It is an interesting time to be in sales across every business sector. In the COVID era, meetings have increasingly become remote, and reps in all fields have been polishing up on the nuances of making a pitch over platforms such as Zoom and Microsoft Teams. It is a skill unto itself; without being in-person, it can be tougher to judge body language and other nonverbal cues that can provide a rep with insight as to his/her approach.
Reps must walk a fine line. Between discounts, rebates and various allowances being proffered, and a deep appreciation/empathy for the challenges customers are faced in doing business during the time of COVID-19, they must resist the temptation to give away too much in order to win the business. Fortunately, they have their marching orders from sales managers and the corner office.
In the end, it’s less about dangling a price carrot and more geared toward solutions. “Reps need to focus on what can improve the clients’ situation and not deliver the message of promotions,” stated Brad Yocum, market director for Function4 of Sugar Land, Texas. “(Promotions) do not show a sincere interest in how we can be a resource. Promotions provide the message of selling a product, which is not ideal.”
Mike Murray, CEO of Integrated Business Solutions of Hawaii, points out that when the company rolls out specials, it sets a flat price for a flat configuration. That keeps the value proposition fair to both buyer and seller.
“We find that our sales reps try to hold the margin to the point that they have lost to competitors,” he said. “When we set the price, we know that the reps are offering a competitive solution that can win.”
Careful consideration and attention need to be paid to the compensation program, notes Chip Miceli, president and CEO of Pulse Technology, striking a balance between competitiveness and profitability. Manufacturers can often provide that needed push; Miceli points that Sharp has recently kicked in with incentives to make deals even more competitive.
“Dealers need to review each deal carefully, to be certain the customer is being well-served, and that there is enough in the deal to compensate the dealership as well as the salesperson,” he said. “This is a time, more than ever, to review each piece of business very carefully.”
Ray Belanger, CEO of Bay Copy in Rockland, Massachusetts, echoes Miceli’s sentiment regarding the role OEMs can play in facilitating wins. “It starts with strong relationships with manufacturers and what kinds of incentives they can provide to stimulate business,” he said. “And with the management being hands-on in terms of making certain of the profit margins in each deal proposed.”
For Fraser Advanced Information Systems of West Reading, Pennsylvania, new business is one of the dealer’s key drivers, according to Melissa Confalone, vice president of sales. “Our account executives’ compensation plans are set up to acquire new customers,” she said. “The key is to be aggressive on new business hardware and gain the 60 months of recurring clicks.”
