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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.

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Tough Call - Racehorses vs. Workhorses

As all sales managers know, it’s tough finding the right salespeople. After six years as sales manager of your company’s Springfield yard, you finally have a team in place that’s doing the job. The first few years in your new position were rocky—primarily because the top-producing rep followed the departing sales manager to a competing yard, taking his accounts with him. After replacing him with two new reps, revenues have climbed steadily. And margins have followed.

None of your reps would be considered “racehorses”; your stable of “workhorses” does the job just fine. They work well with each other and with others in your company. They know the local market, and are building solid relationships with their builders. They all earn a respectable living, and seem content. In a company with 19 locations in the tri-state area, your team is consistently ranked right in the middle. And you’re just fine with that.

That may all be about to change. When you unlocked the door to your office this morning, the phone was already ringing. The call was from your boss, the VP of sales. “I have great news!” he exclaimed. It seems that Bob Roberts, the company’s top salesperson, is moving his family from Capitol City back home to Springfield at the end of the year. Bob Roberts is a living legend. His revenues are consistently higher than the next three top reps combined. Your boss has made no secret of his belief that your yard could do much better. And by the end of the call, the message is loud and clear: You will find room for Bob Roberts, and your yard will be in the top three within the next few years.

It’s now July 10. You have until Jan. 1 to figure out how to integrate Bob into your team. Your local market is solid and growing, but you doubt that there’s enough potential new business to just add Bob to your roster. Based on his revenue history—and compensation expectations—he could easily replace three of your eight reps. But with a minimum of six years of history building relationships, you hate to let any of your reps go.

What do you do?


	Ignore It, For Now:	You don’t want to upset your reps in the heart of the busy building season. Jan. 1 is a long way off. A lot can happen between now and then. You’ll have plenty of time to deal with this when fall comes.
	Tell Your Reps:	This news is too big to keep from them. Plus, they’re going to hear it anyway. Better that they hear if from you. Be upfront, tell them the situation, and let them know that it’s likely that several of them will be let go.
	Embrace It:	This is a great opportunity for you to push your yard—and your income—to the next level. Tell your reps that the comfort zone is about to end; all of them have six months to prove that they deserve to keep their jobs.
	Just Say No:	None of your reps is a big hitter, but each gets the job done. Suggest strongly to your boss that Bob would be more valuable working out of your company’s bottom-ranked Shelbyville store, just 15 miles away.

GOT A TOUGH CALL OF YOUR OWN? Send it to Rick@LBMJournal.com. If we publish your Tough Call, you'll win a free LBM Journal shirt. And don't forget: there's a new Tough Call each month: check the back page of LBM Journal or come back to www.LBMJournal.com next month for a fresh challenge. If you don't get LBM Journal, subscribe today! It's free for qualified subscribers.

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