Busting the myths of counter sales

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EXpECTATIoNS coNTINUE to escalate and the \-rtraditional perceptions of good customer service are becoming obsolete, as are the dealers and wholesalers that cling to outdated business models. Some of the beliefs of the past need to be held up to scrutiny. We may find that what once passed for truth is nothing more than a myth.

Myth #1: ttre customer knows best.

This isn't the same thing as "the customer is always right." This is about letting the customer know when there may be a better alternative than the conventional wisdom.

The latest technology isn't always the best fit in every situation. When it comes to something as fast paced and layered as construction industry, most customers don't have access to or the awareness of resources available to the building material supplier. The customer is dependent upon the expertise of the wholesaler to offer suggestions and to provide the most effective way of achieving the desired results.

Truth: Customers rely on distributors to provide them with the knowledge to enable them to make informed decisions.

Myth #22 We don't need no stinkin'marketing plan.

From my days as a salesman, I remember unopened boxes full of expensive marketing promotional brochures getting tossed into the trash because they were out of date. Why were they unopened? Because the salesmen wouldn't use them.

I'm not sure where the marketing and sales rivalry began, but a dialogue needs to open up between the marketing department and the sales team. If the marketing department isn't providing relevant and useful materials, then the sales team needs to communicate that. By combining their efforts, the marketing department can arm the sales team with some powerful tools of persuaslon.

Truth: Marketing is essential to growth.

Myth #3: Att customers buy on price.

It only seems that way because "price customers" are the most vocal. There are two types of buyers: transactional and relational. The transactional buyer, as implied by the name, is focused only on the transaction. What's the cheapest, the best, the fastest for the money? If a dealer wins one transaction, he earns no loyalty from the transactional customer, only an opportunity to compete again in the next transaction.

A relational customer, on the other hand, is focused on finding a distributor he can trust and depend upon. Money is a factor, but the relational customer believes that if he builds a relationship with a trustworthy supplier, he'll be treated fairly on the price. Smart suppliers seek out and focus on the relational customer.

Truth: Some customers value a trustworthy supplier more than a cheap price.

Myth #42 lf you just keep selling, growth is inevitable.

Many dealers and distributors seem to believe that they deserve an increase in revenues with each passing year. That's like saying you deserve a raise because it's your birthday.

Growth requires strategy. Retaining customers, prospecting for new clients, and gaining market share are a few of the elements in the growth strategy. Start by having a clear awareness of your daily cost of operation. Growth comes from knowing that number and exceeding it on a regular basis. Research the market potential for the communities in which you work. Uncover the fastest growing markets in these communities and determine if you can leverage the strengths of your firm to take advantage of these new developments. Growth doesn't just happen.

Truth: Growth is a choice and it requires deliberate planning.

Myth #5: A satisfied customer is a loyal customer.

Think of it this way: A customer can be "satisfied" with your company and your competitor at the same time. "Customer satisfaction" means you met the bare minimum of the customer's expectations and is no guarantee of customer loyalty.

Loyalty is earned by actions. Are your deliveries to customers accurate and on time? Can your customer get a live voice when calling your branch? Are your projects on schedule and problem-free?

Truth: Customer loyalty is earned by the actions you take.

Myth #6: Wholesale is different from retail.

Admit it. Part of you still wants to believe the customers in wholesale are somehow different from the ones that shop in the mall. You still believe that the wholesale industry exists in a separate realm from retail.

Maybe so, but the contractor at your counter buys from retail businesses, too. He takes his five-year-old son for ice cream where the server turns a double-dip cone into performance art. He takes his truck for an oil change and is served cookies and coffee while he waits. He eats donuts at a bakery that offers free WiFi. These vendors and others like them have raised the standards for service-everywhere.

Truth: There are no borders in business onymore.

Myth #7 z lt itain't broke, don't fix it.

Wholesale distribution will continue to thrive, but only by moving into new territory. There are wholesalers who are doing business today the same way they did in 1970. Success can be an obstacle to continued success. Past glories and achievements can lull a business into a sense of complacency.

Unfortunately, the old business model is failing fast and successful growth means leaving something behind. D-i-y centers and big box merchants will continue to be a threat. Fortunately, for the wholesale supplier, these behemoths belong to mega corporations that are unwieldy and slow to respond to changes in the business landscape.

Truth: If it ain't broke, break it. It's probably out of date anyway.

Myth Busting

No wholesaler can afford to maintain a casual businessas-usual attitude. With new competitors coming in, multiple channels vying for a share of your customers' minds, and roller-coaster-like market swings, it's quite the challenge to stay ahead.

Knowledge of the construction industry, awareness of competitors' competencies, and a critical assessment of the company's strengths and flaws are essential elements in meeting customers' expectations. Companies that achieve this will find a more rewarding, Iess competitive marketplace.

Mike Dandridge High Voltage Performance highvoltageperformance.com (25q 624-6299 mikedan@mac.com

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