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 - Independence Day

You clearly remember the day in 1995 when young Tom Jefferson joined your company. Within hours of showing him the ropes and answering his questions, you knew that while he lacked experience, he more than made up for it with enthusiasm and “smarts.” You never had to worry about him not showing up for work or fooling around on the job. Your biggest concern with Tom was finding fresh challenges to throw his way so he didn’t get bored.

Tom mastered tasks and responsibilities better than anyone you’d ever hired, and there was no question that this young firebrand had a bright future. As the general manager of Colonial Lumber, you made it your mission to keep Tom onboard as long as possible. He wasn’t the kind of guy you wanted to lose—and definitely not someone you’d ever want to compete against!

Five years ago, you knew it was time to come up with another new challenge for Tom. You’d been thinking of getting into installed sales, and decided to set Tom loose. After a few weeks of research, he said that the biggest opportunity in your market was in insulation and windows. With your blessing, he jumped in.

Within a couple of years, Tom’s leadership of your installed sales division made it a significant part of Colonial Lumber’s bottom line. The margins were higher, your builders were happier, and the future of your business looked better than ever.

Yesterday, Tom dropped the bomb. After a lot of thought, he gave you 90 days notice that he is leaving to launch his own company across town. The new company will be called Independence Lumber; it will open on July 4, and the focus will be installed sales. He thanked you for the opportunity and the experience, and promised to help set the stage for the transition.

Armed with a sterling reputation, a successful track record launching and operating an installed sales business, and solid relationships with area builders, you don’t doubt that he’ll be wildly successful—and that your sales and profits will take a huge hit. Colonial Lumber’s absentee owner George Frederick, now residing in England, is very clear about his expectations: Keep growing the company. “King George” won’t tolerate reductions in sales or profits. Faced with a slow housing market, the impending loss of your star employee (and, very likely, the majority of your installed sales business), you’re at your wits’ end.

What would you do?

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