Monday, October 30, 2006

Employee Discipline or Termination

If you are a sales manager yor job requires you to either discipline or terminate employees. As difficult as this is you must always think before you act.

Ask yourself the following:
WHAT ARE THEY BEING DISCIPLINED FOR?
Is the cause of your action is due to a violation of company policy, departmental policy or poor judgment? Your response to each will vary.

THINK ABOUT WHAT YOU WILL SAY TO THE EMPLOYEE
Is this intended to be a warning or the fatal blow to their career?

GIVE THE EMPLOYEE A CHANCE TO STATE THEIR CASE
If you are disciplining someone as a warning prior to termination should the event re-occur get their acknowledgement in written form.

DO NOT DISCUSS YOUR PLAN OF ACTION
Any discussion of what you plan to do should include only the employee, the person you report to or the human resources department.

BEFORE YOU TERMINATE
Why are you considering formal termination? Poor work standards? Make certain you have given this person every opportunity to perform. If you hired them, you must have seen something that showed promise. If firing an employee is your only alternative involve your supervisor or human resources.

DO NOT TERMINATE IN ANGER
Business decisions based on sound principles are not personal attacks against the employee. If you are angry take a step back, calm down and proceed with a clear head.

MAKE ARRANGEMENTS FOR THE EMPLOYEE TO LEAVE THE PREMISES
Depending on the circumstance make it easy for them to remove their personal affects after hours if possible. Do not let them disrupt or taint the attitude of others.

Whether your decision involves discipline or termination know your company's policies regarding these matters. Involve your human resources department at the earliest possible time.

Sunday, October 29, 2006

Website Advice

Since posting the article "Teach Your Site to Sell" (see September article archive below) I have been asked what program or system a beginner should use to build a successful website to promote a business. Everyone has different needs and levels of expertise. I can only speak from my personal perspective.

Not too long ago my computer experience consisted of web surfing for information and sending e-mails. When I made the decision to create a website, which is another story by itself, I spent countless hours looking for an easy way to build a website. I needed something that did not require me to know much about computer language, html, etc. I also needed something that offered the "do's and dont's" of how to promote a website. Millions of sites exist with millions of varying viewpoints. It is, at times, difficult to sort the wheat from the chaff. I narrowed my list down to three programs and really took an in-depth look at each.

Based on my requirements for website building I chose SiteSell, or more appropriately, SiteBuildIt.
The upfront cost of $299USD was a little higher than the other two programs but what I found was SiteBuildIt, SBI for short, contained everything I needed at no additional charge. The other programs I investigated had add-on fees for anything other than the basic design and web hosting service. When I made a checklist of what I would utilize SiteBuildIt was, on an annual basis, much less.

I still know very little about web hosting, website design and search engine optimization, or SEO, as it is called. What I do know is my site is operating efficiently, making money and easy to use. The biggest bonus is the forum section where other SBI users share helpful tips on everything from getting started building a website to advanced html coding. SBI also has a module for business owners who want to sell their goods online. I recommend you take a look at SiteSell if you are serious about creating a successful website.

Thursday, October 26, 2006

Take Time to Manage Your Time

Identify items as urgent, important and secondary.Devote time to each but do it in the proper order. Urgent activities take priority over everything else. Anything that is hindering the completion of a sale is an urgent activity.Do nothing else until these are completed, you have scheduled their completion or delegated the completion to someone else.
Important activities occur daily. These deal with current business and ongoing programs that lead to furthering business. Included in this group is sales follow-up, customer follow-up, training, recruiting and hiring.
Secondary activity includes anything in your job description that does not deal directly with customers or making a sale. The simple way to prioritize is to WRITE IT DOWN in order of importance and cross it off when completed. If you have a task that is scheduled but not yet completed be certain you follow up until it is done. A hint here:the best organization system ever created is the legal pad.

Acknowledge every Person in the Building. Management by walking around is a vital part of your success. Spend time every morning walking through your place of business. Acknowledge everyone there. A wave, a quick smile. You do not have to engage them in conversation. The benefits are enormous. The first impression you create is that you genuinely care about their well being. When you need a favor it will be easier to get it done. Do not make the mistake of being the type of manager who goes to work, goes in their office and appears only when they want something.

Touch Every One of your Salespeople. They need to know you have a genuine interest in their success. Simply ask them the following question. “What can I do to help you make a sale today?” This simple question will get all the information you want regarding what they are going to do today.
Do you know what they are going to do? They will tell you about each and every deal they have working, customers they are going to contact, appointments, etc. Avoid the frustration of demanding they come to you with their daily work plan.By asking them what you can do to help you will not only get the information, they will come to expect it and have their game plan prepared. It might take several days for the idea to become part of the routine but once it is ingrained it will never go away.
Look at Your Numbers. Look at the numbers that tell you about the performance for each of your salespeople. Be reminded that you cannot manage results, they have already happened. You are merely trying to identify trends in your salespeople before they become a problem.
Take time to analyze the numbers.

Look at Your People. Are they ready to work? Their time must be managed by you. Activity breeds activity. If they knew how to stay busy they wouldn’t be idle in the first place. Get them involved in meaningful activities during slow traffic periods. Product knowledge, certification, helping newer salespeople, etc. These are things we never seem to find time to do. By getting them involved early each morning you set the tone for the day.

Look at Your Advertising. Is it there? You pay money to advertise. Make sure the ad ran. This is important every day but especially if you are running a promotion. More than one sales manager has had egg on his face by not doing so. Sidenote: In the Sales Meeting module I use a Red Tag Sales Event as an example of how to structure a meeting.
Take time to look at it. What is the competition advertising? Do not make the mistake of waiting until the last minute deadline established by the newspaper and just throwing something in to have representation. It’s quality, not quantity that counts. What is the message? Why is it different? Why should they call? Who is your ad designed to attract?

The Secret of Time Management is Managing Yourself. It is setting priorities, taking charge of your situation and utilizing your time to its highest potential. It means changing habits or activities that waste it. Attempting to do too much at once will insure you completely lose track of time. Break tasks down into components that can be easily managed. All successful time management begins with planning and focusing on the plan.

Wednesday, October 25, 2006

New Information at MasteringSelling

I have added some new information to the site. Hope you find something you enjoy and can share.

Monday, October 23, 2006

Freedom of Choice does not mean Freedom From Consequence

Before you say "I always make the right choice" consider what the questions are.

Do I have a plan? Yes, you do.
It either includes a well organized day that will produce results or it doesn't. That is your plan. If you choose not to plan... Here is the consequence...
You will continue to get more of the same. Do you like where you are right now? If you have a genuine interest in improving begin by having a plan. Not just a plan for the day, a plan for life. Write it down. Refer to it. Add to it. Change it if necessary.

Do I know my product? If you do not...
Here is the consequence... Your presentation will be weak. Your customers will not see themselves using your product. There will be no emotion. Selling is about
presenting your product with enthusiasm. Hard to be enthusiastic over something you know little about. Knowing "just enough" won't do it either. You will be like all the other salespeople your customer has spoken with. AVERAGE. Who wants to be average?

Am I just going through the motions? I make the number of sales calls my manager asks me to. I meet the minimum quota each month. I make enough to pay my bills. If this is the choice you make...
Here is the consequence... You will never be better than you are right now.

Do I have an effective follow up plan? Are you in touch with your customers on a regular basis? Do your follow up efforts include something of value for you customers? Do you know how often you need to contact them? If not...
Here is the consequence... Your hard work to get them as a customer will be lost. Think of the time you spent making them your's. Without a good follow up system they will go elsewhere because they will forget about you.
Why not work smart instead of hard?

Do I really understand the psychology of selling? Sales is not about talking. You have two ears and one mouth, use them in the same proportion. Selling is about listening to your customer. It is being able to see things from their perspective. It is finding a solution to their problem. Do you sell this way? If not...
Here is the consequence...poor results. Why? Because your customer will perceive that its all about YOU and your needs. They will not see value, they will only see that you want to get their money.
Get the facts and they will have no problem making the choice to buy from you.

Friday, October 20, 2006

Fix the Problem right the first time

Do you feel like you start over every 90 days? Do you fix the same problem more than once? Do you ever wonder why? Simple, most managers fix things for the short term. Develop long term solutions and the short term will take care of itself.
I know what you are thinking...
Identify what is wrong and create a solution. That's simple.

Doing this is exactly why you keep fixing the same issues over and over. There is an important step missing and it comes between identifying the problem and creating a solution.. That step is...

Diagnose before you try to cure
I learn easier when people give examples so let's do that here. Suppose we start with the most common of Sales Manager dilemmas.

How can I get my salespeople to sell more?

Here is the answer most people give without a thought. They need to see more people and they will sell more.That is a simple solution and your salespeople will do that for about a week. Then they will see their return on time invested isn't getting them much ahead of where they were. You, the Manager, pick up a little extra business. That extra business helps you reach your short term goal and now you can relax...until its time to repeat the process again before the end of the next sales period.

Why not stop this viscious cycle. Fix it the first time and you won't keep re-visiting it.
Lets fix this problem together...

Here is a technique I learned that will work with any problem, not just this one. I even used it when I was doing a backyard landscaping project. It sure cut down the trips to the hardware store because I had the answers on paper and all I had to do was put the plan into action.

Plan? What plan?

The well thought out one you are going to create. Just use the framework and plug in the variables. Let's begin.

Identify the problem

We need more sales
Here comes the part where you learn to stop fixing the same problem over and over.

Diagnose before you try to cure
What is causing the problem?
You know what the problem is, what is creating it?

Are you sure you have the right people?
It all starts with good hiring practices.
You can find that here.

How is their product knowledge?
Learning is part of their
daily routine.

Have you trained them?
They learn from you. Develop the habit of
training.

Are your sales meetings effective?
Here are the key ingredients for conducting a great
sales meeting.

Is it your attitude about the competition?
Your mindset regarding what is going on in the market has an impact on your people. Yes, lots of people are in your industry. Teach your people what sets your company, product or service apart. Share that knowledge with them.

Have you established, in writing, what your objective is?
An unwritten plan is no plan at all.

Keep accurate records.
Do you know how many customers your people are talking to and what the results were? Without the ability to track your business you will achieve inconsistent results.
Learn from the numbers.

Have you analyzed how many salespeople you need?

Have you analyzed your inventory in order to ensure you have enough stock and the proper stock?
Do not assume anything. Inventory management is critical. It must be sufficient to create the numbers you forecast and must be the right stuff. Look at it every day.

Have you analyzed your business to determine the effectiveness of your advertising? Spending your ad budget just because money is allotted to it is not the best use of your money.

Are we done yet?

We will be when I remind you of this.... HOW DO I FIX THE PROBLEM?
Write down every item that comes to mind that might be causing the problem.
Analyze why you feel that way about each of the items.
Think about what might happen should you decide to change something.
Plan a course of action that will deliver the desired results.

Sales Meetings that Work

Sales meetings differ from training sessions. To be effective you must understand what their purpose is. Simply put, it is to start the day, tell your people about a new promotion, new product, contests or refocus their attention.

Set the Ground Rules
This is not the time to single out poor performance. If you need to discuss these issues with your people do it one on one and in private. This meeting should be positive and enthusiastic. YOU set the mood for the entire day by the energy you create.

What is Your Meeting About?
Let's assume you want to let everyone know that you will be having a "RED TAG" promotion. You can do it the wrong way by assembling the troops and announcing the date. You can even make the mistake easier, just send out a memo or office e-mail and tell everyone.

Or you can do it the effective way.

THINK ABOUT WHAT YOU WANT TO ACCOMPLISH, INVOLVE THE PEOPLE YOU NEED TO INVOLVE AND PREPARE.

We will use your red tag event to illustrate.

You’ve made the decision to have a sale. Congratulations.

Have you bothered to see if you have enough red tags?
Have you scheduled when to place the tags on the merchandise?
How about when to take them off?. If your promotion does not have an ending date how can you create urgency?
If you have an event that requires information you do not normally use does your staff understand the information or where to find it?
Is everyone aware you are having the event? The office staff, the credit department, shipping and receiving. If you get everyone involved you can insure better results.
Do you need help in controlling the traffic, registering them, etc? (You do expect to bring in lots of customers.)
Get your salespeople excited. Treat it like an ordinary event and you will get ordinary results.

Whew, finally done!

NOT QUITE...
ARE YOU READY FOR THE RESULTS?


Is your inventory ready?
Are you ready?
Are your support people ready?
Do you have a way to measure the effectiveness of your ad?
Is the phone operator or receptionist prepared?
Is your sales staff prepared?


Is there anything that would be a hindrance to the success of your sale?

It may seem like a lot to do for one meeting. Here is the point...


Use this format. It gets everyone on the same page, leaves no room for doubt and it gets results!

Sunday, October 15, 2006

5 Decisions People make Before They Buy

1. NEED OR WANT- The need buying decision is based on a change in conditions. You purchase something because you have a need for the benefit of the product. You need to cut a tree..you get a saw. You need a better way to keep track of your inventory...you get a software program. You have another child..you need a bigger vehicle.

A want decision is based on ego. You want it because it will make you feel better, impress the neighbors or help you. You want a bigger house. You want the latest electronic equipment. You want a bigger diamond, right ladies? This decision isn't because you need it, you want it.

2. BRAND-Manufacturers spend billions of dollars to advertise and promote both product and brand identity. Purchasers, in many instances, are extremely brand loyal and have made the brand decision prior to the actual shopping experience.

3. WHEN TO BUY- This decision is based on lifestyle factors. I don't think people in Minnesota buy lots of outdoor furniture in January. Have you noticed how many businesses that sell hard goods have big sales around income tax refund season? Your local car dealer advertises the heck out of vans right before summer vacation season. You get the point. There are events that trigger buying activity. Be aware of them and increase your business.

4. PRICE TO PAY- Within reason most folks know what price range the product they want falls in. They comparison shop prices on the internet, look in the newspaper and watch television.

5. WHERE TO BUY- The reputation you and your company have established will guide customers to your business. The location of your business has a great deal to do with where people purchase. Don't you like the convenience of the store near your home? Your dry cleaners? The coffee shop you visit on the way to the office?

You will have customers come to your place of business due to location. They will come back and do repeat business if you take care of them in the proper manner.

Tuesday, October 03, 2006

The Title is Just That...A Title

Sales manager is your JOB TITLE. It isn't your JOB DESCRIPTION. Effective management requires both great leadership skills and sales ability. Both require different strengths.
The top salesperson talents that earned you the promotion don’t always translate into being a great leader.


How did you get where you are today
You demonstrated the ability to sell. You were effective. Most likely it wasn't because your company sent you to manager training school. They saw something in you that that showed leadership ability. You have a great track record. In your role the tough part is hiring and training your people to be effective Your sales team is your lifeblood. The results are direct reflection of you. You want people just like you. That's the toughest part of your job.


DON’T EXPECT EVERYONE TO HAVE YOUR WORK ETHIC
All people are not created equally. Most don’t have your talent and desire.


FAILURE TO COMMUNICATE
Be upfront with your people. If you expect something make certain they know what it is. Put it in writing. Set expectations and then let them know how they are doing.


BE OBSERVANT
Diagnose before you try to cure. Take time to see what is working and what is not before you decide to make changes.


BE FRIENDLY, DON’T BECOME FRIENDS
There is a reason the military doesn’t let officers fraternize with enlisted personnel. When its time to make a decision someone has to be the leader.


DELEGATE TO THE RIGHT PLAYERS
You have lots of talented people around you. No one of us can do it all. Learn to utilize their abilities in helping you build a frame of great teamwork.



SELF IMPROVEMENT for YOU and YOUR PEOPLE
Offer more than you expect. Lead by example so your people will see what it takes to grow and develop in their career. Do not stop learning; being a manager is not the exercise of some dormant ability. Self improvement is a continual process.