LBM Journal May/June 2010 : Page 13
BILL LEE ON SALES & MARGINS The Power of Personal Relationships A system to develop positive relationships is key to growing your sales. T he “Quote and Hope” method of selling is only effective in a robust housing market. In today’s market conditions, salespeople need structure and leadership from management. “Pulling Permits” is another common approach to finding new business, but when I hear this term, I see salespeople digging up evidence that a project is in its early stages and the salesperson’s strategy is to find out as much as he can about the job and then try to throw his hat in the ring with a quote. How many times do salespeople have to lose out to a competitor to come to the realization that selling is all about rela- tionships; it’s not about quoting. A number of years ago, I heard through the grapevine that a young man I gradu- ated from high school with owned a lum- beryard was in the market for a product I was selling. My competitor had spent hun- dreds of hours with this decision-maker selling him on the merits of purchasing his brand, but because the business owner and I had been school mates, I decided that it was worth my time to pay him a visit and see if our past relationship could give me an edge. So I knocked on the owner’s door to make my initial sales call. He hadn’t seen me in over 20 years, but we both re- membered each other and began almost immediately reminiscing about the “good old days.” Finally, he asked me what I was doing for a living and I answered that I worked for a company that computerized lumber and building supply businesses. “What a coincidence,” he responded. “We are very close to signing a contract to computerize this business.” After asking dozens of questions and following up each day following my visit, I returned the following week to pick up a signed contract. The sale was mine. I beat out a conscientious salesperson who had done a really good job on the tech- nical aspects of the selling process, but he lacked one very important ingredient: a personal relationship with the decision- maker. Buyers favor salespeople with whom they have developed a relationship. Rela- tionships don’t develop overnight; they develop over time. And salespeople who are successful at building relationships will end up with the lion’s share of the cus- tomer’s business. Salespeople Need Leadership Salespeople and their managers must work together to fine tune the selling process; that is, to develop relationships. Q: If you are a manager, what system are you using to direct the activities of your sales force? The key word here is system. Q: If you are a salesperson, what system are you using to identify qualified prospects and build relationships with them? When I founded Lee Resources, I made the decision to hire a couple of heavy- weights. My investment in these two new hires stretched my budget, but I was con- vinced that I needed more horsepower in my organization to grow. BILL LEE has nearly 40 years of experience in the construction supply industry. A consultant and seminar leader, he is the author of two books: Gross Margin and 30 Ways Managers Shoot Themselves in the Foot. www.BillLeeOnLine.com, 800.277.7888. LBMJournal.com ❘ May/June 2010 ❘ LBM JOURNAL 13 The problem I encountered was that their efforts were not bearing fruit as fast as my cash was deteriorating, so I instituted a “system” that each of us participated in each morning at 8 AM. I asked each sales- person to bring to the meeting each of the action steps they had taken the previous day that they were Most Proud Of. My definition of Most Proud Of ac- tivities had to be activities that generated gross profit for the company. This one sales system alone made our salespeople more accountable and before you knew it, our sales (and our bottom line) had taken off. Try this immediately: Name the credit- worthy prospects you have identified and report each week the action steps you’ve taken to build a good enough relationship with each of them to earn the right to a share of their purchases. ■
Bill Lee
The Power of Personal Relationships
A system to develop positive relationships is key to growing your sales.
The “Quote and Hope” method of selling is only effective in a robust housing market. In today’s market conditions, salespeople need structure and leadership from management.
“Pulling Permits” is another common approach to finding new business, but when I hear this term, I see salespeople digging up evidence that a project is in its early stages and the salesperson’s strategy is to find out as much as he can about the job and then try to throw his hat in the ring with a quote.
How many times do salespeople have to lose out to a competitor to come to the realization that selling is all about relationships; it’s not about quoting.
A number of years ago, I heard through the grapevine that a young man I graduated from high school with owned a lumberyard was in the market for a product I was selling. My competitor had spent hundreds of hours with this decision-maker selling him on the merits of purchasing his brand, but because the business owner and I had been school mates, I decided that it was worth my time to pay him a visit and see if our past relationship could give me an edge.
So I knocked on the owner’s door to make my initial sales call. He hadn’t seen me in over 20 years, but we both remembered each other and began almost immediately reminiscing about the “good old days.” Finally, heClose to signing a contract to computerize this business.” After asking dozens of questions and following up each day following my visit, I returned the following week to pick up a signed contract. The sale was mine. I beat out a conscientious salesperson who had done a really good job on the technical aspects of the selling process, but he lacked one very important ingredient: a personal relationship with the decisionmaker.
Buyers favor salespeople with whom they have developed a relationship. Relationships don’t develop overnight; they develop over time. And salespeople who are successful at building relationships will end up with the lion’s share of the customer’s business.
Salespeople Need Leadership Salespeople and their managers must work together to fine tune the selling process; that is, to develop relationships.
Q: If you are a manager, what system are you using to direct the activities of your sales force?
The key word here is system.
Q: If you are a salesperson, what system are you using to identify qualified prospects and build relationships with them?
When I founded Lee Resources, I made the decision to hire a couple of heavyweights.
My investment in these two new hires stretched my budget, but I was convinced that I needed more horsepower in my organization to grow.
The problem I encountered was that their efforts were not bearing fruit as fast as my cash was deteriorating, so I instituted a “system” that each of us participated in each morning at 8 AM. I asked each salesperson to bring to the meeting each of the action steps they had taken the previous day that they were Most Proud Of.
My definition of Most Proud Of activities had to be activities that generated gross profit for the company.
This one sales system alone made our salespeople more accountable and before you knew it, our sales (and our bottom line) had taken off.
Try this immediately: Name the creditworthy prospects you have identified and report each week the action steps you’ve taken to build a good enough relationship with each of them to earn the right to a share of their purchases.
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