Qualified Remodeler Magazine

FEB 2017

Qualified Remodeler helps independent remodeling firms to survive, become more professional and more profitable by providing must-have business information, namely best business practices, new product information and timely design ideas.

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affordable to the customer and profitable to the company. Great managers understand their sales reps and their customers. Their role is to hire and train salespeople to make presenta- tions, not prejudge or qualify based on their own values, but to make presentations re- gardless of what they think about the quality of the lead or the opportunity. A sound sales methodology is designed to sell virtually everyone when executed correctly. Great sales managers understand that their role is to train their salespeople to execute each step of the presentation with precision 100 percent of the time. One of the great sales managers I was privileged to work with put it this way: Stop whining about price buyers and tire kickers—and start concentrating on how to present the value of what you are proposing. If you measure sales (close rate) versus leads issued and a salesperson runs 10 leads, completes seven demonstrations and makes three sales…they have a 30 percent close rate. What if they were to make one more demonstration per week? How many more sales would that be each month? The con- tribution to your "bottom line" is enormous. Lastly, no one should ignore the opportu- nity to recontact leads, which did not receive a presentation—or were presented and not sold. At least 20 percent of a top-producing great sales rep's business is A.R.C. or Add on, Referral and "Self-developed" leads. Your plan for 2017 should include methods for taking your organization from good to great in sales management. By Brad Yoho, Director of Marketing, Dave Yoho Associates To increase profit- ability for 2017, here are some important issues regarding lead development and control. Marketing costs for this industry increased drastically in 2016. While the quantity and statistics indicated that only about 50 percent of scheduled candidates showed up for their interviews. Now, many of the companies who contact us or whom we meet through semi- nars indicate that the number of candidates who show up is down to 20 to 30 percent. The companies who understand how to recruit, interview and hire use a method that includes scripting for both telephone and in-person interviews, and many of them average 70 percent of their appointments showing up for an interview. A few tips: Do not schedule interviews beyond 48 hours. Certainly, some candidates may have a good reason. But most of the time they hesitate because they aren't sure they want to invest time in meeting you. When/if they hesitate, determine if, in fact, they aren't certain they want to visit you. Ask directly for their concern. Again, use a script. A strategic error is made by recruiting under deadlines. That makes filling the position more important than finding the right person. You are more likely to make a mistake that wastes even more time, costs you more money, affects your company's morale and potentially damages customer relationships. Decide today to improve your hiring skills and watch your com- pany prosper. By Brian Smith, Senior Account Executive, Dave Yoho Associates For improved profitability in 2017, manage your salespeople properly. It creates dividends. It is important to see and hear your customers, their language habits and values from their perspective. Modern selling is not telling, fast-talking, being liked or outthinking your customers. It is a science that enables own- ers, managers and representatives to create a cooperative environment, acting in consort to fulfill both the wants and the needs of the customer. At the same time, provide the right products and services at prices which are quality of leads remained high, costs in many cases exceeded value. Despite high costs, many companies still made a profit, though probably not what they could have earned with a more efficient approach. Unsold leads where a presentation was not made are still leads. Every lead had some degree of interest; otherwise, it wouldn't have become a lead. Follow up on a consistent basis with email, direct mail or personal visits with prospects who have expressed an interest, yet remain unsold. This includes past customers. Be sure to check "Do Not Call" regulations for your market. There are usually time-restric- tive recontact provisions, even when the cus- tomer contacted your company. The more successful companies rehash every lead and follow up on every sale for additional business and referrals. They often find that salespeople unintentionally mishandled the contact, the presentation and/or the price. Following up is a great customer satisfac- tion tool. Rehashing is not about cutting your price or offering a lesser product at a reduced price. Carefully scripted, it can provide a revisit. In addition, a rehash program supports your sales department. It helps management train, retain and redirect salespeople while increas- ing their sales. An unsold lead has the same value (costs) as when it was issued, yet it produced no revenue. Someone will sell it someday— why not you instead of your competitor? With proper planning and execution, rehash can represent 7 to 10 percent of your gross revenue in 2017. n Dave Yoho Associates is the oldest (since 1962), largest and most successful consulting/training group representing this industry. Dave and several of his senior account executives will be speaking at the forthcoming Qualified Remodeler conference "Top 500 Live" March 15-16 in Baltimore, Md.— qrtop500live.com. The ad for which is featured elsewhere in this publication. Dave Yoho's account executives will also be performing at a series of live seminars in Dallas, Chicago and Washington D.C. at hipsummit.com. QualifiedRemodeler.com QR Februar y 2017 | SPECIAL SECTION: HOME IMPROVEMENT PRO 45

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