Showing posts with label Sales. Show all posts
Showing posts with label Sales. Show all posts
Tuesday, March 27, 2012
IT Department vs. Purchasing
Sales people, when successful, find what has made them a success and then repeat. As my VP likes to say, “rinse and repeat”. This fundamental function of sales drives consistent and predictable business. I would suggest that for double digit growth to occur, a salesperson has to step out of their comfort zone.
One of the most comfortable places for an IT sales person to exist is in the purchasing department. The safety of dealing in just the monetary portion of the transaction is a place where everyone knows the rules. Low price wins the business. End of story. Unfortunately, low margins are what you end up with as purchasing has no way to evaluate your services any other way. If given the opportunity, even the value of logistics are negotiated down through purchasing.
The IT department can be a scary place. Lots of Acronyms, unfamiliar technologies, really smart IT people……very intimidating. However, in order for a salesperson to be a complete solution provider, it is imperative that this be their first stop in the sales process. While a salesperson may not be the most technical person in the room, there is plenty of value that they bring to the table. It is our job to understand the business case of the IT technology and help the IT department marry the solution to the business case. Ironically, the salesperson, when positioned properly inside the IT department becomes the “Go-To” person in the sales cycle and not the outsider that many sales people fear. The IT staff treats the salesperson as part of the decision making team. Of course, engineers should accompany all sales persons in this process, but the reason an IT salesperson is kept around is to assist on the business portion of any transaction and engage the technical resources to complete the solution.
Stepping outside your comfort zone and leaving the purchasing department and moving into the IT Department will actually lead to more comfort and stability for the salesperson, not less. A salesperson’s time working on solutions brings profitability to their clients. In most instances, the customer will make sure the salesperson is compensated for their time because it saves them time and effort. In other instances the customer will make decisions to protect the salesperson and their efforts from others determination to devalue their services.
We, as business people on both sides of the table, always associate ourselves with individuals who make us successful. Your clients do it as well. While there is always the necessity to work with the purchasing department, engage with the IT department. Your involvement is necessary for the success of an IT department. Salespersons have so much more to offer a client than products or services. They offer a way to make the IT Department’s job easier. Leverage your business skill and make it happen….then, “rinse and repeat”.
Wednesday, February 3, 2010
“Would you trade Your Reseller for a Camcorder?”
I used to have a copy of the aforementioned article hanging up in my office many years ago. I have researched a bit to find the article and can’t seem to find either the article or author. Obviously, from the camcorder reference, it was more than a few years ago that I found the article. I used to take copies of the article and hand it out to new salespeople that I hired. The message back them is the same as it is now. Business Partners are valuable. Make yourself valuable to your clients and surround yourself with valuable business partners.
The message from the article, in summary, was to make yourself valuable enough to a client that they wouldn’t exchange your services for even a $700 camcorder. At its face value, perhaps this seems a bit absurd….trade a business partner for a camcorder?!? How about something more current, how about a flat screen TV, a laptop computer, an iPAD?!? We all have people that we deal with in business who do nothing more than “order take”. Would I trade them for an iPad? I might. It really depends on if I consider them an asset to my company and specifically to me. Really it is whether they have value to me specifically and my ability to conduct my day to day business. Are they looking to line their pockets with a quick hit or are they “covering my back” when I am too busy to mess around with details? Do they stop me when I need to be stopped and do they help me move faster when I don’t need to mess with details? If they are a trusted business partner, they are hired for making me better at my job. The incremental dollar difference in dealing with someone who is an invaluable part of my business makes them a far more profitable asset than any extra markup, fee or hourly charge I receive while working with them. In nearly 20 years of running a business, I have never seen an exception to this rule.
This article speaks to the underlying value of any business relationship. Are you an order taker? Are you a commodity? Do you bring value to a client who would be hard pressed to replace you? If they do replace you, would they get the same quality business partner?
Let’s use the case of a networking reseller as an example. In very frank terms, most of us sell similar products and services. Most of us have quality engineers who do quality work. With all things being equal, how is it that some salespeople/business partners have customers for decades and others can’t stay at a company for more than a year? The long term employees have become an asset to the company, and in return reap the benefits of a relationship.
This can be said about anyone in a work place. Would your boss replace you in exchange for a cruise, a TV or an iPod? The more you bring as an asset to the company, the more your value rises within the organization. Great people surround themselves with the best business partners they can find. You should do the same.
In a commoditized world, a box can be purchased everywhere. The knowledge and skill of a trusted business partner is very difficult to replace and even more difficult to emulate. We all have trusted business partners and or resellers. There are suppliers, consultants, manufacturers, accountants and lawyers with whom I have long enduring relationships. Even when their prices are higher, or there is a disagreement, I find these partners to be an asset to the organization. Would I trade one of these business partners for a 50 inch Sony LCD TV? Never! I know that the $2,500.00 TV doesn’t even approach the amount of money this select group of people has helped our organization earn over the years. Consequently, I tend not to worry too much about the price of their goods and services as by dealing with them, and paying a premium for their expertise, the company saves far more than the difference in fees of less qualified people. Our organization makes up for the added expense for these professionals by using their insight, knowledge connections and services to make great business decisions. You should as well. Your business partners will not only help your company achieve its goals, but even more importantly they will make you better at your job.
The message from the article, in summary, was to make yourself valuable enough to a client that they wouldn’t exchange your services for even a $700 camcorder. At its face value, perhaps this seems a bit absurd….trade a business partner for a camcorder?!? How about something more current, how about a flat screen TV, a laptop computer, an iPAD?!? We all have people that we deal with in business who do nothing more than “order take”. Would I trade them for an iPad? I might. It really depends on if I consider them an asset to my company and specifically to me. Really it is whether they have value to me specifically and my ability to conduct my day to day business. Are they looking to line their pockets with a quick hit or are they “covering my back” when I am too busy to mess around with details? Do they stop me when I need to be stopped and do they help me move faster when I don’t need to mess with details? If they are a trusted business partner, they are hired for making me better at my job. The incremental dollar difference in dealing with someone who is an invaluable part of my business makes them a far more profitable asset than any extra markup, fee or hourly charge I receive while working with them. In nearly 20 years of running a business, I have never seen an exception to this rule.
This article speaks to the underlying value of any business relationship. Are you an order taker? Are you a commodity? Do you bring value to a client who would be hard pressed to replace you? If they do replace you, would they get the same quality business partner?
Let’s use the case of a networking reseller as an example. In very frank terms, most of us sell similar products and services. Most of us have quality engineers who do quality work. With all things being equal, how is it that some salespeople/business partners have customers for decades and others can’t stay at a company for more than a year? The long term employees have become an asset to the company, and in return reap the benefits of a relationship.
This can be said about anyone in a work place. Would your boss replace you in exchange for a cruise, a TV or an iPod? The more you bring as an asset to the company, the more your value rises within the organization. Great people surround themselves with the best business partners they can find. You should do the same.
In a commoditized world, a box can be purchased everywhere. The knowledge and skill of a trusted business partner is very difficult to replace and even more difficult to emulate. We all have trusted business partners and or resellers. There are suppliers, consultants, manufacturers, accountants and lawyers with whom I have long enduring relationships. Even when their prices are higher, or there is a disagreement, I find these partners to be an asset to the organization. Would I trade one of these business partners for a 50 inch Sony LCD TV? Never! I know that the $2,500.00 TV doesn’t even approach the amount of money this select group of people has helped our organization earn over the years. Consequently, I tend not to worry too much about the price of their goods and services as by dealing with them, and paying a premium for their expertise, the company saves far more than the difference in fees of less qualified people. Our organization makes up for the added expense for these professionals by using their insight, knowledge connections and services to make great business decisions. You should as well. Your business partners will not only help your company achieve its goals, but even more importantly they will make you better at your job.
Wednesday, January 6, 2010
What’s Your Mission?
I just watched a video of former AOL/Time Warner CEO, Gerald Levin apologizing for the “Worst Deal of the Century” in reference to the 164 billion dollar merger bettween Time Warner and AOL. That statement, in itself, is remarkable from a CEO. The statement is stunning for numerous reasons, but if you watch the video Mr. Levin talks about his former company not having a mission. He refers to it as a “culture”. If you know what he’s talking about, it’s being part of an organization with a soul.
Why is this important to Techno folks like us? The real question is what isn’t important about this to the IT departments of the world. If I were able to get back the hours upon hours I have spent speaking with a support engineer to get some piece of technology running, I could add an extra ten years to my life. My point is that, as technology folks, we spend a huge amount of time getting the individual pieces to work correctly. We spend almost no time getting the people who work with us and for us working together with an overall purpose.
We spend too much time looking at the trees and forget about the forest. Here is a suggestion. Start with a simple mission. You could choose something like “let’s create the best phone call return policy in the entire company”. It sounds small, but it IS a mission and does create a bit of a “we’re all in this together” approach to working in a department. Ta Da! Culture.
Culture is very elusive subject for most companies. It is elusive because most companies just take it for what it is. If you have ever entered an Apple retail store, you can almost feel the culture oozing from the store, the people and its products. This is not an accident. This culture has been deliberately created and fostered by Apple’s founder Steve Jobs.
Computers and companies can be cool…..really! For that matter, so can a department. One of my favorite types of customers to visit are the advertising firms. It’s remarkable how different they all are. Some are intellectually funny, and some are whoopee cushion funny. Each has their own personality, unique and complimentary to whom they are and the clients they serve.
It all stems from a basic mission. Do you know what the mission of your company or departments is? Do something unique. Do something daring. You don’t really want to be known as just the guy or gal who fixes computers….do you? Wouldn’t it be cool to be known as the best department inside the company because you and your colleagues along with being knowledgeable are great to deal with? Dare I say it….fun?!? Try setting up a twitter account for everyone who you service. Send them out a weekly “hey, did you know if you….. you computer would work better or check out this cool web site?” Simple but effective! If you don't know how to do it, drop me a line, I would be happy to help you get this going.
Carpe Diem! (Latin for “seize the day”) Make that difference! Change something! It’s a new year! Expand your horizons! Create a mission for 2010, even a simple one. Create the rabid following and appreciation for you and your co-workers that you deserve.
A Happy and Prosperous 2010 to all!!!!
Why is this important to Techno folks like us? The real question is what isn’t important about this to the IT departments of the world. If I were able to get back the hours upon hours I have spent speaking with a support engineer to get some piece of technology running, I could add an extra ten years to my life. My point is that, as technology folks, we spend a huge amount of time getting the individual pieces to work correctly. We spend almost no time getting the people who work with us and for us working together with an overall purpose.
We spend too much time looking at the trees and forget about the forest. Here is a suggestion. Start with a simple mission. You could choose something like “let’s create the best phone call return policy in the entire company”. It sounds small, but it IS a mission and does create a bit of a “we’re all in this together” approach to working in a department. Ta Da! Culture.
Culture is very elusive subject for most companies. It is elusive because most companies just take it for what it is. If you have ever entered an Apple retail store, you can almost feel the culture oozing from the store, the people and its products. This is not an accident. This culture has been deliberately created and fostered by Apple’s founder Steve Jobs.
Computers and companies can be cool…..really! For that matter, so can a department. One of my favorite types of customers to visit are the advertising firms. It’s remarkable how different they all are. Some are intellectually funny, and some are whoopee cushion funny. Each has their own personality, unique and complimentary to whom they are and the clients they serve.
It all stems from a basic mission. Do you know what the mission of your company or departments is? Do something unique. Do something daring. You don’t really want to be known as just the guy or gal who fixes computers….do you? Wouldn’t it be cool to be known as the best department inside the company because you and your colleagues along with being knowledgeable are great to deal with? Dare I say it….fun?!? Try setting up a twitter account for everyone who you service. Send them out a weekly “hey, did you know if you….. you computer would work better or check out this cool web site?” Simple but effective! If you don't know how to do it, drop me a line, I would be happy to help you get this going.
Carpe Diem! (Latin for “seize the day”) Make that difference! Change something! It’s a new year! Expand your horizons! Create a mission for 2010, even a simple one. Create the rabid following and appreciation for you and your co-workers that you deserve.
A Happy and Prosperous 2010 to all!!!!
Subscribe to:
Posts (Atom)