How to make better deals

f\tts oF MY MENTons in the lumber \-fbusiness once told me, "This is a simple business, Loren. All you have to do is put together good deals."

While this sounds easy enough, putting together a good deal takes a lot of work. Many salespeople get the first part ofthe process right by selling something and writing an order. And then the deal slowly unravels as follow up details are neglected.

Acknowledgements don't get printed and sent out; inventory availability is not checked and there is no stock currently available; a board foot quantity is inadvertently written as linear footage, or the salesman buries the order on his desk for a week, creating a time crunch when it suddenly appears again. These are the kinds of things that can spoil what should have been a good deal.

Here are some suggestions for writing clean business and putting better deals together. Know your customer because every customer is unique. Is he an experienced old pro who has put lots of business together with your company? Or is he a new customer?

Chances are, you will handle them differently. The old pro may know exactly what he wants, while the new customer may be unsure and will require extra attention. Make sure a new customer understands the products and services you are offering. Does he know the end use of the product he is looking for? If not, ask your salesperson to go back to his customer and come back with the information you need to handle the inquiry like a professional.

Know your supplier and your relationship with that supplier. Are you a regular, occasional, or new customer? Do you stock the mill's product or are you performing a wholesale function? If you are new to your supplier, do you know the product well enough to sell it with confidence? Your customer is depending on your experience and professionalism.

Whether you are communicating with your customer or communicating with a mill, you need to speak and listen carefully. Many people seem to be listening but they are really just hearing what they want to hear. Don't ignore a red flag if it appears. If you say delivery will be in three to four weeks and your customer says three weeks will be fine. restate your position. Remind your customer you said "three to four weeks" and clear up a misunderstanding before it happens.

Documentation is important because many deals take a long time to come together. You need to keep good notes and you need to save them for a couple of years. I know many good lumbermen who keep their spiral notebooks forever. Always know what you said and when you said it. You want to be able to tell your customer: "Yes. I quoted you on that 90 days ago, but we'll need to re-quote it and confirm coverage." Many good deals go bad due to poor documentation. A good rule of thumb is to never allow yourself to be out-documented.

Stick to your core competencies. All successful companies and successful salespeople are good at things they have invested time and effort to fully understand. This doesn't mean you can't be creative and step outside the box. It's just a reminder that learning curves can be steep and you must be willing to do the homework to understand a new piece of business. Good salespeople recognize when they, their customer, or their supplier is operating outside their comfort zone.

Low price traps can spoil a good deal. A good supplier sent me the following quote: "If you focus too much on price, you're only as smart as your dumbest competitor." I couldn't agree more and would add the following: "Slow markets bring out a lot of dumb." Beating or matching a low price just to get an order will not serve you well over the long term. If you insist on doing it however, follow my other suggestions because you can't afford to have anything go wrong.

The real key to better deals usually begins after you write the order. This is when you make sure the details are attended to. It's your order, so take ownership of it and make sure you follow up on everything. Write the order; write the acknowledgement; place the mill order, and track it to completion. Do not assume the order will take care of itself. If you are relying on another person in your office for help, make sure there are no internal breakdowns in communication. It's your order and nobody cares about it like you do.

Okay. You sold a nice order and followed up on it until you were sure nothing could go wrong. Are you kidding me? This is the lumber business! Stuff happens! Equipment breaks down, material takes longer to dry than expected. schedules get mysteriously changed, or a mill ships you something that has no resemblance to what you ordered. In other words, in spite of your best effort to make your order happen the way you intended, something can go wrong and your customer will be unhappy. How you handle this adversity is important. Never ignore a problem because it will likely compound itself if you do. Call your customer as soon as you know about the problem. Go to the wood shed if necessary and take your beating. Then, do whatever needs to be done to resolve the issue. Always keep your customer informed and in the loop.

Know your products, know your customers, know your suppliers, and follow up until the last horse is in the barn and you have personally closed the door. These are important keys to putting together better deals. Follow these suggestions and you will be a better salesman.

As for my mentor who told me this was really a simple business-who was he trying to kid?!!

- Loren Krebs is a retired lumberman with 40 years experience selling and purchasing building materials. He lives in West Linn, Or., and writes about the LBM industry. Reach him at krebs@ oreSoncoast.com.