January 25, 2018

By Frank Hurtte

Our industry adds another new seller to the ranks daily. Over the past year, we have had the opportunity to speak to dozens of them, but compared to the vast number out there this is but a thimble full of water in a sea of people. For the coming year, I am determined to change that percentage.

Why?

First, the demographics demand it. Every time we speak to a group of distributor sales types, it’s hard not to notice the number of folks who are pushing up against retirement. A few weeks ago, I took a quick poll and over 40% of my audience qualified for AARP membership (50 plus). There is nothing wrong with being an experienced salesperson. As a matter of fact, it is probably a good thing. But, our industry will need to fill the ranks.

Second, I am convinced our industry must change, and one of the big changes comes in how we find new people. The days of doing nothing till you need someone, then going out to “steal” an experienced person from the competition is getting harder. There isn’t a big enough pool of experienced hands, and for the most part competitors are holding on to their promising talent with greater tenacity.

Finally, it’s about economics. Laws of supply and demand are driving up the cost of qualified people. Freshly minted engineers, green as the grass and straight from campus, are receiving compensation packages in $55-$62,000 range (depending on location). So if you are selling technical products, the cost of talent is rising fast. The faster we can convert new salespeople to highly effective selling machines, the better for our bottom lines.

With these realities, you would expect new seller training would be planned, robust and well focused. It is not. Or at least that’s my assumption based on the 20-some new sellers I’ve spoken with in the past several months. It’s hard to believe this important piece has slipped through the cracks and sent money and potential profits swirling down the drain.

Here’s a recap of new seller training

After these interviews, a trend emerged. Here’s a recap in 85 words: “My first two weeks were spent in the warehouse under the tutelage of the warehouse manager. I learned how to find products and helped unload a few trucks. The next two weeks I was assigned to inside sales. I did get a bit of a lesson on how to find stock, but mostly I watched others talk on the phone. After a month, I was given a list of accounts and an old list of contacts. I took my business cards and started visiting customers.”

What about sales meetings?

Sales meetings trend toward product-centric discussions. The new sellers appreciate the information and many attempt to connect with the factory people and/or local reps who conduct them for additional one-on-one training. However, the general report back is that without ideas on applications and selecting the best customers, most of the time they find the information interesting but not useful for growing their business or making additional sales.

One new seller took an approach similar to the one I used way back when. He takes new products to a friendly customer and asks the customer to give him a “real world” opinion on who might want to use/buy the product. The customer seems to enjoy providing him with useful commentary and sales mentoring. I asked what happened if the customer didn’t like the product and he candidly shared he simply quit mentioning it to any of his other customers. I believe this should be a red flag. Not knowing the customer, one might wonder about his feelings about new vs. time-tested technologies, quality vs. price, or a dozen other variables.

These new sellers aren’t lazy

The ones we talked to are willing to work hard. A couple reported putting in extended hours to complete quotes and get information packaged for customers. However, in my opinion, they are not putting their time to the best use. Since they don’t have a lot of doors open to them, they are willing to zigzag across their territory providing urgent care for some very small issues. I believe this comes because the small customer problems offer them the opportunity for customer contact.

The group, as a whole, has some of the common misconceptions of when customers might be open to seeing a salesperson. As a group they shy from trying to set appointments before 9:00 am. This doesn’t happen because they want to sleep in but rather because “somebody” told them customers don’t want to be disturbed until after they’ve completed their morning tasks.

Only one new seller has had sales training

We asked the question every time and made it clear we weren’t talking about “formal” training. Quite frankly, we were looking for any kind of training. Out of 20 new sellers, only one single soul had sales training. In this particular case, it was a Carnegie type course and they felt it didn’t reflect on the work of a distributor salesperson.

We also asked about books. Have you read any books on the selling profession? Three had. These were random selections made via Amazon or the local bookstore rather than books recommended by a sales manager.

No leadership guidance causes them to leave

For one new seller, this was his second company. After graduation, he joined a company with a “management training program” only to find out the program was being dropped. He was making headway but had a remote manager with no time to discuss issues and who was unwilling to provide guidance. This very promising seller wisely jumped ship for a company with an accessible leadership team. I suspect there is a lesson there.

I want to speak to new sellers. Here’s why

I want to speak to sellers with less than two years in a position. I am researching for a new project to help guide them and their boss through the first two years of business. If you happen to be one of these folks, send me an email. We’ll schedule a time for a 20-30 minute phone call. I am not going to sell you anything. I will not embarrass you. I promise to ask a lot questions about your experience to date. My email is frank@riverheightsconsulting.com

If you know somebody in this category, please forward this blog to their attention with a note telling them Frank is a nice guy. Santa even says so.

Finally, buy my book

Fresh off the presses and available at Amazon: Plan on Breaking Through: Customer-based Strategic Planning for Sellers. This book steps you through setting up a plan for your biggest and best customers. I recommend it as a training tool for new salespeople.

Frank Hurtte is the Founding Partner of River Heights Consulting. The Distributor Channel is a service of River Heights Consulting. Find out more: www.RiverHeightsConsulting.com.