JULY 2012 Issue 62
NZSALES The Rise of Professional Procurement Achieving what you want Handling a sales objection Sales Industry Research Project NZ’s e-mag for sales leaders 1 / www.nzsalesmanager.co.nz
CONTENTS 6
THIS WEEK'S MUST READ The rise of professional procurement Times are a changin’
10
Achieving what you want Character and Circumstance
12
BOOK REVIEW Persuasive Business Proposals
13
Quick Fix It’s not what you sell, it’s how you sell.
14
RESEARCH PROJECT Sales role design, personality and job satisfaction
16
TWO MINUTE TOP-UP HANDLING A SALES OBJECTION We’re already working with another company
www.nzsalesmanager.co.nz / 2
19
CALENDAR
20
MARKETPLACE
22
HOW TO READ OUR EMAGS
24
THE CLOSE
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ABOUT / Short and sharp, New Zealand Sales Manager is a free e-magazine delivering thought provoking and
FROM THE EDITOR
enlightening articles, and industry news and information to forwardthinking sales managers, business owners and sales professionals.
EDITOR / Paul Newsom ART DIRECTOR / Jodi Olsson
I
GROUP EDITOR / Trudi Caffell
CongraTUlaTionS
n our lead article, Paul
with to play the game, will be
Rogers 10 tips for
your undoing. Which ever rules
dealing with procurement
Phone Paul on 04 586 4733 or email
are on the table, establishing
pauln@nzsalesmanager.co.nz
CONTENT ENQUIRIES /
Congratulations to paul Steer of Unilever credibility and earning trust is
professionals are a must read
ADVERTISING ENQUIRIES /
winner of the exclusive month the one rule for12 every game. SalesStarPhone Alastair on 09 551 0607 or email sales executives. alastairn@espiremedia.com compromise this in your at $12,000! managementDon’t programme, valued As professional procurement eager pursuit of the sale. Developing today’s Sales managers into ADDRESS / NZ Sales Manager, C/- Espire evolves, the question ‘ who’s Media, PO Box 99758, Newmarket, A reminder too, to please take a tomorrow’s rules do we play by?’ needs to sales leaders. Auckland 1151, NZ for account managers and
be answered early on in every
moment to complete the survey
competitive situation. Playing
for the sales industry research
by your own rules and trying
project (see pages 14-15).
to control the sales process
Your participation will assist in
will work when the prospect
broadening the knowledge base
does not have rules that their
available to sales professionals in
suppliers have to play by. Trying
New Zealand.
WEBSITE / nzsalesmanager.co.nz
ISSN 2230-4762
to apply your rules, when the prospect has clearly defined
Happy Selling
rules that you must comply
Paul
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MUST READ
The rise of professional procurement Times are a changin’ By Paul Rogers
T
he basics of the sales
Let me declare an interest here.
upon the challenge that some of
process have been
I am a professional procurement
you face now, and many of you will
unchanged for decades,
practitioner; I have letters after my
encounter more and more in the
right? Wrong! Something is
name to prove it. I am a Fellow
future; dealing with people like me.
happening, and Paul Rogers claims
of the peak body, The Chartered
he knows what it is…
Institute of Purchasing and Supply.
Some things in life seem constant.
I have trained more professionals
The Old Road The creator of Spin Selling,
in Australia and New Zealand than
Neil Rackham, wrote a book
anyone else. I have worked in New
called ‘Rethinking the Sales
Zealand for more than ten years,
Force’; it is fascinating reading.
and participated in designing and
1960’s heralded, there are changes
In one sentence, the book
shaping high profile projects in
happening around us, and one
explores the rise of professional
both private and public sectors
procurement and proposes that
of the most interesting changes
in North and South Islands. I
the role, structure and methods
affecting those of us who make our
recognise that not all procurement
of professional selling need to
living from selling is the rise and
practitioners are the same, and that
change to reflect that the game
rise of professional procurement.
standards vary. So I want to focus
has changed from “selling to”
For example, Bob Dylan still can’t sing after fifty years of trying. But as his iconic anthem from the
www.nzsalesmanager.co.nz / 6
MUST READ
to “buying from”. The earlier
segment their spend portfolios
“sell through the back door” is a
teachings of Dale Carnegie and
and create differentiated
waste of time. Worse than that, it’s
Zig Ziglar, envisaging a proactive
procurement strategies for
a waste of money. For low value,
sales person targeting budget
different categories. For example,
low risk acquisitions, big clients
holders and building rapport and
the rep on the road with a car
don’t want road warriors arranging
closing the sale, still has currency
and fuel card might be entirely
courtesy calls, whether you are the
in New Zealand, and probably
appropriate for the SME market.
incumbent contractor or not. They
always will as long as people
But the large corporates will
want an account manager who can
buy things. But at the top end of
negotiate ongoing procurement
provide them with information to
town, the game has changed and
contracts for many categories, and
manage the issues. They want a
the old road is rapidly ageing.
police compliance through their
simple system to allow purchase
own systems. User compliance
orders to be raised and fulfilled
Beyond your command?
of more than 90 per cent means
with minimal effort. And they want
What Rackham anticipated is that
that very few “mavericks” will
you to re-engineer your processes
large corporate companies and
be allowed to deviate from the
to align with their goals, not the
public sector corporations will
corporate deal, and so trying to
other way around.
As long as we are advancing the sale, I am happy to be a passenger in a well-managed process. As soon as an over-eager seller starts to “sell to” a prospect, froggie may decide that the temperature is a bit hot, and they will vote with their feet. So let the prospect buy from you, and play the game by their rules. The line it is drawn
The metaphor was about
The consultative sell, as Rackham
So let’s look at some simple tips
building rapport, and I’m afraid
described it, may involve
to deal with the procurement
most sales professionals still
navigating through a SPIN
professional. I used to work in
don’t get it. All procurement
process, but who is the driver
tandem with a professional seller
people value agnosticism and
and who is the passenger? In my
called Tom. We used to train
probity. You may believe that it
experience it is the procurement
buyers in sales techniques, so
is your job to build rapport with
person who drives the process,
buyers could “turn the tables”.
them, and, secretly, it may well
and as long as we are advancing
Tom used to tell a story about
be that you are right. Especially
the sale, I am happy to be a
how you boil a frog. “Put froggie
for categories which are not
passenger in a well-managed
in hot water, and ‘Ouch!’- he
commodities, professional selling
process. As soon as an over-
jumps out!” Tom would explain
does include establishing your
eager seller starts to “sell to”
patiently. “But put froggie in
personal credentials. I don’t sell
a prospect, froggie may decide
ambient temperature water
to procurement professionals,
that the temperature is a bit hot,
and then raise the temperature
but I number amongst my clients
and they will vote with their feet.
by one degree at a time, and
chief procurement officers from
So let the prospect buy from you,
‘Bingo!’ Job done!”
organisations around the world.
and play the game by their rules. 7 / www.nzsalesmanager.co.nz
MUST READ
What you can’t understand The “decision making unit” in most procurement projects is not the procurement person. But crucially, nor is it the budget holder or senior executive alone. Understanding the dynamics of the decision makers may well be the task of the key account
executive, but it is exactly what the procurement practitioner wants to remain opaque to you. “Three bids and cloud of dust” makes the strategic selling process virtually impossible if the stakeholders are all neutral towards your solution, and the identity of the decision makers is a closely guarded secret.
You have to decide if you want to try to subvert the client’s process, or play by their rules. My advice is that if you try to lobby decision makers directly, the most you can expect is a short-term win. You may make this quarter’s sales quota, but next time you may not have that chance.
The order is rapidly fadin’ Here are some tips for account executives who
benefits into something tangible with measurable
are managing key accounts led by professional
outcomes. If your marketing collateral has claims
procurement practitioners;
which you even can’t prove, why should the
Never, ever attempt a trial close, or any other type
prospect accept them?
of close. Put your closing scripts in a pyre and burn
If you are not sure what are the decision making
them. At least they won’t do any harm that way.
criteria, try to influence them by creating a sample
The procurement person wants a business relationship
business case. Include cash-releasing and non-cash
with you, not to be your friend. Relationships are
releasing values, reference sites and case studies.
always important, but build rapport slowly. Remember
Put it in Excel for extra brownie points. The prospect
the frog?
may just “borrow” your framework. Suggest five to
1 2 3 4 5
You may not like being on a bus driven by the procurement practitioner, but if you try to jump off and sabotage their process, it’s unlikely you’ll make it to the destination. You may have fewer opportunities to demonstrate your value proposition, but you still have
6
seven evaluation criteria and propose approximate weightings. You may be able to influence the evaluation process so that it considers criteria that work for you
7
Don’t knock the competition. Just don’t do it.
that you are on the bid list, and if you have a unique
8
value proposition, make sure that the procurement
bid (if there is one), the closing date for return of
person can retell it when you are not there.
bids, a checklist of what needs to be included in
“Value for money” is an abstract concept that
the bids in terms of content, and a format guide
everyone struggles with. If you believe that you
that specifies what needs to be in Excel or Word
have a distinctive value proposition, bring it to
and what can be in PDF. Simple? You would think
life through a spreadsheet. Yes, you can include
so! Make sure everyone involved in the proposal
features and benefits if you like, but translate your
understands these four things.
to conform to the RFP or bid rules. Before bids are issued, you have more opportunity to act to shape the procurement strategy. Make sure
www.nzsalesmanager.co.nz / 8
Once bids are issued, read the bids. You would be amazed how many bidders don’t do this. Get the proposal writer to extract four key things; the closing date for acknowledgement of intention to
9
If the bid documents ask specific questions, cutting and pasting from previous bids is OK as long as the questions are the same. Your answers will be scored, and if you don’t answer the question, you will get a low score. Yes, you are busy, but the bid depends upon how you answer the questions, so answer them.
10
Once bids are returned, play nice. Observe the communication protocols. Yes, you want to know what is happening. Yes, the timescales have slipped. But bombarding a sympathetic insider with calls to “see where you’re up to” is unlikely to make
much difference, apart from their rating of you as a prospective partner.
11
If you are “called in” for post bid negotiation, expect that ‘clarification’ means negotiation and negotiation means just that. No time for presentations; time to listen to the feedback, take it on the chin, and be prepared to show some flexibility. Set a ‘walk-away’ for each negotiable issue, and don’t let the smell of the purchase order seduce you into exceeding your walk away position. At least not by too much!
The wheel’s still in spin
it hasn’t! A trip to any cafe
is now subject to competitive
If you read what I have suggested, you may perceive that the world of SPIN funnels and sales presentations has been replaced by a nightmare vision of “brown envelopes at dawn”, as Tom described it. Well, not everywhere
on a weekday morning allows us to eavesdrop on business dialogues and discussions which reassure us that some things are unchanged. But maybe you might reflect over your latte what proportion of your sales target
offer, and how many of your clients and prospects now have a procurement manager. And you may hum along to his Bobness singing “For the loser now will be later to win, for the times they are a-changin’.” ■
Paul Rogers is a freelance procurement consultant. To find out more visit www.paulrogers.pro
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Achieving what you want Character and Circumstance
S
By Charles Donoghue
itting by a river one day I
teaches us that through patience,
new attitude you can immediately
observed how the water
persistence and perseverance you
begin to see its effects. To
flowed over the peaceful
can achieve anything you want
begin with, you will control your
stones as they sat comfortably
whether in business, sales, or your
time better by avoiding people
on its bed. It made me think of
personal relationships. So what’s
who engage in small talk and
life’s challenges. In the case of the
the secret? You need to define your
waste valuable productive time.
confrontation of the river and the
life and its purpose. Many people
Discipline strengthens your
stones, I realised that the river wins
go through life never realising their
character by making you carry
because of three factors, patience,
purpose. This awesome journey
out those things you don’t like
persistency and perseverance. It
requires you to prepare well.
doing, but which in themselves will
erodes the rocks even though it does this imperceptibly. The river doesn’t care how long it takes, it just keeps on flowing. You can’t see it happening but one day in the future those stones change.
To begin with, you will need to prepare a statement of purpose
bring the results you want in your statement of purpose.
that defines what you want from
The statement should include
your profession and what you are
a) characteristics to aspire to,
prepared to give in exchange. For
and b) a personal development
example, “This year I want to excel
programme. Many people never
On a daily basis you are
in my professional sales career
achieve personal growth because
challenged by people, events
and in exchange I am willing to
of a tendency to give up their
and circumstances. The lesson
be more disciplined.” With this
desires to other people’s wants.
www.nzsalesmanager.co.nz / 10
Your life is overlapped by those
Prepare well for this long journey
Character shows drive, energy,
closest to you e.g. relatives,
by putting on the inner garment of
determination, self-discipline,
friends, and colleagues. When you
character. This means being all you
try to expand your life, that is to
can be within the bounds of doing
willpower, and nerve. It sees what
undertake personal growth, they
what is right for yourself and your
become uncomfortable. So how
company. You must do everything
do they solve their dilemma? By
you are supposed to do. Pursuing
garment of character by adopting
pulling you back to where they are
excellence should not be confused
strong beliefs, qualifying your
more comfortable.
with accomplishing a job or task.
values and developing your skills:
it wants and goes after it. It attracts followers. You put on the inner
•
Beliefs are the expectations you hold to be true about yourself and which are rooted deeply within you. They could be convictions you hold true regarding people, concepts, or things.
•
Values are attitudes about the worth of people, concepts, or things. For example, you might value a friendship, personal comfort, or relatives. Values are important as they influence your behaviour to weigh the importance of alternatives. For example, in a sales situation, you adhere to your principles rather than get a quick sale.
•
Skills are the knowledge and abilities you have developed and the ability to learn a new skill. Some skills come naturally, while others come through effort.
Then there is the outer garment
outer garment of circumstances
Start a new life now by controlling
of circumstances, that is, to make
facilitates you to take complete
your thoughts. This is where
sure you are in control and not
control by asking the questions.
discipline is an asset. By keeping
being controlled by people or circumstances. For example, say you are in a sales situation where you are faced with a very difficult prospect, grilling you with a surfeit of questions and negatives. By putting on the
Helen Keller famously once said, “Life is an exciting journey or it is nothing.” Give your life a whole new meaning. The average person on the surface appears to be a normal happy individual with fears,
your mind focused on the immediate subject in hand, and avoiding any distraction or getting side tracked on less important issues by people or situations, you immediately maintain mind power.
outer garment of circumstances
worries and limitations all of which
Have absolute faith in yourself and
you immediately take control by
are due to their conditioning and
expect good things to happen in
asking a well prepared series of
thought processes over a period
your life. You have the power within
questions. When the other person
of years, but underneath there is
you to not only change your own
is asking the questions they will
this longing that there is a greater
life but you can be an inspiration to
always be in control, whereas the
purpose to life.
everyone you know and meet. ■
Charles Donoghue is a performance psychology coach and author of several books and the weekly “Inspiration Road” newsletter. To find out more visit www.charlesdonoghue.com
11 / www.nzsalesmanager.co.nz
BOOK REVIEW
Persuasive Business Proposals
Authors: Publisher: Price:
P
Tom Sant Amacom $25.66 from fishpond.co.nz
ersuasive Business
the confusion, and providing
communication channels from
Proposals gives readers
dozens of real-world examples,
e-mail and electronic submissions
simple, effective
this updated version provides
to PDF, HTML, and others. The
techniques for organizing,
step-by-step instructions for
Seven Worst Proposal Mistakes
writing, and delivering proposals
crafting value-centered, recipient-
are illustrated with real-world
with winning strategies for
specific proposal packages, with
examples. This is an essential
today’s global business
all-new discussions on how to
book for anyone seeking to win
environment. By cutting through
increase business using new
contracts and sell projects. â–
www.nzsalesmanager.co.nz / 12
QUICK FIX
QUICK FIX
It’s not what you sell, it’s how you sell.
Are your hot leads on ice?
E
very sales pipeline needs hot prospects. These are the opportunities that are certain to close within a definite time frame. Unfortunately, all too often these prospects are not as hot as we like to think they are. Particularly those that are not routine purchasing decisions for
the prospect. They are actually on ice, cycling over in the sales forecast month after month. If the prospects in your pipeline are not as hot as you think they are, and opportunities are not closing when the prospect says they will, then you need to be finding the answer to a key question:
How much support does this have at executive level? If you don’t have the answer to this question for your hot prospects, turn the temperature gauge down until you find out. Some will need a lot more work to get them back on the boil, and some you’ll need to throw out with the ice. ■
13 / www.nzsalesmanager.co.nz
RESEARCH PROJECT
Sales role design, personality and job satisfaction Is there a link?
You are invited to contribute to this sales industry research project. Your participation will assist in broadening the knowledge base available to sales professionals in New Zealand.
W
hat role characteristics can make work exciting and/or engaging for salespeople? How does alignment between role characteristics and salespeople’s personality influence job satisfaction? The University of Waikato’s Chris Liddell is seeking to help answer these questions in his Masters Thesis research.
www.nzsalesmanager.co.nz / 14
RESEARCH PROJECT
Salespeople lay the financial
Skill variety refers to the degree to
work and have freedom to do
foundation on which organisations
which a job requires someone to
what they want on the job.
base operations, they are a critical
perform a wide range of tasks; a
Feedback concerns the degree
factor in successful organisational
role with high levels of skill variety
to which employees receive
function. Chris’s research
requires an individual to utilise
information about how well they
recognises the importance of job
many different skills in order to
are performing on the job.
satisfaction to the performance
get the job done. Task Identity is
While these role characteristics
of individuals and teams working
the extent to which employees do
potentially enhance job
in sales environments, as well
an entire piece of work and can
satisfaction, the type of person
as its links to the health and
identify with the results of their
performing the role is an
wellbeing of salespeople. In his
efforts. Task Significance refers
important consideration. Research
research Chris has identified
to the degree to which a job is
suggests that some people
five role characteristics that
perceived to have a substantial
function markedly better than
potentially enhance salespeople’s
impact on the lives or work of
others when high levels of the
job satisfaction: skill variety,
other people. Autonomy concerns
aforementioned characteristics
task identity, task significance,
the degree to which individuals
are present in their work. To take
autonomy and feedback.
have a say in scheduling their
this into account Chris’s study will
also examine personality factors in order to provide clarity around the interaction between salespeople’s personality and the characteristics of their jobs.
links between role characteristics,
types of roles in which particular people are more likely to thrive.
Chris is collecting and analysing survey data to investigate the
personality characteristics and job satisfaction. The survey report (which will be summarised in NZ Sales Manager) will show which role characteristics are of a particular importance in sales environments, as well as how personality interacts with role characteristics in determining salespeople’s levels of job satisfaction. This will give you an indication of how your sales roles’ can be designed to enhance the functioning and wellbeing of your sales force, as well as provide information useful in identifying the
Chris would really appreciate your input into the survey before July 31st. The survey is online at http://waikatopsych. eu.qualtrics.com/ SE/?SID=SV_9XZ6ikR9aAtGyyM It takes under 15 minutes to complete. Instructions and further information are online. Your participation will assist in broadening the knowledge base available to sales professionals in New Zealand. If you have any questions about this research feel free to contact Chris, email: cjl18@waikato.ac.nz ■
15 / www.nzsalesmanager.co.nz
2 Minute top-up
HANDLING A SALES OBJECTION We’re already working with another company By Jill Konrath
U
nless your product or service is truly groundbreaking, you
should always assume that your prospect is already working with a competitor. What you don’t know from the outside is how they feel about their current provider. www.nzsalesmanager.co.nz / 16
2 Minute top-up
Unless your product or service is truly groundbreaking, you should always assume that your prospect is already working with a competitor. They may be happy, frustrated, or grossly dissatisfied. Usually, they’re somewhere in between -- not thrilled, but not miserable enough to change either.
But first, you need to deal with that
That being said, your initial task
“other company” sales objection
in this meeting is to pique your
head on. How? By bringing it up
prospect’s interest in making a
yourself as a statement of fact.
change from the status quo.
Here’s what you can say:
“Eric. I’m sure a company your size (market position, status) is already working with another firm to handle your (fill in the blank) needs.” Of course, they’ll agree with you. Then share the business reason you’re calling. Your message needs to focus on the potential value they could get from switching. That helps you avoid the above sales objection entirely. Here are two ways you can do this:
1
Leverage Trigger Events: “The reason I contacted you is because I read about your (triggering event). Based on my experience working with other firms, when (triggering event) happens, it usually creates (problems/ challenges) with (fill in the blank.)”
Please note: You do NOT tell them what your company sells. You do NOT give them an overview of your product line. In fact, you do NOT even mention one little thing about it.
2
Share a Case Study: “In our work with other medical device firms, we’ve found some gaps in how they were handling things. And, the truth of it is, these gaps were causing them to lose opportunities. Let me give you a specific example ...”
The key to successfully addressing this sales objection is to 1) expect that it’s coming and, 2) instead of waiting for it, bring it up yourself.
But that means you have to be prepared with what you’re going to say. Ahead of time. It’s the smartest thing you can do. ■
Jill Konrath, author of Selling to Big Companies and Snap Selling, helps sellers crack into corporate accounts, shorten sales cycles and win big contracts. Visit Jills’ website at www.jillkonrath.com
17 / www.nzsalesmanager.co.nz
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CALENDAR DATE
NAME
PLACE
COMPANY
LINK
Monday 23 July Thursday 26 July
Sales Development
Auckland
David Forman
www.davidforman.co.nz/ Our-Programmes/Sales/SalesDevelopment.aspx
Auckland
NZIM Northern
www.nzimnorthern.co.nz/wa.a sp?idWebPage=16885&idDet ails=107
Thursday 26 July - Negotiating Friday 27 July for Results
Tuesday 7 August
Negotiating Skills
Wellington
Scotwork
www.scotwork.co.nz
Thursday 9 August - Friday 10 August
Key Account Management
Auckland
NZIM Northern
http://www.nzimnorthern. co.nz/wa.asp?idWebPage=168 85&idDetails=110
Thursday 9 August - Friday 10 August
Negotiation Skills
Wellington
NZIM Central
http://www.nzimcentral. co.nz/training/course. a4d?gCode=119
Monday 13 August
Prospecting
Auckland
David Forman
http://www.davidforman. co.nz/Our-Programmes/Sales/ Prospecting.aspx
JULY
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HOW TO READ OUR EMAG
HOW TO READ OUR EMAG By Brady Dyer
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HOW TO READ OUR EMAG
B
eing an emag has some great benefits. We can get content and news to you far quicker than a print magazine as we have no lengthy printing times, furthermore it allows us to pump out more issues with just the right amount of content. But most importantly for you, it’s free! We’ve put together a bit of a guide to show you how you can get the most out of reading our emag.
Print the PDF If you must get your hands on some ink, you always have the option to print out the PDF. While this isn’t overly encouraged, as we love that our emag is so clean & green, if you simply must you can always print the PDF out. Download the PDF The easiest option is to simply click the “Download PDF” button in the email that we send out. This will download the PDF to the device you are on, and nearly every device these days can open a PDF with ease.
Read on Issuu Issuu is a wonderful service that allows you to read our emag with as much realism as a print magazine. You can flip through pages or jump to a specific page. The emag can be embedded into Facebook, emails, and any other website for you to share, and can be read full screen to get the full user experience.
Read on iPad or other tablet Our favorite method of reading is downloading the PDF to an iPad (or other tablet) and then reading it when it suit. Simply install the free Apple app called ‘iBooks’ and when you click on “Download PDF” you will be given an option to save this into iBooks. You can save and organise all the issues easily within iBooks.
Brady Dyer is the editor of NZ Photographer e-Magazine. To contact him please email brady@nzphotographer.co.nz
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THE CLOSE
‘Losers visualize the penalties of failure, but winners visualize the rewards of success.’ - Rod Gilbert
Have you subscribed to NZ Sales Manager? It’s free! Simply visit www.nzsalesmanager.co.nz to get a copy of NZ Sales Manager delivered straight to your inbox monthly!
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