I have received a lot of calls, since the economic melt-down began, from dealers with the same tale of woe. They can still sell water equipment (but it’s tougher) but many of their customers are turned down by their finance sources.
Some customers cannot be financed due to irresponsible use of past credit. However, as the line of acceptable credit scores continues to move up, we will discuss ways to finance almost every customer. If you don’t need these ways because you have financing you are satisfied, by all means stay with it; but for those of you abandoned by financial sources, here are some emergency techniques to consider.
Get Down Payments
For many years, a down payment of 20% or 40% was expected. In the last decade, nothing down[Read more →]
Many salespeople miss a critical step in overcoming objections. They act too quickly before taking a step that gets a lot closer to a sale. It’s understandable that when an objection is raised, we cannot wait to challenge it. Maybe it’s an adrenalin thing. Maybe fast action is caused by fear of losing the sale. Maybe we just want to show how much we know. Whatever the reason, top producers know that there is an important step between hearing and understanding the objection and charging forward to solve it and close.
This critical step is asking if there is any other objection. If you proceed before the customer has told us the objection is the only thing preventing a deal, we risk an unconvinced customer after we have dealt with the objection.
As an example, let’s assume the customer raised the dreaded price objection. If you successfully[Read more →]
Many top producers use a technique called “reverse” to help overcome objections. This technique should be one of many tools you take to every sales situation. It can be very effective provided the proper foundation as been set. By that, we mean that no objection technique will work if you have accidentally alienated the customer or if you have not done a great presentation with lots of trial closes. We discuss these techniques more fully in other articles. Assuming the correct foundation has been laid, reverses work very well.
A reverse is a way of turning an objection around and asking the customer to solve their own injection. To illustrate, let’s look at a common objection and then see how a reverse can be applied.
Customer: “Your product is just too expensive. You are $400.00 more than I can get the same thing from Company X and we just cannot pay that premium.”
Salesperson1: “Fine. You get what you pay for and you will regret buying cheap. Good day.”
Salesperson 2:“That’s just our list price. I will give you $400.00 off.”
Neither if those techniques is effective very often and technique #2, while the most common, lowers the sales price without committing the customer or getting closer to the sale.
Let’s look at that objection using a cushion and a reverse.
Customer: “Your product is just too expensive. You are $400.00 more than I can get the same thing from Company X and we just cannot pay that premium.”
Salesperson: “I understand and I agree that price is important.” (This statement is a “cushion” designed to lower buying resistance by agreeing instead of arguing) “Even though you are correct that our price is $400.00 more than our competitor, our company is chosen by hundreds more businesspeople like you than our competitors as their supplier. Why do you think that is?”
This tactic reverses the need to answer or reply from the salesperson, back to the customer. It is important that you do not say anything else after using a reverse…no matter how long it takes to get the customer to speak. It is a simple and gentle way to use leverage to put the answer back in the customer’s court. Tension will mount (but it’s a good tension) as the customer gets a reply ready.
Whatever the customer replies, you agree with it and close the sale. Here is the most common reply to the reverse.
Customer “I guess it’s the warranty and customer service”
Salesperson “That’s right; and I know that you too will find our service and warranty is worth far more than the $400.00 difference. I’ll get the paperwork started.”
Remember that whatever answer they give is what you agree with and use to close the sale by writing the order without further discussion. There is no need for a big presentation or looking at pictures or models. Just put your head down and start writing the order.
Naturally, this technique does not work with every customer. Some buyers will refuse to answer or will say something that does not lead to the sale. However, the technique works well in most cases if the customer wants the product or service and is looking for a way to justify the purchase.
This is a powerful and successful technique that can add 20% to 40% to your sales and income. It is an advanced technique and should be practiced to be effective. With all new techniques you try, we suggest you practice and then use them for 90 days before making a decision as to their effectiveness. It takes that long to be comfortable and successful with any new technique.
Cushions and reverses have worked very well for many of my clients. If you add cushions and reverses to your selling tools, I know you will find they are worth the effort.
This article is part of a three part series that looks at the performance of manufacturers and suppliers, dealership owners and sales staff to see if they are pulling their weight and adding to the success of the industry. It’s a check up from the neck up but is not meant as criticism. We hope you will use it to evaluate your situation and see if there are things that can be done at all three levels to increase sales and profitability in the industry. The first article in the series allows you to rate your manufacturer/supplier.
Score 10 points for each area below that your manufacturer does a good job. See how they stack up. Remember that the better your supplier is in these areas, the more they will expect from their dealers.
It goes without saying that your manufacturer or supplier should sell you good equipment with a good warranty. Let’s take a look at the top ten ancillary areas we believe need to be assessed and compared to other industries.
1 ) Building & Signage Designs
In many other industries, the manufacturers have building designs ready to go for their dealers. Some even have building design and finance programs. Having a building designed for water equipment sales and rentals and for sales of bottled water and salt is becoming more and more important for profitability and in recruiting good staff. Having a building also allows dealers to accumulate real estate assets and to enjoy rises in real estate values. Standardized buildings also build brand recognition.We believe your manufacturer and supplier should have a series of building sizes and choices available for dealers along with a program to make them easy to acquire and easy to finance. Score 10 points of your ,manufacturer/supplier has these programs and zero if they do not.
2) Account Representatives That Really Contribute On Frequent Visits
In the heyday of our industry, manufactures and suppliers sent representatives to dealers on a regular basis for visits. During these visits, these reps would actually take new recruits out to prospect, demo and close. They also assisted the dealer with recruiting and marketing. They knew the territory and the competition. They were coaches who helped the dealer devise a business plan that matched his territory and helped him achieve it.
These representatives were top salespeople and had actual dealership experience. If you are paying good money for a name brand, you deserve this kind of support. Score 10 points if you have this kind of support and zero if you do not.
3) Sales Training
Before you invest your time and effort in manufacturer sales training, take a look at who designed it and who delivers it. Manufacturers are great at manufacturing but sales training should be done by someone who has actually knocked on doors, prospected, done demos and overcome price objections. Sometimes training looks great in the board room but fails in real life when used at kitchen tables across the continent. If your manufacturer’s training is written and delivered by someone who could go out tonight , do a demo and get a sale, score 10 points, if not score zero.
4) Marketing & Lead Generation
Is your manufacturer or supplier helping you with effective lead generation programs that actually work? Be sure the programs we designed by someone with actual water dealership experience and success. Beware of being shown a new program every month or so as constant switching from direct mail to a phone room to a ballot program will only burn up money, All advertising and marketing works best when you stick with a plan for 90 to 120 days and then evaluate it. Also, beware of programs that were designed by corporate ad agencies or the boardroom. If it was not designed by someone with actual dealer success, you are the guinea pig. Ask for proof that any new program is working before you participate. If your manufacturer/supplier has helped you within the last 30 days with marketing programs that successfully generated sales, score 10. If not, score zero.
5) Vehicle Graphics & Corporate Clothing
Your supplier or manufacturer has the skills and staff to design corporate clothing, vehicle wraps and more. Image is very important to today’s customer. If your manufacturer or supplier has these types of programs, be sure to use them as they affect sales greatly. This is an area where you manufacturer or supplier can improve your image and make you part of a national or regional team for selling and recruiting. If your manufacturer/supplier has this type of support, score 10 points. If not, score zero.
6) Financial Training & Support
We work in several industries and it appears to us that the water equipment industry has less financial training and support than most. Your manufacturer or supplier should be assisting with the support you need to succeed. All dealers need to produce in conjunction with their manufacturer’s representative, a five year business plan and a yearly budget that you approve. Then, your representative should review your results with you at least quarterly to help you achieve your goals. Many suppliers and manufacturers have service people at the factory you can call with service issues, but do they have financial support staff you can call when you need help to raise prices, design a pay program or decide how much to spend on advertising? If they do, score 10 points. If not, score zero.
7) 20 Groups
Almost all big ticket sales and service industries have 20 Groups. As far as I know, these groups do not exist in our industry. 20 Groups are groups of about 20 dealers who are spread out geographically so they are not afraid to reveal financial data, ideas and techniques. Every month, each member sends their financial results to a company that makes sure they use similar accounts, puts them on a spreadsheet and emails these group reports to all members. This gives each dealer the opportunity to see how 19 other dealers are doing compared to them and to call them and ask how they do things and what works.
I have learned a huge amount of what I know about business from 20 Groups and I believe every manufacturer/supplier should provide this service to their dealers. If yours has this service, score 10 points. If not, score zero.
High Standards For Dealers
Find out how high your manufacturer/supplier standards for dealers are. Will they assign a huge territory for just a small order of product? Will they set up dealers with insufficient capital, no financial statements or a history that is less than successful?The lowest standard your manufacturer accepts is an indication of how they do business. Give them 10 points of you feel their standards are high enough to pull you up, not drag you down. If not, score zero.
9) Finance, Rental & Recruiting Plans
Your manufacturer/supplier should keep you ahead of your competitors with innovative ways for you to finance your retail customers and your inventory in stock.. They should also have assistance for you in renting equipment as rentals are the key to long term profitability and equity. Finally, they should have recruiting assistance and support, because having great installers, service people, accounting staff, salespeople and managers is necessary to your success. If your manufacturer successfully supports your rental and recruiting plans, score 10 points. If not, score zero.
10) Do Your Goals Match?
The final assessment we propose is to look at how closely your goals match. Your manufacturer may feel that moving units is important to their profitability and that you making a profit is entirely up to you. Perhaps you agree. Perhaps you feel your should both prosper by building a solid business where you both succeed.
What is important to you? Is it training? Is it financial support? Is it warranty and customer service? Maybe it is having a large exclusive territory you hold in writing in exchange for meeting sales and stocking goals.Make a list of what is important to you and score 10 points if you manufacturer/supplier matches your goals with effective action.
Conclusion
This report card will help you quantify how good a job your manufacturer/supplier is doing for you. In our next article, we will have a similar test for the owner/manager of a water equipment dealership and in our final article, we will look at a report card for sales staff. Stay tuned for more. If you have questions or reactions, feel free to send them to reactions@carldavidson.com.
Every day, we read about the economic melt down. The worst crisis since the great depression. I am getting calls and emails from salespeople asking what will happen to them. They seem convinced that no one will buy. Worst yet, they fear that when they get sales, they won’t be able to finance them. This article discusses some of the things you can do to survive, thrive and prosper in any economic crises.
Choose Where You Prospect
When you rely on call-ins or walk-ins for sales leads, you deal with a cross section of humanity. Remember that credit tightens but it never disappears. There will always be people and companies who have cash and who have good credit. In tough economic times, you need to assess carefully who still has income and credit and spend time prospecting these people. There will always be people who can buy. Your job is to find them. Do not spend time commiserating with people who can no longer buy. It’s depressing and unproductive. Through targeted prospecting, find the ones who can buy and concentrate on them. Even during the Great Depression, Hollywood and entertainment companies saw huge increases in profits. People who invested in bonds, not stocks prospered. There are always businesses and individuals who do well. Find them and sell them.
Get to The Top Of Their Priority List
When selling in tough economic times, remember that people still buy things but you have to get higher on their priority list to sell when money is tight. To do this, concentrate on asking questions to find your customers’ wants, needs and fears before you start presenting. One key to success is tough economic times is doing a better job of interviewing clients and then presenting your product as the solution they need. No matter how tough times get, if you needed an operation to save your life, would you spend the money to get it? Would you borrow, sell assets and do whatever was necessary to acquire that service? We all do what we have to in order to get the things we need based on our priority list. During tough times, work harder to be higher on that list and your sales will continue.
Present Savings, Security & Special Benefits
Changes in the economy require changes in the benefits we present to customers. If times get really tough (and no one predicts they will get this bad) suburbanites may grow more food in their gardens. This will require tools, fertilizers, books on gardening, things for preserving food and much more. These new needs will become sales opportunities. Take a look at your product and services and see how you can position yourself as the answer to the fears and needs of your clients. You do this by presenting benefits that will result in security, savings and items that will get your customers through the disasters they fear are coming.
Increase Your Average Closes By One
All salespeople have a number of closes they are comfortable with. Maybe you ask prospects to buy once and then hand them your card and brochure. Maybe you are used to asking three times before you bail. Whatever your average was before the melt down, increase it by one and you will increase your sales enough to weather the storm. If you normally ask three times, try to average four times at every call. You will be amazed at the difference this makes to your closing rate.
Practice Melt Down Objections
You are going to face different objections during the crises. These may include, “we aren’t buying anything right now”, “our budget has been slashed”, “I can’t buy until I am sure I won’t lose my job” and many others. Make a list of what you will face in your industry and start to practice, drill and rehearse 10 ways to overcome each objection. Being prepared will make you confident and will increase sales. Only salespeople who do not prepare and change will find their closing rate drops as the market changes.
Don’t Worry Too Much
Avoid listening to the news. Avoid conversations where friends and relatives are being negative and depressed, It’s hard to get a sale after an hour of depressing news or conversation. Do more of what makes money and less of what doesn’t. In good times, most of us do things that cost sales but times are good and we don’t notice the time and sales we are wasting. Now is the time to go the extra mile to earn more and sell more.
There have been many tough periods affecting our economy. I sold RVs (which no one actually needs) when people were shooting each other in gas stations because of fuel shortages in the 1970’s.I sold cars when unemployment was 20% in my market and when interest was so high it was actually against the law to lend money in several states. Our economy has been through hundreds of good times and bad times in this country and we always survive. Some even prosper.
Native Americans have a saying. “Life is like a bear. You eat it or it eats you” You will decide be your actions and attitude if you will move ahead and prosper or cut your income and accept excuses. Much of our world is what we make of it. I hope these techniques will help you look back on this crisis as an opportunity to increase your skills and prosper.
It might be worth your time this month to take a minute to really appreciate the business you are in. Sometimes we ask ourselves if there is an easier way to make a living, but the truth is, we already are in the promised land. Think about it. We sell good health, long life and saving money. Those are all topics that people want to talk about. Imagine how depressed you could get selling disability insurance, cemetery plots or nursing home suites.
In addition to the fact that we sell an up-beat product, we sell one that everyone needs. If you sell health insurance, you quickly find that 40 percent of the people in our country won’t buy it. If you sell women’s clothes, only slightly more than 50 percent of the population wears them. That means more than half the people you speak to would have no need for the product.
The good news for us all is that everyone needs pure water, and they need it every day. We have the biggest population of people who need our product–everyone on earth. Couple this with the fact that only about 10 percent of U.S. homes have water improvement equipment and you have an unparalleled opportunity to sell.
But do we try to sell as many people as we can? Most of us do not. If you view talking with people as work or selling, you will never be as successful as if you view it as helping them make a health improving, life-lengthening, money-making decision. Here are a few examples of great salespeople who loved to help people improve their lives.
About 10 years ago, I was at a home show. I was tired and grumpy. I needed a break, starting with a visit to the men’s room. Two men were washing their hands. One of them turned and used the opening line I have recommended, “Excuse me sir, you don’t let your family drink from the tap at home do you?” He started a sales introduction and got an appointment. This salesperson did not even take a break on breaks. He couldn’t wait to tell people about the equipment.
About five years ago, my boss sent me out to rent a second office for the company. I was accompanied by Doug, an excellent salesman. The real estate agent showed us around a vacant office, and I was picturing the training room, phone room, etc. Doug said to the agent, “You don’t drink from the tap at home, do you?” He started to sell and got an appointment with the real estate agent. He sold the agent a softener and RO and got an appointment to talk with 60 agents at their sales meeting. From that, he received 10 appointments and sold five systems. All I did was see the building. Doug saw everything as an opportunity to tell people how much he could help them.
Around this same time, Doug and I were working a booth in a mall. We took a break and headed to a restaurant for lunch. I was famished and started munching as soon as my food came. Doug asked to see the manager. When the manager arrived, Doug pointed out the spots on the silverware and asked the manager, “If I could show you a way to get rid of these spots with no work and to save hundreds of dollars on soap, could I have 10 minutes of your time next week?” Doug got an appointment, I got indigestion.
Last week, I was speaking at a seminar in Phoenix. We talked about believing in the product and looking for opportunities to help everyone you meet. The next day, Mike returned a call which he received on his cell phone. When he returned the call, he found it was a wrong number. Instead of simply hanging up, he said, “You folks aren’t drinking from the tap, are you?” and started to sell. From his skill, effort and enthusiasm, he got an appointment and made a sale.
These are just a few examples of how great salespeople are sold enough to see opportunity everywhere. Some salespeople wait for the company to provide them with appointments. Those who believe we actually are helping people and making their lives better cannot wait to tell others the good news. Take a look around and you will see opportunity wherever you gaze.
Just Released, All New Residential Water Equipment Sales Training
Carl Davidson has released an all new DVD water equipment sales training series on successfully performing a residential water equipment demonstration. This DVD series has several improvements over past training. It has an all new up-beat style that is proven to be easier to learn from. It shows actual customers reactions and much more. The program is guaranteed to increase sales or fully refunded. The video below is a 4 minute preview. For more information, visit www.carldavidson.com/lpdemo.htm or call 800-941-0068
As we travel at seminars and meet dealers and sales staff, we are often surprised at where many set their goals. We think goals should be high and definitely high enough to see that your family will be looked after when you retire. Many salespeople and dealers are happy if they have a newer vehicle, and enough money to pay the bills, but in this article we will discuss why you need to sell more today to make sure you are looked after tomorrow and that you won’t need to be doing demos when you’re 90.
Our business is somewhat physical. There will come a day for all of us when digging holes, delivering salt, crawling under sinks and even doing demos will be more than our body can do every day. You may already be experiencing more creaking in your bones and a sore back when you are done for the day. Let’s take a look at what you need to sell now and the common mistakes dealers make in feeling that the future will be looked after.
Saving For Retirement
The first step in planning your retirement is acknowledging that it is going to happen some day. We wish all our readers excellent health but some day selling and installing will become a burden to us all. Let’s assume for this article that you would like to retire when you are 65. Let’s also assume that you are 40 now. You can adjust the numbers to suit your situation.
According to a NY Times article of January 27, 2007 Fidelity says the average American has only $62,000 in their 401K at retirement and negative savings, so if you are behind where you should be in savings, you are not alone.
Let’s take an example. Fred is a dealer and has been for 7 years. He sells a good brand in a mid size market. He makes enough to pay the bills and has a new truck. He lives the good life but hasn’t saved much. He has a nice home and has it about half paid for. His credit cards have a few thousand dollar balance but he is hoping to pay those down. Fred is a successful dealer who sells about 15 systems per month himself and has no sales staff. Fred currently makes about $6,000 per month and has not thought a lot about the future as everything is going well.
To retire with 75% of his current income (which is a financial industry rule of thumb) and assuming a rate of return of 7% (based on stock market at 10% average and CDs at 5% average return) Fred will need savings of $857,000 when he is 65 years old. Factoring in social security could reduce this number to about $550,000. The good news for Fred, is he has time to save as he is only 40. Saving only about $1,000 (before taxes) every month at a rate of 7% will build savings of about $550,000 in 25 years. The bad news is that if you factor in inflation of just 3.1%, his $550,000 will only have a buying power of $256,387 when he retires. This means that Fred should probably be saving $2,000 per month starting right now if he wants a comfortable retirement.
There are a lot of factors that affect this calculation such as taxes, rates of return, inflation etc so you will need to do your own calculation with a financial planner to fit your situation. The overall conclusion is that Fred needs to make a lot more. To save $2,000 per month, his business needs to sell a lot more. Average water equipment dealers net 4% of sales. That means Fred will need to increase his sales by $50,000 per month – each and every month for 25 years to achieve a reasonable retirement. The only way to accomplish sales of this magnitude is to add salespeople and make them successful, since few of us could sell and addition 10 to 15 systems per month ourselves – every month. That extra salesperson selling now is allowing Fred to retire in the future.
Business Equity
Many dealers expect their business to be worth money and expect to sell it when they retire. Realize that your business is only worth money to someone else if it has real estate or re-occurring revenue from rentals or service. If your company only sells or has little re-occurring revenue, when you retire, it will have very little worth.
Building rentals is one way water equipment dealers can save for retirement. If you could put out 4 systems per month on rent at $30.00 per month, in 10 years you would have 480 systems out. We will use 400 to account for cancellations, moving etc. Four hundred rental units at $30.00 per month will bring in $12,000 per month in gross revenue and renting units is a lot easier than saving. That recurring revenue will be worth money if the company is sold. The best way to put out rentals is having a sales staff that sells and rents every month.
Real Estate Equity
Many dealers feel their home will provide retirement cash and it may. However, all markets have their ups and down and there is no way to predict real estate values 10 or 15 years from now. How will global warming, earth quakes, hurricanes and markets affect you? In addition, you have to live somewhere. If you sell your home to raise cash, your costs for rent etc may be far higher than you think when you have retired. Inflation will increase rental costs every year as well. We would not suggest relying on your home to retire.
Dangerous Savings
One area we know you should not cut to save more is health insurance. We are always surprised when dealers tell us they have no health insurance or are relying on benefits through a spouse. Spousal benefits can disappear quickly if the spouse if fired, their company goes under or your spouse dies or leaves. Everyone in our business needs good health insurance. Remember that no matter how much you have saved, a heart bypass came be $150,000 to $250,000 and can wipe out years of savings in a heat beat.
All of the above may be a bit depressing if you are behind in what you should have saved. The good news is that we are in a great industry. You can catch up and plan for a great retirement by realizing the problem and taking steps now to increase your sales and rentals. Take steps now to hire successful sales people, to raise your goals for sales and rentals so we won’t be doing demos when we’re 90.
To find out how we can help, visit www.carldavidson.com or call us at 800-941-0068.
Many dealers tell us that a strange thing sometimes occurs when they hire a great salesperson. They say that over time, if a salesperson becomes the best producer, they sometimes go wild…refuse to take instructions…cause trouble but sell a huge amount of equipment…making them too valuable to fire. This article will take a look at the causes and cure of this dreaded condition… salesmanus indomitus (out of control sales person).
Symptoms Of Salesmanus Indomitus
Salesmanus Indomitus means a salesperson who is out of control by management. They could refuse to come to meetings or shows, use processes, a demo or techniques not approved by the company or they could try to prevent the company from hiring additional sales staff by poisoning the minds and hearts of new recruits.
This sounds cruel on their part, but we believe it is human nature that happens spontaneously when a sales person meets a manager without control.
Remember that salespeople are high powered tools who should always be aimed at a customer. If they spend to much time aimed at the company, they can go wild. Then, no one wins.
Causes of Salesmanus Indomitus
Poor Recruiting
If you are unable to recruit as many great salespeople as you need, you encourage this condition. If a sales person senses you can’t replace them or can’t get along without them, many will take advantage of the situation. For example, Fred needs 5 salespeople but has 2. He spends little effort on recruiting and has not hired a successful salesperson for 2 years. His star salesperson is Hilda. Hilda sells 70% of the sales and is irreplaceable. Hilda realizes that she can take liberties since Fred cannot replace her or the sales she generates.As a result, she begins to control the company and make the decisions. Fred feels he can’t stop her because he can’t afford to lose the sales she brings in.
Lack Of Confidence
Another cause of the condition is lack of confidence on the part of the dealer. If a dealer does not have the confidence to do a great demo, sell and recruit, the afflicted salesperson becomes completely indispensable. Many realize this and work to further undermine dealer confidence and increase dependency.
Focusing Exclusively On Sales
Sales are important but if a dealer focuses exclusively on sales and not on loyalty, team success, ethics and standards for activities and demonstration, the company will suffer. If a dealer keeps a high producing salesperson who will not attend meetings or shows, is not punctual, refuses to sell some products and services criticizes the company, refuses to follow company policies and performs other subversive activities, that salesperson is calling the shots. They have become the manager and the dealer actually works for them. Sales are very important but anyone who detracts from the culture of success must be adjusted or removed.
Idle Time
This condition is made worse by idle time. If salespeople sit around for long periods of time with little to do, they are more likely to contract this condition. Remember that a salesperson is like a loaded weapon and should always be pointed away from you and toward a customer.
Do Not Try Force
The Salesmanus Indomitus will not respond well to force. You can’t engage in conflict or you will lose them. We suggest selling picking your conflicts and selling them into seeing things your way.You accomplish this like you do in any sales situation….find out what they want and need. With some it may be praise or status…with others it could be perks…still others time off. Find out what they want and try trading for what you want.
Steps To Avoid
Letting Them Help With New Staff
Never leave them alone with new sales staff or ask their opinion of applicants. Remember, they will want new recruits to fail so they can remain indispensable and keep or even increase power. Always train new staff yourself and warn them about sales people who may try to lead them astray.
Making Them A Manager
Never make them a manager. Managers have to be loyal and dedicated to the systems and long term goals of the company. Putting someone who is out of control in charge of your sales force is a recipe for disaster.
Prepare For Landing If you think you have out of control sales people on your team, here are the steps to follow:
Learn A Great Demo
Over the years, we have noticed that owners who can sell are not bothered by Salesmanus Indomitus . This is because they have the confidence that no matter who works for them or what happens, they can sell enough to stay afloat. That’s why we recommend that you learn a great demo and prove to yourself and anyone else on your team that you can sell. You want them around but you don’t need them on board. We aren’t suggesting you sell all the time, just during emergencies.
Learn To Recruit & Train
The best way to prevent this condition is not to let it happen. If you recruit and train the right number of salespeople, no one on your staff will become indispensable. If you should have 5 salespeople, work until you get five. No one tries to take over a company if they can be easily replaced.
When The Time Comes, Be Surgical & Decisive
We hope that you never have to face this problem but if you do and if you have tried to adjust them into productive staff members, act swiftly and decisively. It won’t get any better if you wait. It will cost you a few sales but if you can replace them, you won’t suffer much. Keep telling yourself it is better to be the boss of a team you have to rebuild than work for an employee who doesn’t have your best interests at heart. Our experience shows that good managers always find a replacement for out of control sales staff.
So take courage and start working now top prevent it from developing. The you’ll be ready…when good sales people go bad! If you need help recruiting or training sales staff so they don’t go bad, visit www.carldavidson.com or call us at 800-941-0068.
We often hear from dealers that they are having trouble competing with big box stores. We feel there is nothing to fear if we do a good job presenting value. If you worry about big box stores, read along and see if you can take steps to restore some of your confidence.
“I Can Help In Any Department”
You offer services the big box stores do not and cannot. Try this test. Go to a big box store near you and go to the softener aisle. Many stores display a sign that says “This softener designed for ferrous iron and this one for ferric iron.” Ask the helpful staff what is the difference. We have been told by one employee that ferrous is just the Spanish version. This test should give you confidence that the box stores will never replace the services you provide your customers – even when they have the exact product you carry!
Are You Chasing The Wrong Market?
Remember that only a small portion of the market would ever consider going to a box store and installing equipment themselves. Think about the problems. First, you have to diagnose your problem – the old ferric/ferrous problem. Then, you need a truck to pick it up. Then you need to have the time, tools and expertise to install it. Who has all this? Do attorneys and dentists in your town enjoy crawling under cupboards on the weekend sweating pipe? Do they look forward to dropping hot flux on their skin so they can show their wounds on Monday at the office?
If you sell to call-ins from ads or if you sell to do-it-yourselfers, you are asking for competition from everyone including the box stores. If a customers calls from your yellow page ad, they probably called 4 or 5 dealers and visited a box store. There is no money to be made there. However, if you prospect – particularly in a municipal up-scale area you will find very few who change their oil, cut their own hair or install their own water equipment.
Are You Missing The Secret Ingredient?
People who buy from the box stores are missing a great demonstration. If you do a great demonstration, your total package will have far more than what they can get at the box store. Also, be sure to talk in dollars per month as this make a difference to do-it-yourselfers.
Sell The Entire Package
Most do it yourselfers will only buy one piece of equipment at the box store. But they need far more. Make up a custom package for them that solves all their water challenges. A mixed media conditioner, an R.O., ultraviolet light or ozone, whole house carbon. If you can show them a complete package that suits their needs, very few will attempt to install it all. If you miss the softener sale, maybe you can sell the rest of the package. Just talking about these advanced solutions will help them realize how little they know about solving their entire problem.
The Cost Of Self Installs
Sometimes we forget all the skills and assets we have to do installs that “civilians” just don’t have. Take a simple example. Does Mr. Homeowner have a tool to cut copper pipe? If he does how old is the blade. If he hasn’t used the blade for 3 years, will it make a nice clean cut? Oh he needs a blade – that’s another trip to the store and more time. While he is there, he buys the pipe. Does he get the exact amount or 12 feet too much in case he is short? When he is done installing the R.O., can he test the TDS? No, he has no meter. Would he buy one for just one installation?
The fact is that the home owner probably needs more than $600.00 in tools, 4 trips to the store, and much more in assets even if he has the skills to do it right the first time. How much is his time worth?
If you do the math, you will see that your professional install is a bargain…even if you don’t count the emergency room visits he will probably be making.
What Other Value Do You Provide?
You provide far more and you need to point it out to the home owner. No only do you provide a diagnosis of the water problem and a custom solution, you provide factory trained installers. If his equipment fails to function, does he bring it back to the box store? No, he ships it to the manufacturer. What does that cost? How long does it take for a solution? If it is improperly installed, does that invalidate the warranty? If the manufacturer sends him a faulty part replacement under warranty, can he install and test it?
If the home owner fails to diagnose the water problem properly and needs to get different equipment, will the big box store take back what he already purchased? If there is a problem at 2:00 AM what is the value of making one call and getting help on the way? What is the value of not hearing your spouse say “I told you so” when something goes wrong? We think it’s priceless.
Today’s buyer wants recourse and that is what you provide. Quick response times, all parts and tools, manufacturer warranty, financial backing, no hassle. These are all valuable to the right customer.
Interestingly, we find that dealers who rely on call ins for sales and who sell based on price have a problem with the box stores. Dealers who have great service, who generate leads and who do full demonstrations have no problem at all.
So, sell yourself on your value and then go forth without fear to battle the box stores. If you need asistance in getting all the sales you need, visit www.carldavidson.com or call us at 800-941-0068.
I have received a lot of calls, since the economic melt-down began, from dealers with the same tale of woe. They can still sell water equipment (but it’s tougher) but many of their customers are turned down by their finance sources. 
High Standards For Dealers