Sunday, March 21, 2010
What are we hiding?
PLEASE LEAVE COMMENTS!!! I need feedback.
I’m not sure what I want to accomplish with this. Just let me ramble a few minutes and maybe I’ll figure it out. The encounter I’m going to try to relate showed some very strong elements of a great sales process. I saw everything from a well executed sales procedure, to evidence of good sales training, to good salesmanship, to good sales management systems. I think the thing that hit me the hardest though was the fact that the people in this company were so open and honest about their sales procedure, as though they had nothing to hide, that it allowed me to let my guard down as a customer. I knew they were trying to make a sale, and I was perfectly okay with it.
Let me set the scene. One of our clients has a rather disjointed cashiering system and I had heard that an unnamed chain of music stores has an excellent system so I went into one of their stores near my house to observe. The following is an account of what I experienced when I walked through their door. Now remember, I’m here to observe, NOT to buy anything.
Within a matter of seconds, I was greeted by about half a dozen smiling faces, all equipped with a warm friendly natural sounding, but uncannily similar greeting. I was asked by one particular employee if I had come in to look at anything specific and when I responded that I hadn’t, he announced that he would help me get my bearings by giving me a quick tour of the place. We ended up in the pro audio room, where they keep all the big sound reinforcement systems. (I have this fantasy about putting a concert quality sound system in my living room.) The salesperson again announced his intentions and sort of set the agenda for what was next by saying, “Let me give you a few minutes to look around, and I’ll be right back to help you with any questions.”
I thought his whole approach was really very cool. He simply told me, with both his words and his actions, that he knew what I was there to do, that it was his job to help me do it, and that he fully intended to do so. This guy was so comfortable with his sales procedure that he was not only NOT hiding it from me; he was letting me in on it.
When he came back, he asked me questions, he listened to my answers, he showed me a few things he thought I might like based on those answers, starting with the lower priced stuff in the category and then moving up in price until the point when I asked, “How much?” Then he gave me a comprehensive presentation of the system he thought I liked the most and calmly and unobtrusively asked me to buy it. When I hesitated, he simply asked me some more questions, listened some more, and then formulated a “Magic Question” (If I could, would ya?) based on my objections, and asked me to buy again by using that question. He was operating so naturally and so up front about it, I was blown away. I wanted one, he wanted me to have one, and he made no bones about it.
When I looked to Mrs. Hackett for approval and got none, (You married guys know the look) I told him that we would have to wait till I got home from my next road trip before I could fit it in the budget. He then announced that he would like to put me into his follow-up system so that he could get in touch with me when I returned.
Again, he had absolutely nothing to hide from me. He even took me around behind the counter and explained how their follow-up system worked as he entered my information into the computer. It was designed much like our Day Planner system in that the Manager would help determine the next action to be taken, hold daily meetings with each salesperson to help them plan how to best complete those actions, and get reports as to how each customer was treated, how far they got through the buying process, and what the final results were. Now for the coolest part; he did all of this before he knew that I did sales training, and once he found out that I was, he made absolutely no changes in his approach. He was so confident with his sales procedure, that he was okay with me knowing that he was working a sales procedure.
Now I’m not so sure that the only reason I was aware of what he was doing throughout the entire encounter was because I do sales training. I think the reason I could see what was happening was that he had no reason to hide what was happening. He was trying to help me get the sound system I wanted… so what’s to hide? By showing me his follow-up system, he was telling me that he wanted me to have one when I’m ready, and when I am, he wants me to buy it from him. And it was working!
My wife and I wandered around the showroom for a few minutes trying to figure out a way to shuffle some money around to make this thing happen. I know this doesn’t sound like anything too remarkable, but let me remind you of something. I went in the place to observe a cashiering system and suddenly I’m trying to buy a sound system. Man, if ever a customer came in and was really “Just looking”, it was me. Now I found myself wanting so badly to buy something from this guy that I was trying really hard to do so… and I walked in the door with no intentions whatsoever of buying. And now even my wife wanted to buy the system! How often does that happen?
I think that all too often as salespeople, we try to hide from our customers the fact that we want them to buy something from us. It’s almost like we have this technique carried over from when we were trying to pick up girls and we didn’t want them to know that we were trying to pick them up. It’s like the Wizard of Oz hiding behind the curtain.
What these guys did so amazingly well was what I try to preach all the time; he wants one, and I want him to have one. So why is it that we try to hide the fact that we want our customers to have one and that we have a process for helping them get one? Is it just me?
Wednesday, February 24, 2010
The Dealer of the Future.
Things have changed. They told us that things were gonna change… but they lied – things have already changed. The two big changes are Harley has overstayed its welcome, and the nation’s economy is facing challenges. The doom and gloom merchants, masquerading as announcers on the evening news, are telling us out one side of their mouths that our economy is getting its butt kicked. All the while the Wizard of Oz, the advertisers behind the screen, are doing everything in their power, including spinning (pronounced “manipulating”) the news, hoping we’ll borrow more money from them than we can possibly pay back.
Good news is that things are always changing and the people here in the real world know that. We’ve known things were changing for the last eighteen years while Harley dealers have been breathing the rare air of Never-land. But alas, things have changed in Never-land and they’re gonna have to start living life like the rest of the motorcycle world. There are actually dealers devastated by the idea that they may be forced to accept offers as low as MSRP, while right across the street, there’s an import dealer who would give the birthrights to his firstborn to get MSRP.
I don’t think it’s gonna be much harder to buy a motorcycle because of what’s happened in this weird economy, I just think that it’s gonna be the best and most customer oriented salesperson that will help the customer feel good about pulling the trigger.
For every dealer wringing his hands about the coming market trend, there’s another one licking his chops at the prospect of watching the competition go the way of the dodo bird for lack of the systems and processes to do things on purpose.
I’m actually excited to see who will emerge on the other side of whatever we’re going though as an industry. I don’t know all of their names but I DO know that they operate with purpose and conviction that good people equipped with good process will produce extraordinary results during extraordinary times. And make no mistake – these are extraordinary times that we’re headed into.
Don’t take away from this rant some prediction that you can hold me accountable for one day. I have no idea what the coming weird economic adventure odyssey will be other than… well… an adventure. It will be dangerous, exciting, scary… you know… just like life itself.
Two of our clients were in the bicycle business before coming to the motorcycle business. They both told me that the big manufacturers promised they’d never sell their bikes through any other medium than retail bicycle shops; the independent guys with a profile similar to that of the average motorcycle dealer of today. Then the third world brands started showing up everywhere from Wal-Mart to the local mower shop and before you could sneeze, it was nearly over. Sound familiar?
Here are a few characteristics of the dealers that will survive the next phase of change and be positioned to capitalize:
They’ll be very much in the used bike business. We’ve always recommended that dealers strive to reach a 2 to 1 new to used ratio. In the future, it may take a 1 to 1 or even higher ratio to both have and control your inventory. Being in the used bike business keeps OEMs honest by helping you to control your inventory based on your agenda instead of blindly letting the OEMs push their agenda. The great dealers will have a healthy at-arms-length relationship with the OEMs. They don’t swallow everything out of the mouth of the manufacturer just because the “Factory Rep said so”. If the latest greatest program makes sound business sense, participate. If it doesn’t create a win/win for you and the OEM, DON’T!
They’ll be in 20 groups. If you’re not comparing yourself to other dealers in the business, how can you possibly know “how good ‘good’ is”? You can only know whether you’re doing better or worse than you’ve done before. It’s a great thing to have an internal yard-stick, but it won’t tell you where you can improve your operation.
They’ll take sales training very seriously. Accommodating people don’t sell stuff. They merely accommodate people. You need to have a way to ask every single customer to buy. The more standardized your method for doing so, the more control you’ll have and the more likely you’ll be to actually get it done.
They’ll have sales processes for every department in the dealership with Traffic Logs at every retail counter in the dealership so they can measure all the elements of each sales process.
They’ll market differently as well. They’ll quit trying to reach people with traditional (pronounced “old and moldy”) sources of advertising such as print, television and radio. They’ll reach people who’ve shown interest in powersports products – the people on their Traffic Logs. They’ll also use what we now see as “unconventional” methods like texting, blogging, and other “viral” marketing strategies; methods that will be considered quite conventional (if not old fashioned) within another five years. Listen, my 23 year old son, our target demographic by the way, doesn’t listen to the radio, he listens to his iPod. And newspaper? That’s the stuff you line the bird cage with, right? He’s NEVER read one. With his TiVO, he skips all the commercials. And he’d rather have a text conversation with me than a phone conversation – we text each other for hours. In short, you can’t reach him using conventional means… period!
Get out in front of this thing. It’s different than most of us have ever seen. It’s scarier than anything we’ve experienced since the late 80’s. And nobody knows what the world will look like on the other side of it. To borrow a surfing illustration, you’re either in front of the wave, or you’re behind it. I can’t promise that if you paddle, you’ll catch this coming wave and ride it successfully to the beach. But I can promise you that if you don’t paddle, you ain’t gonna catch any wave.
So paddle your butts off… I dare you.
Monday, February 8, 2010
Help me out. Is this worth writing about?
The Karma of Currency
I had some thoughts about leadership; weird thoughts, but thoughts nonetheless. Here they are. I feel that there are a number of different currencies that relationships must trade in. One of those currencies is cash, but cash is by no means the only one.
If you want to employ someone to make you money, you've got to invest money in them in the form of a paycheck. Likewise, if you want someone in your company, a manager for example, to become a better leader, you must invest leadership in that manager in order to derive a return. You must be a good leader to them as opposed to being a micro-manager.
If you want believers on your team, you have to believe in them. If you invest faith, faith is what you’ll get in return.
I’m not unrealistic about my assertion; I’ve been burned by many who I’ve employed in the past. I’ve invested leadership, energy, faith, and cash in people who have taken it all and given no significant return. But the one thing that those broken relationships have in common is that they ended because of money issues, not the intangible currencies.