“Cognito, ergo sum”
Rene Descartes (1596-1650) said “I think, therefore I am”.
So, what does that have to do with the modern day and how it relates to the kitchen and bath industry? Well, I think it’s
very simple. As I travel and go to showrooms around the US or trade shows and talk to showroom people they spend a
lot of time talking about how they are losing business to the web. It used to be losing business to other stores!
Well, let’s stop talking about it and “think” about it. The first answer is, why are you losing business. What does the web
offer that you don’t? In almost every case, price.
I’m sure that everyone of us has bought something on the web. Why? Again, I think it’s the price. For some it’s the
convenience of not leaving the home. In my research many of the on-line plumbing retailers I have talked to say that most
of their sales are to the more rural areas. Some may be as far away as 100 miles or more from the nearest store. So, a
store thinking that they are losing sales to the internet may be an excuse. So, then some sales must be lost to competitors.
Maybe though they are not actually losing business to competitors but sending the business to competitors. What do I
mean?
This is a subject I have written about very often, but it is still happening. Sorry to bore you with it unless you have seen
the light. The subject is giving away product number and prices with a quote. Some say there is a trust factor. The
customer may think badly about the store if it’s not given. Oh, OK give them a generic quote. No names. No numbers.
No itemization. Just the bottom line! But… But… But…
But wait? Don’t you want to get paid for the time you spent doing product selections? Is your time not worth something?
Most importantly, do you not add value to your service. Is the value not worth something? What value does an online
site offer other than taking an order and sending it out? Did they spend hours with your customers? What about a
competitor who looks at your detailed quote and says they didn’t have to spend time so they can cut the price by 5 , 10
or maybe 20% If the prospect wants an itemize breakdown perhaps you might want to say that it is proprietary. It is only
given out with a non-refundable deposit. When and if the order is placed let’s say within 90 days then the deposit is
applied to the order. More and more I see this being done.
On the other hand, if you were like Target, Costco, Walgreens, and some national K & B companies, you would have some
of your own brand products that can’t be shopped anyway! Sorry to keep bringing this up but sooner or later more of you
will take a hint. Start a trend. Talk to your associations about it. Talk about it on Linked In. Be bold! Be confident of your
actions and your service. Are you better than the others in your market?
Think about it!
What are the most important things you are trying to sell? You and the company; not the product!
Yes, think about it. Think, therefore you are… a winner!
Feel free to read other articles by the author on his web site: www.raffelcg.com. Also, feel we welcome your comments
either here on Linked In or the web site. We are in this together!
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Copyright by Ronald Raffel, Raffel Consulting Group; ron@raffelcg.com 847-668-7224
August 26, 2019
By Ron Raffel,
Raffel Consulting Group
consultant to decorative showrooms and manufacturers
I just read a couple of interesting posts: one was on LinkedIn and the other on Facebook. They were very different but yet told a similar story. Both had to do with customer service.
The first one was posted by a well-known professional speaker and motivator about the poor service he received from a specific airline. He was a million mile flyer with that company but switched to another carrier where he is also a million miler. Anyway, he was complaining about the attitude of the flight attendant and her treatment of the passengers. He had requested some nuts or pretzels and was informed quite rudely that the airline hasn’t served any for a number of years but that passengers may purchase them. When he told the flight attendant that he was a million miler passenger, it seemed that the attendant didn’t care and simply suggested that he write to the airline management. Well, I have to assume he did.
The other post was about loyalty shown by dealers for their suppliers. The author observed that all the showroom wanted to do was cut prices to get the order and did not seem to be concerned about margins or the fact that the product may be manufactured in the U.S. He also noted that buying groups didn’t show much loyalty either. Responses to this post pointed out that buying groups offer more than just a good price; they also provide opportunities to attend educational seminars, roundtable discussions and networking events. That is all true, but does that take into consideration the loyalty factor? How does that relate to the author’s claim that many showrooms are just looking for the least expensive products and “having a race to the bottom”? Please don’t get me wrong. I think that associations and buying groups do play a strategic role with their dealers and can foster loyalties.
It all boils down to this: if the showroom sold customer service and not product, and the airline practiced customer service and not just transporting people, customers would likely flock to their doors! I’m not saying that all showrooms are lacking in customer service but rather that too many don’t put enough focus on that. Customer service consists of product knowledge; helping customers decide on what’s best for them; follow up; and taking care of issues such as delivery, perhaps a defect, or more commonly, the dreaded installation error. Perhaps a showroom would benefit by having its own technical support person instead of relying on manufacturers or their reps to do the troubleshooting. If I have a problem with my car, I expect the dealer to solve it, not the manufacturer.
The golden rule of treat others the way you would like to be treated should be the guideline for how a company handles customer service. While we all want to make the sale, isn’t it more gratifying to know that you made the sale by outselling your competitor rather than just cutting the price? It’s not difficult to outsell! All you have to do is know your competitors’ weaknesses and make those your strengths. Sell your strengths, not the price! Most showrooms sell the same or a similar product mix. What sets your showroom apart? Carpeting? Lighting? Fancy displays? No, it is the satisfaction and positive feelings customers experience when they purchase from you, further supported with the follow up service you provide.
Customer service should start as soon as the prospect walks in the door. He should be greeted but not pressured. The sales person is there to solve problems for the prospect. The problem is obvious. What do I want? This is something that they cannot get from the Web: the personal treatment. Then there is the follow up. After the sale is made and the order has been delivered, a follow up call from the sales person would be a good idea too.
For showrooms that sell products with an enforced MAP and UMRP program, it is even more important to provide superior customer service. Those programs level the playing field not only with other showrooms but with the Web. In short, don’t give the customer a reason to go to the Web. Consider publishing a sheet with your showroom’s features and benefits and give it to customers with their quote. Let them know why you are better. Are you?
If you need help training your staff, I am available!
A lot of discussion has been made regarding the internet and the decorative plumbing and hardware industry. The internet has made the consumer smarter and more discerning. It has also enabled the consumer to know pricing even before they walk in a showroom door. The main topic of discussion is how we compete for that business.
Let's address the easier issue #1 first. I don't understand why showrooms purchase from companies that don't have a MAP policy! I suggest that we encourage more manufactures to institute a MAP policy. A MAP policy puts everyone on a level playing field. Now we can go back to the basics of selling to the customer!
That brings us to issue #2. Would you feel comfortable spending $25,000 or $50,000 or more with someone who knows less than you? As I travel around the country visiting showrooms, speaking with owners, and especially showroom staff I find that many know very little about what they are selling but even about basic plumbing in general. Often times when I do PK's in showrooms many of the staff has a glazed look. How is that product used in my customer’s application? Will it use too much hot water? I’m especially fond of those that don’t even take notes but yet call and ask the same questions we went over in a PK.
I don't fault the staff. In many cases they don't even come from our industry. They may be from design schools, or sold furniture or whatever so how can they be expected to design a shower system? How can you add on to the sale? Let's do some simple math. Let's make an assumption that you sell 1000 bathrooms a year. If you could add $100 extra to each sale, that would be $100,000 of fresh plus business. The internet doesn't do add-on sales, people do. It brings us back to training and education. Many of the owners I talk to say, oh they can do the training and then I ask, do you? Usually the answer is, I try but they don’t listen to me, Hmm for a $100K they don't listen? Maybe its your delivery or they are just bored listening to you.
By hiring an outside consultant maybe then that $100K may turn into $200K? There is a privately held appliance and electronics store in the Chicago. They are a one store location and I believe do more business than most of Best Buys in the same area, combined! Why? Training! Their employees are required to go to training usually after hours and as a condition of employment. The company pays for dinner and the staff is paid for their time. The trainers may be a rep, someone from a factory or a professional. In all of my years of traveling I’ve never found anybody in our industry as dedicated to training as they are.
Lastly, let's look at your showroom. Is it a place where someone wants to give you money? Well unfortunately I look to many automobile dealers as a place where people are comfortable spending money. Not only that, usually on higher end products! Let's examine. When you walk into a quality dealership you are greeted by a friendly person who may offer you coffee, water, and I've even seen wine. As the buyer continues to walk in they are somewhat blocked by the most expensive car in the dealership; fully loaded with all the toys. You look at the toys and fantasize about having them on your car then you look at the sticker and decide which ones you are willing to settle for. The cars are arranged in the showroom from highest to above the lowest. Where is the lowest? In the lot and not convenient to get to.. Let's equate that to our showrooms. Do we show the highest and most profitable items in the front as the customer walks in or do we show the lower end goods. Those shouldn't even been in your showroom. Maybe they should be at the will call counter or through a room. For the most part your showroom staff shouldn’t even be thinking about these products. There is too little or no profit! They’re available in big box stores; and for sure on the internet.
Then comes the next step! Designing the plumbing system. Does the sales person understand the terms GPM and PSI? Well those are essential in designing the system. Knowing about the water heating system, the piping, the drainage all add up to be able to give the sales person the proper tools.
In short, a decorative showroom sales person cannot have too much training. Training in products, training in how to sell, how to close, how to overcome objections, how to build the order, and most importantly how to get the order!
That’s question with many different answers. It’s like is it nature or nurture that dictates who we are and how we act.
I think it’s sort of both. Can a person be taught how to sell? Yes. If they want to be. In a recent article I read in PM magazine by Adams Hudson, he says: “For the best salespeople, their skills are not natural. They are trained – and train others…”
Obviously like many professions one needs to have some basic skill sets to achieve goals in a chosen field. NO not everybody can be trained to be a doctor, lawyer, architect or even a truck driver. Plumbers and other trades must even go through a program to get their licenses. So, while there isn’t a formal program for salespeople or a college degree program a good candidate needs to be self-motivated to learn.
Personally, I think there’s no better profession that being a salesperson. I have been one for many decades. Am I the best there is? Most will say no; and I would agree. Who is the best? Well, that’s for another day. Anyway, back to the subject? We’ve established that I may not be the best but humbly speaking, I hope that many agree that I might be somewhat better than many others.
Well, let’s start many years ago when I was working for my father in a plumbing supply store. I started part-time like so many others while in high school and during vacations. I observed the salespeople that called on us and quickly was able to identify the good, the better, and some of the very best. I studied them closely on how they interacted with my father, me, the counter people, and the other employees. It was easy to identify the traits of the better ones. More about this later.
Anyway, I always knew I wanted to go in the business as there was something interesting about it. There were challenges in learning new codes and requirements. There were challenges in trying to grow the business, they were challenges in trying to make profits. One thing was for sure, I knew that these challenges were just a matter of education and desire to build. I also knew that it all began with “sales”. So that was the key! I was a very young kid competing with men who had years of experience, so I had to be better than them in order to succeed.
I started attending seminars offered by the old Central Supply Association and the American Institute. Later they merged into the American Supply Association and I continued to go to as many conferences as I could to learn how to sell. I was fortunate to meet many movers and shakers in the industry who passed on some of their wisdom to a young man. I was instrumental in the founding of the Young Executive Program of the ASA, served as its chairperson for several years and served on the Board of the ASA. Again, I became involved with extremely successful industry icons where I continued t learn and ask questions.
I started reading what I could about selling and built up an extensive library of books from some of the leading authors on selling. I often called many to discuss things that I read.
I considered selling to be a “profession. Not a job! I loved what I did and still do to this day. All of this is background as to what I do and why in hopes of helping others become better sales people than they are.
So, let me start with an interview I once had with a young man who wanted to represent a line that I was the sales manager for. It is a true story and went like this:
RR: Tell me, do you have any hobbies?
Rep: Yes, I like to play golf.
RR: Do you play for money?
Rep: No:
RR: Do you watch golf on TV and do you get Golf Magazine?
Rep: Yes, to both
RR: Do you go to the driving range and practice?
Rep: Yes.
RR: OK, then tell me the name of a book you read, audio you listened to, video you saw, seminar you went to, or anything to increase your selling skills during the last 2 years?
Rep: No. I haven’t. I just watch my father!
RR: So, let me understand that you don’t make money playing golf but in fact costs money. You practice and study but for your profession you don’t do anything?
Rep: Well sir. I guess this interview is over then.
This pretty much sums up the years I have worked with many different sales people. As I said before, it’s the best profession there is and most of the sales people I have run into don’t do anything to try to better themselves.
There is so much to learn and it’s all available for those who want to do better. There is no silver bullet but merely suggestions. Also, nearly every trade magazine that I see has an article on selling or marketing or something that may help. Just start with that. Then I most certainly recommend the following books.
“The Art Of War” by Sun Tzu
“How to Master the Art of Selling” by Tom Hopkins
“Hug Your Customers” by Jack Mitchell
There are many more in my library, but these are a good way to start.
I think being a salesperson is one of the best professions there is. Buy, like any others it takes practice to be good and more practice to be even better.
So, going back to the beginning of this article, “the best salespeople…. are trained and train others!”
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