In the world of sales, there are often no right answers. What would you do in this tough sales situation? Make the call below, and see instantly how your judgment compares. Final results will appear in LBM Journal. Be sure to check back next month for a fresh Tough Call.

Tough Call - Andre and the Nest Egg

<p> <b> What would you do? </p> </b>

<p> <B> Andre and the Nest Egg </p> </b>

<P> Opportunity Lumber is a single-location, family owned company that has been serving the community for as long as anyone can remember. It has weathered the wild market swings throughout the decades, thanks in part to your savvy entrepreneurial spirit. Your company has been very good at seeking new opportunities, and being ahead of the curve with new initiatives such as selling windows and insulation installed, and by creating a remodeler's division. </p>

<p> While all has been relatively quiet at Opportunity Lumber recently, now one of your long-time employees in unintentionally stirring the pot. Andre Preneur has been one of the most consistent performers on your sales force since joining Opportunity in early 1982. He was so good, in fact, that you thought he'd leave to start his own business someday. As it turns out, you were half right. </p>

<p> Earlier this year, Andre emptied his savings account, purchased some rental properties, and launched a property management firm called Nest Egg Properties Inc. He was very upfront with you, explaining that this was something he was doing on the side to prepare for his eventual retirement. He definetly wanted to keep working full time, and assured you that building Nest Egg Properties wouldn't interfere with his work for you. </p>

<p> His solid performance and his status as a long-standing, effective employee convinced you to give it a try. </p>
<p> As the months passed, it appeared that you made a good decision. After all, Nest Egg bought all of his materials through your company, so your sales have benefited from Andre's entrepreneurial spirit. It's all good until you look a little closer..... </p>
<p> As your bookkeeper pointed out, Andre is writing up all his own sales for Nest Egg. He gives Nest Egg the maximum discounts, while ensuring enough margin to earn maximum sales commissions. Also, your bookkeeper-and his fellow salespeople-are grumbling about the company paying him to work on his own side business. They're questioning why the company would pay Andre a base salary, plus commission, to feather his own nest? </p>

<p> You don't want to stomp on Andre's spirit-especially when his actions might be above board, but you can't afford to let discontent fester among your other employees.</p>

<p> What would you do with Andre's Nest Egg? </p> 

 

	Scramble it
	As much as you like and trust Andre, it's clear that all is not well in this situation. Tell him he has to choose between working for you and working for himself.
	Over easy
	Andre is a good guy who's done well by your business over the years. You'd be foolish to end a 25-year relationship because "something doesn't look right."
	Boil It
	Given enough time, this situation will resolve itself, one way or another. As long as Andre's sales and margins (to customers other than himself) stay healthy, just wait and see. And encourage his coworkers to cool it.
	Flip It
	Letting Andre be the sales rep on his own account is just asking for trouble. Assign another rep to work with Andre on everything Nest-Egg-related. If another rep benefits, the discontent will go away.

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