This month’s article is the fourth in a serialization of the author’s life and career as an independent manufacturers’ representative.

Reprinted with permission from The Reputable Rep, Success in Sales and Life, by Sig Schmalhofer.

Asking for the Order

There are countless ways to make a deal, close a sale, or get an order. The one common denominator requires the strategy sales reps are reluctant to use: asking for the order. Asking for an order should never be abrupt. The conversation should just flow in that direction. This is the final step of the process. But, let’s rewind to the beginning. I’ve always believed that the objective of a sales call should be to “sell” without the customer having the feeling they were being “sold.” I don’t think anyone likes to be “sold” anything. Many of us have walked off of car dealership lots because we felt we were being “sold.”

The ideal sales call occurs with conversations that feel like they are between friends sitting on a balcony, enjoying a cigar or sharing a drink. How can a rep create a similar experience?

Relax the mood! How about the typical meeting that is in an office? A clever sales rep can relax a mood. Holding a cup of coffee in one hand and a briefcase in the other is a terrific way to soften the mood of a meeting. Getting the customer to go out and grab a bite to eat is ideal. Meetings over lunch have a relaxing pace that mixes personal relationship building with business. If a rep is doing his job, getting a customer out to breakfast or lunch should be a piece of cake.

I view most of my customers as friends. I care about them and their families. I know a little bit about their kids, their hobbies, their likes, and of course, their dislikes. Why? Because we are friends doing business.

When that’s the case, a productive meeting can be in a restaurant, a patio, or a stark office.

Some customers don’t take the time to go out for lunch. That’s fine. On the way to their office, call them and tell them you’re bringing lunch. Ask them what they are in the mood for. In time, you won’t need to make that call. You’ll know what their favorite foods are. It might be lox and bagels. It might be a ham and cheese sandwich from a local deli. When a rep has this kind of meeting, asking for the order is a naturally occurring outcome. It’s unforced and easy!

The next story illustrates how a reputable rep, enjoying a meal with a customer, can ask for help in an easy way. Note that all of this takes place in a conversation — not in a presentation.

Story Time: The Rio Hotel

I made a call on Kelly’s Pipe and Supply, a key distributor who was entrenched in the new hotel construction business. The owner was a staunch Moen distributor and my friend, George Shoen.

As was our ritual, we went out for breakfast. George was the rare customer who insisted on picking up the check — every time! After he asked me how it was going for me, I told him I was a bit frustrated. It was quite a job undoing what I had done! He shook his head empathetically. I asked him for help, I asked him if he had any lead on a new hotel that I could follow up on. Did he have a mechanical engineer I wasn’t already calling on that was working up specs on a new project? George was always in the know. He knew about every project that was coming up and who the decision-makers were. He always had inside knowledge on secret projects that no one knew about.

I prided myself in knowing my territory. I was pretty good at monitoring the job information I received from Dodge reports, but George always had the key to the lock that opened the door to secret business.

He was a kind man with a huge heart. Plus, George possessed an amazing knowledge of the market.

He compassionately told me that he knew how hard I worked and that I deserved a better fate. He would see to it that Delta was put onto the first phase of a huge job ready to break. He went on to say it would be a marquee project that would one day be famous.

As you can imagine, I was ecstatic! I peppered him with questions, “Who was the engineer; who was the room designer; who had the inside track to be the general contractor; who would win the contract to do the plumbing?”

George smiled. “I know you’re a bird dog that would call on all those people and make a compelling argument with each of them, but this job is a gift to you for being my friend. You need not call on anyone.” I was puzzled.

George had a twinkle in his eye. “I’m the decision-maker and Kelly’s is supplying all the plumbing!” I still didn’t get it. George finally let the cat out of the bag. “Sig, the hotel will be called The Rio. It will be built on Flamingo Road! I’m part owner!”

The construction of the Rio continued phase after phase well beyond my tenure as the Delta rep. I still smile and think about George Shoen every time I drive by the Rio Hotel!

Smart Questions

This discussion needs to start with the inverse. What are the dumb questions that reps ask that have nothing to do with anything? Asking dumb question after dumb question about the big game played the night before is “death by rep.” Making a topic out of the weather is “death by rep.” Spreading rumors about a competitor or another rep is “death by rep.”

What are some smart questions? Let’s pretend Larry is in a meeting with a customer we’ll call Curly. After a few, very short pleasantries, Larry gets down to business.

Larry: It’s a crazy business climate out there. What are you seeing out there on water heaters?

Curly: My competitors are idiots. They’re dipping deep into their backside for every order!

Larry: 40s and 50s I suppose.

Curly: Of course!

Larry: Who’s enemy number one?

Curly: Super Cheap Supply!

Larry: Maybe you should diversify a little bit. Perhaps put your effort into something more profitable.

Curly: Like what?

Larry: Commercial water heaters. Margins are a lot better on commercials!

Curly: We don’t sell many commercials. Every once in a while we’ll get an order for one by accident. That’s about it.

Larry: If you bought them right you could price them right, sell more, and still make a nice profit!

Curly: Okay, you’re sucking me in. How do I do that?

Larry: By becoming a commercial stocking distributor. I could get you a great deal if you ordered 24 at a time.

Curly: It will take me forever to sell 24!

Larry: What if I helped you? I’m tight with some plumbers that would like to buy my commercials, but since you don’t have them in stock at the right price, they buy them from “Plumb Crazy.” That costs us both a sale. As you know, “Plumb Crazy” doesn’t stock my product.

Curly: Twenty-four commercials? Man, that’s a big investment! Can I really make money on them?

Larry: Don’t forget that when you sell them heaters, you’ve got their attention. You’ll have a good shot at getting some of their other business.

Curly: Good point!

Larry: I’m pretty sure you’ll love the margins on commercials; plus, the new business will be a big plus!

Curly: Makes sense!

Larry: Let me do some leg work. I’ll find out what the key contractors are paying for 199s and 250s. Once I’m armed with that info, I’ll call the factory and then get back to you.

Curly: Thanks a million, Larry!

Farfetched you say? Probably a little bit. But not that far from a real life conversation a rep could be and should be having with a customer.

In that scenario, Larry put himself in the powerful position of being the customer’s consultant. In our world, it doesn’t get any better than that!

The Decision-Maker

The above strategy can be successful provided the rep is calling on the decision-maker. In my career, I have seen countless salespeople waste enormous time and energy naively knocking on the wrong door; spinning their wheels, wasting time calling on someone that has zero influence on the decision, and praying that the decision-maker somewhere downstream will get the message.

The decision-maker might be above or below the prospect incorrectly being targeted. I’ve seen factory people wine and dine the top dog, who ultimately defers to his team or “go-to-guy.”

Likewise, a purchasing agent can be targeted by a rep when in fact their purchasing power is limited to buying products approved by the real decision-maker.

The reputable rep knows who to target. He has the knowledge of the local players in the market and knows who the ultimate decision-maker is.

The Extra Call

The best athletes in the world, no doubt, are blessed with exceptional bodies, balance, and coordination. However, that alone does not allow them to achieve maximum success. The desire to be the best fuels their need to go the extra mile. High achievers are always on the lookout for something that gives them an edge. The reputable rep has the same mindset. They out-plan, out-research, and out-work the competition.

A good way to accomplish excellence is to push yourself further than you thought you would go, even after you determine your day is done. At the end of a long day, make one extra call, which could very well become the difference-maker.

Story Time: Arroyo Grande

It was 1994. I was working the central coast, the region of my territory that had no Bradford White distributors. After getting another “no,” this time from a national distributor in Paso Robles, I asked a contractor at the counter to please name the distributors he did business with. All the names he gave me had already given me a “no,” except one: Streator Pipe.

The contractor commented that Streator was a small wholesaler located on an alley in the tiny town of Arroyo Grande.

The time was 4:40. I was determined to make that one extra call! If I hustled, I could be in Arroyo Grande by 5:30.

I arrived to find a chain link gate rolled shut with the padlock hanging, but not locked. Parked in front of the entrance was a white truck. I took a chance. I rolled the gate open and walked into the pipe yard only to find, in the far end, a busy man with a clipboard busily counting his inventory.

He looked up, obviously surprised to see an intruder. “What are you doing here? We’re closed!”

I handed him a card and replied, “My name is Sig, and I sell Bradford White water heaters.”

The young man was a bit annoyed but introduced himself, “Mike Streator. I’ve never heard of that brand. I buy American Appliance heaters!”

Since a re-distributor in the Central Coast was well-known for selling American water heaters to smaller distributors, I asked the obvious question, “Who do you buy them from?”

“Big Time Wholesale.”

“Aren’t they your biggest competitor?”

Mike answered emphatically, “Yes!”

“Isn’t it hard to compete against your supplier?”

The answer to the question was no different than the chain link fence that Mike had left open, allowing us to meet. “I have no choice. American won’t sell me heaters direct!”

A simple close to the deal followed. “I will!”

Mike smiled. I gave him a two-minute pitch about Bradford White’s philosophy.

My soon-to-be longtime friend shook his head and smiled again. “Sounds like I need to be a Bradford White distributor. Come by in the morning and we’ll work out a program and pricing. I get here at 6:30!”

“See you at 6:30; I’ll spring for the donuts!”

Mike Streator and I have been friends for more than 20 years. We love retelling the story about two desperate guys who helped each other get started in business. The only thing Mike likes better than laughing about that story, is taking my money on the golf course!

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