Running out of you

[lvenv (LUMBER) salesperson in North America is mak.U.rins 80Vo of their money from fewer than l0 accounts, -uny Tu. fewer. (There are exceptions. but they are just that, exceptions.)

Pareto, the father of the 80/20 rule, says that 807o of our gains/progress will come from 20Vo of our activities. This holds true for fishing, hunting, working accounts, and even our friends! We derive SOVo of our pleasure from 2OVo of the people we associate with.

Sales example: A salesperson is working 30 accounts and is generating $30900 in profit per month.

30 Accounts = $30K

207o of 30 accounts = 6

80Vo of $30K = $24K

$24K + 6 accounts = $4K account value per month

$6K + 24 accounts = $250 account value per month

In this common example, the top six accounts are 16 times more valuable than the bottom 24 ($4,000 + $250 = I 6).

Seller Value

Life is a mirror, so doing the math on customer value also does the math on seller value. In our example above, the seller is bringing a lot of value to her first six accounts and very little to the rest. If we have been working these accounts for over six months, we are not a good fit with these accounts and, statistically speaking, never will be.

So why do we hang onto these bottom 24 accounts if they are so much less profitable? Some are new. Building trust takes time, so some of these accounts "below the line" will be worth keeping and working. But the older, non-producing accounts-why do we hang on to them?

Because most of us remember how hard it was to build our current account box, even if it isn't perfect. ("They might be a C- account, but they're My C- account!" )

We also "save accounts for a rainy day." We hold onto these barely profitable relationships because we think that if someday we lose one of our good accounts, we will already have a relationship with the accounts that can move up and replace them.

Prospecting is arguably the most difficult thing we do as salespeople. So many of us would rather try to "restart" a known C- than go out and find another A+ account.

This is a mistake! Relationships and their mindsets are established early. ("Love at first sight" comes to mind.) ff we do not have an A or B relationship with an account in six months of working with them, we never will. lf we work against this rule, we will lose. There will be exceptions, but we cannot ensure growth (or put our kids through college) working on exceptions.

Itm Busy

"l'm busy" is an excuse. We have a salesperson generating $l7K in profit per month. He ls busy. We have another salesperson generating $50K in profit per month. She is busy, too. They are both busy, so what is the difference? Busy doing what? That's the difference.

The 17K salesperson has some good accounts, but on average, his total account box is a B-. His 30 accounts need service, quotes, etc. This seller "is busy" doing the wrong things. He is servicing accounts that are treating him as a second class citizen. They give him just enough business to "keep the main supplier honest" and use him for market information, but never will make him a real partner in busiNESS.

The 50K salesperson has more good accounts and, more importantly, fewer bad accounts. How does that happen? The 50K seller will not stand for being a second class supplierl She will try to make the relationship work, but if it isn't working, she moves on. She prospects for new and better accounts.

If you are an above-average or exceptional salesperson, you are going to "run out of you" before you run out of good accounts! Because the lTKs hang onto C- relationships, eventually their time is taken up servicing (not selling) them. They don't have time to prospect for better customers !

Hard work, time management, and salesmanship charms are important; we must develop these skills. To move to the next level, we must also learn to evaluate and manage our accounts.

James Olsen Reality Sales Training (so3) s44-3s72 james @realitysalestraining.com

Roseburg Hustles to Repair Weed Veneer Millafter Fire

Roseburg Forest Products, Roseburg, Or., is repairing its fire-damaged veneer mill in Weed, Ca., anticipating to be back on line by Thanksgiving.

In the interim, Roseburg has moved Weed veneer inventory and logs to its plywood operations in Oregon. Sixty of Weed's 135 employees were also

r SUPPIIER Briefs

D.R. Johnson Lumber Co. restarted its Riddle, Or., sawmillOct.6. The facility had been idled since early 2012.

F.H. Stoltze Land & Lumber cited log supply in indefinitely cutting back production hours from B0 to 60 at its Columbia Falls, Mt., sawmill, starting Sept. 29.

Boral TruExterior's new Trim 2x profile and Beadboard have been certified for inclusion in the WildlandUrban Interface Products Listing by the California Building Commission

GreenWood Resources,

Emeryville, Ca., received its 7th FSC project certification for using sustainable materials in its recent headquarters office expansion.

Henry Co., rt Segundo, Ca, has purchased roof coatings maker West Development Group, LaGrange, oh.

offered positions in Oregon, manning extra shifts to keep up with production needs and existing order files.

The Sept. 15 Boles wildfire spared the main processing area and facility, but significantly damaged several outbuildings.

The mill complex dates back to Siskiyou Lumber and 1897. Long-Bell Lumber took it over in the 1920s, selling it to International Paper in the 1950s. Roseburg bought it in 1982 and converted it to veneer production.

N.M. Store Switches lt Up Trader Horn's True Value,

Portales, N.M., is converting after 30 years to an Ace Hardware & Home Center.

The changeover includes replacing about 30Vo of its SKUs, adding 9,000 sq. ft. of retail space for a new flooring center and dedicated paint studio, and installing new energy-efficient air conditioning, lighting and insulation.

The store remains open during construction, which is expected to be finishing up early next month, in advance of a Dec. 1 grand opening.

Arizona Mill Returns to Life

Newpac Fibre, LLC has started up a Williams. Az.. sawmill that has been shuttered since 1995.

Sawn boards will be used for paneling, doors, flooring and other building materials. Residual material will go into mulch and renewable energy fuels.

The mill, which restarted Sept. 15, presently employs 10, but hopes to increase its workforce to 50 by next year.

Ply Gem Gompletes Simonton Acquisition

Ply Gem Industries, Cary, N.C., has finalized the acquisition of Simonton Windows, Columbus, Oh., from Fortune Brands Home & Security.

As parr of the $13o-million deal, Ply Gem has also acquired all assets of SimEx, a vinyl and PVC foam extrusion operation in West Virginia.

Ply Gem will operate Simonton as a stand-alone business unit. similar to the way it runs its existing Siding and Window groups.

App: LEED WnreR Use CalcuuroR

Produced by: Gnren BnoorR

Price: Free (basic version), $3.99 (advanced)

Platforms: iPad, iPhone

A new mobile app allows users to make real-time computations to see what impact different plumbing fixture options will have on their ability to earn LEED ooints.

The LEED Water Use Calculator eliminates cumbersome spreadsheets and the convoluted LEED online calculator, so designers can easily p/ug and play different plumbing fixture solutions to meet their project needs.

The basic version of the app is free. while a oaid version allows customrzed and more comolex calculations for a variety of commercial and residential project types.

- Download fromilunes App Store