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 - Friendly Fire

Most of your customers are a pleasure to do business with. Then there’s Friendly Homes. Despite the company’s warm and fuzzy name, owner Dan Friendly is anything but. While his company does build quality custom homes, Dan is better known for his legendarily volatile personality and explosive temper. When he has a falling out with a supplier—something that happens a lot—he doesn’t just burn the bridge, he obliterates it.

Dan fired his last supplier in December, and since then, you’ve held the tenuous position as his current supplier of choice. And you’ve been getting along with him just fine. Dan made it clear up front that he expected on-time deliveries, quality materials, and a no-hassle return of unused product.

You went him one better: Instead of just delivering on time, you use a truck-mounted forklift to provide pinpoint delivery to the most convenient place at the job site. Your drivers pick up unused materials within one working day—and Dan gets a credit almost immediately.

Despite the horror stories, you’ve come to view Dan as a fair, if demanding, customer. As long as you did what you said you were you’re going to do, when you said you were going to do it, you figured you’d be just fine.

That is, until now.

As bad as Dan’s temper is with suppliers, he saves his true wrath for his employees. The one person who stuck it out, Jim Carter, happens to be an exceptionally knowledgeable general contractor. Word on the street said that Jim’s easygoing manner was the only thing that prevented Friendly Homes from losing its core workers.

Then last month, after an especially nasty confrontation, Jim decided he’d had enough and struck out on his own.

Since custom homes are what he knows, Jim’s new company, Carter Homes, will compete head-to-head with his former boss. As expected, the best workers from Friendly Homes followed Jim to Carter Homes. Armed with a solid crew and a sterling reputation for quality and craftsmanship, the future looks good for Jim and his new venture.

Jim has been impressed the quality of your products and service, and wants to meet with you to discuss supplying him with materials for the first of what will likely be many homes. Dan, meanwhile, has warned you against supplying his former staffer. At the heart of Dan’s empty threats is the clear message that selling to Carter Homes will mean never, ever selling another stick to Friendly Homes.

You like Jim, think he and his new company will do well, and would enjoy working with him. On the other hand, Friendly Homes is a successful, established builder that pays on time. You can’t sell to both of them.

What would you do?

 

	Fire Dan:
	With Dan Friendly's volatile temper and track record of chewing up/spitting out vendors, it's only a matter of time until he does the same to you. Beat him to the punch. Say goodbye to Dan and align with Carter Homes.
	Keep Dan:
	Jim's a nice guy and a great contractor, but that doesn't necessarily translate into success as a builder. If Carter Homes fails, you will have thrown away a solid account.
	Negotiate:
	Talk with Dan. Explain that you appreciate his business and would like to keep working with him, but you can't turn away business because of conflicts you can't control.
	Play Dumb:
	Refuse to get stuck in the middle. You're in business to sell building materials, so ignore the war zone that you've found yourself in, and supply those who have money to pay.

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