By David Gordon
There are really only two ways to increase sales: sell to new customers or sell more products to existing customers. Both require that distributor sales management and salespeople more effectively evaluate their customers, and identify new opportunities and manufacturers’ salespeople (direct and reps).
Marketplace competitiveness requires a back-to-basics sales approach that differentiates you, especially in light of the movement to more e-communications/e-commerce. No longer will “let’s see what today or this week brings” succeed. Planning and applying basic selling skills are the order of the day, so ask yourself these eight questions:
• Why am I calling on this account?
• What products is he/she not buying from me?
• How can I find out what application problems they are experiencing?
• Are there safety, code, labour saving or energy products I can sell them?
• How can I bring value to new customers?
• What resources do I and my company have to effectively cultivate new orders?
• What types of projects/companies does my customer (contractor) work with?
• What are my customer’s and his customers’ issues? Or for industrial or institutional accounts, what are their business initiatives and how can I help?
The question becomes, are you and perhaps more importantly your salespeople thinking this way?
One way to effectively increase sales is through joint sales calls. A time-tested strategy that requires some trust among channel partners but can be improved by planning. And it converts your salespeople from customer service resources (or order takers) to demand generators, hence increasing their value to the customer.
Yes, we know the horror stories and the issue of “Do I trust the rep?” But can you afford not to conduct joint sales calls with your key suppliers? What happens if “your” customer hears of a product from someone else (e.g., the Internet, direct from the manufacturer, a competitor)? What happens when the niche products that they need are presented by someone else? Or consider how many times your customer wants to hear, “Do you have an order for me?”
Effectively planned joint sales calls with objectives can be a very productive tool. The problem has always been setting expectations, pre-planning and follow-up. Here is where the sales or the marketing manager comes into play.
First, conduct a review of targeted accounts to determine, by generic or manufacturer product group, what each customer purchases. This product mix report is your key to selling something “new” (either a product category or a specific item) to existing customers. With this in hand, an examination of the data will reveal opportunities. Inviting the manufacturer’s sales rep for the product line to review the opportunities will further prune the list so there are no conflicts if the manufacturer is already getting the business (while also revealing interesting competitive insights to you).
Second, determine which products, new or existing, should be presented to each targeted customer. Products that support application solutions and are profitable are the best picks.
Third, motivation is key. To maximize effectiveness, consider an incentive for the distributor salesperson that rewards for activity (number of calls) and effectiveness (sales achievements). Joint calls require a lot of work. For the distributor’s and manufacturer’s salespeople, a reward is extremely important for success. Ideas that we’ve seen work include:
• spiffs
• promotions/contests, which may include non-cash rewards and gift certificates
• double or triple commission on specific products for a defined time period
• tickets to a special event (sport or concert)
• having the president/sales manager wash both salespeople’s car
Another key element is motivating the customer. While visibility is good, sales are better. To encourage customers, consider answering their WIIFM (what’s in it for me). Non-pricing strategies can help preserve long-term profitability. But remember, not every customer needs the presented product today. Extend customer purchasing benefits for 30-60 days. Experience has shown that you need to plant seeds for sales to grow.
And while the distributor benefits from increased sales as well as many intangible benefits, capturing the business frequently requires having sufficient inventory to support the desired (expected?) demand. Manufacturers: make it appealing for distributors to have more inventory at the point of influence (in the branch/CDC). Consider extended dating, sales guarantees with no-restocking fee for 6 months, competitive stock buy-backs if necessary, SPAs, and more. Distributors: ensure you have the appropriate marketing collateral from the manufacturer. Typically, joint sales calls don’t happen in a vacuum. They are part of a concerted effort to grow specific product areas. An integrated sales and marketing approach is important as both reinforce the message.
And consider joint calls to engineers. They want to see product and are the influencers of what gets speced/purchased. Being their friend can generate significant sales as they frequently have purchasing authority.
Joint calls can be effective when planned, increase business, and add value to your customer relationships. With every distributor and customer seeking an edge, joint sales calls ensure that your customer hears from you and your manufacturer.
David Gordon is Principal of Channel Marketing Group, Raleigh, NC 27614; Tel: 919.488.8635919.488.8635; www.channelmkt.com.
New Reality… “Keeping up with the Administrations”
By Carol McGlogan
EFC kicked off 2021 with an outstanding webinar featuring Janice Gross Stein, renowned Canadian political scientist, founder of the Munk School of Global Affairs and recipient of the Order of Canada. Ms. Stein has spoken at previous EFC conferences, earning many accolades, and this session was no different as we learned what to look for as the Biden Administration takes hold of the White House.
Our close economic ties to the U.S. means that Canadians must “keep up with the Administrations” to survive. Janice focused her discussions on industrial policy and climate change within an active intervening government.
A Podcast Interview on AFCI Technology with Vladimir Gagachev, Eaton
By Daniela De Marco
When it comes to EFC’s membership, there is no shortage of talent and expertise. The electrical community is innovative and at the forefront of powering our changing world. In 2020, EFC released a call to members for a chance to participate in the recently launched electro|POD — EFC’s Electrical Community Podcast.
Together with Gurvinder Chopra, VP Standards and Regulations, EFC, Rob McIntrye, recently retired Business Sections Manager, expert member Vladimir Gagachev, Manager Codes & Standards, Eaton Industries (Canada), and myself, Daniela De Marco...
Study Measures Digital Intensity and Its Impact on the Canadian Economy
Adoption of digital technologies by Canadian industries is associated with higher labour productivity growth and greater resilience to the economic impacts of the COVID-19 pandemic. From 2002 to 2019, labour productivity grew 22.1% in digitally intensive sectors — more than three times higher than in non-digitally intensive sectors.
Over the past two decades, Canada has embraced digital technologies at an unprecedented pace and breadth as businesses and individuals have relied increasingly on digital products and services.
Canadian Business Counts, December 2020
The COVID-19 pandemic continues to alter the business landscape. Some businesses have closed permanently, some have grown and others have been temporarily closing or reopening. In October, for example, the number of business openings (41,910) exceeded the number of business closures (32,420) for the fourth consecutive month.
As a result, the number of active businesses in October edged up 0.6%. Despite the slight increase, the number of active businesses was down 6.7% from February 2020.*
In This Together — Manufacturers and Reps
By David Gordon
Gene Biben, formerly President and CEO of Biben Sales, joined Channel Marketing Group earlier this month. Gene’s avowed desire is to “give back” to the industry, to help people work together. He will help reps achieve their goals and manufacturers optimize their performance, and relationship, to and with manufacturer reps. He’ll additionally support Channel Marketing Group clients’ research needs.
While Gene is well known by many manufacturers, we thought it would be interesting to ask him to consider changes he has seen over the years.
Ticket to Learn: The First Year as an Electrical Apprentice
By Darci Spiteri
This past month marked one year since stepping onto a job site and starting my electrical apprenticeship. Little did I know 2020 would throw in some curveballs, but it was a pretty fantastic year for self-development when I sit back and reflect.
Enter Pandemic, worldwide lockdowns, and my Jobsite shutting down for a month. Losing hours was a downside and with my apprenticeship being based on the number of hours worked, moving onto my second year will take a little extra time.
Changing Scene
Service Wire Co. promotes Kerith Richards to Regional Sales Manager – Canada and expands Seth Cook’s sales territory to better serve the commercial and industrial markets.
Kerith Richards will serve as Regional Sales Manager based out of Service Wire’s corporate headquarters, where she will be responsible for commercial and industrial sales in all provinces. In addition, Richards will continue her role as Sales Representative for Saskatoon, Manitoba, Ontario, Quebec, Nova Scotia, New Brunswick, Newfoundland and Labrador.
Guillevin International Acquires Wesco's Canadian Datacom Business
Guillevin International has announced the creation of a new division, Guillevin Datacom, which will be dedicated exclusively to various network infrastructure products. To support this new division and ensure its success, Guillevin acquires the Canadian Datacom business of WESCO International, whose team will join Guillevin's Canadian operations.
"We have targeted the WESCO business to launch our Datacom division because of the team's agility, expertise and in-depth knowledge of products from the industry's leading suppliers", said Luc Rodier, Guillevin's President and CEO.
Osram Appoints Ingo Bank as Chief Executive Officer
At its February 23 meeting, the Osram Supervisory Board appointed Ingo Bank as CEO until the end of April 2023. As announced, he will take over the role in addition to his position as Chief Financial Officer of majority owner ams.
The Supervisory Board also appointed Babette Fröhlich as Labor Director and thus to the Management Board of OSRAM Licht AG. The 55-year-old is to head the Corporate HR departments of Osram and the future combined company after the Domination and Profit and Loss Transfer Agreement signed with ams comes into force.
Integrated Marketing Presentation from Anton Morrison of Appnovation
On February 24th EFC conducted their Marketing Network meeting with a guest speaker Anton Morrision from Appnovation presents on the topic of “Integrated Marketing”, . EFC also shared information on EFC programs.
EFC also introduced Meena Bajwa, Schneider Electric as the new Marketing Network Chair and thanked Tom Mason, Sonepar, for his leadership, dedication as Chair and congratulations as he moves onto a new role at his organization.
IMARK Group Unveils New Public Website
Website visitors to the freshly designed IMARK Group website will learn about all of the benefits that accrue to members and suppliers in all IMARK divisions (Electrical.
HVACR, and Plumbing/Irrigation) as well as Luxury Products Group which supports decorative showrooms and IM Supply which is a national account sales solution for IMARK Group members. The website features videos from group leadership as well as an introductory video on the home page.
Peers & Profiles
David Nathaniel: A Talent for Still Being There at the Right Time — Part 2
By Line Goyette
Six years ago in February 2015, I interviewed David Nathaniel and called the profile I wrote “A Talent for Being There at the Right Time.” We met again this past February, this time virtually (without a cup of his wonderful expresso coffee). What follows is a summary of our conversation — “A Talent for Still Being There at the Right Time — Part 2.”
My first question to David was, what has happened in those six years? “Everything,” he said, and he started to laugh. “Obviously, we faced a lot of disruption from LED technology.
A Human-Centred Leader in a Highly Technical Field: EHRC Leader of the Year Stephanie Smith
By Blake Marchand
“It was quite surprising,” said Stephanie Smith of being named EHRC’s Leader of the Year. “Leadership in 2020 has certainly been a challenge for everybody in the world let alone the nuclear industry or the electricity industry.”
An engineer by trade, Smith spent the majority of her career with Ontario Power Generation (OPG). She was the first woman to be certified by the Canadian Nuclear Safety Commission at the Pickering Nuclear Generating Station where she served as Plant Manager and was recently named the first President and CEO of CANDU Owners Group. Smith is also a passionate advocate for diversity and inclusion.