It was month end and the man they called “Slick” paced across the nondescript pile carpet in his industrial park office. He had just received word that another of his top accounts was in jeopardy – maybe past the point of saving. They were losing market share and customers. Sales were dead, dying or missing and someone had fingered Slick.

He mopped his brow on a once-white shirt sleeve and reached for the latest figures on the former flagship account, now so emaciated he could see his fingerprints through the file folder. Slick Man swallowed hard, recalling better days before the black ledger dawned crimson and silence screamed from his voice mail box. The accounts still existed on paper but inside there was nothing but stale news of a bygone day. As the saying went, their sales had flown south.

So what happened? Sales professionals had crossed his threshold like mechanical ducks in a shooting gallery, but nothing ever touched Slick. At least not until now. He’d been here for 25 years and counting. He’d outlasted them all. So what happened?

Wasn’t it Slick who led his company to success when others crashed and burned around them? They used to say that if Slick Man couldn’t close the deal, it couldn’t be closed. Well, he could still close a deal but it hadn’t stopped the black ink metamorphosis or the exodus of old customers abandoning ship like Titanic survivors with a premonition.

These days, no matter how hard he worked, their market share still vanished. The word on the street was that it was “adios amigo” for Slick Man. But Slick Man had one more trick up his ragged sleeve. If anyone could save him, his gumshoe friend could.

Holmes: “So tell me Watson, what do you think of Mr. Slick’s predicament? You’ve read his affidavit. Is he guilty or innocent?”

Only Watson’s eyes moved as his cautious mind struggled to grasp the meaning of his associate’s comment. He should be used to this. Was this another of his partner’s lunatic ravings or was Holmes somehow suggesting that the victim in this case, his friend from across the water, was somehow guilty of the exact crime he had come to Holmes to solve? But that was ludicrous. Nevertheless, Watson’s mind quickly raced over the facts, the report from Mr. Slick himself, the clues and tidbits of information dropped by Holmes earlier in discussing the case. Holmes was toying with him as usual.

Watson: “It seems to me, Holmes, that the answer is obvious. And no, I won’t fall for any of your sleight of mind at this time.”

Adopting the en garde position with his pipe stem, he continued.

“There can only be one logical conclusion to the question of who absconded with Mr. Slick’s clients and subsequent sales. Mr. Slick is, of course, innocent.

And I’ll tell you why I say that, Holmes. Mr. Slick is a seasoned professional in the industry, and there is proof of that. He knows his job, the industry, his customers, his market, his inventory and his board. Not only that, but he has proven recently that he can still sell product.

I wouldn’t be surprised, Holmes, if a foreign supplier has slipped in and stolen these accounts from under Mr. Slick with low pricing and counterfeit promises.”

Holmes: (dryly) “An interesting hypothesis, Watson. Inaccurate, of course, but interesting.”

Watson: “What?”

Holmes: “Not ‘what,’” demurred Holmes. “The question, is ‘who?’ and the answer is there is no outside perpetrator.”

Watson: Then you’re saying that Mr. Slick is guilty of sabotage?”

Holmes smiled. “No need to be melodramatic, Watson. Mr. Slick is guilty, yes, but not of being the actual thief.”

Exasperated, Watson shook his head in disbelief. Why did every conversation with Holmes become so complex?

Holmes: “Have you learned nothing from looking at the facts, Watson? Does it not occur to you that as the loss of business has been a gradual evolution, there has been no mention of new competition or under-pricing? Does it not seem that the only credible solution must be that this is a case of ‘sabotage’ from within?”

Watson: “Sabotage, Holmes? Isn’t that what you are accusing me of, melodrama?”

Holmes: “Not really, Watson. Intentional sabotage it was not, but while Mr. Slick was busy building small new accounts on the outside, he was losing his long-established accounts due to neglect and derelict actions of his company on the inside. It resulted in a form of unintentional sabotage.

“Was he guilty? Of course he was, Watson. He is guilty of not being aware of the actions of his team from the sale to the invoice. He was guilty of self absorption, of not leading.

“His customers saw this and fled.”

So, what happens when you find yourself on the "outs" with a customer?

This month, Frank and Malcolm discuss one of the worst (but not uncommon) situations in a salesperson’s life. Something happens, sometimes your fault — sometimes part of your organization’s fault — but suddenly you find yourself on the outs with a long- time customer. Let’s join the story already in progress.

We find ourselves amid the least comical of all sales type situations.

Malcolm: Frank, you know I’d like to help you but things have gone just a little too far for me to suddenly switch back to purchasing from you again. I’m sorry buddy, but you had a fair kick at the can for a long while and your team fell pretty flat. And yes, I hear you telling me that you’ve made adjustments with your procedures and your staff and this and that but it’s past tense, Frank. We’ve already switched to a new supplier. I’m sorry, old foe, but you had your chance and your team really blew it.

Frank: Malcolm, unfortunately everyone who earns her/his living finds themselves in this position at one point or another. We all work like crazy to avoid it, but believe it or not, we are mere mortals and we do make mistakes.

Malcolm: Frank, I know that you and I have worked together for many years and you’ve really done some great things in that time. You’ve shown your true value and it’s been beneficial to both of us. But unfortunately, Frank, that’s old news, blown on yesterday’s wind. To be honest with you, Frank, from what we’ve experienced lately, your company just doesn’t have what it takes anymore to meet our corporate needs. Sure I can see that you’re in a bind over this but it’s gone beyond where I can help you this time. I really don’t know how you could have let it slip away like this, Frank. But let me ask you a question. Even now, after all this, do you even know how many disconnects there are on your team?

I can tell you don’t believe me, Frank, so let me give you an example, a very recent example. It’s been cumulative, Frank, months of late shipments, incorrect material shipped, missing certifications, etc., etc. But the last straw was two weeks ago when you were on vacation.

I called your inside person for price and availability on a machine part we’d been having trouble with. He quoted my price and said it was “in stock.” What he neglected to tell me was that the “stock” he was quoting wasn’t here in town but two thousand miles away halfway across the continent.

At the time, I didn’t have a “machine down” but I told your guy I was worried. It was giving us trouble so I ordered the part thinking I’d have it that afternoon. We pick up there almost every day, right? Had I known the part was in Zimbabwe, I’d have flown the thing in.

That little miscue cost us a bundle. The machine went down, we missed our monthly production target and when your company name came up, they came down hard on me and I had no choice but to come down hard on you. That’s the way it went, Frank.

Frank: First of all, let me say I am sorry. I definitely see why you would be upset. We are here to add value, to make your life easier, to help you make money, and this is simply unacceptable. Rather than raise my right hand and say, ‘I promise it won’t happen again,’ let me make a couple of suggestions.

First, I know that you want to — or maybe have to — try out some new suppliers. I completely understand. Secondly, I take this very seriously. Malcolm, for these past years, you and I have worked to develop a relationship between our companies. We have worked to educate one another and we have worked to educate our support staffs. And I would hate for all of this work to be for naught.

Malcolm: Frank, I don’t want to see everything go down the tubes either but my hands are tied at the moment. But I’ll tell you what I can do. You may or may not appreciate it but I’m going to give you my “outside-looking-in” perspective of what caused some of your problems.

1) Other than the typical growing pains during our first year of business together, there weren’t too many issues. Your people had it together as a group and things ran smoothly after the first few orders.

2) By the end of the first year you and your technical team were regularly coming up with good ideas and suggestions which assisted us in many ways. Your technical people now understood our operation and your inside support folks handled our needs very well.

3) Not long after that I noticed a few new names, roles and contacts changed at your company. From there I noticed how your teamwork was dissolving. This was obvious to us as the problems became more and more frequent.

4) I’m guessing you took cutbacks and layoffs because I didn’t see as much of you anymore and soon all of the real communication became pretty much a thing of the past. You were too busy for us, Frank.

5) We received your business letters announcing corporate changes and procedures to your company assuring us that all was well and even better. Meanwhile things weren’t.

6) We were suddenly dealing with nearly all new people, with new policies and procedures which we didn’t care for, and it seemed as if instead of you serving us, we were serving you.

The only constant was you, Frank. Every now and again I’d hear you telling me that all was well even though it sounded like you were shouting through a megaphone on a shrinking rubber life raft. I guess it wasn’t so well, Frank, because you lost your team, and you lost us.

Frank: You know, I can see how things would seem this way. We have had some changes – good people need to be given an opportunity to grow. Several of my support people have moved within our company. And let me take the blame for not being proactive in making sure we continued to communicate.

The people we have today are as qualified as they were a few years ago. In fact, we made changes that we felt would better serve you. Perhaps along the way, you and I should have done regular reports so we could be growing together instead of apart.

The Lean Initiatives that you took may have changed your needs, and we should have insisted as a supply partner that you bring us up to speed on your new expectations.

Malcolm: True enough, Frank, we became leaner and meaner. We all change. The trick is to recognize, acknowledge and respond to it. We’re all owned by foreign interests and stock holders whose most intimate dreams consist of bottom lines and market blips.

Frank: I know that the management team values you as a customer. I value your business. Together, we have invested in building a business partnership. I would like to suggest that we develop a plan for repairing what we both have worked so hard to create.

We made errors, serious errors, but we are willing to put our money where our mouth is to lay out a plan to ensure that we learn from these and build for the future. If the plan doesn’t meet your expectations, you still have the other options. But, it is my hope that you will hear us out.

Malcolm: That’s a tough one, Frank. You see, now you’ve got yourself on the radar scope, it’s mighty hard to get off of it. People love to look at blips you know.

But I’ll tell you what I will do. Call me in a few months and prove to me that things have changed and, depending on the atmosphere at that time, I’ll try to put you back on the bidder’s list. I’m not promising anything but to listen to what you have to say and move forward based upon those conditions at that time.

Frank: That’s all a person can ask. But before I go, would it be possible for us to spend time with some of your key people in production, receiving and maintenance to fine-tune our ability to meet your expectations?

Malcolm, I would be remiss in asking you before we part, what would it take to convince you that we are serious about keeping your business?

Malcolm: At the moment, I just can’t afford to pursue this with you. So turn it around and use it as an opportunity to regroup as a company and as a team. Implement a new plan of action. From where I’m standing, it’s absolutely critical that you review your own records first and document clearly where you went wrong.

Please don’t use a Band-Aid solution based on our opinion or anyone else’s records or opinions. You need to get to the root of the problem internally first. I can’t imagine anyone being overjoyed at it, but in two or three months, I’ll take the time to compare notes with you and answer some of your questions coming out of your internal audit. But first do some thorough research in the appropriate departments in your own company. That’s where the real answer lies, Frank.

And let’s be very clear. Today, I’m not committing to anything more than to talk to you when the time comes. But at that time, Frank, I’m going to need some very solid quantification regarding the findings of your audit. Then I’ll also expect to see some firm and attainable measures indicating what your changes are and what they will accomplish in the long term.

These are the kinds of things I’ll need, Frank:

• Honesty – a guarantee of upfront truthful answers.

• On-time delivery – I would expect for your organization to provide on-time delivery to us even if you need to source it from a competitor now and again. You may or may not lose money on a specific item now and again but keep us in the loop regarding your situation. Tell us the circumstances. We won’t let you lose money if we can help it.

• Measurable Value – We’ve witnessed how you have helped physically over the years but these days we’d like to see a quarterly report with real live metrics and examples.

• Vendor Continuous Improvement – A report and regular meetings (perhaps quarterly as well) where we can discuss where you have made constructive change and how we can move forward together.

• Investment on the Supplier Side – I also wouldn’t mind seeing what you are investing in, so as to build my confidence in you as a long-term partner. It would also be beneficial to see what you are doing to drive your own costs down so that I can expect better pricing and improved future service.

• Lastly, I want to know where you think we can help you. I mean it. Spit it out. Maybe it’s electronic invoicing. Perhaps it’s receiving at noon hour. Tell us.

Frank: This is exactly the kind of thing I propose we talk about. But this kind of meeting needs to involve all levels of our organization, including staff from the IT department, the warehouse, customer service and general management. Yes, we can do that.

Malcolm: We don’t have any choice but to let things cool down for a while, so why not turn this into an opportunity to learn where your own disconnects are. Look critically from within and be candid with yourselves. I’m going to tell you right now that this is no time for a witch hunt and you absolutely cannot make your people feel as if they are the focus of blame. It’s vital that everyone understand that even if you shuffle individuals around, they are still an important part of the company’s long-term solution. That is how you’ll gain the accurate information you need to move forward. You can’t afford a coverup.

And lastly, I’ve heard the latest joke you’ve been yuk-yukking over when you should have been building value into your pricing. I think it goes something like this, doesn’t it Frank?

       Dr. Watson: “Sherlock, what school do most
       purchasing guys come from?”

       Holmes: “Elementary my dear Watson, elementary.”

Very funny, Frank.

Now get out of here, I’m late for class.

Frank: (to readers) If you are one of the fortunate few who have never experienced this type of conversation, I suggest that you get down on your knees and thank the Almighty for watching over you for all these years. For the other 99.9 percent of you, here are a few pointers that can be drawn from this short conversation.

1) Don’t argue.
Please note that in the very first exchange, my actions were to apologize. First, apologize on behalf of the company and then apologize personally for the situation. This is the first step in turning the situation around.

Far too many salespeople blame the problems on other members of their company, economic situations, reorganizations and anything else they can think of. This will only come back to make your job more difficult.

Soon after your visit with the customer, ask members of your management team to phone your customer (Malcolm in my case) and express concern and to once again apologize. It has been my observation that the more opportunity the customer has to vent, the more willing she/he will be to help you get back in the door.

2) Remind the customer that he/she has a stake in the relationship.
I stressed the point that Mr. Mills had worked hard to build the relationship with our company. This brings them into the equation and slows the process.

3) Ask for a firm date for a follow-up meeting.
In this conversation, we agreed to a time 60 to 90 days out in the future. I would have preferred to make the date next week, but Malcolm was steadfast that much damage had been done within his organization and a cooling off period was in order.

4) Ask for permission to gather data from the customer.
Be sure to stress this is not a selling activity. It is paramount that you maintain relationships and continue to let the customer know you care about the account enough to be actively gathering data for the future.

5) When you come back, come armed with specifics.
If you have been regularly gathering and (more importantly) logging your value-add activities with the customer, you have a head start. If not, recreate the past. Interview every member of your team for specific activities (with dates) that went above and beyond the call of duty. Here is a list to get you started:
      • Late night deliveries
      • Product recommendations
      • Troubleshooting calls
      • Crib activities – cleanouts, reorganizations and
           other value-add measures
      • Technical training and support – if you trained their
           people, let them know about it
      • Warranty returns – especially those where the
           product was not purchased from you
      • Cost savings measures – here’s where the log of
           past activities comes into play
      • Negotiations with manufacturers on the
           customer’s behalf

6) Ask your friends and coaches within the account for their support.

Use them to gauge the extent of damages within the organization. Ask them about the cost of switching to another supplier. There is a cost and you need to understand that cost to better understand your position.

7) Involve your own management.
Make certain there are no surprises. It is what it is – better they fully understand the situation. Key customer service, warehouse and other support team members also can be strong assets at the meeting. If the issue was warehouse related, ask the warehouse manager to explain what steps have been put together to keep the issue from happening in the future.

And, finally, the question many people ask. What is my chance of getting back into the customer? It depends on the level of value you provide and your ability to present that value. If you have a strong value proposition, stronger than the competition, you may find this event actually improves your lock on the customer over the long term. It will be painful in the present – but there is light at the end of the tunnel.

Malcolm Mills of Matrix Solutions Inc. is a 22-year veteran of professional purchasing. Reach Malcolm at mmills@matrix-solutions.com. Frank Hurtte of River Heights Consulting is a 28-year veteran of the distribution world. Reach Frank at frank@riverheightsconsulting.com.

This article originally appeared in the November/December 2007 issue of Progressive Distributor. Copyright 2007.

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