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Two
heads aren't better than one
by Richard Vurva
Studies show that it costs
about $700 a day to put a salesperson in the field. Even someone who is
mathematically challenged like me can figure out, therefore, that it costs
$1,400 a day to keep two salespeople occupied, $2,100 for three and so on. Now,
if all of those salespeople are churning out positive sales numbers on a daily
basis, the $700 per head is no big deal.
But, as a manager of a sales organization, what
would you think if some of the salespeople reporting to you werent justifying
their $700 share? Worse yet, what would you do if you discovered that some of
those salespeople were calling on the exact same customers? Unless you have a
peculiar fondness for throwing money away, youd probably put an end to that
practice pronto.
Yet thats exactly what happens in the MRO
supply channel every day. Manufacturers and distributors both maintain sales
forces that call on end-user customers. Often, they call on identical customers.
And in many cases, customers would prefer that no salespeople call on them
because they dont perceive any value in such calls. Yet the practice
continues.
Reducing redundant sales forces is one of the key
issues that the industry must address if it hopes to maintain its viability in
the new millennium. One way to start the process would be if distributors and
manufacturers were to rethink an age-old practice theyve been following for
as long as anyone can remember: the joint sales call.
Robert Nadeau of Industrial Performance Group, a
Northfield, Ill., company that specializes in helping improve manufacturer and
distributor communications and reduce manufacturer-distributor conflict, would
like to put an end to the ignominius joint call.
He says there are only two reasons for doing
joint calling: to train salespeople and to monitor progress.
If distributors and manufacturers regularly
call on customers together for any other reason, its redundant and
wasteful, he says.
Nadeau is one of the experts we spoke to for our
story, The art of the double team." We think it provides food for
thought for progressive distributors to begin thinking of ways to reduce
redundant sales costs.
Another way that distributors are reducing sales
costs is through technology. In our story called, e-commerce
explosion,
Tonja Broadwell of Kelly Supply Company in Grand Island, Neb., talks about how
select customers can access Kellys Web site to check stock availability,
query order status, review invoices and other tasks. It has proved popular with
a growing list of customers who like a do-it-yourself approach to customer
service. And it saves Kelly money because it doesnt tie up inside sales
resources. Thats good news, because $700 in savings a day adds up quickly.
This article originally appeared in the
May/June '99 issue of Progressive Distributor magazine. Copyright
1999.
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