Sold
on selling
RPM Inc. in western Michigan earns the
Progressive
Distributor Sales Training Excellence Award.
by Richard Vurva
When Bruce Baker acquired RPM Inc. in April 2000,
what he learned about the company came as
no big surprise. Its sales force was long on
experience and product knowledge but, like
most distributor sellers, had little exposure
to professional sales training. As a result, salespeople focused on selling
products and tended to spend most of their time within a narrow customer group.
It didn’t take long for Baker, who has
a long history of managing industrial
distribution companies and recently served as president of the Industrial
Distribution Association, to put his imprint on the Grand Rapids, Mich.,
company. First, he invited key managers and a leading salesman to join him in a
series of off-site planning meetings to develop a market analysis for the
company. The group met over a four-month period to assess RPM’s strengths,
weaknesses and market opportunities. After completing
the analysis, the team shared its
findings with the sales force to
give them a better understanding
of the products and services they could promote within specific
customer segments.
Baker’s next step was to schedule a series of
training sessions for the company’s five outside salespeople, led by
well-known distributor sales coach Dave Kahle of the DaCo Corporation.
Despite the abysmal economy, the sales team is
approaching
customers with renewed vigor and purpose. Today, instead of looking at
themselves as just another
belt and power transmission
components supplier, RPM’s
salespeople approach customers
in a new way.
“We describe ourselves as a
material conveying support
company,” Baker says. “Whether
it be a roller conveyor or a belt
conveyor, whatever you’re doing,
we can provide anything you need to keep that material moving within an
operation.”
The company’s efforts earned it
Progressive
Distributor magazine’s 2002 Distributor Sales Training Excellence Award.
The bad old days
In the past, Baker says,
salespeople were more into selling things. They’d go to customers
and say, “I can get you a motor, a bearing, etc.”
“Now, we’re trying to sell
the company as a full-service
material handling conveyor support company,” he says.
For example, one of the core competencies revealed
by the
market analysis was RPM’s field
service capabilities. Although RPM offered a 24-hour, seven-days-a-week belt
repair service, it was rarely
touted by salespeople. Today, it’s a key talking point.
“When a customer has a
conveyor with a damaged belt in need of repair, we can send a crew to make the
repair any time of day or night,” Baker says.
Instead of selling components, salespeople now talk
in terms
of solutions. For example, one
customer, a toothbrush
manufacturer, needed to
move toothbrushes uphill from
one point in the production process to another. RPM sent in a salesman with an
OEM supplier to design a new conveyor system.
“Before, if that customer didn’t need a belt or
a motor or a piece
of chain or a bearing, it wouldn’t have been on our radar screen,” Baker
says.
In some cases, RPM’s problem-solving emphasis
helped it break into accounts where salesmen
were previously unsuccessful. For example, Dave Schilling, an outside salesman,
recently visited a local
manufacturing plant with a
stamping operation in which foam was being cut on a conveyor belt. Over time,
the constant stamping tended to damage the belt.
The customer would pay $2,800 for a belt that would
last just four weeks. Schilling went in with a
vendor and proposed a new belt that would cost $6,000. The belt is guaranteed to
last 12 weeks and
will likely last up to 6 months.
They got the business.
“It was the classic scenario,” Baker says.
“He went in, identified a problem, fixed it and gave them a solution.” The
next step is to gather enough documentation to show
the total cost savings over the life
of the belt.
Learning the ropes
Schilling is one of the newest
outside salespeople at RPM. He had been an inside salesman since 1986, so he had
a wealth of product knowledge. Since switching to
outside sales last year, Schilling has already learned that positioning himself
as a solutions provider requires a mindset different from a product peddler.
“First, you ask their objectives,” Schilling
says. “What are you
carrying on the conveyor? Where are you carrying it from and where are you
carrying it to? How fast do you want it to go? Is it on an incline? Is it
horizontal? Do you need variable speed control?
Do you need adjustable height? From those questions, you start
to determine if you need a stainless steel conveyor with a food-grade belt and a
washdown motor and washdown reducer and stuff
like that.”
In other words, part of a
salesperson’s job is to locate
bottlenecks and problems and
offer solutions.
Schilling credits Kahle’s training sessions for
helping him to get up to speed quickly.
“He gave me a road map of how the sales process
works, how to make appointments, organize your files and your customers and how
to make a sales call,” Schilling says.
One of the tips he learned from Kahle was to
prepare an opening benefit statement, and put it down in writing if necessary,
that gives a customer or prospect a reason to return your call.
“Once you get in front of a
customer, make sure you have
something of significance to say,” Schilling says. “Know what specific
product or problem-solving
technique you’re going to talk about. People do not want to have their time
wasted by you saying, ‘How are you? Here’s a calendar
or a line card.’ They want to
know you’re coming in to either solve a problem or introduce
something new.”
Getting organized
Helping distributor salespeople become more focused
in their approach to customers is a key
part of Kahle’s training.
“Selling for distributors is a unique selling
situation,” Kahle
says. “One of the unique aspects
of distributor sales is that they
may have 5,000 to 50,000 SKUs
and all that represents in terms
of prices, reps, etc. That’s a major organizational issue that most
salespeople do not confront.”
One of the things he teaches salespeople is to rate
customers
and prospects on the basis of their potential, and then adjust the time they
spend with each account accordingly.
“You want to work more
frequently with the high potential accounts. That sounds so simple and so basic,
but very few people do it,” he says.
Before a typical training session, salespeople
listen to an audio tape by Kahle that introduces a basic sales concept, such as
time
management. When he meets
with the class in person, he’ll talk about the concept further and then give
them a specific assignment, such as to spend 50 percent of their time on A
accounts and 50 percent on all other account types over the next 30 days. When
the group meets again, he’ll ask them to share their results. Did they spend
more time with high-potential accounts? Did it make a difference in their
effectiveness?
“The purpose of training is to change
behavior,” Kahle says. “If you’re going to do behavior change, you’re
better off with a series of shorter meetings than a big chunk all at once.
Ideally, you want to arrange content so that you
focus on one set of behaviors or concepts, give people very practical and
specific ideas, then give them an assignment to practice. If you do that, very
methodically, you’re going to get behavior change.”
Selling is a frame of mind
Bringing in Kahle for sales
training isn’t the only way RPM salespeople sharpen their selling skills.
Salespeople attend annual spring workshops sponsored by the Industrial
Distribution Association (see “Take your performance up a notch” below).
They also participate in annual training seminars
sponsored by the National Industrial Belting Association, and Baker recently
acquired the interactive product training program developed by the Power
Transmission Distributors Association.
At monthly sales meetings,
salespeople share success stories. They try to focus conversation on what helped
them earn success in an account, rather than just what products they’re
moving.
Baker also annually buys books on selling to pass
out to salespeople during the holidays. He figures that even seasoned
salespeople can
benefit by being exposed to
new ideas.
“Selling is a skill, not an art,” he says.
“It can be taught and there are certain things you can do to make it more
effective.”
This article originally appeared in the
January/February 2002 issue of Progressive Distributor. Copyright 2002.
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