Tuesday, June 05, 2012

WHY DALE CARNEGIE'S 'COMMON SENSE' IS TOTALLY UNCOMMON IN INDIA

REPOSTED ON POPULAR DEMAND


I have read the Carnegie classic " HOW TO WIN FRIENDS AND INFLUENCE
PEOPLE" ( and it is a classic) a "two decade" period back but the best 
illustration of my point is a story narrated in the book. ( Due to many years, the story may not be 100% accurate and my apologies).





  
A Motor salesman visits a customer who is dissatisfied because the supplied motors    are  running hot. After some Q-A sessions, it comes out that the operator cannot place his hand on the motor comfortably. At this point, our salesman says bingo! but that's the point because the motors are supposed to run at 60 deg F and at this temperature, human skin  of the operator will have a natural aversion to the motor's body heat. 


So everyone is happy and our salesman comes out with applause and the confidence that the next motor order is in his pocket.


Now let's imagine the same thing in India. The salesman will be told ( first
 after some bullying by the guard) that the Purchase Manager is in a 
meeting. He goes away and next time comes with an appointment. The 
Purchase Manager meets him and expresses his disappointment with the 
salesman's motors. They run hot and are expensive!! The salesman wants 
to go to the shop but the operator is not in. Next day, he meets the 
operator who just says that his motors are hot. The salesman gives the 60
 deg F logic but the operator says no. He has other motors where he can
 place his hands and he has been running motors for 30 yrs, so...! The 
salesman slinks out of the factory with his tail between his legs and goes 
back to his office to lick his wounds. 



Does that sound familiar! so, what should the salesman do to receive 
the applause that Dale's salesman gets?? I'll explain in my next post 
but why don't you try to think about it yourself and post it here as a 
comment?

Bye for now... 

Bilbo 




Friday, June 01, 2012

SELLING TO THE PUBLIC SECTOR: TIPS & POINTERS




<PUBLIC SECTOR SELLING OF CAPITAL EQUIPMENT IS ONE AREA WHERE YOU DO NOT HAVE BOOKS NOR EXPERTS. Yet this post has been read only 3-4 times till now?></SALESPUBLICSECTOR)


          If all the selling I have been actively involved in  is analysed today, I bet that the amount of Public Sector to the Private Sector selling, will be something like 60%-40%. This is not because I was a "Public Sector Selling Expert" or anything like that. Actually, I did not have much choice because then and even now,the Private sector did not have that much of a presence in North East India. And NE India was the territory which I was invariably asked to represent by my employers for the first ten-twelve years of my career.

There are many differences in selling capital high value equipment to the public sector from the private sector and some of these are vital. These can be advantages or disadvantages. It depends upon how you look at them.

In this and subsequent posts, I will share with you the invaluable experience I gained in selling to Public Sector Units in India, so that you avoid making mistakes I made and thereby waste time. I will first  outline the road to traverse for selling in PSU's. You need to be acquainted with it if you do not want to lose time. Please do not be under any impressions that your Private Sector Selling experience will help you out. It will definitely be of help, but at different points along the standard selling route. But the outlined route from point to point is what you have to traverse. There’s no getting over it(as Ronnie Milsap may have said).

The Initial Approach" How to go about it.

A Public Sector Plant consists of two parts-(1)The Administration and General Office and (2) the Plant Area. You need to have vetting from different grades of officers to visit different sections. If you plan to visit the more sensitive plant area, then you will probably need approval from a department head. Making your appointments with the relevant officers and get all vetting done the previous evening is a good idea. This is because you waste the least time in getting your passes made. I have seen people wasting entire day in getting their passes made.

First of all, you need to visit the Materials Department , who will float the enquiries and place the Purchase Orders. You will be required to formally register yourselves in their approved vendor list before they can send you enquiries.  Next comes the “Engineering Services ’Department’ who will have the requirement. Get introduced to all the top bosses and find out about the functions of the different departments in the plant. Make  a mental family tree and replicate it on paper as soon as possible. Arrange a product presentation and invite everyone relevant and a few non-relevant people too. During the presentation, get introduced to all the individual bosses who sit inside the plant and make appointments with them.

Visit the different departments inside the plant and see where your product is required. But, do not try to push your product where it is not needed. Stay true to relationship selling.  Hold individual meetings and presentations. Convince the people who matter inside the plant and they will draw up the tender specifications, in line with your equipment, for tendering.

This is the easiest way to start and it is also useful when your boss asks you to account for your time. I have had plenty of bosses who had not even the slightest idea of how a Public Sector Plant operates. You may be under a little pressure initially. This has become a rather long post but there was no other way. Next time we will take up tendering.
So its bye from
Bilbo








Thursday, May 31, 2012

REPUBLISHED ON POPULAR DEMAND

Selling By Research (SBR) : THE FATE OF THE COLD CALL


Hi Friends,          
This blog post has been republished on popular demand. Have a great day.
Regards
Bilbo





The day is very near when the “Cold Call’ will become extinct. Yes! ---I mentioned exactly what you heard.
Before all of you come onto me for ‘blasphemy’, I would like to clarify that I am only talking about High Value Capital Equipment selling and this is not generalized to include all types of selling. But why should cold calling be extinct in capital selling.
The answer is simple. Because of the internet and globalization.


Tell me one thing. Suppose you are the customer and you have allotted one hour of your precious time to Mr.X who is from a company manufacturing water-line valves. Say, you carry out turn-key projects involving water distribution and you need some competition among your vendors. But what does Mr X do? He asks you what you do, he asks you about your projects, tells you that they manufacture valves and asks you whether you have any requirement. You conclude that this gentleman is on a cold call..What you do next depends upon the selling capabilities of Mr. X and I'll leave you people to think of a way vide which Mr. X can  be penalized because of his audacity.
Now consider this. You receive a phone call from a reputed valve manufacturer who knows about your company etc. He tells you that he has learnt about your bagging a multi million dollar contract (you are impressed) and that he, Mr Y, would like to give a presentation on his valves..how they save you energy, etc)
I don't need to be a magician to tell you that the next order will be bagged by whom.


Now, let's bring you onto a secret. Mr Y received some news that the project has been allotted to your company. He then finds all about you, your requirement. He is a make approved by the consultant. He wants to come and tell you all about why his valves should be purchased. Mr Y has done his research and therefore wins.Mr Y shows the customer what's in it for him or where the customer will win, unlike Mr.X.


This is all the more true in recent times because technically almost all brands are equal. Their prices differ because of quality. Unfortunately, quality is not a tangible parameter. Whether you get the order today depends still more on your research therefore.


This , ladies and gentleman, is the art of SBR at the basic level. No more cold calls in this segment will succeed. If you recognize this and accept it, you will save valuable time.


Recently, a slogan called "Never cold call again" has become popular, but I think it was me who first said those words, in capital equipment and heavy machinery selling'. Anyway, whoever was the first, the fact remains that cold calling is a dying art and as soon as SE Asia leaves it, the better.