Archive for May, 2010

Spring, Baseball, and Sales

May 23, 2010

It looks as though spring may have finally sprung in Chicago after a long wait. Of course, I was playing softball last Monday night and we were still factoring in a wind chill. At least it should be warmer in Raleigh, where daytime highs are already hitting 90. Thinking about our softball team (which hopefully any day now will start playing to its potential) always reminds me of how glad I am that I started playing baseball as a kid, as it has been a great help for a career in sales. Other than weatherman, professional ball player, and salesperson, what professions are there where you can you fail 70% of the time and be considered the best in the business? I certainly don’t want a brain surgeon who has those success rates…heck, I don’t want a chef with those success rates!  Every call you make, just like every at bat in a game, the law of averages shows will not be successful. In both the baseball and the sales profession, if you go in thinking this time will probably be one of the 70% that does not work out, I am pretty sure you will be correct.

So what is it that both of these professions have in common cause people to keep doing them, other than the potential to make a lot of money? First and foremost, it is a positive attitude, the belief that you will succeed. I was watching Bull Durham for probably the 100th time over the weekend. In one of the last scenes, young phenom “Nuke” LaLoosh has just gotten called up to the majors and he is in the locker room preparing to leave as his mentor “Crash” Davis walks in. (Now that I think about it, maybe that is what the sales industry needs, more nicknames!) Davis tells him that while he might not be successful when he first gets to “The Show,” the key to his success is “fear and arrogance.” What he means is that he has to know in his heart that he is good—better than his competition no matter if he just struck the last guy out or he hit a home run. It is the same thing in sales. The last guy may not have needed your product or service, heck, he may have even hung up on you, but the next call is a new opportunity to show what you have to the right person. Go get ‘em!

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What Is Your Strategy to Strive in the Recovery?

May 19, 2010

So…what is it? One thing is for certain: even if you continued to grow over the past few years, you will be continuing to look for different ways to reach new prospects and turn them into clients. Have you developed a plan yet?

One of the companies we are working with really understands this. They have been in their field for over 100 years, so they have seen it all. When they first came to us, my thought was “What can we show them that they hadn’t seen before?” This is the usual first question I have when preparing to meet a new sales management prospect. It reminds me to make sure I am asking enough of the right questions to allow us to work with them to develop a customized solution that fits their culture and growth goals. No cookie cutter solutions here.

What I found was exactly the opposite of what I expected—isn’t that always the case?

This company is at the top of their field, so while you might think they would be reaping the benefits of the “smaller guys” not being able to survive, they were seeing the little guys trying to infiltrate their turf—the larger clients. We interviewed several of the key players in the company to get their opinion about this.

“They are just worrying about price,” said one manager. “They are insured if he messes up.”

“We haven’t been writing any fewer proposals,” stated another. “But we are just not getting as many projects as we used to.”

This was a common theme among the people we talked to at the company. Our next step was to talk to their clients and prospects.

“They are top notch. We know when we work with them, it will be done right,” a long time client told us. “They are certainly not the cheapest out there, but neither are we.”

“We have worked with them for years. Sure, the number of projects we have had lately has slowed a bit, but as we continue to bounce back, they will be a part of that recovery. We need to work with good people who make us look good,” was the feedback from another happy client.

We interviewed another prospect who they had done many, many, many proposals for but had never gotten the job, so we asked why not. “Oh, they are always so expensive. We can usually find someone else for 20% cheaper,” he said.

“To do the same work?”we questioned, in hopes of finding a differentiator.

“Yep, same stuff,” was his response.

Hmmm. I’m curious. If they are always so much higher, why do you continue to ask them for proposals?” I asked.

After pondering the question for less than a second, he responded “I know they are the best at what they do, but also the most expensive. If I can get a proposal from them, it keeps these cheaper guys in check.”

We had noticed that this was now the second time he used the word cheaper.

“So what happens to you if the cheaper guy screws up?”

“We have insurance for that,” he stated.

“How often does that happen?”

“Oh, it isn’t too bad, just a couple times a year. In fact, we just changed our policy. It was getting too expensive with the old one.”

Wait…what? “You use your insurance policy a couple of times a year? That must be quite expensive, and probably a pain to keep changing policies.”

“It is. Why do you know a good insurance guy?”

“I do, but I think I know a better way for you to keep these costs in check…”

You can see where this is going. Part of the recommendation we are currently implementing for this client revolves around first looking for the right prospects, which lowered the amount of proposals they wrote but increased the number that they won, and next getting their team to be more comfortable asking more questions to get to the root of the pain of their client. They really didn’t want the least expensive person working on their job, they just didn’t see how much that lower cost option was costing them in claims, increased policy costs, increased administrative time in processing this cost and/or finding a new agent, and the potential for losing their job when they realized the bad PR they were getting by not doing it right in the first place.

By digging deeper to find a customized solution that fit their team, we were able to help them thrive in all seasons.

If you or a colleague are staring the recovery in the face and saying, “What can we do to capitalize on this?” give us a call. Our sales management team would love to talk to you about it further and see if we can be of help. For more information about Randolph Sterling’s sales management options, please contact us at 919-439-3710 or check us out on the web at www.randolphsterling.com.

You Survived the Recession! So Where Do You Go from Here?

May 17, 2010

I have been reading more and more that the recession is over and that we are finally in recovery. I decided awhile back to choose not to take part in the recession (with the exception, of course, of being trapped by a bad real estate economy, but that’s a different story entirely) and to continue to push ahead with our business. Many of my colleagues—clients, referral partners, and members of Vistage and Business Clubs of America—joined me. It is nice to see more and more people coming around.

This strategy was relatively easy for me because we are lucky enough to be in a business that can help clients in different economic times. I say “lucky” because if you know me, then you know that while there was a ton of planning that went into what Randolph Sterling does today, there has always been that entrepreneurial side that says “Sure, let’s give it a try!”

In “bad times,” we are able to help companies who need to find more clients, but just don’t want to invest in more internal staff. Being able to hire an inside sales team that gets paid only for the hours they work is a helpful and cost effective option. In the “recovery times,” we see that skeptical companies are still a bit leery about hiring on the full time staff, while others are excited to be able to increase their staff through outsourcing, and go after much more business that they had been able to before. They see that some of their competitors did not survive the downturn, which means that clients of the now defunct competition understand the value of what they do but need someone to do it for them. These companies may not be calling, asking you to do work for them, but are certainly willing to listen to the companies who, in the past, they had told they were happy with their current supplier.

5 Benefits of Canvassing

May 6, 2010

5 Benefits of Canvassing

  1. Saves time driving to businesses
  2. Saves money on gas, tolls, and depreciation
  3. Receptionists almost always answer your calls.
  4. False starts are avoided because the info you gather helps you decide how to proceed.
  5. When the literature you requested arrives, you have even more info to go off of.

This post is based on material originally published in Closing the Deal.

For more information on Closing the Deal, check it out on Amazon.

(Burghgraef, Richard. Closing the Deal: Hot Sales Strategies that Make Money. Encouragement Press. Illinois: Chicago. 2007)