The methods and approaches leading to a sale on a new account are increasingly becoming a science. No matter what you may believe, salespeople are not created equal. Those that follow the proven disciplines are significantly more productive.
When a salesperson has mastered the art of selling new accounts, they will avoid losing sales as a result of factors they cannot control. Examples include the economy, bankruptcies, bad credit, interest rates, availability of capital, etc. Selling prospects, however, requires a different skill set.
My first job in sales was as a salesperson for GAF Corp. I was assigned to train in a territory that had set a record the previous year. The next year when I was given responsibility to manage that territory, the U.S. experienced a “cut off” of FHA and VA financing. This caused a decline in the sales volume of virtually every sales territory because our industry depended so heavily on FHA and VA programs.
My territory was an exception. I didn’t actually realize how much my accounts had increased by that year until my sales manager and I sat down and analyzed my territory. That year—when it seemed everything was falling apart—I had opened 14 new accounts. These new accounts brought me business at my competitor’s expense.
When I realized the value of these new accounts as a means to more rapidly increase my sales volume, I began to analyze what I had done and how I had done it. I also talked with other sales representatives who had experienced a similar degree of success in selling prospects.
If you can have success at bringing in fresh new business, you can protect yourself from the attrition of your accounts caused by death, bankruptcy, credit disasters, defection, retirement, etc.
I began to realize that at our level of inflation it might take even one of my larger customers maybe five to eight years to double sales, but I could pick up that volume of business in just one year if I could take that much business away from my competitors.
Rule #1
Identify and list all viable prospects. Go to your computer and list every potential account under the heading of building materials. You might also want to make a friend of a local contractor and ask him to check your list to make sure you haven’t overlooked any good prospects.
Rule #2
Before you make your first call, touch base with your company credit manager to make sure each of your prospects are creditworthy. Never make a sales call on a prospect until their credit appears to meet your company’s criteria.
Why is Rule #2 important? Because if an account has poor credit today, he may improve his credit rating in the years to come. If he should give you an order and you cannot ship it because of the prospect’s credit rating, he most likely will not regard you or your company very favorably when you go back in at a later date.
As a new salesperson, I was unfamiliar with this rule. On multiple occasions I would make sales calls on what appeared to be excellent prospects, but when I mentioned the name of my company the buyer would often say, “No, thanks.” And he would proceed to tell me that he would never forget that my company would not extend them credit when they opened their business. Be sure your credit manager is crystal clear with you as to precisely the credit information you are to submit on each prospect.
The First Call
As a rule of thumb, the first call you make on a prospect is the most important call you will make. In the next issue of LBM Journal, I will begin with how to get the most mileage out of the first call.
