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The uncertainty is killing me

INTERROGANT 150x150“My sales team is out on the streets, but I’ve got no idea what they’re doing today nor who they’re visiting nor whether or not they are meeting targets…”

I have heard these or similar statements in many of the companies I visit, Sales Managers who’ve “been there, done that and got the T-shirt”. Have you ever said these words under your breath? Have they just crossed your mind? What do you make of them? How are you going to handle the situation when you take on board that you have no control over some of the most import elements of the company’s human capital: the sales team?

The normal reaction is to feel that a Tsunami of uncertainty is engulfing you. This sensation is a powerful force that may be a positive influence on your take on things or it may unravel all that you have achieved up to the present. The outcome will depend, to a great extent, on whether you just react or take structured steps to remedy the situation.

The reactive attitude may lead you to take thoughtless measures without weighing up the consequences your acts may produce. In these cases, one of the more frequent of reactions is, to put it bluntly, piss the salesmen off unnecessarily by acting like an “enforcer”. How many of you have picked up the phone only to question the salesmen’s every move in this situation, applying excessive pressure and insinuating dire consequences if they don’t meet targets? Phone calls of this nature often result in an aftermath that can be summarised as follows:

  • You end up right where you started to which you have added a feeling of impotence. 
  • Your sales-force loses all motivation and becomes less capable of doing a good job. 
  • You start losing prestige and, hence, your ability to manage is considerably impaired.

Well, that’s a JOB WELL DONE, then! The next time you need to speak to your salesmen, THINK before you pick the phone up.

How are you going to face up to this situation? Deal with it calmly and imaginatively so that you get rid of that nagging uncertainty and, to boot, improve sales performance? The first thing you have to do is to leave the Gestapo uniform at home and become a salesman’s nurse. The concept may seem absurd, but give it a little thought! This will lead you to discover aspects capable of changing attitudes. You’ll go from an antagonistic approach in which you are always looking for crimes and laying the blame on the salesmen to one in which you will be looking for ways in which YOU can help your sales team.

A little thought will lead to the conclusion that the fault does not lie with the team, but, rather, with your own organisation and systems. These will often blind you to what the salesmen are actually doing and how they are doing it. The answer, however, does not reside exclusively in what the sales team is doing, it should also include the how. What is their level of competence, quality and effectiveness?

Any and all processes are measurable and, thus, controllable. They can then be measured against benchmarks and targets. Let’s have a look at a practical case:

Most salesmen visit potential new clients, you can quantify these visits. You will also know how many of these contacts have been converted into new customers. Comparing these data will give you a salesman-specific index of productivity. Nevertheless, these raw data have to be “weighted”. Just to give an example: a salesman who visits one potential new client and closes that prospect will have a “better” score than one who visits 10 and closes 5. To weigh these data, you have to measure each salesman against the average of the group. Only thus will you know which of them need our help to bring them up to speed in the acquirement of new clients.

Imagen1 ENG 300x170

Team Averages Acquiring New Clients

Average number of visits: 14’75

Average Nº acquired clients:   5’25

Average success rate:  47%

These data show that Salesman 1 has a serious problem acquiring new customers. As well as discussing with him about what is going wrong, it is time to make some visits with him. How does he introduce himself, the firm and the portfolio? Have a talk with Salesman 3 to find the key to his success. Is it a result of correctly identifying potential clients? An exceptional product presentation?

On the other hand, in the case of Salesman 3, his impressive rate of acquisition is offset by the relatively low number of visits. If he made more visits to potential customers his value to the company would increase considerably.

You are now in possession of detailed statistics and this accurate data will enable you to:

  • Eliminate your uncertainty. 
  • Become aware of any improvements and the real quality of the team. 
  • Design and implement strategies aimed at improving and gauging the activities under your control.

I suggest you go over each and every one of the tasks your team are (or are supposed) carrying out to enhance sales. With this information at hand, you can establish indices for your own management purposes and to aid self-management within the team.

Next Article: “Salesman, what am I paying you for?”

 

The French aviation industry grew by 16% from 2011 to 2012

Avocet2 150x150According to figures published by the Association of French Aeronautical Industries (GIFAS), the French aviation industry grew by 16% from 2011 to 2012. The industry is symbolised by Airbus, and others such as Safran, Thales, Dassault Aviation, Zodiac and Daher who invest 17% in I+D. Full details can be found in the annual report published by the Association: GIFAS Annual Report

We have successfully completed a number of projects in which we were charged with recruiting manufacturers’ agents for the aviation, automotive and medical apparatus sectors as well as other subcontracting industries in France. Please contact us if you wish to increase your sales in the country.

Tips on how to find a good manufacturer’s agent in Germany

globe 71443 640 150x150The basics are:

  • Completing a Portfolio: it is essential that our agent has a portfolio of products or services that complement our own. That is to say, that his existing client list also has a need for the same products and that these no not compete with our own. The icing on the cake would be if the contact within the company were the same person.
  • Experience: a certain experience in the target market as an agent means he will have the necessary understanding of the work and will not burnout or become quickly frustrated. In general we would recommend a minimum of 2 years. Whilst product training at first is of paramount importance, lack of expertise should not make this an onerous task.
  • Rapport: There must be a feeling of mutual understanding between the principal and the agent. We recommend you reject out-of-hand any candidate who is arrogant or makes unreasonable demands, or one with who we just do not feel comfortable.

How to go about it:

  • Place an advert in the Association of German Manufacturers’ Agents. For a fee of € 250 you can search their DB of 7,500 agents. We are of the opinion that your searching the DB is by far the best method as many agents do not bother to read the adverts or job offers.
  • Create your own DB of the agents that, a priori, may fit with your needs basing the selection on the information available of the web.
  • Generate a short but attractive presentation of our products IN GERMAN. The competitive advantages of our product should be very clearly presented.
  • Phone each and all of the agents in your DB. Positive response from a simple e-mail contact is very low. This initial phone call should establish the agent’s prior interest and obtain the agent’s direct e-mail to send your presentation.
  • A few days after this call, one should contact the agent again to measure his reaction to the information sent and will, most probably, require a second mail to answers questions raised by your contact.
  • It is absolutely essential to ask all those questions we need to evaluate the candidates suitability for the post. Although individual tweaking will be necessary, the basic points are: what others products and manufacturers do they represent; experience; age; geographical coverage; sales structure; commission; etc. It is helpful to have a questionnaire prepared which you can fill out as the conversation proceeds and will make sure you DO cover all the points you have established previously.
  • Answer all questions the candidate may have fully, frankly and quickly.
  • Only short-list those agents that fit the profile and appear to be interested from the start.
  • Prepare a trip to meet the candidates personally to make your final evaluation. Please keep in mind that this trip should be made as soon as possible so the contacts don’t “cool off” and to reinforce the idea that you are “really interested in the market”.
  • Having chosen your candidate, draw up a “fair” contract. Please note that the Agent must feel comfortable and you must protect your interests without imposing unreasonable conditions.

Tarting to export: the keys to making it a success

iniciacion exportacion 150x150I feel that today everybody is aware of the advantages derived from exporting: spreading risk; increasing turnover; reduction of manufacturing costs; larger pool of business opportunities; keeping up to date with developments in your industry and improving your image and prestige with existing clients.

The pressure we are under to sell may make a lot of people believe that exports are a short term solution. However, the reality is that for it to be a beneficial and profitable strategy, the whole organisation must understand that the ROI will only start in the medium or long term. How long are we talking about? It is not realistic to expect real returns in less than 3 years so a certain financial cushion is absolutely essential.

For novel exporters the “where are they” and “how to approach them” are facets that stump many: choosing the wrong country or channel can be a very expansive mistake. The groundwork in preparing your strategy is of paramount importance. In order to prioritise markets, it is important to remember that, apart from knowing simple import/export statistics and ratios, you also need to study customs tariffs, what countries are importing your product, where it is being exported. Other factors to be weighed up include: distance; cultural affinity, non-tariff barriers; language, etc.

The “how to approach them” can be summarised as: which of the different channels is the most suitable to your product? Selling solar panels, consumer electronics or professional audio, for example, require different channels as much as the local idiosyncrasies in Brazil, Germany or the USA will influence the decision. Local distributors, importers, software integrators, manufacturers’ agents all have a ready-made market which would take you years to build up. They already have a reputation on their local market and the confidence of their clients.

It is, therefore, essential to contact those companies or persons who wish to incorporate your product into their current portfolio. This is, more often than not, easier said than done. Some of these figures are not to be found without difficulty if you do not have the tools nor the know-how to smoke them out of the woodwork. Once you have reached an agreement with your partner, careful and diligent management will lead to the sales that are, after all, the point of the exercise. One cannot place too much emphasis on a rigorous selection, a scrupulous negotiation process, a thorough initial product training and joint visits to clients on a regular basis. This will give your partner confidence in your commitment from the start, persuade him of your proactivity and will make follow-up more productive.

Summing up, success in your international ventures means:

  • Do not pile into the first market you hear about on the grapevine. DO your homework!
  • Choose your products carefully and make sure they comply with local regulations, standards and tastes.
  • Pricing policy: what is the market standard? What prices does the competition apply in that market?
  • Make sure you choose the correct partner first time round: Agent or Distributor? Be very rigorous in the selection. Do not take on the first distributor who comes on to your stand at a fair. Find out who else operates in the market.
  • Seek legal advice before signing contracts.
  • Make follow-up proactive, do not just react to falling sales. How long has it been since you made joint visits with your distributor?