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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 - Taking (Second) Chances

When you stopped carrying their product, their sales in your market ground to a stop. As it turns out, their fine product
just doesn’t sell itself.

For your whole life, as long as you can remember, you’ve loved being outside. Then, when you got old enough, you grew to love the smell of sawdust as you watched your dad in his workshop. And as a young man, after a couple of summers working at the local lumberyard, you realized how much you enjoyed helping people with their projects. Then, four years ago, you had the opportunity to purchase a failing local lumberyard—which you promptly transformed into a decking and outdoor living store. After lots of hard work and a couple of lean years, your store is profitable and growing. 

As a new company, and the only decking-focused store in your rural market, suppliers unable to get more established yards to carry their unproven products beat a path to your door. Since you wanted to carry new products, along with the tried-and-true, you were willing to take a chance and stock several of these brand new products.

Over the past couple of years, as your ompany has grown and built a reputation with pro deck builders and homeowners like, the product lines you’ve carried have gained reputations of their own. There was one product in particular that gave you special pride. When you began carrying it, it was completely unknown in your market; in fact, you were one of the first dealers in the entire country to carry it. Within just a couple of years, you’d built it into one of your top sellers—and were one of the manufacturer’s top dealers.

All was good…until the manufacturer took a look at the warehouse yard that opened a mile or so away, and imagined how much more they’d sell if they could get it on their shelves, too.

Unfortunately for all involved, that’s exactly what happened. They managed to get that neighboring warehouse yard to stock it, too. 

This was unfortunate for all because a) the manufacturer lost a top dealer when you stopped carrying their product; b) the warehouse personnel didn’t have the know-how to sell it; and c) you lost one of your top brands—which was effectively an exclusive.

That was almost exactly one year ago. This morning, the manufacturer’s salesperson and his manager came in your store, tails between their legs.  When you stopped carrying their product, their sales in your market ground to a stop. As it turns out, their fine product just doesn’t sell itself. The manufacturer underestimated your role in their product’s success…and they want to know whether you’ll offer it again.


What would you do?

 

Just say no.
You no longer need nor want their product. You’ve replaced it with something similar. They blew it. Wish them well, and say goodbye.
Yes, but...
They created the situation. Let them show you how badly they want you
back. Negotiate hard on pricing, terms, co-op, etc.
Get ink.
They apologized and insist that they’ve learned their lesson about offering
it to competitors. If they’ll put it in writing, give them a second chance.
Why not?
You know the product inside and out, and know you can sell boatloads
of it. Trust that they’ve learned, take the product back and pick up where you left off.

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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