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Meg Jamison was a top sales performer in her first sales position right out of college. In fact, she won every sales award there was to win in her first 3 years. She was so good that she was constantly being contacted by competitors, headhunters and other sales organizations, outside of her industry for her sales expertise. The product Meg sold was a brand new,
state-of-the-art computer solution that addressed serious business issues. The
major competitor she faced was a simple lack of awareness about her company and
product. Sometimes a tough sale…but at least it was on an uncluttered
battlefield. After she was sales rep of the year in her 4th
year she painfully decided to take one of the many sales positions that had been
coming her way for the past three years. The one she took gave her 1/3 more
salary and double the commission and bonus opportunity. What a deal! Meg took the job and was miserable after 6
months and eventually fired within one year. The reason for her failure was very
clear. But not one that she could easily resolve. In fact, it was a single issue
that she ultimately couldn’t solve that caused her to fail. What was it? Her new job was selling another high tech
and high-ticket product. After all, Meg was smart enough to know that she wanted
to stay in a similar industry. And isn’t it true that sales is sales? Her new
product had been on the market for almost a decade and her new employer had
developed an exciting new upgrade to the product that promised great things for
both new and existing customers. The problem for Meg? She entered a crowded
battlefield – a marketplace literally loaded with highly competitive products
and crushing price demands. She now had to forget about a simple sale and start
to dislodge competitors from accounts where they had been for as long as a
decade. The lesson here? While it may be true that
sales is sales, you do need to understand that there are significant differences
between the varied environments where you do the selling. That’s a painful
lesson that Meg learned too late. In Meg’s case her problem was a lack of skill and understanding as it related to two issues. Here they are: · Dislodging existing vendors ·
Selling against price pressure The truth is that these two realities are quite often intertwined. In fact, they are often so interdependent that one without the other is virtually impossible. Let’s take a quick look at how to dislodge a competitor when they are already in an account you’re trying to enter. First, let’s look at some strategies never to implement. The no-no’s: · Don’t disparage or bad mouth your competition. · Don’t try to buy the account with low pricing. ·
Don’t give your product/service away to
create demand. Instead, how about some definite strategies? Here they are: · Develop a strategy to determine specifically why your prospect is buying from your competitor. Is it price, service, compatibility of equipment, loyalty? Study it and be able to do it better. · Continue to develop regular, ongoing opportunities for you to have a physical and psychological presence in the account. Send meaningful, relevant updates on products, progress or new services you provide. · Don’t be tempted into trying to convince the prospect that having only a single supplier is bad business. What happens if you do displace your competitor and become a sole supplier, too? · Position yourself as a top flite, unflappable professional who provides only high quality service and products. A person who can be trusted to implement meaningful solutions quickly, adeptly and with little loss of time. · Don’t use “low ball” pricing to dislodge your competition. You are only establishing a precedent for low pricing and the inevitable loss of the account to another discounter. · Become a student of your competitor. Learn their product benefits and how they sell and retain accounts. Then develop a strategy that does what they do even better. Remember, your prospect bought from them for some reason – simply redefine that reason and take it to another level. · When studying your competition, do your best to determine their vulnerability. Is it service? Technical support? Relationships? Pricing inconsistency? Billing problems? Remember, no one is perfect. Learn who, within the prospective account, is close to “having enough” and will serve as your internal ally. ·
Position yourself as a real, true industry
expert. Someone who others “in the know” rely on for advice. Word gets
around – and will likely find its way to your prospect as well. Be available
to provide valuable insight, knowledge and assistance. Begin to make yourself a
resource to their industry. It was too late for Meg. She did find another job. But this time she returned to a marketplace that was less filled reliant on dislodging current suppliers from existing accounts. But she did learn a few valuable lessons. What were they? Here they are: · All sales positions are not the same. · Dislodging current suppliers is long term, strategic and opportunity seeking work. ·
She would work hard to retain her customers
in her new job because eventually, someone would try to dislodge her, too. What about your sales position? What does
it require? Remember, while sales sometimes is just sales, not all sales
positions are created equally. January 2002 Issue |
