Feature Article

Stop Losing Profit: The Top 10 Mistakes You're Making

Running a successful business goes beyond accurate inventory reports, smart stocking and double-checking balance sheets. To ensure you are as profitable as you can be, it's important to look at the soft costs and small things that can add up to big sales.

10. Not understanding every step in the distribution channel

• Have you ever visited a manufacturer's facility? What about your local distributor? Have you visited your customer's jobsites? Talked with their clients? Knowing every step in the channel, and knowing it well, will ensure you can speak to your customers as a true expert and let them know they can place their full trust in you.

9. Not making your customers feel welcome

• Do your customers know they're wanted and appreciated at your yard? Do you make it easy for them to stop by and chat with free coffee and summer grill-outs or are they visiting the guy next door? Make your customers feel welcome and you'll be their go-to spot for not only coffee, but products too!

8. Not following up when you said you would

• Following up with people is an art in the business world. Do it too soon and you appear to be nagging, do it too late and you lose out on precious sales. The best way to handle this fragile process is to let your customer be your guide. Ask them when they'd like you to follow up and be sure to follow through. They will look at you as a trusted business partner rather than an overzealous sales rep.

7. Not prioritizing correctly

• Priorities make the world go round, especially in our current market situation when there is always more to do than time in the day. Make sure your priorities are in line and that the most important things get done first. Make a list at the end of your day to prepare you for the following day, so when you come in you are fresh and ready to get started and don't have to wrestle with what's most important.

6. Not knowing who your competitors are

• Do you know what your competitors are doing? If not, you should. You should know them as well as you know yourself. What new products are they stocking? What promotions are they running? What's working for them? What should they improve on? Knowing these things will help you build a better business and ensure you are always pushing to go to the next level and working to have the upper hand.

5. Not having enough fun

• It's easy to have fun while you're on vacation or have the day off, but what about every day at work? We spend over 1/3 of our waking time at work, so it's better for us (and our customers) if we have a good time. The best way? Get your customers involved! They work hard too, so take some time to do something fun together. It builds your relationship and gives them value beyond everyday business. Remember, people like to do business with people they like and these activities will show them how fun you really are.

4. Not using your brain

• OK, maybe it's not that simple. However, continuing to improve yourself (and your brain) with knowledge on the industry and sales processes will make you a better person to do business with. Stay up-to-date with books, industry publications and information from your suppliers.

3. Not training your sales people

• Beyond communicating with your sales reps and co-workers, you need to make training a key priority at your yard. Whether it's lunch-and-learns with manufacturer reps or attending tradeshows and seeing keynote speakers, training is invaluable and ensures that you stay relevant to your customers.

2. Not providing consistent communication to your customers

• Out of sight, out of mind. This saying is often used to refer to babies reaction to objects they can't see, but the same is true of your customers. If you're not around, you better believe someone else is. While there isn't enough time in the day to see every customer, there are other ways to communicate with them. Whether it's a monthly newsletter, a blog or a Facebook page, show your customers that you have the information they're looking for and that you're there for the long haul.

1. Not speaking up

• Communication is key in all relationships and business settings are no different. When you hear about a special or a deal, a new industry report or even an interesting sports stat, make sure you pass it on - you never know what might trigger your customers. And go beyond your customers, share things with your distributor and manufacturer reps and watch as they produce knowledge to help you in your business. You won't know what you're missing unless you speak up!

Practice these things everyday and make a conscious effort to improve yourself, your communication and your business tactics. You never know what sales are lurking behind a corner - go find them!

Resources

http://www.prosalesmagazine.com/industry-news.asp?sectionID=0&articleID=1183833
http://www.prosalesmagazine.com/industry-news.asp?sectionID=0&articleID=1362328&artnum=2
http://www.lbmjournal.com/article/534