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 - Making Change, Minimizing Risk

You see hot new products as the key to your company’s sales woes, but the owner thinks new = risky. What would you do?

Finally…after the toughest economic downturn you’ve ever experienced, consensus seems to be that the recovery will begin no later than the middle of next year. As the general manager of Handbasket Lumber’s fifth and newest location, you’re confident that the cutbacks you’ve made are sufficient to help you and your team weather the storm. Your back-office staff is a skeleton crew— with everyone doing double- or triple-duty. Same goes for your yard crew and sales team. They all know that these are extraordinary times, and you’re proud of every one of them for pulling the extra weight with nary a complaint.

As the general manager, you make certain that you’re setting a good example. Monday morning meetings bring everyone up to speed with the latest company news—specifically, what you and the company are doing to get in position for the return of a healthy market. For your part, you’ve been getting in earlier and leaving work later in order to meet with those vendors you’d pushed off for years…and finally taking time to evaluate their product offerings. Having carried many of the same lines for so long, you’ve been pleasantly surprised at the quality, ingenuity and value of some products that aren’t carried anywhere else in your market.

There are three products in particular that you are convinced could give your company a serious competitive advantage. The vendors have agreed to give you a one year exclusive in your market if you’ll commit to take a stocking position. The inventory requirement is minimal, the co-op advertising opportunity is generous. All it would take is some strategic marketing, and you’re convinced you’d be well on your way to refreshing Handbasket Lumber’s image—from stodgy to innovative. You just need approval from the owner.

And therein lies the problem. The owner, Helena Handbasket, is notorious for being change-averse. Your company was the last one in your region to stock a full line of engineered wood products—which finally happened because of an outcry from longtime builder customers. Meanwhile, nearby competitors can count on a healthy headstart each time there’s a significant advance in some new product line or category. Only when she is convinced beyond a shadow of a doubt that the new product isn’t a flash in the pan will she agree to test it in the stores. It seems that once, long ago, she stocked an ill-fated new product and got stuck with a five-figure investment in a product your company couldn’t give away. Ever since, she’s refused to take any chances with unproven products.

You’ve set up a meeting to discuss revenue goals and initiatives for 2010—and you see that as the perfect opportunity to bring this up. You know that her immediate reaction will most likely be “no!” You also know that the pressure to generate sales is greater than ever, and you believe that you’ve got the answer. There’s one week until your meeting—the result of which will have a serious impact on your sales for 2010.

What would you do?

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