers with a fresh outlook, regardless of their sales history. Commonly, there is much more to a sales history than what is printed on the page. You must read between the lines and assess your opportunities first hand.

Don’t wait for new business to fall in your lap. If you are not prepared to schedule specific time in your day for new account development, you might as well consider yourself a glorified service person! New business is the backbone of each and every sales territory, whether an individual is willing to respond to it or not.

LOOKING BEYOND THE SURFACE in all aspects of sales is essential. It is the creative and often the most fulfilling aspect of what we do. Looking “outside the box” is the difference between the average associate and the extraordinary. Rules were established to protect the whole from the lowest common denominator. I have consistently noticed that a “special few” receive advantages by simply asking the right questions. No manufacturer will walk away from a good business decision, but the question must be asked! Regardless of stated terms, the right approach and preparation will insure success a majority of the time. Thinking in “what if” terms will reward you beyond your wildest dreams. You must be prepared to accept “no” upon occasion, but at the very least you will have primed the pump for future considerations.

TIME MANAGEMENT is the single greatest challenge of any sales associate. Every decision we make pertaining to time is at the expense of a better decision that might have been made. Our productive and revenue producing hours should be considered golden. Distractions, idle conversations and paper work should be held to a minimum and or banished to a less critical time. Yes, each productive hour should be considered critical to our individual success. Just how much more productive can we become? It can become a game that’s a lot of fun to execute! As each step in our day is planned, needed adjustments are made, and each of these strategies will reward us daily.

PATIENCE breeds confidence. Each day will present you with a new hurdle, challenge, and personal victory. There will be days that seem to have been wasted, while others will effortlessly fall into place. Each case is simply a part of the process. Balancing out the highs and lows in your week and month demands a solid dose of patience. Don’t confuse satisfaction with patience. In twenty-five years I have never found complete satisfaction, be it in sales or in this management letter. I will not allow myself the feeling of “having arrived.” We can certainly feel fulfillment, pleasure and gratitude, but satisfaction can be saved for our retirement.

Beyond these basic training fundamentals, insure that the very best product knowledge is presented to your new associates. Insist that they work with your very best veteran associates to gain a proper foundation for growth. On many occasions I have hired current or former sales associates to assist on a consulting basis. As managers, our single greatest responsibility is to “create an environment for success.” Beyond that, it is simply up to the those with whom we are associated to perform.

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,
We have all experienced the failure of a personal or business relationship that, at the time, was very difficult to accept. In my years of business, I have witnessed the failure of some very strong and valuable relationships for what seemed to be all the wrong reasons. We have probably also walked away from what had, at one time, been relationships that were very valuable to us. Times change, needs change … expectations change as well!

From a purely emotional perspective, it can be much easier to walk away than to try to save a relationship that is not meeting the needs of all parties. For some, it may seem to be time to move on, regardless of the cost.

Emotion and good business judgment rarely make good bed partners. As the years go by and relationships mature, the need for stimulus and growth are ever changing. What was acceptable at an earlier time may no longer be so. What was not appreciated in the past may now be considered a significant asset. What seemed to be so very black and white now has definite shades of gray.

A number of years ago, I listened to a caller who phoned a popular talk show to discuss a concern she had in her marriage. For twenty years she had washed, ironed, and hung her husband’s dress shirts in his closet. When her husband dressed in the morning, he would determine if the shirt had been pressed to his satisfaction. For twenty years, if they had not met his standards, he promptly returned them to the laundry to be washed and pressed “correctly.” After twenty years of his insensitive behavior, this poor woman was now at the boiling point. She was looking for comfort and validation from a guest on the show.

I can certainly sympathize with her frustration. In fact, I remember wanting to shout, “Tell the guy to iron the shirts himself!” The response from the show’s guest, however, was not what the frustrated caller expected. The guest asked her how she could place sole blame on her husband for behavior that she had consistently reinforced through acceptance for twenty years?

A business associate of mine recently confided that he was prepared to leave his job. I knew that he was very well thought of by his employer and, in fact, had been consistently rewarded for his growth and success over the years. While he once enjoyed his position, he now felt trapped by circumstances that he had reinforced through participation and acceptance for a number of years. He was ready to walk.

Exactly what had taken him to this point? And what set of circumstances would recapture an environment of success for both himself and his employer? I suggested that he take the weekend, get away, and define what it would it take for him to buy back into what had once been an acceptable and fulfilling working relationship.

By creating a best-case scenario, or success formula, you have established a platform from which to proceed. The effort should objectively clarify and define your concerns. You may even find that your concerns are emotional in nature and have no conflict with strong business principals. Ultimately, you have created a document of needs to continue the relationship. It is now time to schedule a meeting with your employer.

In your meeting, discuss your appreciation for a relationship that has been mutually beneficial over a period of years. Explain that you no longer feel the same sense of benefit by continuing the relationship under current circumstances. Express your understanding, that your needs and observations are only one factor in the overall structure and decision-making process for the company. Proceed with your presentation, focusing on areas that, from your perspective, will create a workable success formula for all parties.

For this discussion to carry any meaning, all parties must understand that this conversation will lead to mutually acceptable solutions, or the relationship can no longer exist. Fairness in your presentation is essential. Your intent is not to point fingers or hold your employer hostage.

Neither box your manager nor employer into a corner. State your thoughts in a very positive manner and give them every opportunity to take a day or two to reflect and respond. In closing, reference your commitment to a positive resolution and your appreciation for their time and full consideration. Let them know you fully understand that this discussion may not lead to a resolution of your concerns. Sincerely state your appreciation for their desire to discuss your thoughts, and suggest your willingness to assist in their transition should your discussions not work toward a continued relationship.

So, what are your chances of a positive result? 100%! Yes, in every instance you will be pleased for having gone through the process. You may have only confirmed your concerns, and verified your desire to look further. Better yet, your concerns may be understood and accepted by the other party, and their willingness to meet your needs may become very obvious. You will never fully understand your value until this effort is made.

Certainly, you could have bailed, packing your bag with no comment. Is there any lasting satisfaction in this approach? At the very least, creating a success formula shows respect for the work you have accomplished and suggests that every effort has been made to proceed in a positive role. You will also be amazed at how often your success formula is compatible with the success formula of your organization.

What have you got to lose? If you are prepared to move on, then take this final opportunity to create a working environment that can best take advantage of your individual strengths. Why do so few ask the question? The obvious reason is their own acceptance of mutual accountability. How can they now demand change, when for years they had shown support and acceptance? If a new approach is needed for you, it’s likely true for your employer as well. Bury the past for all parties and objectively develop your success formula.

A success formula can be equally effective in many other aspects of business. A friend was recently offered employment with a new company. He was anguishing over certain perceived aspects of the position. As an alternative to simply turning down the offer, he decided to meet further with this company and address his concerns. He explained his need to participate in an environment that would be conducive to their mutual success. He explained circumstances that had been counter-productive in the past, and shared alternatives that had best suited all parties.

You absolutely cannot lose with this approach. Creating the opportunity to address your needs and concerns will only define and clarify the value of the position. My friend not only accepted the position, he also established on going criteria , created an environment for success and also reinforced greater confidence and independence relating to his position. Remember, it is much easier to negotiate in the early stages of a relationship than it will ever be at a later time!

Several months ago, I had a conversation with a customer whose behavior had been totally unacceptable in dealings with our representatives. In addition to being verbally abusive, his expectations were unreasonable and completely self-serving. I called and objectively explained my concerns, stating my desire to maintain the relationship if certain changes could be made. His total lack of understanding regarding my concerns made it obvious that there would be no relationship to save. From his perspective, there was no problem.

In this rare instance, I thanked him for his previous business and suggested that he pursue future business with one of our competitors. I could no longer be a party to the reinforcement of his negative behavior, and absolutely would not expect our representatives to call on this customer. Change for this individual may be possible. If enough vendors share their concerns, he will have no choice.

There is a price to pay in all aspects of business. How many are willing to step up, accept some responsibility, and address the need to promote and implement a success formula? How many more would prefer the easy way out and simply bail? Without conveying our perspectives, we are showing acceptance for less-than-acceptable behavior.

This effort is never guaranteed to meet all of our objectives. As compared to no effort whatsoever, is there a much greater likelihood of success? Out of simple respect, do you owe it to yourself and those with whom you have worked, to save this mutual investment before it’s too late? Without question, yes.

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 Managers,
In a recent issue of INTERPERSONAL I discussed risk and the role of consultants in the development of new products. With this month’s issue, I would like to take this topic a bit further by addressing the dynamics and challenges faced in the birth and marketing of a new product.

This month’s issue is dedicated to those hardy souls who, against all odds and the best advice possible, are committed to taking a risk. Be it the individual who mortgages his home to follow his dream, or the seasoned entrepreneur making a “tactical product expansion,” the chances for success are a percentage point or two above slim. Often, the only difference is the depth of ones pockets! With these thoughts in mind, let’s take a run at increasing those odds.

A BLIND EYE
If you or your company are considered to be successful, you have most likely been asked by those seeking success, “What do you think of this?” or “What would you do if you were me?” When an individual asks my advice, I feel the responsibility to be realistic first and enthusiastic second (a few questions early in our conversation to determine their resolve will tell me just how enthusiastic I should be). There seems to be a common thread with these individuals: they have at least one blind eye.

These conversations bring back vivid memories of my own carefree and very naive early years in business. Had I had a conversation with the wrong person, (who may have actually given me very good advice,) I might never have taken the risk of getting started. Certainly, personal drive and natural abilities will promote success in varied endeavors, yet how many times have we heard, “If I only new then what I know now…”

Regardless, I find myself proceeding with guarded optimism for all individuals willing to take the plunge. Who am I to determine if their concept or product is meant to succeed?

HOW BAD DO YOU WANT IT?
With very few exceptions, the common denominator for the success of all new products is the “do-whatever-it-takes” factor. Is this person serious and committed to the project, or is this a hobby? If this is the case, fine. Don’t invest the farm in something to which you have no intention of giving your very best effort. Keep your day job, enjoy the process, minimize your investment and allow your product to develop to its own level. Worst case, you have learned from the process with limited cost, best case it may become more apparent that a greater personal and financial investment is required. The highest priority for any new product is to first determine:

DOES ANYONE CARE?
I have often met with individuals who have rushed head-long into a product’s development prior to determining if there is actually a market or established need for their product. They present their product to me and state, “I have a garage full of these, what do I do now?” Their practical alternatives have now been lost. I believe this to be the ultimate hazard of the blind eye.

TEST ME, TEST ME, TEST ME!
Prior to ordering a garage full, (or on a larger scale a warehouse full) order a minimal run at a higher unit cost to determine a product’s feasibility. As I suggest to these individuals, there are ample resources to market test your products. Yet, I would be willing to guess that less than one in ten has taken advantage of this opportunity. Good-natured friends and family (or fellow managers) have encouraged their spirit, regardless of their market knowledge or its ultimate consumer value.

In general, business people and retailers are more than willing to help you determine the market value of your product. There is a definite energy in participating in the launch of something new, which plays very well in developing an interest and the needed support for your test.

Next, determine a retail price based on your costs of a full production run, adding a very reasonable profit and what your retail/business advisors feel the market will bear. In many cases, your unit cost for the minimum run will only cover the wholesale price. At this stage it makes absolutely no difference.

Your sole objective at this point is to determine your product’s potential in the market and to develop valued advisors and business contacts. Profits in the early stages should be of no consideration. Minimizing and control of potential loss through miscalculation is your sole objective.

Products in their first phase will need at least minor adjustments, and often major changes, prior to going into full production. These changes may include meeting a standardized size established by the market, a reduction or increase in pieces per single price point, packaging, the use of additional color or adjusting the suggested retail price, to name a few. Now is the time to determine the dynamics of your specific market.

Ask to test your products at fifteen to twenty places of business. Be willing to offer your product on a consignment or no cost basis to insure a significant test. In most cases you will want to establish these business relationships personally. Project a very professional and sincere image of yourself and your product. Your personal enthusiasm, and the fact that it is your product, will go a long way toward encouraging their support and assistance in your test.

Determine the specific placement for your product, a time frame for the test, and your plan for follow up. In a much larger test, you may also wish to experiment with two or three price points in various areas to establish the suitable and/or maximum retail pricing. The most critical aspect of your test will come from your professional follow up. If you are unwilling to establish a commitment toward your product and its future, why should anyone else?

The learning curve in this first phase will ultimately determine the success or failure of your product. In your follow up conversations, ask for a candid evaluation of your product from your various test locations. Insist upon their sincere opinions, rather than a favorable spin to feed your ego. Be sure to ask for their perception relating to your product’s rate of sale and potential as compared to similar products they are familiar with. Only when you have gained this information can you make the calculated decisions on your product’s future.

After sixty to ninety days you will have collected a substantial amount of data to review, in most cases at a very reasonable cost. You are now in a position to determine the adjustments and improvements that will need to be made, as well as your willingness and ability to bring your product to market.

MILK’S TOO CHEAP TO BUY A COW
This is one of my favorite quotes, as it seems to define so many aspects of business. All too often I see business people purchase machinery, equipment, lease a building or vehicle long before it is absolutely required. If you occasionally need a truck, rent a truck! Devote phase one resources to minimizing expenses and maximizing the investment into product knowledge. Your investment in equipment will never determine the fate of your project’s future, the investment in your product absolutely will.

With each conversation of this type, I find myself much closer to using these basics in decisions for my own company. As managers, we must determine our own resolve and implement the fundamental strategies that will increase our odds of success. The marketplace does unusual things to one’s thought process, let alone one’s memory. We have only our own experience to thank for an insightful perspective on the blind eye of the entrepreneur.

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