I wanted to share some facts with you I read today in a Manpower Inc. press release about how employers are really beginning to struggle to find the skilled workers they need.
41% of the 2400 US firms Manpower Inc. surveyed recently said they’re struggling to find qualified workers for at least one position.
Sales representatives topped the list. That includes retail sales and business to business sales, but not telemarketers. The US Bureau of Labor Statistics projects that by 2014 an additional 736,000 retail sales people and an additional 187,000 sales representatives are going to be required.
Number two on the list was teachers. By 2014, the BLS projects an additional need for 524,000 post-secondary teachers and 265,000 elementary-school teachers.
Mechanics were third on the list, including automotive service technicians, diesel service technicians, small engine mechanics, aircraft and avionics equipment mechanics and industrial machinery repair. More mechanics are retiring than replacement workers are coming in and taking apprenticeships or getting the specialized training they need.
Many job seekers lack sought-after skills. Also there is an increasing number of retiring or soon to be retired baby-boomers. Plus lower birth rates are not keeping up with the numbers who are retiring.
The top ten list looked like this:
Sales representative
Teacher
Mechanic (include OPE and Small Engine)
Technician
Management/executive
Truck Driver
Driver/delivery
Accountant
Laborer
Machine operator
Thursday, March 29, 2007
Friday, March 16, 2007
Tecumseh - A Soap Opera or an Opportunity Waiting?
Tecumseh has been having a rough time in all three of their business segments: compressor products for HVAC, electrical components, and especially in their engine and power train products.
I’m familiar with the engine and power train product division. It seems like over the years if something could go wrong for Tecumseh, it often did. My company considered Tecumseh a solid US engine manufacturer, although behind Briggs & Stratton and Kohler in reputation and design and production capabilities, and whose primary customers appeared to be Sears with Tecumseh-manufactured Craftsman-labeled engines, and specialized engines for snow removal equipment manufacturers. Today, US production has been mostly moved to Brazil, manufacturing start-up problems there were epic in proportion, and commodity prices have been painful. Tecumseh lost most of the Sears business several years ago. And I always thought their US marketing efforts were suspect and weak.
Once highly profitable, the nearly $2 billion-a-year manufacturer has struggled with substantial losses in recent quarters. That’s why AlixPartners was brought in, in August of 2005 to help turn around the company.
Tecumseh Products was founded in 1934 by Ray Herrick. His descendants, including his grandson Todd Herrick and his great-grandson Kent Herrick, control 44 percent of the voting stock through the nonprofit Herrick Foundation (25%) and family trusts (19%).
Todd Herrick was fired as CEO by the Board on January 19, 2007 and his son, Kent Herrick, was dismissed.
Todd Herrick remained Board Chairman, but responding to his move to replace three of five board members with his nominees at an upcoming shareholders meeting, other directors removed him as chairman February 28. In addition, the Board expanded Board membership by two from 5 to 7, thereby foiling his plan to gain a voting majority.
At that date the deadline had passed for Mr. Herrick and other shareholders to nominate board candidates in advance of voting connected to the meeting of shareholders April 25. This prevented Todd Herrick from regaining the upper hand by nominating a fourth candidate.
Todd Herrick filed a lawsuit on March 6 that seeks a court order overturning the Board’s decisions on February 28 that expanded the board to seven members from five and removed him as chairman. And if the court does not overturn the board’s actions, then Mr. Herrick has asked that he be allowed to nominate a fourth person. The suit also seeks a court order to stop the firm from hiring a new CEO and requiring the annual stockholders meeting to proceed as scheduled.
I think it’s easy to understand the emotions of these founding-family members who still own a large percentage of stock in this public company. But I wonder if it wouldn’t be better for the Herricks to let go of the company leadership and let others rebuild the company and in turn, its stock valuation. And there are other shareholders to consider whose investments are also at risk.
A friend of mine who leads one of the most respected and largest manufacturers in the OPE industy told me today that this situation is like a TV soap opera. Unfortunately it appears to be exactly that. But I believe the shareholders of Tecumseh and the OPE industry deserve better.
Tecumseh Products has suffered under the watch of these family descendents but most of us in the outdoor power equipment industry want it to survive and prosper - for many different reasons. Let's hope all these players find a way to make that happen.
I’m familiar with the engine and power train product division. It seems like over the years if something could go wrong for Tecumseh, it often did. My company considered Tecumseh a solid US engine manufacturer, although behind Briggs & Stratton and Kohler in reputation and design and production capabilities, and whose primary customers appeared to be Sears with Tecumseh-manufactured Craftsman-labeled engines, and specialized engines for snow removal equipment manufacturers. Today, US production has been mostly moved to Brazil, manufacturing start-up problems there were epic in proportion, and commodity prices have been painful. Tecumseh lost most of the Sears business several years ago. And I always thought their US marketing efforts were suspect and weak.
Once highly profitable, the nearly $2 billion-a-year manufacturer has struggled with substantial losses in recent quarters. That’s why AlixPartners was brought in, in August of 2005 to help turn around the company.
Tecumseh Products was founded in 1934 by Ray Herrick. His descendants, including his grandson Todd Herrick and his great-grandson Kent Herrick, control 44 percent of the voting stock through the nonprofit Herrick Foundation (25%) and family trusts (19%).
Todd Herrick was fired as CEO by the Board on January 19, 2007 and his son, Kent Herrick, was dismissed.
Todd Herrick remained Board Chairman, but responding to his move to replace three of five board members with his nominees at an upcoming shareholders meeting, other directors removed him as chairman February 28. In addition, the Board expanded Board membership by two from 5 to 7, thereby foiling his plan to gain a voting majority.
At that date the deadline had passed for Mr. Herrick and other shareholders to nominate board candidates in advance of voting connected to the meeting of shareholders April 25. This prevented Todd Herrick from regaining the upper hand by nominating a fourth candidate.
Todd Herrick filed a lawsuit on March 6 that seeks a court order overturning the Board’s decisions on February 28 that expanded the board to seven members from five and removed him as chairman. And if the court does not overturn the board’s actions, then Mr. Herrick has asked that he be allowed to nominate a fourth person. The suit also seeks a court order to stop the firm from hiring a new CEO and requiring the annual stockholders meeting to proceed as scheduled.
I think it’s easy to understand the emotions of these founding-family members who still own a large percentage of stock in this public company. But I wonder if it wouldn’t be better for the Herricks to let go of the company leadership and let others rebuild the company and in turn, its stock valuation. And there are other shareholders to consider whose investments are also at risk.
A friend of mine who leads one of the most respected and largest manufacturers in the OPE industy told me today that this situation is like a TV soap opera. Unfortunately it appears to be exactly that. But I believe the shareholders of Tecumseh and the OPE industry deserve better.
Tecumseh Products has suffered under the watch of these family descendents but most of us in the outdoor power equipment industry want it to survive and prosper - for many different reasons. Let's hope all these players find a way to make that happen.
Wednesday, March 7, 2007
Toro Goes Green
Toro has taken environmental responsibility to heart and has announced products that use economical alternatives to petroleum-based fuels.
First, they announced that all their diesel-powered golf course and sports fields and grounds equipment will be “Biodiesel Ready” by 2008. In addition, that they are creating upgrade kits available in June, 2007 to convert diesel models in production or in the field to be compatible with biodiesel fuel.
What is biodiesel fuel? It is an alternative fuel source derived from biological sources that are completely biodegradable and non-toxic. Toro diesel products will be able to use biodiesel fuel blends of up to B20. B20 biodiesel fuels represent a mixture of 80 percent petroleum and 20 percent bio-fuel.
The second Toro announcement involves a partnership with the State of New York. Toro will provide Niagara Falls State Park with three hydrogen-powered utility vehicles by mid-2007. (See picture of hydrogen fuel cell above)
The New York State Energy Research and Development Authority included hydrogen fuel cell vehicles in their project because they reduce noise pollution; increase machine efficiency over gasoline or diesel-powered equipment; allow rapid refueling versus slow recharging of battery-operated equipment; and have low emissions because hydrogen fuel cells emit water vapor as a byproduct.
Do you suppose this is a "bandwagon" with one industry player on board?
The real question is whether our customers are ready to pay a premium for alternative fueled OPE products? We know they will pay a premium for hybrid automobiles, with the extra cost spread out over multi-year payments. Perhaps in the commercial and higher-end product arena of the outdoor power equipment industry, today's customers will be willing to pay a premium for equipment that is more environmentally responsible. Time will tell.
www.biodiesel.org/
www.eere.energy.gov/hydrogenandfuelcells/
First, they announced that all their diesel-powered golf course and sports fields and grounds equipment will be “Biodiesel Ready” by 2008. In addition, that they are creating upgrade kits available in June, 2007 to convert diesel models in production or in the field to be compatible with biodiesel fuel.
What is biodiesel fuel? It is an alternative fuel source derived from biological sources that are completely biodegradable and non-toxic. Toro diesel products will be able to use biodiesel fuel blends of up to B20. B20 biodiesel fuels represent a mixture of 80 percent petroleum and 20 percent bio-fuel.
The second Toro announcement involves a partnership with the State of New York. Toro will provide Niagara Falls State Park with three hydrogen-powered utility vehicles by mid-2007. (See picture of hydrogen fuel cell above)
The New York State Energy Research and Development Authority included hydrogen fuel cell vehicles in their project because they reduce noise pollution; increase machine efficiency over gasoline or diesel-powered equipment; allow rapid refueling versus slow recharging of battery-operated equipment; and have low emissions because hydrogen fuel cells emit water vapor as a byproduct.
Do you suppose this is a "bandwagon" with one industry player on board?
The real question is whether our customers are ready to pay a premium for alternative fueled OPE products? We know they will pay a premium for hybrid automobiles, with the extra cost spread out over multi-year payments. Perhaps in the commercial and higher-end product arena of the outdoor power equipment industry, today's customers will be willing to pay a premium for equipment that is more environmentally responsible. Time will tell.
www.biodiesel.org/
www.eere.energy.gov/hydrogenandfuelcells/
Tuesday, March 6, 2007
No. 3 March 2007
I recently read that Wal-Mart wants to use a computerized employee scheduling system to ensure that employees are in the stores when consumers are shopping. They would use historical data to create employee work schedules that would increase customer satisfaction and improve productivity. Can you believe employees are objecting to this?
There are distributors I know in our industry that are already using software that looks at historical phone traffic hour by hour over the past week, month, or year; incorporates vacations, meal time and breaks, and creates schedules for call center employees that have them on the job when customers normally call. The results are more satisfied customers and call center employees with pre-planned schedules, a win-win situation if there ever was one.
Even in the warehouse, a flexible work schedule that has people working when there is work to do results in warehouse efficiencies and ultimately increased customer satisfaction.
Having people on the job when there is work to be done and customers to be helped? Gee, what a neat concept!
Briggs & Stratton says that its engine sales were down 30% for the first half of its fiscal year and engine units were down 33% year over year. Besides the obvious lack of hurricanes hitting the US and early snow, Briggs stated that “manufacturers of lawn equipment have chosen to assemble closer to the spring selling season.” It appears that retailer focus on managing tighter inventories and delaying orders closer to the selling season is affecting both engine and equipment manufacturers.
Mass retailers are a “900-hundred pound gorilla” affecting our entire industry daily. Never doubt for a minute that what affects one OPE industry participant won’t ultimately affect us all.
Make sure you read the industry forecasts in the January and February 2007 issues of OPE magazine. Here's a few thoughts that caught my attention In the January issue. The suggestion that dealers focus on maximizing cash flow in 2007 is a good one. There are even a few ideas on how to get started planning your cash flow. The new combined Green Industry and Equipment EXPO (GIEE) in Louisville is generally seen as very positive, but there is still an underlying sentiment that, like the former Green Industry Expo (GIE), the show should move around the country and eliminate the perception that dealer attendance is predominately regional. 2007 will be flat, but there is an expectation that consumers cannot delay OPE purchases indefinitely. Also the ongoing debate continues about whether a dealer should only offer a single product line exclusively, or be able to offer their customers a choice of brands and service multiple product lines. Grab the January and February issues of OPE and read these forecasts. Then, create a plan to help you to be better prepared to react quickly to developing industry, marketplace and weather conditions in 2007.
Globalization continues to affect the our industry and US manufacturing in particular. Briggs & Stratton is “evaluating the future direction of (their) Rolla, Missouri (engine) plant.” Briggs cites the success of their China engine operations, the continued cost pressures from the market (competition), and cost increases brought about by government regulations as the reasons it is evaluating the future role of this engine plant. They’ll announce a decision in about 6 months. At the same time they are putting a new plant in Newbern, TN, to produce products for their Power Products segment. And in December, 2006, Briggs began assembly of engines for walk behind mowers in the Czech Republic for the European market.
Major companies in our industry are always planning ahead and reacting quickly to a rapidly changing business environment. You should too.
When you have a free minute, email a few comments to anonymous.distributor@gmail.com about how your business is doing this spring and include where you’re located. Or go to the Anonymous Distributor Blog at http://anonymousdistributor.blogspot.com/ and leave a comment at the question “How’s Business?” I’d like to hear from you.
There are distributors I know in our industry that are already using software that looks at historical phone traffic hour by hour over the past week, month, or year; incorporates vacations, meal time and breaks, and creates schedules for call center employees that have them on the job when customers normally call. The results are more satisfied customers and call center employees with pre-planned schedules, a win-win situation if there ever was one.
Even in the warehouse, a flexible work schedule that has people working when there is work to do results in warehouse efficiencies and ultimately increased customer satisfaction.
Having people on the job when there is work to be done and customers to be helped? Gee, what a neat concept!
Briggs & Stratton says that its engine sales were down 30% for the first half of its fiscal year and engine units were down 33% year over year. Besides the obvious lack of hurricanes hitting the US and early snow, Briggs stated that “manufacturers of lawn equipment have chosen to assemble closer to the spring selling season.” It appears that retailer focus on managing tighter inventories and delaying orders closer to the selling season is affecting both engine and equipment manufacturers.
Mass retailers are a “900-hundred pound gorilla” affecting our entire industry daily. Never doubt for a minute that what affects one OPE industry participant won’t ultimately affect us all.
Make sure you read the industry forecasts in the January and February 2007 issues of OPE magazine. Here's a few thoughts that caught my attention In the January issue. The suggestion that dealers focus on maximizing cash flow in 2007 is a good one. There are even a few ideas on how to get started planning your cash flow. The new combined Green Industry and Equipment EXPO (GIEE) in Louisville is generally seen as very positive, but there is still an underlying sentiment that, like the former Green Industry Expo (GIE), the show should move around the country and eliminate the perception that dealer attendance is predominately regional. 2007 will be flat, but there is an expectation that consumers cannot delay OPE purchases indefinitely. Also the ongoing debate continues about whether a dealer should only offer a single product line exclusively, or be able to offer their customers a choice of brands and service multiple product lines. Grab the January and February issues of OPE and read these forecasts. Then, create a plan to help you to be better prepared to react quickly to developing industry, marketplace and weather conditions in 2007.
Globalization continues to affect the our industry and US manufacturing in particular. Briggs & Stratton is “evaluating the future direction of (their) Rolla, Missouri (engine) plant.” Briggs cites the success of their China engine operations, the continued cost pressures from the market (competition), and cost increases brought about by government regulations as the reasons it is evaluating the future role of this engine plant. They’ll announce a decision in about 6 months. At the same time they are putting a new plant in Newbern, TN, to produce products for their Power Products segment. And in December, 2006, Briggs began assembly of engines for walk behind mowers in the Czech Republic for the European market.
Major companies in our industry are always planning ahead and reacting quickly to a rapidly changing business environment. You should too.
When you have a free minute, email a few comments to anonymous.distributor@gmail.com about how your business is doing this spring and include where you’re located. Or go to the Anonymous Distributor Blog at http://anonymousdistributor.blogspot.com/ and leave a comment at the question “How’s Business?” I’d like to hear from you.
Monday, March 5, 2007
How's Business This Spring?
Daylight Savings Time begins on March 11 this year. And warmer weather is on the way, at least according to a knowledgeable groundhog or two.
I know many readers would love to read about how your business is doing this spring.
You can leave a few comments anonymously if you wish, but I would ask that you indicate what state you're in and what kinds of products you sell or service.
Your answer of "I'm in a state of confusion," isn't acceptable - even if it's true!
I know many readers would love to read about how your business is doing this spring.
You can leave a few comments anonymously if you wish, but I would ask that you indicate what state you're in and what kinds of products you sell or service.
Your answer of "I'm in a state of confusion," isn't acceptable - even if it's true!
OPEESA's Annual Meeting - Feb 25-28, 2007
The Outdoor Power Equipment and Engine Service Association (OPEESA) held their annual meeting February 25-28, 2007 at the Fairmont Southampton in Southampton, Bermuda. The weather was chilly and very windy. But our speakers were excellent and gave us lots of good ideas to think about. Let me share a few with you.
Jeff Thredgold, President, Thredgold Economic Associates’ (http://www.thredgold.com/) topic was “Your Money, Your World, You Family – The Future.”
“One half of the world population has never made a phone call and less than 2% are college graduates.”
“Seven out of every eight people entering the US labor pool over the next 30 years will be minorities.”
“One out of every three US college students today is over 40.”
“In 1980 the average college graduate made 25% more than a high school grad.”
“Today, the average college graduate makes 90% more than a high school grad.”
“US labor markets will get extremely tight over the next 10 to 20 years. And you will be scrambling for workers like you never thought possible.”
“By mid-year 2007, the long term interest rate will be in the high 5 to low 6 % range.”
“Where will the new jobs be in the US in the coming years: health care, financial planning, and leisure and recreation.”
Nancy Friedman, President, The Telephone Doctor (http://www.telephonedoctor.com/) spoke on “Sales & Customer Service from a Management Point of View.”
FIVE FORBIDDEN PHRASES IN THE CALL CENTER
(1) “I don’t know.”
When you answer “I don’t know” there is no safety net.
And you never want to use negative words at the beginning of a conversation.
The Best Answer to a question you don’t know the answer to is to say “Gee, that is a very good question, let me find out for you. When do you need that information?” You may find out there is not real hurry to supply the answer anyway.
(2) “I can’t…….”
When you say “I’m sorry, I can’t do that,” you are injecting negativity.
Don’t ever tell them what can’t be done. Provide a positive alternative. Reject gently.
The Best Answer is “Let me see what I can do.”
If it is absolutely an impossible situation, you would say “I wish we could do that. Unfortunately that is not an option I have.”
(3) “Hang on a second, I’ll be right back.”
Ask if they are able to hold, then wait for a response.
The Best Answer is “If you’re able to hold, I’ll get you that information. If you cannot hold, I’ll be glad to call you back.”
(4) “You have to…………….”
Don’t ever say what the “have” to do. Always tell them what they “need” to do.
(5) “No.”
Never, ever start a sentence for any reason with the word “no.”
What consumers hate most when calling a business – 1st the use of an automated attendant, 2nd rude employees, and 3rd being put on hold.
SWITCHBOARD
Answer first with a buffer – “Good Morning. Thanks for calling. This is Marsha.” You don’t have to identify the business
DO NOT ever say “How can I help you?”
VOICE MAIL
An automated attendant should always zero out to a person
Never Use the following terms on voice mail:
“I’m not at my desk right now.”
“Your call is very important to me.”
“I’m sorry I missed your call.”
“I’ll call you back as soon as possible.”
The Best Answer is “This is ____. Please leave a message and I will return your call.”
Your teeth must always be visible when you are recording your message (i.e. smile.)
When you leave your name and number on a voicemail, always say your name and the phone number twice, clearly and distinctly.
YOUR ON-HOLD MUSIC OR?
Ask you customers what they want to hear on hold. Then follow their advice.
Michael Workman, President, Michael E. Workman Associates, (http://www.mworkman.com/) spoke on “Profit-Enhancing Collaboration.”
“The purpose of a business is to create and maintain a customer.”
“Profit is only a test of management decision-making ability.”
“Leadership is much stronger than management skills in a small business.”
“In relationships between a manufacturer and a distributor, if a common goal is shared, communication is never a problem.”
“Manufacturers say “ I cannot pay you for your effort. I can only pay you for your performance.”
“If sales go up while margins are declining and people costs are going up, the business is in trouble.”
“Where there is no accountability, there is no change.”
“When the salesman owns the customer, your business is in trouble.”
“The less information I know and have about my customer, the more inventory I must have to serve him.”
“In a 2003 National Association of Wholesalers (NAW) sponsored study, there was no correlation found between how the type of compensation a sales person received and their sales results.”
“You can’t take a C player and make him an A player by paying him more.”
“An A player is always an A player no matter how you pay them.”
“The only true motivator proven to work is: setting goals.”
“You can’t pay a sales person the same for maintenance that you pay him for growth. You always pay a lot less for maintenance.”
“Know why your customers buy from you.”
“Never let your customers decide how they will measure your value to them. Your sales people should show them what the value is you provide and how they should measure it.”
“Never let your accountants make your strategic decisions.”
“Good – Cheap – Fast. You can only excel at any two of these with a profitable customer.”
“Manufacturers are always driven by ‘share,’ distributors are driven by profitability, dealers always want ‘all of it,’ and consumers always want a better deal.”
“Self-selecting teams are always much more effective than teams with members selected by management. Your people know better than you who belongs on their team.”
“Outside sales is becoming the training ground for inside sales. And inside sales is always much more profitable.”
“Ask your customer how they want to be served and then do it. You may find that many don’t need or want outside sales personnel calling on them.”
“The Chinese are building manufacturing plants in Mexico to reduce delivery time to North America to a max of six days. It’s happening now and is the wave of the future.”
“Jim Collins said ‘Great companies focus on profit maximization, not growing market share.’”
Jeff Thredgold, President, Thredgold Economic Associates’ (http://www.thredgold.com/) topic was “Your Money, Your World, You Family – The Future.”
“One half of the world population has never made a phone call and less than 2% are college graduates.”
“Seven out of every eight people entering the US labor pool over the next 30 years will be minorities.”
“One out of every three US college students today is over 40.”
“In 1980 the average college graduate made 25% more than a high school grad.”
“Today, the average college graduate makes 90% more than a high school grad.”
“US labor markets will get extremely tight over the next 10 to 20 years. And you will be scrambling for workers like you never thought possible.”
“By mid-year 2007, the long term interest rate will be in the high 5 to low 6 % range.”
“Where will the new jobs be in the US in the coming years: health care, financial planning, and leisure and recreation.”
Nancy Friedman, President, The Telephone Doctor (http://www.telephonedoctor.com/) spoke on “Sales & Customer Service from a Management Point of View.”
FIVE FORBIDDEN PHRASES IN THE CALL CENTER
(1) “I don’t know.”
When you answer “I don’t know” there is no safety net.
And you never want to use negative words at the beginning of a conversation.
The Best Answer to a question you don’t know the answer to is to say “Gee, that is a very good question, let me find out for you. When do you need that information?” You may find out there is not real hurry to supply the answer anyway.
(2) “I can’t…….”
When you say “I’m sorry, I can’t do that,” you are injecting negativity.
Don’t ever tell them what can’t be done. Provide a positive alternative. Reject gently.
The Best Answer is “Let me see what I can do.”
If it is absolutely an impossible situation, you would say “I wish we could do that. Unfortunately that is not an option I have.”
(3) “Hang on a second, I’ll be right back.”
Ask if they are able to hold, then wait for a response.
The Best Answer is “If you’re able to hold, I’ll get you that information. If you cannot hold, I’ll be glad to call you back.”
(4) “You have to…………….”
Don’t ever say what the “have” to do. Always tell them what they “need” to do.
(5) “No.”
Never, ever start a sentence for any reason with the word “no.”
What consumers hate most when calling a business – 1st the use of an automated attendant, 2nd rude employees, and 3rd being put on hold.
SWITCHBOARD
Answer first with a buffer – “Good Morning. Thanks for calling. This is Marsha.” You don’t have to identify the business
DO NOT ever say “How can I help you?”
VOICE MAIL
An automated attendant should always zero out to a person
Never Use the following terms on voice mail:
“I’m not at my desk right now.”
“Your call is very important to me.”
“I’m sorry I missed your call.”
“I’ll call you back as soon as possible.”
The Best Answer is “This is ____. Please leave a message and I will return your call.”
Your teeth must always be visible when you are recording your message (i.e. smile.)
When you leave your name and number on a voicemail, always say your name and the phone number twice, clearly and distinctly.
YOUR ON-HOLD MUSIC OR?
Ask you customers what they want to hear on hold. Then follow their advice.
Michael Workman, President, Michael E. Workman Associates, (http://www.mworkman.com/) spoke on “Profit-Enhancing Collaboration.”
“The purpose of a business is to create and maintain a customer.”
“Profit is only a test of management decision-making ability.”
“Leadership is much stronger than management skills in a small business.”
“In relationships between a manufacturer and a distributor, if a common goal is shared, communication is never a problem.”
“Manufacturers say “ I cannot pay you for your effort. I can only pay you for your performance.”
“If sales go up while margins are declining and people costs are going up, the business is in trouble.”
“Where there is no accountability, there is no change.”
“When the salesman owns the customer, your business is in trouble.”
“The less information I know and have about my customer, the more inventory I must have to serve him.”
“In a 2003 National Association of Wholesalers (NAW) sponsored study, there was no correlation found between how the type of compensation a sales person received and their sales results.”
“You can’t take a C player and make him an A player by paying him more.”
“An A player is always an A player no matter how you pay them.”
“The only true motivator proven to work is: setting goals.”
“You can’t pay a sales person the same for maintenance that you pay him for growth. You always pay a lot less for maintenance.”
“Know why your customers buy from you.”
“Never let your customers decide how they will measure your value to them. Your sales people should show them what the value is you provide and how they should measure it.”
“Never let your accountants make your strategic decisions.”
“Good – Cheap – Fast. You can only excel at any two of these with a profitable customer.”
“Manufacturers are always driven by ‘share,’ distributors are driven by profitability, dealers always want ‘all of it,’ and consumers always want a better deal.”
“Self-selecting teams are always much more effective than teams with members selected by management. Your people know better than you who belongs on their team.”
“Outside sales is becoming the training ground for inside sales. And inside sales is always much more profitable.”
“Ask your customer how they want to be served and then do it. You may find that many don’t need or want outside sales personnel calling on them.”
“The Chinese are building manufacturing plants in Mexico to reduce delivery time to North America to a max of six days. It’s happening now and is the wave of the future.”
“Jim Collins said ‘Great companies focus on profit maximization, not growing market share.’”
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