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 - CRACKING THE CODE

A builder is open to buying from you, but won’t meet with your sales rep. Meanwhile,the orders keep going to the competition.

ince opening your doors in a volatile market just a decade ago, it’s with no small sense of satisfaction that your company not only survived the intense competition of the housing boom—but continues to peel off market share even today. The secret to your success is no real secret: under-promise, over-deliver, provide solid value and field the best trained reps in your market.As an independent dealer, you know you’ll never buy as low as the boxes—or the chain yard down the road. You effectively offset that disadvantage with A) membership in a buying co-op, B) software that tracks prices and helps to maximize margins and C) an efficient yard layout and racking system.

From an operations standpoint, you’re confident that you’re on track. Any further growth will come via increased sales.You’ve made significant inroads there as well—managing to get the opportunity to bid, and earning a few sales, from builders who’d sworn allegiance to their longtime supplier. For 2010, you’re focusing extra attention on one potential customer that has proven to be especially challenging.Here’s the situation:

Thanks to savvy ownership and strategic management decisions, Lockout Builders is on the grow. In many ways, they mirror your own company. Less than a decade old, they’re not the market leader—not yet, anyway.But they’re building a reputation for delivering what the market wants and needs, at a price point that works for homebuyers.Virtually all of the traits that define you as a supplier (top quality materials, competitive pricing, and unmatched jobsite service) seem to fit them perfectly. From several conversations with their owner, Larry Lockout, they don’t strike you as hopelessly loyal to their existing supplier. In fact, last time you bumped into Larry (at a meeting of the local HBA—which you support generously), he said he admires the way you do business.Yet when it comes down to buying materials, it’s their existing supplier who continues to get the orders.

Frank, one of your top outside reps, has been working this account, and he is genuinely at his wits end. “Their buyer seems very open to buying from us, yet never has time for a meeting. I’ve proposed everything from an early morning breakfast meeting or a working lunch to meeting at the best steakhouse in town— as early or late as he’d like. I was willing to spring for tickets to the big championship game—but he couldn’t make it.All I want is a seat at the table,” Frank exclaims, “but until I can get a meeting, we get nothing.”

As the owner of the company, you respect channels—and have learned, from long experience, that going over the buyer’s head is seldom a winning long term strategy. Yet, earning this business is critical to your company’s growth, as Larry Lockout is something of an opinion leader among local builders.

	CHALLENGE FRANK.	Clearly, it’s Frank’s job to pick this lock. Tell him, “Sales situations like this separate the pros from the order takers. Which are you?”
	SOFT SELL	Have Frank invite the buyer and others to join your team for a green building webinar. Include lunch and takeaway educational materials. No selling…yet.
	HARD SELL	Instruct Frank to go to Lockout Builders’ offices, and refuse to leave until the buyer agrees to meet with him. May seem silly, but sensible isn’t working.
	HELLO LARRY	Take Larry out for a good lunch and a heart-to-heart. Bottom-line: you have a lot to offer. What will it take to get Lockout Builders to give you a try?

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