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

Thank you Michael.


YOU seem more committed to this than your Buddy.

Well... although his commitment was lacking in the past, he IS QUITE committed now. You see... he's been involved in the industry for the past 10 years as a production painter. He had a contract that recently came to an end with the US Military to paint various Hummer parts.

I've known this guy forever... we've worked various projects together for the past 20 years. What he is lacking is organization, follow-up skills, and the ability to face the rejection that is a big part of the sales gig. That's where I come in!

We actually fit real well together. He brings technical experience to the table and I provide a mix of organizational and marketing skills.

He actually came to me with this idea after he read your report I loaned him about creating "obligations" to achieve success. I can't remember the name of the report right now... but it had quite an impact on him. Kinda like when you want to work-out and exercise... it's always better to have a partner to help with the motivation. It seems to be working so far.

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

Corporate is already thrilled with our progress so far. They are willing to support our efforts in any way they can to penetrate this long neglected territory. As a matter of fact they are already discussing expanding our Michigan territory to extend beyond the Detroit Market. We have kept them informed of our plan and efforts so far, and they are confident we will work the market to it's best potential.

Up until a few years ago... these smaller suppliers had a "field day". They were supplying shops with similar quality products that the "major" paint manufacturers were selling, but at a drastically reduced price. Sales were "EASY"! Now that the competition is heating up among smaller suppliers, reps have to work harder and smarter to be profitable. Corporate recognizes that we have a system that provides us the best possible chance of market penetration.

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?

Well here's the deal... my partner is very close friends with a VP at corporate. He is well aware of the work we are putting in and is bending over backwards to help us succeed. The Company's been in biz since 1948 and they seem to be a solid and honest player. So I don't feel they will pull the rug out from under us.

I remember checking out Werth's stuff a few years back. I'll check him out again. Thanks for the suggestion. I have been reading Tom Hopkins and Steve Schiffman's stuff. Any suggestions are greatly appreciated.

Thanks again Michael for the response.

Joe

Hi, Joe,

Disclaimer: What follows is based on experience, observation, and other learning. I am not a lawyer and this should not be considered legal advice.

People can be friendly and supportive as all get out to one another BUT, if you value your friendship, you would be wise to put things in writing between you and your partner and also between the two of you and your suppliers. VP's are notoriously disposable so your support from the company is tenuous at best.

Have you given thought to what happens if someone dies or is replaced in the company and refuses to acknowledge your claims after you've both built the territory? What if you or your friend dies...does the business also die with it?...how will families survive? What if one of you decides they want out because they have other interests down the road? Do you have a written plan in place for a buy-out?

I hate to be a party pooper but you DON'T have a business at this point...you have hopes and dreams and promises...and that doesn't amount to a hill of beans when things change unexpectedly. Families and inheritors can be very nasty where money is concerned and not nearly as trusting as you and your friend. Without some type of written commitments and plans on all sides, you have nothing, legally, as I understand it. Zilch. That's not the way to start or run a business.

Eventually you may want to really expand and need to finance part of your expansion. No bank or anyone else would take you seriously if you neglect this essential part of your business. In fact, some businesses (especially larger well run ones) will refuse to work with you as a vendor to their business if they find out you are operating so unprofessionally in your business. Why? Because they could end up sitting on tons of product that is tied up in court while ownership and right to sell the product is in dispute. Who wants that type of headache?

Take care of ALL the business...or get out while you can with minimal losses.

With all best wishes for success...

Sandi Bowman

Good points Sandi.

My partner does have a "contract" with the Company that seems pretty solid as long as "he" fulfills his obligations. But I need to find out exactly what those obligations are, because apparently he was NOT fulfilling them over the past year or so... which led to the possibility of him losing his territory.

So I will make sure to check the details of the Contract.

As far as the "agreement" between my partner and I... we have discussed the framework and decided that if we plan to go ahead after the 9O day period I committed to... we would implement a contract at that point, and redefine the contract accordingly with the Company.

I am being paid (by my partner) a weekly salary for the 90 day period regardless of our sales volume, and a percentage of commissions if our sales volume exceeds a certain number that we determined.

But you're right... trust only goes so far! So thanks for the heads up.

Joe

Originally Posted by Sandi Bowman

Hi, Joe,

Disclaimer: What follows is based on experience, observation, and other learning. I am not a lawyer and this should not be considered legal advice.

People can be friendly and supportive as all get out to one another BUT, if you value your friendship, you would be wise to put things in writing between you and your partner and also between the two of you and your suppliers. VP's are notoriously disposable so your support from the company is tenuous at best.

Have you given thought to what happens if someone dies or is replaced in the company and refuses to acknowledge your claims after you've both built the territory? What if you or your friend dies...does the business also die with it?...how will families survive? What if one of you decides they want out because they have other interests down the road? Do you have a written plan in place for a buy-out?

I hate to be a party pooper but you DON'T have a business at this point...you have hopes and dreams and promises...and that doesn't amount to a hill of beans when things change unexpectedly. Families and inheritors can be very nasty where money is concerned and not nearly as trusting as you and your friend. Without some type of written commitments and plans on all sides, you have nothing, legally, as I understand it. Zilch. That's not the way to start or run a business.

Eventually you may want to really expand and need to finance part of your expansion. No bank or anyone else would take you seriously if you neglect this essential part of your business. In fact, some businesses (especially larger well run ones) will refuse to work with you as a vendor to their business if they find out you are operating so unprofessionally in your business. Why? Because they could end up sitting on tons of product that is tied up in court while ownership and right to sell the product is in dispute. Who wants that type of headache?

Take care of ALL the business...or get out while you can with minimal losses.

With all best wishes for success...

Sandi Bowman