THEBENCHMARK
Keys to managing a sales machine
Developing a sales machine is the most important investment a land- scape contractor can make. Given pricing conditions and the negative impact this is exacting on gross
profit margins, generating increased revenue volume is necessary to achieve net profit dollar goals.
Key to this revenue generation effort is the sales
team. The team has never been more important,
and its management has never been more critical.
The sales game is a tough one, and lack of
success can cause even the best to go into a slump.
Keeping your sales staff motivated is essential. The
primary motivators include:
› the need for achievement,
› the desire to get better, and
› the opportunity to make money.
To produce these motivators, try using the classic carrot-and-stick approach.
Carrot
Goals and commission programs provide the carrot. Goals should be set weekly for number of sales
calls, monthly for the dollar value of bids required,
and quarterly for every quarter for closed revenue
volume.
In my experience, most managers set goals too
low. Low goals provide little pressure, and most
salespeople are motivated by pressure.
Commission plans are essential. A successful
salesperson should be the second- or third-highest
paid employee in the company. I prefer a first year
60/40 base/commission structure, graduating it by
the third year to a 40/60 with unlimited upside for
the sales rep.
Salespeople are motivated when there is something at risk. When pay is guaranteed, they don’t
run as hard.
Stick
Dashboards and coaching provide the stick. Most
contractors do a good job managing production.
Yet they don’t apply this same principle to the sales.
Salespeople perform better when they are focused
on high-return activities. The dashboard is the
pipeline report. It is a necessary “stick” because too
many salespeople spend too much time:
› selling to people they know and too little to those
they don’t, and
› working on prospects that ultimately have little
chance of closing.
Salespeople need feedback. All good salespeople
have had the experience of wishing they had been
quicker or smarter at some point during a call.
Making joint calls and engaging in post-call “
curb-side chats” applies the stick gently and motivates
them to become better.
In working with salespeople, I have discovered
some typical bad habits that can be easily addressed
by this method. These include:
› talking too much,
› not asking the right questions,
› arguing with the customer, and
› failing to ask for the business and get a signature.
No salesperson is immune to these behaviors.
Some years ago, in an important sales presentation,
a customer actually said to me more than once,
“Kevin, ask me if I want to sign this contract.”
Apparently, I did not hear this. Instead, I
proceeded to provide him with proof and testimo-
nial to my wonderfulness until he finally became
adamant. “Ask me!” he said.
At this point, I said, “Would you want to sign
this contract?”
He said, “Yes. Now let’s talk schedule. When
can you start?”
I was so busy talking and avoiding the potential
rejection that comes with “NO” that I never asked
the closing question. It is a lesson I have never for-
gotten: Salespeople require the coaching stick.
The best salespeople are hard-wired for the job.
At their best, salespeople are capitalist athletes.
They like to win. And when they are not winning
they are high-maintenance time wasters.
