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It's All In The Numbers |
The flight from Atlanta to Jacksonville is one of Delta's shortest. It was one of the most enlightening for me the last time I made the trip.
My seatmate was Doug Peacock. Doug bought a $33 million dollar company in 1993; that company will generate $700 million dollars this year. Not bad for a company making industrial parts and selling them to some of the toughest buyers in the marketplace.
Like you, I was curious about his strategy - maybe even his secret - for success. He said it was all in the numbers and he proceeded to show me a presentation he had made that morning at his corporate meeting in Phoenix. In simple, layman's terms, he walked through the basics of a profit and loss (P&L) statement. He showed how seemingly small adjustments could have a major impact on the bottom line and how "lucrative" offers from clients could put us out of business.
His advice to his salespeople is, "Take the controller to lunch". It's his way of suggesting that his salespeople learn to use the numbers to make more sales.
Jim Franklin of Decisioneering www.Decisioneering.com used his CFO background to tutor his salespeople. He taught them to read spreadsheets, 10K's and 10Q's - anything that would help them better understand their client's business. As a result, their numbers kept improving until they were bought- twice! The latest buyer was Oracle - what did Oracle see in the numbers that attracted them? What would investors have to see in your numbers to invest in your company.
Best of all, how could your salespeople benefit from a better understanding of the numbers?
Still, the best example of managing by the numbers that I've seen personally is WIKA, a manufacturer of temperature and pressure instruments. Michael Gerster, President, has an unusual knack of knowing what numbers he needs, knowing how to have them delivered in a timely and usable fashion and how to make difficult decisions based on the numbers. he seamlessly integrates numbers from sales, manufacturing, engineering, customer service, etc. WIKA's revenue last month was another record - and then some. If you are a Vistage Member or Chair, you can contact him through the Vistage network.
Coordinating the numbers between manufacturing, accounting, sales, and all other areas is the role of the CEO. It is much more effective and accurate when the sales numbers are detailed. These three examples prove it.
Let's declare this month, "National Take A Finance Person To Lunch Month". Have your salespeople "feed a nerd". They will both benefit from the dialog and the ultimate winner will be your customer. Being able to better explain how your products and services will impact the customer's bottom line empowers the decision-maker to make a more confident decision.
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Your Questions... |
"My long-time customer is telling me that their new CFO is implementing changes in their buying. I have to resell everything they are buying by including an ROI analysis and lease-vs-purchase options. This is too much work and I'm not sure how to do it. Should I let this account go?"
This is an opportunity for you to take your selling to the next level. If you can satisfy this difficult customer, the CFO, you can succeed with many others.
This is not a do-it-yourself process and don't be shy about asking for help. What you want is someone who:
- Understands what the customer wants in a financial cost justification, and
- Can show you how to develop this analysis in the future
If you have a CFO, Controller, Accountant or other finance guru in your company, learn from them. Ask them for their help. They are actually as excited about sharing finance ideas as you are about sharing sales ideas. They love this stuff.
Ask them to help you develop a tool - maybe an Excel spreadsheet - that will help you address this type of issue in the future. You will want to learn the principles and the techniques for delivering a quantified cost justification - it's easier than you may think.
Don't have a numbers expert on your staff? No problem. Go to a web site like www.Elance.com, post your need and wait for people all over the world to come to your rescue.
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Recovering From the Lost Sale |
When we lose a sale, especially a significant one, we can easily go into a slump. How do we avoid that? How can you coach your people who have just lost a "big one"?
Sales slumps usually begin with a lost sale. Nobody bats 1.000 in sales so losses are inevitable - do not let them take down your attitude. Some ideas:
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Remember that wins and losses come and go - it's part of the game.
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Conduct a loss review with someone you trust, someone who knows you and knows sales, and determine what you will do differently next time.
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Use the numbers. If you did not do a quantified cost justification before, go back and do it now, even after the sale is lost. It will help you remember to do them in the future and it will show you some ways you could have salvaged this sale.
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Do win reviews as well as loss reviews and capture them on paper or in media. The best encouragement for you may be the reminders of when you did things well - it reminds your subconscious mind that you are capable of winning.
Win reviews are as important as loss reviews - do them often
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Vistage and TEC Chairs: Please forward this to your members and use it to stimulate conversations in your one-to-ones and your Executive Sessions. They will eventually thank you for it!
Thanks.
Teach Others!
Chuck Reaves, CSP, CPAE
21 Associates
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Chuck Reaves, CSP, CPAE |
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| Here are some ideas you can use...
I hope this newsletter finds your sales success at a higher level than ever. Everyday, someone teaches me something new about sales. This issue addresses something that I had been taking for granted. If this helps you, pass it on to someone else - like a client - to help them sell more successfully. |
| Chuckism #6: |
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"In the history of recorded time, no customer has ever said,
'Your price is too high,'
and meant it."
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| Want a promotion?
Need a raise? |
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Do what you do better than anyone else
An old adage says, "Whatever you do, do it so that no man living, no man dead and no man yet to be born could come back and say,'I could have done it better'".
In an age where sometimes flash outsells substance, keep focusing on doing what you do and do it better and better.
The link below will take you to a juggler who personifies this idea. He only juggles three balls, not seven as some do. And he only uses balls, not chainsaws, knives and torches. Yet he touches his audience by making it all happen with emotion, style and inspiration. It's something all leaders need to consider.
Make sure your speakers are on |
| Chuckism #22 |
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"If the person I am talking to cannot understand the difference between cost and price, I am selling to the wrong person."
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| Chuckism #48 |
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"The person at the table who knows the most about the other person's business wins." |
| From Chuck's web site:
"You Might Be A Salesperson" |
"If your vacation included your spouse working a booth, you might be a salesperson."
"If your anniversary dinner ever included a client, you might be a salesperson." | | |
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