Working With Sales Reps
Developing a Personal
and Profitable Relationship
The story that my grandmother
would tell about the family business from some fifty years ago
centered around the kitchen table. With the building that my great
grandfather built in the 1920's, the family residence was the
second story of the building while the original store occupied
the first floor.
As the business grew a second
and third building were added for the sales floor while the upstairs
remained the residence until the mid 1950's.
Grandma explained how
my grandfather, Buster Brown, would get up early and get into the
store long before it opened. There were several sales reps that
would be waiting in the parking lot, wanting to get in and get their
day started writing orders. As the store opened there would likely
be additional reps coming in to do their work.
As my grandmother
continued with the story, she told how she did not go into the store
until later in the morning. For the longest time, I thought this
was just a part of the privilege of being a part of ownership. What
I did not realize was that her coming into the store later was
a part of the business strategy.
After the store had opened,
and all appeared to be working as planned, my grandfather would
say to all of the sales reps, "Boys and girls, I am going
to the house for breakfast. Anyone care to join me?"
"I
never knew how many people were going to be at the breakfast table.
I just made sure there was plenty for everyone.", Grandma
would say.
And as everyone gathered about
the kitchen table for that biscuits and gravy with coffee, the conversations
would begin.
Sales reps would visit with other sales reps discussing
new accounts, what was happening with existing accounts, product
additions and deletions, industry trends and anything else related
to business.
Competitors sat side by side,
along with unrelated lines, enjoying Grandma's cooking and sharing
information. Both Grandma
and Grandpa would join in the conversation with timely questions.
As
I grew older, I was introduced to these fine people as many of them
that called on my grandparent's store also called
on the store of my great uncle, and my parent's stores. As I child,
I knew many of these people as members of our extended family.
Some of them were actually referred to as aunts and uncles.
As
my childhood passed into the years of my youth and adulthood and
I joined in the family business, I began to understand the wisdom
of my grandparents and parents. Long before the idea of a consultant
to the retail industry was conceived, these men and women were
actually performing these tasks and providing these services.
Perhaps
there are some reading this article, thinking this is a feel good
personal oldies story. Quite the contrary, for if you are not profiting
and benefiting as a retailer from assistance
such as this from the sales reps calling on you today, then may
we suggest you take a look at the next sales rep walking through
your front door in another light.
Many times the sales rep calling
on you is themselves a former retailer with many years of experience
in our industry. They have been a participant in the many swings
in business, from the downturns of the 1980's to the boom years of
the late 1990's; able to provide you with first hand knowledge
of how to take advantage of the upswings and avoid the pitfalls
of the down turns.
Realistically, many retailers
are hesitant to enlist this valuable source of information and help.
Likewise, sales reps report their lack of desire to continue to
try to help a retailer because so many of their accounts fail to
act upon the
advice. This scenario, unfortunate and unnecessary, can be
solved by those retailers and sales reps that see the profitability
in developing a closer working relationship. This nine step plan
was developed to build a relationship by beginning with a simple
interaction and progressing to another step; each level requiring
a deeper level of trust and interaction.
The process of building
a profitable relationship begins with the technique of promoting.
While retailers spend a substantial amount of money for advertising,
few utilize special techniques for inviting their existing customers
to return. A customer that has shown a preference for that retailer's
showroom is more likely to return to that showroom for future
furniture purchases.
Unfortunately, few retailers
have in place a system, such as phone calls, post cards, letters,
and e-mails, for keeping in contact with customers. Past the customary
form letter that is often sent to customers three days after their
having made a purchase, a promotional minded retailer will use
a 3-1-3-6-1 system of asking for repeat business. The five digit
reminder system denotes that initial contact at three days, followed
by another at one month, and again at three months, six months,
and one year.
The customer is expecting the
first contact, and is not likely to be surprised by the one month
contact. But with each of the successive contacts, the retailer
develops a tighter and tighter bond with the customer. When they
are ready to make their next purchase, they actually feel guilty
about looking at another furniture store.
The second step is to
share a success story. Whether the success be with a retailer adding
a product line or running a profitable sales event, this step gives
the retailer a way of measuring the sales rep's efforts with another
retailer. For the sales rep, one of their best tools would be
to maintain a list of retailers willing to be the testimonials
for that sales rep.
Step number three is to help
a retailer with displays. We all have experienced stores that struggle
with displays as well as stores that seem to always have the best
window and sales floor displays. In this scenario, a camera can
be the best friend the sales rep could have. While one store may
struggle with the creativity of displays, they can easily duplicate
the ideas shown in a photograph. With the easily affordable cost
of a digital camera, a sales rep could share a display that has
been seen one day with numerous other stores by way of e-mail at
the end of the day.
Adding a new line of furniture
or accessories is a way a sales rep can show they are sincerely
interested in the success of their accounts. With most any line
of furniture, a rep has seen a store that has had an excellent sell
through with another furniture or accessory line; one that the first
store does not carry.
Especially if the sales rep
does not represent the suggested line, bringing the necessary information
to the account again shows a deep level of interest in the success
of that retailer.
Creating and using a customer
survey is the fifth step. What may appear to be something simple,
actually goes much deeper. The survey itself should be a very simple
piece of paper with not much more than one question. "What
one thing could we do to make it easier for you to do business with
us?"
The
more complicated part comes with the follow up. For most of
us, it is difficult to receive criticism. This is why many businesses
do not want to read the results from such a survey. But, this
is not criticism. It is what it claims to be; an opportunity for
the retailer to learn what a customer really wants.
Helping
the retailer to utilize this information to develop a deeper relationship
with their customers can mean additional revenue for both the
retailer and the sales rep.
An advertising budget is often
a major problem for retailers. It is something that few retailers
will sit down and develop as a one year plan, instead spending advertising
dollars on a month to month basis; often based more on the sales
skills of the media sales rep than on the needs of the retailer.
One
bonus that a sales rep can share with a retailer is that of
purchasing the advertising in bulk. Many have reported that by
making decisions about which media and how much to spend with
each, based on an annual basis, can result in a savings as much
as 30%. Being the sales rep to share this expense saving idea
with a retailer can go a long way to having that sales rep seen
as a real hero to the retailer.
Concern number seven. Manufacturers
go a long way today to provide information about their products
through their magazine and other forms of advertising, their website,
and even the print material that comes with each piece of furniture.
Yet, experienced reps know that nothing will ever replace a store
sales person that is very knowledgeable about the products they
sell.
A knowledgeable store sales
person is not a thing of the past,
nor is it that rare and unusual person that has developed
great sales skills by luck. Most reps have accounts that have
more than their fair share of great sales people, and this is
likely because of a commitment to having staff meetings on a consistent
basis. During these staff meetings, in addition to discussing
advertising, new show room settings and product lines, they practice
their sales skills.
By sharing the experiences of
these other successful retailers as well as your own successful
sales techniques, you
will be increasing the bottom line of your retailer as well as the
profitability of your own business.
Sales people, both those on
the sales floor and manufacturer's reps receive incentive pay for
their efforts. A percentage of the sale is the most traditional
form of pay. However, it should not be the only method of pay. Retailers
that obtain extraordinary results from their sales people report
that the best incentives are those that are custom tailored to each
individual's likings.
Envision a sales contest involving
all of a store's sales staff with individually designed prizes.
One of the sales people has a fondness for baseball. When the achieve
their sales goal, or win the contest, their prize would be a weekend
for two to see their favorite baseball team with all expenses paid.
The idea of the specialized prize always includes two aspects. The
first is that the prize is for two so that they can enjoy the contest
with their significant other, and the second aspect is that it involves
time away from the store.
Granted by having a cash prize,
they could likely afford the prize the store has just given them,
but by customizing the prize, the business is making sure they take
time to enjoy themselves as well demonstrating that the business
has taken a personal interest in them.
Our ninth and final area
that can be shared with a retailer is a sensitive issue. Surely,
most sales reps have had the misfortune of experiencing a situation
where the credit department has placed a hold on an order because
of slow payment on a previous invoice. This occurs because of a
lack of cashflow management and perhaps the use of an "open to buy". Experience has shown there
are few retailers that have an accountant that has taken the time
to help them learn about these crucial management tools.
You do
not have to be a CPA, or even have a degree in accounting, but
for the person that shares this valuable tool with a retailer, the
rewards are many.
The experience of having a home
on the second story of a store is a long gone experience for most
of the retail world, just as are the idea of preparing a breakfast
for sales reps as my grandmother did. However, the types of relationships
that this writer's grandparents developed years ago, are as
valid and necessary today as they were then.
We would even expect
that the challenges that a retailer faces today are more numerous
and complicated than those of years ago. The solutions to them
are found in the partnerships that are developed by the person writing
an order and the one calling on that retailer. Let's take
another look at that sales rep walking in the front door.