John Sedgwick is President of Applied Learning Associates of the Midwest, an HVAC Consulting and Sales Training company. He is widely recognized as one of the country’s leading experts on HVAC distribution.

This is the first of a four part series on the importance of planning every contractor sales call so that it fits into a mutually agreed-to growth plan that benefits both the contractor and the wholesaler/manufacturer.

THE MOST IMPORTANT SALES CALL YOU WILL EVER MAKE.
If you do business-to-business selling – whether you’re a manufacturer calling on another manufacturer or distributor, manufacturer’s representative, or a distributor-level sales person – a high percentage of your sales calls are going to be “routine” calls. These are regular, often scheduled, calls to maintain the high level of direct, personal sales coverage that our customers need and expect. There is certainly nothing wrong with making “routine” calls. They are, in fact, the backbone of the selling effort. Top notch business-to-business sales people establish valued relationships with their ongoing customers that not only serve the customers well, but establish barriers to other sales organizations who would also like that customer’s business.

So nothing in this paper is intended to be critical of the regular, routine sales calls that we need to make. They can be extremely effective – as long as each call is producing some tangible result for the customer.

What this paper does challenge is this… it is unlikely that a continuous chain of routine sales calls will produce a dramatic change in sales results. And a dramatic change is just exactly what we are being asked to deliver.

I routinely encounter situations where manufacturers or distributors in fairly mature markets are being asked by their leadership to produce sales increases of 10% or more. This is in a period when inflation – and therefore price increases – is only running at a few percent.

An associate of mine likes to use the quote, “If you always do what you’ve always done, then you’ll always get what you’ve always got.” Or paraphrasing Einstein, “Doing the same thing over and over again while expecting a different result is the definition of insanity.”

Let me apply all this to a typical situation. Let’s say a distributor sales person has a $3 million territory – which he or she is being asked to grow 10% this year. That means this person is being asked to bring in nearly $300 thousand dollars in new business.

This could be done by growing every account by 10%, but we already know that that is extremely unlikely. In any given sales territory in any given year, we know that there are customers that will be up and customers that will be down. We also know that there are customers who want to grow or change their businesses, and there are those who do not.

Obviously it is much more likely that this territory manager is going to grow his or her sales by $300,000 by finding one, two, or three customers who can give him a significant amount of business - $10’s or even $100’s of thousands of dollars. And it stands to reason that this kind of gain is unlikely to result from “business as usual.”

If we want to grow our sales, we need to get ourselves into position where we can ask for a significant business gain, and have a good chance of getting it.

The question we want to ask is what I’ll refer to as the “what would it take” question – although it could take a lot of different forms… like these:

“What would it take for us to increase our business with you by $75,000?”

“How could we become your primary supplier for XYZ products?”

“Are there circumstances under which you’d be willing to give us all of your supplies business?”

“How could we help you accomplish your sales goals, and at the same time grow our business with you?”

Sometimes we can just come out and ask a question like this. If we believe that we are, in fact, the best supplier for a product line, or a service, then the customer will be better served buying from us, and we should help him do so – by asking.

“Frank, I believe there are some real savings for your company if you standardize on one supplier for your XYZ products. If I can show you how we can do the best job of supplying them for you, would you consider that?”

It’s more likely, however, that we’re going to be successful by using a process that puts us into a logical position to ask our “big” question.

A process that will work is the following three-step process.

Step 1 – is Account Analysis.

In this step we establish in the customer’s mind that we are not simply interested in selling our products, but we are truly interested in where the customer is trying to take his/her business. A lot of sales people think of account analysis as “gathering data about the customer.” But it’s intended to include much more than that. An “account analysis call” (as it’s used here) means a dedicated discussion with the customer to gather or verify key data and to determine where the customer is trying to take his/her business. Our goal is to have enough information to assess the total potential of the customer, and to be able to compare this opportunity to the other opportunities available to us.

This information helps us identify where and how to position Step 2.

Step 2 – is the “What Would It Take” question and ensuing discussion.

This step is based on the discussion that was begun in Step 1. It starts out by referring to what the customer said in Step 1… “You said you were trying to grow your revenues by 10%/year…” and then asks the “what would it take” question. “Are there things we could be doing to help you accomplish your growth targets, and earn a higher share of your business at the same time?”
Step 3 – is the Business Proposal itself.

Based on the Step 2 discussion, we put together a formal “business proposition” which spells out what we would propose doing, and what the customer would need to do in return, to accomplish a mutually beneficial goal or goals.

While it’s very possible (and sometimes appropriate) to do all three steps in one sales call, it is more likely when we are seeking a large piece of business that the process will take two or three calls. In some cases, steps one and two may be accomplished together. The call begins with a discussion of the customer’s business and then transitions to the “what would it take” discussion. Or, Step 1 and Step 2 may be stand-alone calls.

In either case, these Step 1 and Step 2 calls are, in fact, the most important calls the business-to-business seller can make.

Next month we will take a detailed look at the Account Analysis. Until then, think about this definition of Winning: You creating what you know is important. Get it? Good…then go create some new opportunities, and begin by learning about your customers’ needs.
This is the second of a four-part series on the importance of planning every contractor sales call so that it fits into a mutually agreed-to growth plan that benefits both the contractor and the wholesaler/manufacturer.

THE MOST IMPORTANT SALES CALL YOU WILL EVER MAKE: The Account Analysis

Last month we look the reasons why the distributor must create a higher-level relationship with the contractor. This relationship must go beyond the typical seller-buyer relationship of old, if the distributor wants to continue to provide the value they must in order to earn the business they need to grow and prosper.

This month we’ll take a look at the Account Analysis, the first step in creating a business proposition relationship with the contractor client.

Step 1 – Account Analysis

One of the most surprising things in working with territory managers is how few have written account analyses on their customers, and how few have a formal process to gather and update this information. I’m sure most feel that they “have a good understanding of the customer in their head” – and they probably do. There are two serious problems with this lack of process. First is the obvious problem the salesperson’s company has when salespeople leave or change jobs. With no written account analysis, the new territory manager literally has to start from ground zero.

The more serious problem, however, is this. Most of your customers will also be called on by a number of your competitors. If you act like your competitors – in other words, if all the sales people calling on the customer act the same – then the customer will not see any difference between you and the competition. You must act different and be different from your competitors.

Doing a formal account analysis is potentially one of your most important differentiators. If you are the only one that takes the time to sit down on some regular basis, usually annually, and talk just about the customer’s business, you will be different than the other salespeople out there.

There’s another reason that salespeople skip formal account analysis, and that is that they see it as a data gathering exercise. In reality it’s an information gathering exercise. The least important questions are those that ask for the “name, rank, and serial number” type data – key contacts, number of employees, sales volumes, lines handled, suppliers, etc. The most important information is gathered from in-depth questions like, “If you look out 3-5 years, where do you see your company going?” “What are some of your most important short and long-term goals?” “What are your primary strategies for growth?”

It is the information obtained from these kinds of in-depth questions that allows you to move effectively to Step 2… “In our discussion last week, Fred, you said your revenue growth target for next year was in the 8-10% range. What could we potentially do to help you achieve these targets?”

The account analysis process should be regular, and it should be written.

For a lot of business-to-business selling, an annual process makes sense. Sitting down with each of your key accounts early in the annual planning cycle can help you identify your growth targets, identify accounts where you can spend less time, and differentiate yourself.

Ideally the company management will provide a format for the account analysis. It should have (at least) two distinct sections. The longer section should gather key data about the account. The shorter, but more critical, section should be focused on the customer’s key goals and strategies. We recommend the questions, “If you look out 3-5 years, where do you see yourself and your company?” and “What are some of your key strategies to accomplish these goals?”

You’ll have completed a successful account analysis when:

• You have an accurate understanding of the customer’s business and accurate data about the business.

• You have a good understanding of where the customer wants to take the business and how he/she plans to get there.

• You are able to compare all your accounts to one another so that you can select the best targets to grow your territory.

If you would like an example of an Account Analysis for that provides the essential information we’ve discussed, reply to this ezine and I’ll happily send you one.

Next month we’ll take a look at Step 2: The “What would it take…?” call, where you discover what the contractors hidden, and critical, business needs are.

THE MOST IMPORTANT SALES CALL YOU WILL EVER MAKE:
The “Would it take…?” Sales Call
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This is the third of a four part series on the importance of planning every contractor sales call so that it fits into a mutually agreed-to growth plan that benefits both the contractor and the wholesaler/manufacturer.

Last time I talked about the first of three steps in the Winning the Sales War process, the Account Analysis. You’ll have completed a successful account analysis when:

• You have an accurate understanding of the customer’s business and accurate data about the business.

• You have a good understanding of where the customer wants to take the business and how he/she plans to get there.

• You are able to compare all your accounts to one another so that you can select the best targets to grow your territory.

Step 2 – The “What Would It Take” Sales Call

This is the heart of the process. Our whole purpose is to get ourselves into a position to ask for significant new business and to have a reasonable chance of getting it. The account analysis step is critical because at the end of that step the customer knows that we are interested in their business and that we understand where they want to take it. The customer, therefore, is mentally prepared for us to come back and ask, “How can we help you get there… (and earn added business as well)?”

You need to ask your question in a straightforward, direct way. You are, in fact, asking for an order. You are asking what it would take for you to earn a significant piece of business, and the rules for closing apply – ask and then wait. It is fine to expand on your question if necessary. It’s actually quite likely that the customer will be a bit confused. After all, this is not business as usual – and the customer may not know how to respond. Here are some dialogs that illustrate the technique.


Sales Rep: Fred, last week you told me that you are going to try to dramatically increase your sales – at least 10% a year for the next 3 years. I’m very interested in growing my business as well, and I’d like to explore the possibility of you and me working much closer together. Specifically, Fred, what could I do that would help you hit your growth targets, and at the same time grow our business with you?

Customer: I’m not sure what you’re asking – do you have something in mind?

Sales Rep: I have some ideas, but I’d really like to get your input first. Let me ask it this way. If we were willing to go well beyond what we’re already doing for you, what kinds of things would be helpful? We could even take a blank sheet of paper and make a list of what a perfect supplier would do to help you. What would go on that paper?

Customer: Anything?

Sales Rep Anything.

Customer: Well, you could sell me at a lower price.

Sales Rep: I know you’re being a little facetious, Fred, but I can assure you that I understand price is always important, and we intend to be very competitive. Are there areas that we should be looking at?

Customer: No, actually you do pretty well.

Sales Rep: Glad to hear it – so what are some of the areas where we could do more? For example, are there things we could look at in the sales and marketing area?

(Discussion continues about sales and marketing.)

Sales Rep: These are great ideas. What else should we be looking at? How about cost saving opportunities in areas like delivery or inventory?

(Discussion continues.)

Sales Rep: What else?

(Discussion continues.)

Sales Rep: I really appreciate your sharing all this with me. What I’d like to do, Fred, is take all this back to my office and develop a specific business proposal for you to take a look at. If it makes sense it might be great for both of us. Is there a time – say mid next week – that’s good for you?


This scenario illustrates a number of techniques:

• First, the Sales Rep doesn’t provide the ideas. He probes for the customer’s input. He may provide direction (“How about the sales and marketing area?”) but doesn’t try to propose or sell any answers. This whole call is about getting the customer to open up, not sell our ideas.

• Second, the Sales Rep handles lower price as a serious suggestion – and makes it clear that the goal is to be competitive while earning the business with added value.

• Third, the Sales Rep uses the “clean sheet of paper” technique. If the customer isn’t sure what’s being asked, we come back with this, “If you could take a clean sheet of paper and list what the perfect supplier would do for you, what would be on that paper?”

• Fourth, the salesperson continues to probe at the end of each discussion using an, “Is there anything else? How about ___________?” approach. Our goal is to find out as much as possible to support a business proposal that is as complete and comprehensive as possible.

• Fifth, the sales person sets the stage for the next step. He tells the customer that he will return with a proposal on which he will attempt to gain agreement.

This first scenario was based on helping a customer who wants to achieve a business goal – typically growth of sales or profits. This same technique, however, can be used to simply ask for business currently going to competition. Here’s how that scenario might go…

Sales Rep: Fred, in our meeting last week you were kind enough to share some details about your business, which I greatly appreciate. One of the things you told me was that we do a very good job of supporting your ABC product lines, but that you give about half of your XYZ product business to the Jones Company. I’d like to ask you a pretty straightforward question if you don’t mind… is there a possible scenario in your head in which we could earn the rest of your business? Could we, in fact, earn a position as your sole supplier?

Customer: Well, that’s straightforward alright. I’d have to think about that.

Sales Rep: I know it’s a complex issue… would you mind sharing your initial reaction with me?

Customer: Well, my first thought is that that would put a lot of eggs in one basket.

Sales Rep: It would, and that’s the reason I bring it up. There are some obvious benefits of having a sole source – and also some trade-offs. I talked to my boss before I came over about the situation, and his input was that he would support anything within reason to earn that privilege.

Customer: My major concern would be this. I keep the Jones Company as a supplier because it does give me another look at the market. If they stopped coming in I’d be dependent on you for pricing… and I like you guys, but that seems risky.

Sales Rep: Could I re-phrase my question a little bit based on that? There are really two questions. First, what would I need to do to assure you that we could keep you competitive? What guarantees could I put in place? Second, are there services or processes that go beyond what we’re doing for you today that would give you enough clear benefit to justify a sole supplier position?

Customer: You said “anything within reason.” Would consignment inventory be on the table?

Sales Rep: Everything is on the table. Tell me more about your thinking. Is consignment inventory an issue, or is it overall product availability?

(Discussion continues around inventory / delivery / etc.)

Sales Rep: Are there any other areas for possible cost savings? How about in the order processing area?

(Discussion continues.)

Sales Rep: I really appreciate your openness in sharing this with me. What I’d like to do is put something down on paper and bring it in for you to look at. Would that be o.k. with you?

This scenario illustrates the same techniques used before…

• Not presenting ideas but searching for customer input.

• Using the “what else?” phrase to keep the process moving.

• Setting the stage for Step 3 by telling the customer what’s next.

• In addition, it illustrates very effective use of an objection handling technique when the customer says, “I’d need to think it over.” Instead of dropping it until later, we keep the dialogue going by asking, “Can you share your initial thoughts with me?”
This is a process that will work. It’s businesslike and straightforward. It is based on gaining an in-depth understanding of the customer’s needs and putting together a proposal to satisfy those needs. It differentiates you from competition.

Pick a target customer. Try it out. You will see the results.

The Business Proposition Sales Call

This is the final part of a series on the importance of planning every contractor sales call so that it fits into a mutually agreed-to growth plan that benefits both the contractor and the wholesaler/manufacturer.

By now you have created a Territory Analysis by completing an individual Account Analysis on all of your accounts. You have determined your Target Accounts based on the potential and probability you have for relationship-based growth. You have asked the principals of each Target Account “What it would take…?” to earn their business, and you listened, and wrote down, what s/he said. You left that call with a promise to return the next week with your suggestions. The stage is set…you are NOW ready to ask for, and expect to get, more business!

Step 3 – The Business Proposal

The last step is to put down on a piece of paper what you propose, and to present that to the customer.

The proposal should be a “Business Proposition” – in other words a “win-win” proposal. The message is, “I would be willing to do some things, and if you were also willing to do some things, together we could accomplish a mutual goal.”

The business proposal should have these elements:

• Restate the customer’s key goals (growth, cost savings, etc.)

• Restate your key goals (growth, market share, etc.)

• List what you propose to do.

• List what the customer would need to do.

• Provide a summary of specific results expected in a given timeframe.

Such a proposal could go on one page – or it could fill a three-ring binder. Very commonly it would fit on 3-4 pages and be presented in an inexpensive proposal jacket from an office supply store.

The call would begin with the salesperson recapping the process to this point…

Sales Rep: A few weeks ago I was here to chat about your overall business and to be sure I had a good understanding of where you’re trying to go, and how I could help. In that meeting you talked about your desire to grow your sales at a 10% rate for the foreseeable future. You also talked about your primary strategies to accomplish that – particularly your plans to increase marketing efforts to your existing customer base.

Your focus on growth is very important to us, because one of our key goals is to grow the market share for our XYZ brand, primarily by helping companies like you who are trying to grow sales.”

Last Wednesday we had a detailed chat about how I could help you accomplish your goals, and potentially earn a higher share of your overall business. Based on that discussion I’ve developed a proposal. Any questions or comments before I review that?

Customer: Let’s see what you have.
Sales Rep Presentation:

• Reviews the list of what the customer wanted
• Explains what can be done, and what can’t
• Explains what business commitments you will need in exchange for providing what you can provide
• Asks the customer to agree

This is a process that will work. It’s businesslike and straightforward. It is based on gaining an in-depth understanding of the customer’s needs and putting together a proposal to satisfy those needs. It differentiates you from competition.

If you want sample worksheets for developing a Business Proposition Proposal send an email and I’ll get them off to you.

Good Selling!