Once a month, Dave responds to questions from sales managers in his Ezine, “Thinking about Sales.” This is a compilation of those answers. To subscribe to the Ezine, click here. Check back often, as new answers are added regularly. If you are a publisher, feel free to use these in your publication as they appear, or edit them to fit your publication's needs. Make sure that you print and return the publication terms of agreement if you decide to use any portion of the editorial content offered here.
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Questions and Answers for Managers
I'm assuming that the question here is, "How do I get the prospect to give me an answer when I provide a quote?" This is one of the most common frustrations for salespeople..... [Read More]
Wow. My initial reaction is that it sounds so harsh. Put that way, and you are liable to lose 90 percent of your sales force, just on the principle of it. But, let's spend some time thinking about this....[Read More]
Let me give you a short answer as well as a long answer. The short answer is this: Yes. It's OK. You're doing fine. Here's the long answer. As you work intently with the new salespeople, hopefully you are helping them to understand how to do their jobs well. You are educating them in the principles and practices of successful sales in your field. Not only that, but you are also, I hope, helping them to create positive habits which will be repeated numerous times over the next few years....[Read More]
Great question, and one that comes up fairly frequently. Let's think it through. First, I believe the credit department has the responsibility to ascertain an account's credit worthiness and to provide specific and timely direction to the salespeople. If an account's credit line is reduced, for example, that decision needs to be clearly communicated to the salesperson in a timely fashion so that the salesperson doesn't spend inappropriate time trying to sell to that account. Nobody wants salespeople spending time selling to an account when the company won't accept an order from that account...[Read More]
Great question. There are two issues here. First, dealing with the sense of rejection that very often comes with hearing a "no," and, second, pushing for a resolution so that you don't waste time with people who aren't going to say "yes." Very few salespeople have such thick skin that hearing a "no" doesn't bother them at all. On the other hand, having people say "no" to you is a regular part of the job. Given these two realities, that means that every professional salesperson, if they are committed to a career in sales, has to develop a strategy for dealing with the continuous stream of "nos" that comes with the job. [Read More]
Yes. I'm an advocate of "open book management" which is the term used to define this approach. What it means is that you share with your employees certain proprietary financial information and how their behavior influences those numbers. You do so on a regular basis. [Read More]
I'm definitely known for having very high expectations that aren't so easy to meet. I wondered if you could elaborate on what strategies you have seen succeed regarding this? Believe me, I understand. It is so easy to look at an issue and think, "I (or we) can do … (some really high performance in that issue)" And, under ideal circumstances, you really could do that! The problem is of course, that rarely does it exist under ideal circumstances. For example, let's say that you determine your sales group could build the business by 25 percent this year. So, you, since you are in the habit of creating high expectations, decide to set a goal of a 25 percent increase in sales for your group. [Read More]
Being a branch manager and having 6 reps and no sales manager, how do you delegate some of their requests back to them without discouraging their efforts? Begin with clear expectations. What you expect the salesperson to do ought not to be a secret, nor a matter for negotiations. Now, before we go too far, let's stop and think about this a bit. One of the biggest time wasters for salespeople is the amount of clerical work that they are often expected to do. These typically include things like looking up prices, sourcing new products, creating quotes, managing price increases, checking on back orders, delivering literature, etc. [Read More]
What is the ideal number of sales representatives that a sales manager should manage? Good question. As is commonly the case, my answer begins with "it depends..." It depends, first, on the type of compensation plan that is used to pay the sales force. I often confront this issue in our work with sales compensation plans. One of my rules is this, "The nature and type of compensation plan directly impacts the quantity of sales management." For example, if you have a 100 percent variable plan, where the salespeople are paid purely on some formula for their results, then you can go with less extensive sales management. The idea is that a well-crafted, 100 percent variable plan will, to some degree, step into the gap and influence the salespeople to manage themselves. In such a case, I can see one sales manager for every 15 - 20 salespeople. [Read More]
I direct a sales force of 15 reps. My pain of getting them to do what I ask has been something that no human being should go through. First of all, we converted them from commission only to base plus commission. In doing so, you can imagine my challenges in moving them from coming and going as they like to getting them to stay on the job eight hours a day and live within the guidelines of a corporate environment. So, where do I start? At times I find myself getting angry and frustrated with them and at times I want to fire them all!
I recently changed companies. The first day I started my new position, I immediately recognized a lack of motivation. In this case, all the salespeople were on commission and were happy with their standing, financially. They quite simply didn't want to achieve more or become more efficient. (no one wanted to strive to be their best.) My sales force seems to be motivated by a day off, more than earning additional money or trying to become an elite sales group.
The lack of pride in their job and the way it gets done is frightening. I have tried to motivate not threaten. I have tried to give incentives, (spiffs and time off for a job well done) and it is taken as I owe them this time and money and not viewed as a reward. What can I do? I wish I had a dime for every time I fielded a question like this. The question, regardless of the actual words and details of the situation, always boils down to this: "How do I change the behavior of experienced, satisfied salespeople? How do I make them more accountable, and get them to do what we (the company) want them to do, not just what they want to do?" I can empathize with both sides of this issue, as I have been in both the sales and management position. Looking at it from the salesperson's point of view... They have spent years developing relationships and routines with their customers that now pay them adequately. They feel like they have invested a major amount of time in their customers and now they are enjoying the fruits of their labors. And, as long as they are selling, who cares how they do it? Looking at it from management's point of view... [Read More]
We do not want to turn salespeople into collection agents, but there certainly is a role that salespeople can play in the process. Do you have any thoughts? Yes, I do. Like you, I don't want to turn salespeople into collection agents. Let's consider this piece by piece. First, I believe the credit department has the responsibility to ascertain an account's credit worthiness and to provide specific and timely direction to the salespeople. If an account's credit line is reduced, for example, that decision needs to be clearly communicated to the salesperson in a timely fashion so that the salesperson doesn't spend inappropriate time trying to sell to that account. Nobody wants salespeople spending time selling to an account when the company won't accept an order from that account. [Read More]
How can I help an experienced salesperson regain his interest in the job? It sounds like you have someone who is just going through the motions. That can be deadly for the career of a sales person, as well as detrimental to the company. One of the unique challenges of a career in sales arises out of one of the unique fringe benefits of being a salesperson. That is that salespeople have the opportunity to decide what they do with almost every minute of every day. Freedom! [Read More]
I am currently working in a family business. For about ten years sales have been decreasing. I was just appointed as the head of sales. I have several salespeople who have been with the company for 30-40 years. They simply refuse any system or training that shakes even slightly their comfort. They have made it very difficult to make any progress. Even the president has told me "they are untouchable." How can I manage them? If you don't feel that level of support, then abandon the plan. If you try and fail because he backs down to the sales people, it will significantly hinder your ability to manage at all. At that point, you, and everyone else, will understand that you are impotent in your ability to manage these people. You might as well resign. If, however, you feel that the president will support you, then you must go ahead with the plans to redesign the sales structure. Since you are changing the structure of the organization, that change impacts everyone, not just these sales people, and is not, therefore, personal..... [Read More]
We are discussing the role of the sales person in collecting bad paying accounts. We don't want to turn the salespeople into collection agents, but we do see a role for them. What are your thoughts? This is one of those questions that come up regularly. It's easy to see why. On one hand, you don't want the sales people to be collection agents. Their time is better spent selling the product. Every collection call they make is one less sales call that could have been made. On the other hand, if the bill isn't paid, the sale isn't really made. And you shouldn't be paying commissions on invoices that aren't paid within a reasonable period of time. So, the salesperson has a vested interest in seeing to it that the customer pays the bill. Otherwise, the commission is forfeited. So, what is a reasonable position that accounts for these conflicting pressures?.... [Read More]
We are intent on revising our decades-old sales compensation plan. Management is divided. One half favors straight commission, and the other doesn't. What are your thoughts? In my work as a sales consultant, I am routinely involved in helping my clients revise their sales compensation plans. My company, on any day of the week, almost has an open compensation plan project that we are working on for some client. I say that to let you know that I have extensive experience with sales force compensation plans. The ideas that I am going to share with you arise out of this extensive experience.... [Read More]
How often should a sales manager visit the customers? There are a couple of ways to answer the question. From one perspective, you need to have your own relationship with the good customers in your area of responsibility. There are several reasons for that. First of all, you're a boss - part of the company's management. As such, you are perceived to have more power and influence than a salesperson. Your good customers will want to know you, because the relationship with you gives them access to higher levels within your organization. Additionally, many of these customers will tell you things that they won't tell the salesperson.... [Read More]
Dave, I'm wearied by the preponderance of books and business advice by all these sports coaches. What's your opinion? How many different coaches do we need to hear from? What makes these books so popular? Is it another example of our infatuation with sports and the desire to bring that into our own lives? I can understand the fad for sports coaches dolling out success formulas. From the athlete's perspective, the character traits that are developed through successful sports involvement will serve anyone well in the business world. From the point of view of the manager or executive, many of those leadership techniques that make a sports team a winner are techniques that help the team play at their very best. Those are desirable and helpful in the world of business. And, it's been my observation that as kids grow up, those who participate in sports have a much better chance of staying out of trouble and succeeding than do those who refrain from athletic competition. So, on the surface, I can understand, and to some degree, support the fad... [Read More]
That's simple. I think you are almost always better off hiring someone with sales aptitude and educating them in the technical part of the job. Here's why... ONE: In any population of people, there are far more people with technical aptitude than there are with genuine sales aptitude. So, good sales people are harder to find then good technicians. That's one of the reasons why a good sales person earns more than a good technician. [Read More]
How can we get inside sales to do some proactive sales activities each day? We expect our inside salespeople to use some of their time to shift into the proactive mode to make outbound phone contact to existing and new business. But it is hard for them to do this regularly.
First, how do you get inside sales to be proactive? Answer: You don't. It is far easier to refloat the Titanic than it is to get a group of essentially reactive customer-service-type personalities to change their mode of operation and make proactive phone calls. That's because of the personality of the typical inside/customer service person. Generally, the people who fill these positions are very reactively oriented. By that I mean that if a customer comes to them with a problem, they will knock down walls to fix the problem and help the customer. They are great helpers and problem-fixers. That personality characteristic is one of their strengths, and one of the reasons they are good in that job. [Read More]
How does one stay non-threatening when you sell a distributor who sells customer A. Customer A grows and starts to buy direct from competitors (one step vs two step). How does one start selling direct to Customer A without threatening the distributor?
This is one I can really empathize with, having been on both sides of this issue (distributor and manufacturer) on several occasions. From my experience, the best results come from clear, above-the-board discussions with the distributor. A frank conversation that addresses the issue: This customer is not going to buy from you. In order to save the business, we're going to approach them direct. We're doing you the courtesy of letting you know our plans. That's life.... [Read More]
How do I devise a program from the manufacturer to encourage our dealers to push their sales forces to sell our product instead of some other product, motivate the salesperson to quote our product more frequently in overlapping situations, and appeal to retail users that are taking bids from outside competitors not represented by our distributor?
I think too many of us operate on the assumption that money is the only motivator, whether it is for an employee sales force, or a group of dealer or distributor salespeople. I'm coming to appreciate more and more the power of other kinds of motivators. Let's start there. Don't assume that more money in the deal is going to get you the results you want. What else can you do? The best thing, of course is to have a product that uniquely solves some of the end users' problems, so that you and your dealers are selling a unique solution. While that may be the ideal, it's very rarely the real situation, and most products have competitors which, at least in the mind of some customers, are thought of as equal.... [Read More]
At what point during the superstar building process can management step in and provide support for their sales staff?
First, notice that the question is based on the assumption that there is a superstar building process. Let me refine my understanding of what that means. I'm not sure that it is as cut and dry as this phrase would indicate. Superstar building process implies that you can put someone in the front end of the process, intervene in some ways, and pop out the back end of the process a finished superstar. Sort of like dumping chunks of granite in a machine, and having a reproduction of Michelangelo's David pop out the back end. It's just not that simple.... [Read More]
Dave, I'm interested in what you would recommend for a subscription to a monthly sales magazine and a sales improvement seminar.
As amazing as it sounds, I have come to the conclusion that only about 5% of salespeople ever invest in their own growth and improvement. My understanding of that number has evolved over the years. I used to think it was much higher, but the more experience I gain, the more I'm convinced that it's a rare and unusual salesperson who will actually spend $20.00 or so to improve himself/herself, much less to actually go to a seminar. So, just by asking the question, you have indicated that you are probably in that top percentile of salespeople. And, the fact that you probably will invest in improving yourself means that, over time, you will distance yourself from the pack.... [Read More]
How many sales calls should a salesperson make?
Why do I not know how many sales calls a person should make? Because of all the variables. For example, if you are brand new in your territory, you should make more calls than someone who is well established. If you have a compact geographical area, you should make more calls then someone who has a large, rural area. If you carry 20,000 items, you should make fewer calls then someone who sells three lines. If you sell a non-technical commodity product, you should make more calls then someone selling a highly technical piece of capital equipment. And so it goes.... [Read More]
What would you recommend for goal-setting for sales managers?
I believe a sales manager should be involved in goal setting in two ways. First, the sales manager needs to insure that all of his/her salespeople have well designed goals. Second, the sales manager needs to have a series of goals for his/her own performance and growth. Let me just emphasize that an effective sales manager makes sure that all the salespeople have well done, motivating goals. Now, what about goals for the sales manager, apart from those of his/her group?.... [Read More]
How do you teach unorganized sales people to become organized?
I have come to believe that the best way to do this with salespeople is to have a system that the entire company uses. This system requires the salesperson to maintain files, both hardcopy and electronic, to capture certain customer information, to retain certain documents, etc. By setting up a system that everyone uses, you then can expect each salesperson to use that system. Since there is a specific way to do something, and a specific set of tools to use, that makes it easier to enforce.... [Read More]
We're faced with many of our customers being very slow about paying their bills. What would you suggest?
Have face-to-face conversations with your slow-pay customers, and require your salespeople to do the same. At those meetings, lay out the issue - the company, your customer, is not paying their bills according to your terms. Stress how important it is to you to have the bills paid on time.... [Read More]
Our business has been struggling for the last year or so. Several of my salespeople are just not producing. I'm not sure I can continue to work with them. When do I decide to terminate their employment?
In an ideal world, everyone would succeed, and our biggest problem would be how to acknowledge the real heroes among a group of deserving colleagues. But it is not an ideal world, and every sales manager is, at some point, faced with this decision. At what point do you decide to fire them? This is a very personal decision embedded with emotional ramifications. There are all sorts of individual mitigating factors which influence the answer to this question.... [Read More]
Salespeople should set goals for improving themselves every month. As a sales manager, can you give me a more specific idea of what kind of goals I should be insisting that they develop?
Sure. This is one of my hot buttons. I believe that sales people should be continually focusing on personal development - continuously improving them selves. That means that they should create specific goals, each month, to become better, more competent and more valuable people. These goals articulate an improvement in skills, the acquisition of competencies, the addition of knowledge or the participation in learning events that you would like to achieve this year. I'll explain each.... [Read More]
What are some of the most effective sales force automation tools you have seen?
The options today seem limitless. And there is so much innovation in this area that new solutions appear almost weekly. It seems that by the time you have examined all your options, new ones will have cropped up. There are just too many good options available for me to point out any particular brand of software. I do, however, have some observations to share. Some things I've learned about sales force automation tools include these.... [Read More]
How much responsibility for collections should a salesman have?
Good question. This is one that comes up a regular basis when I'm working with a client to refine their sales compensation plan. It usually is expressed something like this: "Should we deduct old or uncollectible receivables from a salesperson's pay?" There are two sides to this issue. On one hand, there is an argument to be made that a sale is not complete until the money is received. Therefore, a salesperson should be involved in collecting any old or doubtful receivables. Besides, the argument goes, the salesperson is close to the account, knows the people to talk to, and can probably be more effective at collecting than the collections department.... [Read More]
How many appointments or conversations per day or per week should a salesperson make in order to be successful?
More important than the number of sales calls made is the quantity and quality of sales opportunities unearthed. In other words, if you sales person can uncover $1,000,000 worth of viable sales opportunities in five calls a week, more power to him/her. If another makes 25 calls to uncover the $1,000,000, so be it. Figure out what a viable quantity and quality of opportunities per salesperson is, and track those. It's closer to the mark than calls. The number of calls measures the amount of raw activity your salespeople engage in. The quantity and quality of sales opportunities measures a more significant thing -- the amount of worthwhile activities your salespeople engage in..... [Read More]
How do you deal with a difficult customer who owes you money and constantly draws you out by hanging the money he owes you over your head?
It sounds like this customer is taking advantage of you. I suspect that this is not a profitable customer -- you are probably losing money on him. Let's try to sort this out. First, I'm not sure why you are involved in worrying about the money he owes you. I believe that a salesperson ought to help run interference for the company when it comes to collecting money. I also believe that a salesperson has the responsibility to not sell to accounts that he/she knows are in financial difficulty. Having said that, it appears to me, in this situation, that the money he owes you doesn't sound like a sales issue...... [Read More]
I'm finding it difficult to manage my salespeople in our straight commission environment. Any suggestions as to how I can get them to do what I want them to do?
I spent much of my adult life as a salesperson working on 100% commission. I would not have had it any other way. However, as a consultant and sales educator, I'm generally not in favor of 100% commission programs. Here's why: It is difficult to more finely direct a sales force when you pay them 100% commission. You can ask them to do anything, but if it doesn't allow them to make more money right away, it probably won't get done. For example, you can ask your salespeople to prospect for new accounts...... [Read More]
