Sales Management 2.0

A few weeks ago a I read a post by a sales manager who was kind enough to share with us his biggest screw up. He most ably illustrated how sales managers can take over at the wrong time, and make everybody feel bad about it.

The post reminded me of an experience that shaped my attitude toward anybody wanting to "help" with my deals.

CEO's, VP's and Sales Managers need to stay out of my way until I decide how they can help, and then do it my way.

Here's a true story, told in the 3rd. person to avoid the "I" word.

Steve had been working for six months with Gesterklar, a manufacturer of construction items, trying to sell the company a software package for manufacturing. There was no shortage of competition in those days.

He and Richard, the Gesterklar IT Manager, had worked out a proposal that worked for both companies, including the price. To make the "close" easier they agreed to set up meeting between David, CEO of Gesterklar, and Martin, Steve's sales manager. The excutives would only have to meet and shake hands on the deal with a price of $240,000.

Everybody understood the execs' jobs were purely about making the CEO feel he'd been in control of the decision. They would negotiate. both knowing when they got to $240k the deal would be done.

To start with the meeting went well enough. The big guys did their "pretend I'm in charge" bit but soon got down to the price. Martin confidently offered " David, I think we can make it work for us at $240k if that will work for you" and extended his hand for the shake.

Relieved, David stood up, accepted the extended hand and accepted "Martin, it's nice working with people who know how to do business. We have a deal."

The smiles around the room didn't last long, at least on Steve's side of the table.

Martin continued, " BUT, David, I want you to feel really good about selecting Dornix to supply your new system, so I'm going to offer it to you for $200k".

Bewildered, but highly amused, David just grinned and said "OK then".

At this point both Richard and Steve were badly out of shape. Richard had totally lost control of the project and cast his boss's ego in stone. There were more measurable impacts on Steve.

In the car driving away from the meeting Martin suggests "sorry Steve, I may not have done the job you asked me to, but we have got the deal closed".

"Right on both counts" replied Steve. "An hour ago I had this deal sewn up and Richard really appreciated my efforts in helping Gesterklar to choose the best solution."

"Now his boss thinks he's incompetent and wonders how much more discount we would have offered. Richard blames me and thinks I'm a snake oil salesman, because I didn't offer him our best price."

"Worst of all, my commission check is $5,000 lighter and I'm $40,000 further away from my target". "Next time ................"

Well there wasn't a next time, because Steve never took Martin on a sales call again.

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1 Comment

Daniel Di Massa Comment by Daniel Di Massa on May 7, 2009 at 9:10am
Wow, that's a good read and I have a memory or two just like that..

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Many companies that we have worked with indulge in this self defeating exercise at the end of the year, or even quarterly. This article describes it, its consequences and hints at how to avoid it: http://www.performax.com/uploads/boffff12.pdf
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