Rainmaker Consulting Newsletter
Issue: # 9June 2011

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What's New?
New Capabilities in MS Office, make E-mailing from Prospector Pro better than ever.

New Graphic E-mails

The e-mail you see here was sent using Prospector Pro.  That's right, you can now include pictures and build graphics right into the e-mails you send from Prospector Pro.  You can also merge data so you can include the customer's name, your phone numbers and much more in the body of the e-mail.

 

We wish we could take credit for this new capability, but it is actually a result of improvements to the Microsoft Office Suite that now make it possible for us to build and send templates with these new features.

 

Every Prospector Pro user who has wanted to do more with their e-mails needs to thank Brad Weihe of Trading Post Homes for discovering this new capability.  By working with a newer version of MS Word, Brad was able to create a great looking template for his marketing e-mails and then merge it with his Prospector Pro Database using a new office feature called "Merge to E-mail".

 

In order to take advantage of this new feature, you will need to have MS Office 2003 or newer, but for the first time since Office 98, we can say that the new features are worth the expense.

 

There is a considerable amount of work to do to build good looking templates and to convert all of your existing e-mails and followup programs to this new format, but Rainmaker can help guide you through this process or if you prefer, we can do the work for you. 

 

To learn more about this new feature, please join us for the Webinar, "What's New in Prospector Pro" on July 12th by clicking here.  If you can't wait untill then to get started, call Chad at (800) 336-0339.

Apathy in Your Sales DepartmentBest Practices
Overcoming Apathy in Your Sales Force

 

As you might have read in our December 2010 Rainmaker Newsletter, Gary Adamek, owner of Fayette Country Homes, had a banner year with sales topping $10 million and a very impressive bottom line of over 12% of Net Profits Before Tax.

 

But he also had a big problem looming ahead --running out of the inventory and keeping his sales force from becoming spoiled by the relatively easy sale of those FEMA units.  His concern was that his salespeople would not be able to make a successful transition back to selling new homes once the FEMA units were gone.

 

As covered in that Dealer Spotlight article, part of his plan to re-energize his sales staff was to retrain his salespeople.   Gary does not want to have to replace his existing sales staff with new and "FEMA unspoiled" salepeople.  So he is working with sales trainer John Underwood of The Selling Edge to address directly how to get his salespeople out of their "State of Apathy" in regards to selling new homes again. 

 

There are only two options when it comes to getting someone out of apathy.  Either you fix it and the person moves up and out of apathy or you move the person out.  If the person is in apathy and cannot get themselves out either through their own efforts or through those efforts of others, they have to change jobs and maybe even careers.

 

John has been working very directly with Gary on the four different approaches to fix the apathy problem:

 

  1. Raise Standards.
  2. Boost Accountability
  3. Change Tasks
  4. Awaken Emotions

Gary was kind enough to share some of the specific actions he has taken in regard to these individual approaches. 

 

Raise Standards - Gary had been using the Variable Gross Profit (VGP) reports from his TCE program to see what VGP had been produced by each store and each salesperson.  He also used the combined numbers for the entire retail operation to keep track of his overall VGP production. The problem was that his location managers, who also received these VGP reports each month, were looking at them more as information rather than tools with which to make management decisions.

 

Gary decided to work shoulder-to-shoulder with each lot manager to review the VGP production reports and teach them how to use the information from these reports to get the sales personnel at each location out of what he perceived as this "State of Apathy." 

Here is an example. A very loyal salesperson since 2004 was the lowest performer at her location. Her VGP production had been falling off over the last couple of months.  In looking back over the seven years she had been with the dealership, it became obvious her performance had been steadily declining.  Gary confirmed with the lot manager that she had been receiving the same number of prospects as the other three salespeople and noted the top performing sales person at that lot was generating three times the VGP compared to this long-term employee.  The next to the lowest VGP generating sales person was at twice her performance.

Gary and the lot manager, because of the loyalty and long term employment of this person, decided to take her "under their wing" and did a great deal of one-on-one training, coaching and review - just trying to help.  As a result, each time there was a short-term improvement, but then she was right back to her old habits and old performance. 

After several months of this attention, Gary sat down with the lot manager and pointed out that location had lost $20,000 since the first of the year.  If the sales person in question had performed just at the average of the remaining three sales people, the location manager would have generated $40,000 more VGP and turned a profit of $20,000 to date. And the lot manager would have received a commission.

As a side note, this lot manager had also been with Gary for years.  Although it had never been talked about, she was convinced Gary would not let her fire this sales person - she was just too much a part of the "family."

Within two days of the $40,000 conversation the lot manager let that person go and began the process of recruiting and hiring another.  Even without a new sales person on board, she is very much looking forward to a turnaround of her bottom line and resulting commission checks thinking fewer prospects will be "burned" as they are handled by the remaining three sales people."  Gary had successfully Raised the Standard for this lot manager who in turn fixed the "Apathy" problem with that sales person.  The lot manager and Gary are both in a lot less stress regarding the future performance of her lot.
  
Boost Accountability- Ever since starting to use Prospector Pro in late 2004, Gary has had his lot managers classify those prospects who have not bought from him as an A, B, C or D - according to very specific criteria about that prospect.  His three lot managers have repeatedly told Gary they are following that criteria and Gary has gone along with it.

Gary decided to "inspect what he expected" and went to each location and had them pull all the data on a set number of these prospects and asked them specific questions about each prospect and why a specific status was assigned.  People would insist they knew all about a particular prospect. They assured Gary they had classified them correctly. Then Gary asked to see the file.  As soon as Gary asked specific questions, the jig was up - they didn't know the answers they had to know in order to properly classify them.

As a result, the "heads up" spread quickly through the grape-vine and salespeople throughout the company started to brush up and re-classify their prospects to be ready when Gary pulled a prospect's file. 

 

Change Tasks -This can be done by asking a person to do something for you that they haven't done before and asking them to report the results back to you.  If you give people something to sink their teeth into and give them a manageable challenge, many will -- with delight-- step up to the plate.

 

Another approach is simply to change the infrastructure of your dealership and put those in apathy in different jobs.  Gary closed one location and move the lot manager and his wife of that location to one of the three remaining lots.  Upon their arrival, the "manager-in-apathy" of that location decided to leave rather than address his stagnant performance.  Again, a person in apathy has to fix it (by themselves or with a little outside help) and move up or they have to move out.

 

If you too would lie a little help getting your team back on track, call John Underwood at (239) 389-2056 or join John and Chad for their free webinar  on July 7th describing the Business Development Program that Gary is using to boost his sales.  You can register for that webinar by clicking here.

 

Good IdeasTry This
Helpful Tips for Rainmaker Software Clients

The Quick Parts Modify Routine in the Service & Parts system contains many powerful reporting features that will help you identify problems or errors in your parts inventory.

 

For example, our system will allow you to sell a part that is not in your inventory (so that a customer doesn't have to wait with the part in hand while you figure out the problem), but this creates a negative inventory amount.  In reality, you can't have negaitve inventory, so you need to regularly identify any negative quantity items and find out how many you really have.  The Quick Parts Modify Routine allows you to check a single box to list all items with negative on-hand quantities and print this list.

 

Quick Parts Modify Routine

You can also easily catch the opposite problem of someone having keyed in too much of a particular item by using the filters as shown to the left.  By ordering the report by extended cost, you can quickly see any inventory values that don't make sense.  Do you really have $15,000 worth of bolts?  Probably not.

 

Again, you can easily print out the results of any filters by bin location so you can quickly find your real inventory amounts and can make adjustments in the Inventory Sets Routine to correct your inventory values.

  

Other helpful filters include listing all parts from a particular supplier or any parts that belong to a particular class, i.e. plumbing, electrical, awnings, hardware, etc.  If you are trying to do a quick inventory, you can sort by bin and use this report to go start counting.

 

If you are unfamiliar with this routine and would like some help getting started, please call Shane at (800) 336-0339 and he can help.

In This Issue
Exciting New E-mail Capabilities with Prospector Pro
Overcoming Apathy
Helpful Tips
Internet gives Virginia Dealer a National Scope

Quick Links

 

Check out our Guest Blog at Manufactured HomeSource

 

 Read about Rainmaker at RV Daily Report

Nelson Homes

Dealer Spotlight

Rob Rutherford

Nelson Homes

 

Rob Rutherford came from a highly technical manufacturing background before getting involved in the higher end of the Factory Built Housing Industry.   Rob is now a real estate broker and owns two retail sales centers in Virginia.  His typical project involves land, the home, excavating, septic tanks, a basement, decks, porches and a garage with a price point between $180,000 and $250,000.  Rob usually pulls a PVR of 15%, but points out, "I do not turn down sales".

 

Rob's strategy of being a full-service homebuilder means that he can compete for anyone buying a home in his market and he does a lot of that competing on the Internet.  Rob has built eleven different web-sites each reflecting a different aspect of his services or a different approach to marketing.  From these sites he generates about 70 new internet visits each day with four or five of those visits turning into workable leads - everyday!

 

All of these sites have been constructed by Rob who taught himself over a period of six months to optimize the sites to get on the first page on the search engines.  Rob does all his own optimization and website maintenance using several tools such as

a la mode which provides templates for listing homes and sharing those listings between sites.

 

Once Rob captures a lead from his websites, he uses several technologies to pursue and sell that lead:

 

· Each sales person has a company issued cell phone to which incoming calls from the website are directed based on who is "on-call". Salespeople are expected to respond immediately.

 

· Rob uses follow-up tools he has incorporated with his web-sites and Rainmaker's Prospector Pro to facilitate the more personal follow-up from his sales team.

 

 ·Rob has collected over 3,000 leads over the last three years and he communicates with these leads regularly using e-mails and blogs.  He actively searches for information he can share to maintain top-of-mind awareness with these future buyers.

 

· Rainmaker's Dealmaker System is used to create and manage all proposals.  Rob credits the use of this system with helping his sales people address all the details of the construction project up front with the customer.

 

Since focusing his attention on the Internet three years ago, Rob has seen 40% - 50% of his sales come from Internet leads.  He recently had a million dollar sales month with the majority of that sales volume coming from people moving to Virginia from out of state.

 

Rob assigns just two sales people to handle all his Internet leads and he checks frequently to verify that these leads are being worked properly because the average time from initial contact to closing on these kinds of sales is often between one and two years.

 

Clearly, this kind of long-term sales process is not the norm for most sales people, but Rob has already sold as many houses this year as he did all of last year.  This would not have been possible without the long-term commitment to Internet Marketing that Rob started three years ago.

 

Rob's use of technology has spread beyond his sales and marketing efforts and he now uses technology to oversee many aspects of his business with tools such as: internet cameras monitoring jobsites, GPS tracking of all service vehicles and an on-line scheduling system program for managing his construction contractors.  With Terminal Services, he can do all his monitoring, communication and training from anywhere he has a computer. With ten projects currently under construction, this remote monitoring ability gives him much greater control over his operations without spending all of his time traveling between projects and sales centers.

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July

Training

Schedule

6th - Unlocking the Secrets of VGP Session #1 - Free Webinar (3:00 EDT)
7th - BDA - Sales Development Program- Free Webinar (2:00 EDT)
11th - 15th - In-house Pursuit & Service Training - New Installation
12th - What's New in Prospector Pro- Free Webinar (2:00 EDT)
13th - Unlocking the Secrets of VGP Session #2 - Free Webinar (3:00 EDT)
14th - Increasing Sales in Todays Challenging MH Market - Free Webinar (2:00 EDT)
15th - Getting your Chattel Deals Financed - Free Webinar (3:00 EDT)
18th - Ten Strategies for Increasing Profits - Free Webinar (2:00 EDT)
20th - Unlocking the Secrets of VGP Session #3 - Free Webinar (3:00 EDT)
27th - Unlocking the Secrets of VGP Session #4 - Free Webinar (3:00 EDT)
28th - Unlocking the Secrets of the Internet - Free Webinar (2:00 EDT)
Aug 2nd - When Quickbooks is no longer Enough - Free Webinar (2:00 EDT)
Aug 3rd - Unlocking the Secrets of VGP Session #1 - Free Webinar (3:00 EDT)
Click on the links above to register or call (800) 336-0339 if you need help or more information.