Looking For Sales Advice
 

Hi Gang!

Well I’ve taken the plunge into the world of sales, and I’m not talking about the Internet kind, and I am seeking your advice and guidance!

I thought this might make an interesting topic on the board because our whole plan revolves around one basic principle that is discussed here often:

ACTION!

"Don’t sweat the small stuff like “total” preparation, and lack of selling skills… just put together a good plan and get started."

That’s what we did. The results (so far) are outlined below.

I’ve made a 90-day commitment to a good friend of mine to help him develop the Detroit Michigan market for an Autobody Refinishing Supply Company. We sell directly to auto body and collision shops. We market basically everything collision shops use except the color system and body/engine parts. Basically the refinishing supplies: clear coats, primers, glues, fasteners, cleaners, sandpaper… basically 1200 different products exclusively for the body shop industry.

I have some sales experience but most attempts ended up being fail%^(@…. uh… I mean “learning opportunities”. ;o) Anyways… my buddy has been involved with this Company for a couple of years, kinda plodding along working a day or so a week, no real system, not much follow-up, and not a lot of sales experience.

But despite this… he’s done ok. But corporate wants him to do better or else they are going to take his territory away. So I agreed to help him out. He currently works NW Ohio, but the Detroit Metro market is his as well. That is the area we partnered up on.

As I mentioned we market AutoBody Refinishing Supplies directly to body/collision shops. Our basic premise is providing quality products at reasonable prices. All our products come with a full Money-Back Guarantee.

Our niche is shops that “shop around” for their supplies, and shops that no longer wish to pay the higher prices that the “BIG BOYS” are charging. So our hook is "Similar (or better) Quality Products for LESS than what you are currently paying."


The unique thing about this market is that the Big Chemical Companies are losing their market share due to increased competition from smaller companies like ours. So many shops are shopping price, of which we are comparable (less than the big boys but inline with the “new” competition). And also there are shops that are still “loyal” or “under contract” with the Big Boys. They are reluctant to change.

Here’s an overview of our prospecting system.

Marketing Process

1. We have a list of 500 body shops in our area (90% accurate).

2. We are contacting these shops “in person”; introducing ourselves, dropping off a catalog, and asking a (probably weak) qualifying question… Do you shop around for your Refinishing supplies?

3. We get the name of the “buyer”, then let them know we’ll back be in the area doing some product demos, and we’ll call to set up an appointment.

4. We grab a biz card then “grade “the shop in terms of qualified “prospect potential.”

5. Enter this data into an Access Database.

6. Send them a “Letter of Introduction” in the mail to re-introduce ourselves and “sell” the “appointment/demo”.

7. We call them the next week. Try and “qualify” them a little bit and close for the “appointment”.

8. We do the “appointment/demo”, try and get some samples in the “good prospects” hands, and try and uncover any needs we can fill. Sometimes we get blown off… many times they end up with a few samples… sometimes we get an order at this step. We also send them another follow-up letter at this stage.

9. We keep track of all this with the access database, it generates call reports, appointments, letter sequence… Access keeps track of everything (as long as we do the data entry).


10. We Set up a “tickle loop system” for non-customers based on the “prospecting grade” we give them. This we can use to set up various future contact systems to schedule visits, letters, phone calls, postcard offers, etc..

11. We developed a postcard to send various offers to the list.

So the overall plan is for 90 days. Work the above system the best we can, and try and tweak it along the way. I believe even if our sales skills need work… if we work the system… we’ll succeed (at least to a degree). And we can get better along the way.

Here are our results so far.

Week 4: Each week we spend 3 days in the field, 1 day on the phone at home, and countless other hours working on the “system”.

Contacted 160 shops

Set 43 Appointments

Completed 30 Actual appointments/demos

20 samples were given to fairly qualified prospects

11 Orders – 1 large order, 3 medium orders, 6 small orders, and 1 medium repeat order.

And the prospect “funnel” is still full, and we have a lot of follow-up still to do on those original 160. So I think there will be several more orders rolling in.

So here's the problem...

The Detroit market is very competitive. Business is slow in the majority of shops we have contacted, and product competition is very high.

We are struggling to get our foot in the door. The competition is hitting the shops with lower prices and offers.

We have given out many samples of Clear Coat and Primer, and although everyone seems to be happy with the quality, we are not beating their current prices in most cases and they are not justifying the switch.

We are confident that if we can get some product into the hands of many of these shops and prove our value, quality, and service… we will generate repeat business.

The key is to getting our product in their shops. And unfortunately in the Detroit market that key seems to be savings!

We've discussed the situation with Corporate and they've given us the go ahead to offer a "BUY 2 Get 1 FREE" Introductory Offer on any product in our Catalog. In hopes that that will generate initial orders and "get our foot in the door".

My question is... do you guys have any ideas or advice how we can set ourselves apart from the competition? Do you think an offer like the above is a good idea? Or do you think they'll expect that kind of a discount everytime?

And if we do use the "Offer"... how would you suggest we present it to the Prospect?

Any ideas or advice would be greatly appreciated.

Thank you for your time.

Joe

Any Advice On This Letter Of Introduction
 

Here is a copy of the letter we send out after we stopped by the shop to introduce ourselves and drop off a catalog. Any feedback?

*********************
To: «First_Name» «Last_Name»
«Company_Name»
«Street_Address»
«City», «State» «Zip»

March 31, 2007

Dear «First_Name»,

It was a pleasure visiting your shop on «Intro_Day». Thank you for your time.

I hope you had the chance to browse thru the catalog I dropped off.

As I mentioned, my partner and I are the new Rubber-Seal Product Reps for your area, and we look forward to working with you (in any way we can) to help you increase your productivity and profits.

Although we are not “pushy” salesmen by any means, we do take our business quite seriously, and we would appreciate the opportunity to explore how some of our products might benefit your shop.

If you shop around, for quality or price, on any of your Refinishing supplies, I am confident it would be worth your while to at least take a look at what we have to offer.

And should you decide to do business with Rubber-Seal in the future, you can expect 4 things from us: Professional Service, Quality Products, Reasonable Prices, and a Money-Back Guarantee on every purchase.

We would welcome the opportunity to take a tour of your shop, and spend a few minutes getting to know you and your crew. We’d like to learn more about your business and show you a few products Rubber-Seal has to offer.

So I’ll touch base with you this week set up an appointment. Fair enough?

In the meantime, please feel free to give me call if you have any questions or concerns. The 800# rings directly to my cell phone.

Thanks again for your time, and I look forward to speaking with you soon.


Sincerely,

**********************

Any advice for making it better? I feel it's kinda dull.

Thank you.

Joe

Re: Looking For Sales Advice
 

Hello, Joe,

First, have you actually surveyed your potential market to find out exactly what they want/need (or think they do)? I know you said better prices but, apparently, that isn't the whole story because, as you said, you're competitive but not the cheapest. If pricing were the real issue, you'd have many more folks on board already, tho' you haven't done badly at this point.

I'd suggest you change your modus operandi a bit and give yourself more opportunity to establish a working relationship with your prospect. While it may seem efficient to leave a catalog with them, the mere presence of it brands you as 'just another salesman'. Why not, instead, have a specials handout for your initial intro then, on that same intro 'call' offer to deliver your 'full catalog' on a specific date (say 2 days later)...then DO IT!

In the process of the intro call, ask them directly, what their chief concerns or problems are...get them talking with you and involved. This will show them your genuine interest in their success and meeting their needs. You might even offer to have areas of particular interest to them 'bookmarked' in the catalog when you deliver the catalog on time, as promised. This bookmark can, of course, be a sales reminder/quick reference piece to further impact the mind of your prospect.

Since it's highly competitive there, you need a USP that stands out from the rest of the me-too's. This is critical. What aspect of your products, services, or any additional service you might offer, could you expand upon? It's obviously NOT price...so what else is there? How about personal service as in one individual rep to work with who gets to really know their business and would be available for consultation and problem-solving?

You might offer monthly mini-meetings in which their personal consultant show-tells about new uses for a product, helps with organizing tips/materiels (most body shops really need that), or some such. Make it as unique as possible with the accent on saving time/money and reducing clutter.

If you can offer a complete start-to-finish line of INTEGRATED products that work ideally together (as opposed to mish-mash products that may or may not work well together) so much the better.

Buy 2, get 1 free is good for established clients. You should consider offering 3 lead-in products at a special intro price to introduce them to your line. Ones that logically could start a string of add-on products so you get them using YOUR line exclusively eventually.

It's long but hope it helps spark some good ideas for you. Your letter needs work but that's for another time. Good luck!

Sandi Bowman

Re: Looking For Sales Advice
 

Thank you for your response Sandy.

******
First, have you actually surveyed your potential market to find out exactly what they want/need (or think they do)?
******

We have asked this question... but maybe at the wrong time. We ask them when we've set up an appointment. I put together a "SHOP SURVEY" we go thru....
_______________________________________
Shop Survey

Shop Name:
Owner/Mgr: Buyer:
Painter:
Booth Type:
Business Type: Collision Fleet Customs/Restoration Other

#Of Employees: _____#Techs: _____ #Painters: _____

Business Concerns:

Current Product Usage: Clear:
Primer:
Paint:

Current Suppliers (rate 1 to 10): Product Quality____ Price____ Service_____

Product Concerns:

Have You Ever Used Rubber-Seal Products: (yes/no)

What would it take for you to consider doing business with us?

What products would you consider purchasing from us, assuming we could offer you a quality product at a reasonable price?

Would you like to receive Special Offers, Industry News & Tips via email? (yes/no)

Email Address:

Notes:
_____________________________________

This has not proved very effective at this point. The main concern we get 9 out of 10 times is MORE BUSINESS. And they usually don't have much to say about any problems with current product. Don't get me wrong... we have filled a need with a small percentage of shops... but I'm looking for ways to up that percentage.

******
Since it's highly competitive there, you need a USP that stands out from the rest of the me-too's. This is critical. What aspect of your products, services, or any additional service you might offer, could you expand upon? It's obviously NOT price...so what else is there? How about personal service as in one individual rep to work with who gets to really know their business and would be available for consultation and problem-solving?
******

Yes! We are lacking a strong USP. Currently we've been using...

Quality Products. Reasonable Pricing. Guaranteed!

Blah... Blah... Blah! We need to develop our strongest advantage... our personal customer service. That is where we feel we can really shine.

******
If you can offer a complete start-to-finish line of INTEGRATED products that work ideally together (as opposed to mish-mash products that may or may not work well together) so much the better.
*********

Here is where we run into a snag. So many of the products across lines are very similar. We do have some unique products... but the majority are similar to what the competition is selling. But if we can get our foot in the door and provide outstanding service we should be able to develop loyalty.

*********
Buy 2, get 1 free is good for established clients. You should consider offering 3 lead-in products at a special intro price to introduce them to your line. Ones that logically could start a string of add-on products so you get them using YOUR line exclusively eventually.
***********

Yes. The most costly products in the refinishing biz is Clear Coats and Primers. We have been trying to lead in with these products but are running into the price challenge. We don't beat their current prices by much. And fear of change is standing in our way. BUT... if we can get ours in their hands... we can use that "loyalty" to our advantage. So maybe a GREAT Intro Offer on our clear and primer would be a good lead in. We do give samples, but using a quart on a small job does not really give them the time to really get the feel of the product. But a couple of gallons will give them the time to "dial into" the product and give us a chance of repeat purchases.

So maybe a "Buy 2 Get 1 Free" lead in offer on our clear and primer would be something to try. We would definitely provide significant savings on that offer.

Another approach... would be to come up with ways to assist them in their biggest concern... "more business". But if I'm having trouble with our marketing how can I provide marketing assistance to them? Any ideas?

Sandy thank you so much for your response. I truly want to make this work and be an asset to our customers. Your ideas will certainly help get me thinking "outside the box".

Thank you.

Joe

Re: Looking For Sales Advice
 

just off the top of my head ...

I would analyze the orders you have taken...or sold

see what products, quantities, etc ...

how may cars they do a day ...how many employees...how many of this ...how much of that....make all this a s specific as you can ...(maybe, even call em and ask em ..why they bought from you ? )

then when you have the specifics, market to similar shops...

your niche , if you will...

helping em get more business...sell em some magnets..put on all the customers cars and in parking lots...??

make up a discount for the new customers when the shop uses your discounted offer on the primers and clear coats ?

do like the car spa guy does, and just make up some discounts on body work ...make the discount apply to all your present shops...

and use this to show to new accounts how you support your customers...

who knows ?

tough market ....those body shops...

good selling to ya

Re: Looking For Sales Advice
 

Hi Joe,

There's a couple threads down the page on developing a "USP" that can Help give you the Edge on the competition...

Make sure you're Keeping in Touch and Uptodate with the industry...

Study & Learn their Lingo and get the Knowledge to Successfully land those accounts. :)

Here's a few Quick industry resources. Search out your Local Associations and Network, Network even with your competition...

Talking about Competition, Study what they're Doing and what they're Not. ;)

http://www.autobodyonline.com/
http://www.autobodynews.com/
http://www.autobodycouncil.org/

Follow a few particular Sales Experts that can Help build your Sales abilities...

A couple of my Favorites and Many more out there...

Jeffrey Gitomer
http://www.gitomer.com/
http://www.gitomer.com/index.cfm?Git...sCaffeineEzine
Art Sobczak
http://www.businessbyphone.com/
http://businessbyphone.com/backissues.htm

You may also want to checkout Sowpubber Skip Rosell who has an interesting business idea that just might work for you in a variety of ways, whether as a Promotional idea or Possibly as an Addon business.

Always be Thinking Multiple streams of income...

Here's Skip's link with a bunch of Excellent business ideas But go down the page a little...
http://makemoneyalert.com/
"Auto Accident Kits"

Best of Luck!

Phil

Re: Looking For Sales Advice
 

Thank you for your reply Bob.

I have analyzed the sales we've made so far. I just don't think we have enough numbers yet to give any hints of patterns.

Our current customers are all over the board sorta speak. A few A+ shops that have nice buildings, an office staff, multiple spray booths, and do mainly late model work. A few decent shops without the "nice office", 1 booth, etc. And a few... well... crappy one or two man shops without a spray booth.

And product purchases has been all over the place as well.

But you're right! There will be much to learn from that data as we grow.

Regarding providing some marketing assistance to the shops... that is a great idea. If we could come up with a simple way to prove ourselves valuable in this area would be a big boost for our offerings.

My brain is churning... thanks for sparking some ideas.

Regards.

Joe

Re: Looking For Sales Advice
 

Thanks Phil,

We do receive industry publications, and I am using the internet to learn as much as I can about the industry, competition, etc.

I also have been seeking out sales training resources. Thanks for the links.

And yes... something simple to add "value" to the shops we are courting (outside of our products), like marketing tips, ways to increase the shops customer satisfaction, how to avoid being "nickeled and dimed" by the insurance adjusters... anything else we can provide the shops (than just products) will help set us apart from other product reps..

Good food for thought. Thank you.

Joe

Joe, think repetition.
 

Greetings Joe,

Being that your propect clientele is roughly 500 body shops, I'd be paying them a visit once a month. Every month. Setup a simple route system.

Your USP should simply be, showing up continuously. Think about Snap-On or Mac Tool. What do they do. They make a habit of showing up regularly, even if it doesn't convert into a tool sale.

Due to their diligence, they have carved out a name for themselves amoung car dealers, body shops, mechanics, and any other business needing tools.

For you to break into a highly competitative market is going to require more foot work. It's not ideal but it works.

I know from personal experience, because my first business was patterned after the same approach as the tool peddlers. I went from $12,000 a year to $100,00 a year by simply showing up and asking if they needed my service.

Having been in a service related business, and now a promotional products sales business, the main thing your clients want is constant attention.

The other benefit is that your competition is going to slip up at some point. It's not a matter of how, it's a matter of when. Since you keep showing up your prospect is going to call on "WHO" they remember when their regular supplier fails them.

Guess who that's going to be. YOU!!

Woody Quiñones

Re: Looking For Sales Advice
 

Joe,

Thanks for asking.

I’ve made a 90-day commitment to a good friend of mine to help him develop the Detroit Michigan market for an Autobody Refinishing Supply Company.

My buddy has been involved with this Company for a couple of years, kinda plodding along working a day or so a week...

Corporate wants him to do better or else they are going to take his territory away.

YOU seem more committed to this than your Buddy.

Has Corporate defined what they mean by Better - seems you've already done Better?

After you have developed this market, what is there to stop Corporate deciding it's not good enough and taking the area away as they have already threatened? Or even just taking it away anyway?

Have you looked into the High Probability Selling/Prospecting Method by Jacques Werth? http://www.highprobsell.com (If you do some Googling you can find a lot of info and techniques on his system.)

Michael Ross