All dealers wish they could bat 1.000 when it comes to competitive business opportunities. That would enable them to be ultra-selective in the types of opportunities they pursue. A chosen few do find themselves in a beneficial position to not chase any jobs except for those prospects who value exceptional service over the lowest cost.
Obviously, every company wants to save money, and solutions that enhance workflows and allow clients to be more effective in their own business pursuits is big-picture cost savings. But those prospects that want to wring out an extra $25 in the cost for a monthly contract really aren’t worth the effort. Let the bottom-feeding budget providers disappoint this client persona.
We digress. If your dealership is consistently getting outmatched in high-value business deals, it may be time to pop the hood on your approach. Thus, we wrap up this month’s State of the Industry report on contractual success with a bit of advice from some of the industry’s best and brightest when it comes to competitive scenarios.
There’s a lot to be said for knowing vertical markets inside and out, being mindful that you’re not likely to be proficient in every space. That helps in tailoring the conversation, according to Lauren Hanna, vice president of sales for Blue Technologies in Cleveland. It’s all about demonstrating that you’ve “been there, done that” for similar players in a vertical.
“We have so many real-world examples of things we’ve noticed that clients in a certain vertical have gone through,” she said. “That presents you as an ideal, knowledgeable provider.”
The right approach is crucial, as is timing, she added. “If you’re approaching them only when there’s an RFP. You have to get in ahead of the RFP, and take a solutions approach. You can educate them on different things and get ahead of the price war.
Slump-Buster
Innovation
If a dealer rep finds himself/herself in a prolonged slump, one of the first areas that should be evaluated is the line of questioning used with prospects, according to John Konynenbelt, vice president of sales for Applied Innovation in Grand Rapids, Michigan. One of the most important things a rep can (or should) learn is if that account is a good fit for the dealership.
“We do a lot of business with school systems, but we don’t approach some because we’re not cheap enough,” he said. “I don’t view that as a competitive loss. It’s not that we’re 50% more cost-wise than other dealers; it’s probably closer to 10-15%. If you’re going up against four other bidders, and three are within 10% of your price and the other is 40% lower, the prospect will go with the low bidder if they feel it is a commodity. That’s just a bad match for your company.”
Those are the types of accounts, he noted, that will hold out for a certain price and then see if a competitor will underbid you. “You’ve got to be willing to walk away,” Konynenbelt added. “A great sales rep or organization understands the prospect and what they’re really looking for. Then you try to fill their need better than other people—be that company that answers the phone, can be there on a Friday afternoon with the toner they need. If you do that, you’ll win often enough.”
United Business Technologies of Gaithersburg, Maryland, has made its bones at the enterprise level, which is a tough arena to carve out a name in, but it also plays in the commercial world, according to President Stu Wise. Struggling dealers may want to invest in ZoomInfo as a first step to ensure they’re targeting the right people in a given account.
“Not everyone can do enterprise, and it’s important for dealers to really know their strengths,” he said. “It’s the basics, too, filling the funnel through prospecting efforts. Some of our best sales people still make 90-100 calls a week. They have scripts they developed. We use email sales flows and several contact levels, because it boils down to timing, knowing when contracts are up and pushing for appointments. There’s no magic to it…you’ve got to execute.”
Finding Identity
Part of it is establishing a company’s identity. Jim Morrissey, president of UBEO Business Services in Austin, Texas, thinks dealers would be better served by having a firm grasp at what they’re good at, and not trying to be all things to all clients.
“I would never suggest that a $5-$10 million dealer get into wide-format machines; it’s too expensive and requires specialists,” he said. “Instead of chasing high-ticket items, dealers should focus on their core, what they’re good at. Diversification is big right now, but trying to expand into so many different things just doesn’t make sense to me. Are they going to make you more profitable, or are they just going to make you bigger? Bigger is good, but it’s the profit that matters.”
