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The
hose distributor's challenge
by
Chuck Connors
Do
your salespeople actually sell or simply take credit for orders? Are they
accountable for growing new sales, or do they practice re-cycle selling,
peddling the same old products to the same old customers?
For
years, industrial rubber hose and connector distributors adhered to what I call
the old U.S.A. sales model. Manufacturing facilities dotted the local
distributor’s landscape, and salespeople had a seemingly endless stream of
prospects.
Today,
we are transitioning to a global business environment. When a key customer goes
out of business, relocates to Mexico or China or is acquired by an international
corporation,
salespeople who practice re-cycle selling discover they can’t always count on
their traditional customer base.
Salespeople
who sell the same old products to the same old customers can no longer expect
the same results. They need to transition to a new model of sales, in which
they’re responsible for market share growth. They must introduce new products
to existing customers, expand sales of existing products and services to new
accounts and help uncover opportunities that might mean selling entirely new
products or services into new markets.
For
most distributors, 15 percent of their salespeople sell 85 percent of the
company’s sales. Although that approach has served distributors well for many
years, it’s not likely to work for long. The cost of sales to carry
low-performing salespeople is becoming prohibitive.
Salespeople
must be customer-centric rather than
product-centric. They must know how to help customers do more with less and
lower their acquisition costs, not
simply perform product demonstrations. Success requires salespeople with a
polished, professional presentation who know how to differentiate themselves
from the competition.
Because
of the shrinking industrial customer base,
opportunity knocks once. The hose distributor’s challenge is to build a sales
team comprised of all-star sellers, not order takers. Companies that accept the
challenge will not only expand market share among existing customers, they’ll
gain new market share.
Chuck Connors is a
former National Association of Hose and Accessories Distributors president and
president of Omni Services in Worcester, Mass. He will give a presentation on
“The Distribution Sales Challenge — New Directions for Success” at the
NAHAD convention in Orlando, Fla., on April 6.
This
article appeared in the March 2003 issue of Progressive
Distributor. Copyright 2003.
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