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 - New & Improved vs. Tried & True

What would you do to ensure the success of your new product offerings?

When you began your career selling lumber and building materials in the early ‘80s, you were amazed at the quality of the products available. In fact, considering the advanced building science behind those state-of-the-art materials, you couldn’t imagine how those products would ever be improved upon.

That memory hit you like a 2x4 last month as you walked the aisles of the International Builders Show (IBS) in Orlando. Exhibit after exhibit featured product innovations. Most represented incremental improvements on existing products, while others marked the birth of entirely new product categories. Naturally, a few of the products seemed of questionable value, but others struck you as sure-fire hits with builders.

Back home at Tried & True Building Supplies, you’re sorting through the stacks of product brochures you acquired on your journey. As the company’s sales manager, one of your goals at IBS was to discover new products to ignite sales in your market. You have no doubt that several of these products are an ideal fit for your builders. But before pulling the trigger and placing orders for new and improved (i.e., untried) products, you must consider two obstacles.

First: customer inertia. In your experience, builders typically prefer using products that they’ve gotten used to. All products have plusses and minuses, and all products come with learning curves. The deck board you currently carry may not be perfect, but your builders know how to work with it. The innovative next-generation composite may perform better and last longer, but you know that your customers typically choose familiarity over improvement.

Second: staff inertia. It’s much easier to sell customers what they ask for—even if there’s a better alternative (i.e., better performing, longer lasting, easier to work with). Giving customers what they ask for is as easy as writing up the order; educating them on a better product takes time and effort. Human nature being what it is, it’s no surprise that your salespeople prefer the path of least resistance. After all, the important thing is getting the sale, right?

After careful study, you’ve identified three products that you’ve labeled “can’t miss.” All three are easier to work with, have longer warranties, and cost less but can be sold for more. Plus, none of them are available in your market. If even one of these is the home run you expect, it will be a bright spot in an otherwise dismal sales year and a real feather in your cap.

You’ve persuaded the owner to place sizable orders for all three products in exchange for one year of market exclusivity. This is a real gamble, considering the powerful forces of inertia that are sure to work against you. Hit a home run with these products, and you’ll be a hero. Strike out and you’ll be in real trouble. What would you do to ensure success?

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