Learning from the "Dumb Guys in Class".

I fly on airplanes nearly everyday. So far in 2009, the planes are generally "sold out"- no empty seats.

Now, if I were to say "low cost airline?", most would reply Southwest Airline. They've been doing that "price thing" for years. AND, they have been the only airline in the USA to regularly report profits. All the other airlines continue losing money, despite full airplanes (qualifying them as "Dumb guys in the class").

Do they really think the answer to profitability is "lower prices"? The math just doesn't work. So, I'd suggest it must be something other than price. Here's where to look: improving operations; improving service; improving corporate culture, etc.

Now, how are you faring in this tightened economy? Where are you looking and what are you doing to "make it work". If you think the answer is to "compete on price", I suggest it's time for you to "sit in the corner...with a dunce cap".

There's Gotta be a Better Way

This is one I hear all the time. "I'm a professional service firm (ie, lawyers or accountants, etc) and in our type of business a Sales Manager concept won't work. In fact, Sales People won't either. As such, we need to have our professionals do both the technical work and the sales. Since they are professionals and their income is a byproduct of the work they generate, they self-manage."

So, someone wants to be an accountant and invests their time and money to learn to do that. Seeking to be recognized as "professional" they go through the process of becoming industry accredited. Clearly, this is what they want to do. Now, under the premise that this type of business can only be sold by the "doer", we throw the accountant out in the street to "sell his services". Got the picture? I just want to be sure I've got this right. Is this person the correct profile for effective selling? Is this what they enjoy doing and approach it with passion? And since the answers to the prior two questions are probably "NO", wouldn't you think the role of the Sales Manager would be ever more critical?

Just because the circumstances are unique or challenging is not an acceptable reason to default to having the technical professional (accountant) do the selling AND the tech work. Besides, figure out which is the highest payoff activity (ROI) and make sure the focus is properly there.

A partial answer to this challenge is team selling, where the "technical professional" is brought in to help close the deals once the "sales professional" has the prospect further along. And no matter what direction one takes as to doing the sales, someone (Sales Manager) has to ensure the key selling activities are being regularly performed. Whatever your product or service is, would you really want an accountant or lawyer be the key resource to grow your sales? Hey, stop laughing out there. You might hurt the feelings of the "technical professionals" that split shift as sales people!

There's gotta be a better way, find it.

Ps. This brought to you by a former accountant with Arthur Andersen!

Going the Extra Mile

Just recently I addressed a group of independently owned retailers, who expressed their concerns for survival in competing with the "big box chains". Much of their concerns came down to fighting the price battle. Certainly this is a legitimate concern, faced by many. The great news is "there is life beyond the big boxes"! However, it will require more than "business as usual".

The big boxes can be beat, and are being beat regularly, with service beyond expectations. Critical to this is the quality of the people we hire, how empowered they are to "do the right thing", and how trained they are on "what are the right things".

This all requires consistent communication by the leader, reinforcement of the good examples through reward and recognition, and creativity to go that "extra mile".
Be sure to identify those "extra miles" so all can experience the "why" of doing business with you.

A couple months ago I shared the story of the many "extras" delivered to me by my "independently owned" bike shop. Click on http://www.edgecyclesports.net/ to see examples of that "extra mile". Every business has the opportunity to win the battle with the big boxes; just remember it will require you going that "extra mile".

Which Leader Are You?

Why are some companies growing through this tightened economy, while others are struggling? Do you really think they were just fortunate to be in the "right" business sector?

How about this as an answer? The leaders decided to "win" each day and challenged all in the company to come up with creative ways to effectively compete.

The leaders professed often to all in the company that the company would not only survive but thrive in this economy. The leaders were open to new ways to do the business, inclusive of operating in "new to them" channels of business. The leaders became more involved with the sales force, once again calling on "best customers" to both solidify the existing relationship as well as find ways to expand that business with them.

Are you looking for the opportunities presented in this tightened economy, or portraying you and the company as "fighting a losing battle"?

Which leader are you?

Referrals=Margin Opportunity

Let's break Sales into three groupings:

1. Sales from existing customers
2. Sales from new customers
3. Sales from referrals

Of the three, referrals often offer us the highest margins. Here's an exercise.

Look at your financial and business plans. Is there a line on the Revenue section for Referral business? Next, look at each of the business plans for each sales person. Is there a line for Referral business?

I'm betting the answer is "NO".

So, if there is no plan for referral business, by default we are saying on the highest margin revenue opportunity, we are leaving it to chance! Ouch. We all know these two axioms, and now is the time to put them in to practice:

1. Things that get measured get done
2. Inspect what you expect

Time to leverage our solid business relationships into more business on both the top line and the bottom line. Get more Referral business.

Success in Selling is a Head Case

Did you hear the one about the two shoe salesman assigned to sell shoes in Africa?

Both are put on planes to separate parts of Africa and land about the same time. One exits the plane to a large group of natives, none of which are wearing shoes. He immediately calls home office and says he's flying right home because no one is wearing shoes, so no one will need them and he will be unable to sell. The other sales person is greeted similarly, and he calls home office and asks that any and all shoes be immediately sent to him, since no one is wearing shoes, he will be able to sell any and all!

Which salesperson are you in this marketplace? Everyday, we get to decide. 50% of success in selling is a head case; make yours work for you, not against you.

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Get on with growing your business...and your income!