IN THE TRENCHES: Person-to-person selling still gets the best results
IN THE TRENCHES: Person-to-person selling still gets the best results
Why is it that some companies and organizations cut out their sales representatives just to save a few measly dollars? Then top officers wind up complaining that sales are dragging and usually blame it on a poor economy or other excuses.
The field people I refer to are those who make sales happen out in the trenches. They're the on-the-road company sales representatives and organizational marketing merchandisers. Many are disappearing from the sales scene.
Too many companies and trade organizations are still hung up with cutting back to a point where even their greatest asset the traveling sales rep is no longer a member of the staff. However, salespeople are the muscles of an organization and the key contact between the company and its customers. Without sales reps, a company will never grow.
One of my consulting business customers called me recently and asked if I knew of a merchandising representative from a particular commodity board who could call on them. Surprisingly, I learned that all of the field reps from this organization were let go. When asked why, I was told the group wanted to go in a different direction. What, no more selling?
There are many other companies and organizations choosing to refocus priorities and go in different directions these days. Most management people feel that the best strategy is to minimize labor costs. Anybody who gets in their way is chopped with no questions asked. But why the sales force?
The problem is that management executives associate cost-cutting with making money. They say the company cant afford field sales reps but still want to boost sales. If management were to wait for customers to call them on the phone, a company would be out of business in no time flat. Without those field reps having a direct, human, face-to-face relationship and dialogue with customers, nothing will happen.
Despite the influx of modern technology throughout the business world, it simply will not eliminate the live, face-to-face salesperson altogether. That method still plays a vital role and will continue to be quite practical and unique in boosting sales.
Please dont get me wrong. I think technology is the greatest tool to come our way. It replaced papers and pencils, and now provides us with tremendous information and data in our day-to-day work functions. Produce executives and buyers do not want to rely just on computers, telephones, fax machines, snail mail and the Internet as their only methods of doing business with suppliers. A majority will agree that they want to see a real live person and talk with that person in reviewing product programs.
I know of several produce companies that decided to eliminate their field sales force as part of the trendy cutbacks. One in particular had six salespeople who were responsible for specific geographical areas. Each would call on companies and meet with the decision-makers to promote and sell their product.
Then the doomsday hacker came along and terminated all the field reps. Consequently, sales began slipping and growth came to a halt. One year later, the company filed for bankruptcy. Today, that company does not exist. Am I saying that cutting out the field sales team was the reason for its total demise? Absolutely.
Some of the produce industry commodity boards also decided to cut back on budgeting expenses to satisfy many of the growers. In the process, the field merchandisers were the first to go by the wayside. Most of those same commodity boards and growers to this day have experienced excruciating pain from the lack of product movement.
The companies and organizations that made those drastic cuts are now complaining about their lagging sales. Was this supposed to be a shocking surprise?
One thing that is really irritating is the fact that there are so many people who forget that everything we do in the produce business is tied to sales. Some company executives spend most of their energy minimizing labor rather than concentrating on selling company product.
It all starts at the top. The leader in charge of a corporation is the only person who will separate company sales growth from liquidation. Suppose the CEO jumped up on the meeting room table and shouted, "Sell! Sell! Sell! Everybody get out in the field and sell! Do it right now!" What do you think would happen? Thats simple. Everybody would go out in the field and start selling.
Field sales reps are the most important part of a grower, shipper, wholesaler or manufacturer. In addition to selling product, the reps counsel customers with their expertise on merchandising tips, advertising ideas, ways to lower costs and methods to increase sales. This is all accomplished more successfully by meeting with clients on a person-to-person basis. Its not the on-the-road sales and merchandising reps that are costing a company big money. If anything, they make a company big money by being out in the trenches working with customers one-on-one.
Those companies or organizations that are contemplating reducing or cutting field sales representatives to lower operating costs better stop and take another serious look before making that final decision. It could be devastating. Sales will never be the same. They will be worse.
(Ron Pelger is the owner of RONPROCON, a consulting firm for the produce industry. He can be reached by phone at 775/853-7056, by e-mail at [email protected], or check his web site at www.power-produce.com.)
The field people I refer to are those who make sales happen out in the trenches. They're the on-the-road company sales representatives and organizational marketing merchandisers. Many are disappearing from the sales scene.
Too many companies and trade organizations are still hung up with cutting back to a point where even their greatest asset the traveling sales rep is no longer a member of the staff. However, salespeople are the muscles of an organization and the key contact between the company and its customers. Without sales reps, a company will never grow.
One of my consulting business customers called me recently and asked if I knew of a merchandising representative from a particular commodity board who could call on them. Surprisingly, I learned that all of the field reps from this organization were let go. When asked why, I was told the group wanted to go in a different direction. What, no more selling?
There are many other companies and organizations choosing to refocus priorities and go in different directions these days. Most management people feel that the best strategy is to minimize labor costs. Anybody who gets in their way is chopped with no questions asked. But why the sales force?
The problem is that management executives associate cost-cutting with making money. They say the company cant afford field sales reps but still want to boost sales. If management were to wait for customers to call them on the phone, a company would be out of business in no time flat. Without those field reps having a direct, human, face-to-face relationship and dialogue with customers, nothing will happen.
Despite the influx of modern technology throughout the business world, it simply will not eliminate the live, face-to-face salesperson altogether. That method still plays a vital role and will continue to be quite practical and unique in boosting sales.
Please dont get me wrong. I think technology is the greatest tool to come our way. It replaced papers and pencils, and now provides us with tremendous information and data in our day-to-day work functions. Produce executives and buyers do not want to rely just on computers, telephones, fax machines, snail mail and the Internet as their only methods of doing business with suppliers. A majority will agree that they want to see a real live person and talk with that person in reviewing product programs.
I know of several produce companies that decided to eliminate their field sales force as part of the trendy cutbacks. One in particular had six salespeople who were responsible for specific geographical areas. Each would call on companies and meet with the decision-makers to promote and sell their product.
Then the doomsday hacker came along and terminated all the field reps. Consequently, sales began slipping and growth came to a halt. One year later, the company filed for bankruptcy. Today, that company does not exist. Am I saying that cutting out the field sales team was the reason for its total demise? Absolutely.
Some of the produce industry commodity boards also decided to cut back on budgeting expenses to satisfy many of the growers. In the process, the field merchandisers were the first to go by the wayside. Most of those same commodity boards and growers to this day have experienced excruciating pain from the lack of product movement.
The companies and organizations that made those drastic cuts are now complaining about their lagging sales. Was this supposed to be a shocking surprise?
One thing that is really irritating is the fact that there are so many people who forget that everything we do in the produce business is tied to sales. Some company executives spend most of their energy minimizing labor rather than concentrating on selling company product.
It all starts at the top. The leader in charge of a corporation is the only person who will separate company sales growth from liquidation. Suppose the CEO jumped up on the meeting room table and shouted, "Sell! Sell! Sell! Everybody get out in the field and sell! Do it right now!" What do you think would happen? Thats simple. Everybody would go out in the field and start selling.
Field sales reps are the most important part of a grower, shipper, wholesaler or manufacturer. In addition to selling product, the reps counsel customers with their expertise on merchandising tips, advertising ideas, ways to lower costs and methods to increase sales. This is all accomplished more successfully by meeting with clients on a person-to-person basis. Its not the on-the-road sales and merchandising reps that are costing a company big money. If anything, they make a company big money by being out in the trenches working with customers one-on-one.
Those companies or organizations that are contemplating reducing or cutting field sales representatives to lower operating costs better stop and take another serious look before making that final decision. It could be devastating. Sales will never be the same. They will be worse.
(Ron Pelger is the owner of RONPROCON, a consulting firm for the produce industry. He can be reached by phone at 775/853-7056, by e-mail at [email protected], or check his web site at www.power-produce.com.)
