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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.

Tough Call - Love Gone Bad

Bert Love is the kind of builder that lumber/building material dealers dream about. His company, Love Homes, is solid and growing--thanks to a hard-earned reputation as a quality builder. He's a pleasure to work with, unlike some other customers who blame you when they forget to schedule a delivery. He understands the concept of value--and he knows that when dealing with vendors, he gets what he pays for. Your yard isn't the cheapest, so he expects (and receives) top-shelf service.

Over the past decade, you've done all the right things. The result: Bert rewarded you by giving you 100% of his LBM business. But that may be about to change.

Bert recentlly hired a new buyer, Cal Amity, to help drive the company's growth. Cal's first big job is a sizable subdivision, and he intends to use the opportunity or prove that he's the right guy to lead Love Homes into the future. When introducing you to Cal, Bert made it clear that Cal is the decision maker. Period.

The problem: You and Cal didn't exactly hit if off. In his eyes, past loyalties are irrelevant, and in the price/value equation--he's all about price. He doesn't care how your company's services can lead to bottom-line savings. He actually told you that if he had to choose between guaranteed on-time, accurate deliveries and saving $10 per delivery--he'd take the $10.

Cal talks tough, but you've learned through your research that he likes gifts. Trips, tickets to a ballgame, or an expensive bottle of wine often lead to significant business. It's not how Bert did things--but that was then, this is now.

Love Homes represents a large piece of business for your company--one that you've come to rely on. Unfortunately, Cal has made clear that it's no longer automatic: You're back at square one.

What do you do?

 

Slash Prices:
And service. The rules have changed: Deal with it. If Cal wants low prices and bottom-of-the-barrel service, give it to him. Rock-bottom prices will help you keep the business for now. And when job site delays and quality issues blow up in his face, you'l
Bribe Him:
Pull strings to make sure he's invited on the next customer trip, and get your boss to pony up some tickets to the local pro sports team. If bribes are required to keep a major client, it's a small price to pay.
Intervention:
Cal needs someone to stand up to him before he starts doing any real damage. Be blunt, and tell him he's setting himself--and Love Homes--up for failure. He may not want to hear it, but he'll respect the fact that you cared enough to tell it like it is.
Alert Bert:
Cal's values don't fit Love Homes. You're absolutely certain that Bert would step back in if he knew how Cal did business. As a major player in Bert's success, it is your responsibility to tell him what Cal is up to--before calamity strikes.

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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LBM JOURNAL Strategies for Lunmber/Building Material Distribution Pros