Some time ago someone unknown to me coined the term hunter and farmer to classify types of salespeople. In terms less kind, Scott Alexander, in his classic sales book “Rhinoceros Success”, separated salespeople into two categories, farm yard animals and jungle animals.
Rhinoceroses are formidable
Alexander noted that farm yard animals are fenced in and are content. They enjoy the security of the farm. While jungle animals are out in the wild, on the prey, moving quickly, trying to win the day by being faster, stronger and cleverer than their opposition. He paints a picture of a 3,000 pound animal with thick skin on the run that is just about impossible to stop.
There really are hunters and farmers
In the real world, my world, there are farmers and hunters. I see them every day. There is nothing wrong with being either, or a mix of both, until bad times arrive.
What happened?
In the beginning of their journeys, all entrepreneurs were hunters. They prowled the jungle for new business and, more often than not, bagged the big ones. As they established their businesses, they had less time to hunt and were required to spend more time farming their customer base for the next repeat order.
Automotive suppliers and their dilemma
The farming phenomenon is amplified when doing business in Detroit. In the automotive supplier category companies are required to pay close attention to their existing customers in order to keep orders flowing and customers satisfied. A handful of very big and profitable customers are hard to land and easy to lose. Smart entrepreneurs changed their ways once their hunting days were over. Farmers they became. Relationships and customer service drove and maintained business. They also prospered.
Nothing wrong with farming until the bottom drops out
Something happened to the domestic automotive business over time. There is nothing good to report. The bottom of the business, particularly in the Detroit region, has officially dropped. Not quite out of site, but dropped nonetheless. The industry is in a pickle. Automotive suppliers and everyone benefiting from their legacy of success (read my last post) are trimming, cutting and closing. It is ugly.
The cheese has moved (another favorite book of mine)
There is a core of automotive suppliers that are strong and tough enough to keep their doors open while making the changes required to continue their operations. Specifically, they will regroup, retool, plan and move forward. There is going to be a new economy and they understand that they will have to work their way back for the chance to play in new industries and return to prosperity.
They don’t know how or forgot how to hunt
These struggling companies need help with change. They understand that they need to change. Change means finding new customers in different industries, to replace their lost automotive business. The domestic automotive industry will never be the same and it may go away for ever. In order to land new business they need to get back in the proverbial jungle and hunt for new opportunities. It is sad to say, but most of them don’t know how or forgot how to hunt for new business.
Help is here
I’m happy to report that our federal, state, county and local governments, coordinating with our network of colleges, universities and service organizations are doing everything they can to help individual companies survive. They have programs, training, hands on and self-help initiatives and sometimes financial aid to help struggling companies, particularly those harmed by unfair trade or the decline of the domestic automotive industry.
Is it you?
If I have just described you, and if you need a helping hand, contact me. I can help.
dave@davebilbrey.com
Friday, November 28, 2008
Thursday, November 20, 2008
Save A Salesman - Save Our Economy
There is a business slowdown in America. Blame whoever you may. I sure have some well formed thoughts about what happened and why, but I think that we should be looking for answers, searching for solutions.
We’re still open for business
How bad is the economy? Well, in some niches, things are bleak, but, for the most part, commerce is happening all around us. People are buying and selling things. Business has not stopped. America is still open for business.
The solution to the slow economy is more sales
When a sale is made there is a substantial trickle down effect on the economy. For example: Tracing the money distribution trail of an automobile sale can get complicated in a hurry. How many companies, how many people get a piece of the pie when a car is sold? Yes, the salesman (saleswoman) earns a commission, as does the dealership and all employed. The car maker earns revenue, as do all of the suppliers, their employees, raw materials distributors, shipping companies, packagers, miners, grocers, barbers, dog groomers, and the financiers that loan everyone in the food chain money. (Forgive me if I missed you in my example)
A salesman is a terrible thing to waste
It might sound silly, but I’m convinced that salespeople are the answer to the economy and have the potential to turn things around in a hurry.
There is no such thing as a bad salesman
As in any other professional category, there are good ones and some not so good ones. Those who sell less typically earn less, so there is a natural balance to the system. We need salespeople performing at any level now more than ever.
Support your local salesman
If you are considering investing in your future, think about investing in your sales team. Give them training, support and the tools needed to open up new accounts in new markets to jump start growth that will turn things around. This strategy is the only rational fundamental self-help answer for business to boot strap back to success.
No salesman left behind
If you employ salespeople and if they are willing to get out there and fight for business, you are on the right track. They need leadership and your support. If they need encouragement or a kick in the duff, it is your duty.
Good luck and good selling
Let me know if you need my help. www.davebilbrey.com
We’re still open for business
How bad is the economy? Well, in some niches, things are bleak, but, for the most part, commerce is happening all around us. People are buying and selling things. Business has not stopped. America is still open for business.
The solution to the slow economy is more sales
When a sale is made there is a substantial trickle down effect on the economy. For example: Tracing the money distribution trail of an automobile sale can get complicated in a hurry. How many companies, how many people get a piece of the pie when a car is sold? Yes, the salesman (saleswoman) earns a commission, as does the dealership and all employed. The car maker earns revenue, as do all of the suppliers, their employees, raw materials distributors, shipping companies, packagers, miners, grocers, barbers, dog groomers, and the financiers that loan everyone in the food chain money. (Forgive me if I missed you in my example)
A salesman is a terrible thing to waste
It might sound silly, but I’m convinced that salespeople are the answer to the economy and have the potential to turn things around in a hurry.
There is no such thing as a bad salesman
As in any other professional category, there are good ones and some not so good ones. Those who sell less typically earn less, so there is a natural balance to the system. We need salespeople performing at any level now more than ever.
Support your local salesman
If you are considering investing in your future, think about investing in your sales team. Give them training, support and the tools needed to open up new accounts in new markets to jump start growth that will turn things around. This strategy is the only rational fundamental self-help answer for business to boot strap back to success.
No salesman left behind
If you employ salespeople and if they are willing to get out there and fight for business, you are on the right track. They need leadership and your support. If they need encouragement or a kick in the duff, it is your duty.
Good luck and good selling
Let me know if you need my help. www.davebilbrey.com
Sunday, November 2, 2008
Price, Quality and Service
Artie Goldstein
In the early 80’s my company was acquired by Scott Laboratories. Scott Laboratories manufactured and distributed biological supplies to hospitals and clinical laboratories. I traveled to West Warwick, Rhode Island to meet my sales manager, Artie Goldstein. Artie was a tough guy with a sense of humor. He was from New York, The Bronx. He reminded me of Don Rickles, but was much younger and well built. My initial impression was that before he fired anyone he beat them up.
A Wise Man
Artie reminded me of something I already knew, that selling on low price is a loser. Artie did a great job of framing his message…the best ever. Artie told me that Scott Laboratories offered customers three things: price, quality and service. Not bad, I thought, until he said that customers could pick any two of the three, but not all three. In the real world, our world, nothing could be truer. If you low ball price it is very hard to maintain quality products and services.
Educate Your Buyers
The answer to price competition is to educate buyers. If you have a good relationship with your customer, ask them what they drive or where they live. Not surprisingly, you’ll probably learn that they drive a nice car and live in a nice neighborhood. They don’t drive a Yugo or live in a Motel. If they did they would certainly be paying less, but they choose not to. Rice and two day old bread is a really cheap meal, but who is on that diet? Get the point? So, why do you have to be the lowest priced vendor to earn business? The answer is that you don’t! Talk to your customers about value. Transactions based on the lowest price are rarely in the best interest of buyers or sellers. Real value is a nice mix of price, quality and service.
Thanks Artie…Wherever You Are
In the early 80’s my company was acquired by Scott Laboratories. Scott Laboratories manufactured and distributed biological supplies to hospitals and clinical laboratories. I traveled to West Warwick, Rhode Island to meet my sales manager, Artie Goldstein. Artie was a tough guy with a sense of humor. He was from New York, The Bronx. He reminded me of Don Rickles, but was much younger and well built. My initial impression was that before he fired anyone he beat them up.
A Wise Man
Artie reminded me of something I already knew, that selling on low price is a loser. Artie did a great job of framing his message…the best ever. Artie told me that Scott Laboratories offered customers three things: price, quality and service. Not bad, I thought, until he said that customers could pick any two of the three, but not all three. In the real world, our world, nothing could be truer. If you low ball price it is very hard to maintain quality products and services.
Educate Your Buyers
The answer to price competition is to educate buyers. If you have a good relationship with your customer, ask them what they drive or where they live. Not surprisingly, you’ll probably learn that they drive a nice car and live in a nice neighborhood. They don’t drive a Yugo or live in a Motel. If they did they would certainly be paying less, but they choose not to. Rice and two day old bread is a really cheap meal, but who is on that diet? Get the point? So, why do you have to be the lowest priced vendor to earn business? The answer is that you don’t! Talk to your customers about value. Transactions based on the lowest price are rarely in the best interest of buyers or sellers. Real value is a nice mix of price, quality and service.
Thanks Artie…Wherever You Are
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