"NOTHING HAPPENS UNTIL A SALE IS MADE"

One of my grade school classmates went on to Michigan State University where he majored in something technical. I forget what. He was a perfect example of the "C's get degrees" school of thought. Upon graduation, he went to work selling work for an electrical contractor in Northern Illinois. Barely 22 years old, he was soon pulling down about 10k a month at a time when gas was about 30 cents a gallon. By the time he was 28 years old he BOUGHT THE COMPANY!

At about 35, he sold the company for a handsome profit and went about his new career...selling pet insurance. Pet insurance, for God's Sake. Soon he was making six figures from commissions selling pet insurance, not to mention the investment income from selling the Electrical Contracting Company. Eventually, he started his own company insuring Thoroughbreds. Sold that one too.

He moved to Sweden for a while. Pretty soon he was traveling around the world selling furniture specific to airports. I don't know what he made doing that but I do know that, while doing it, he bought a house in Florida and a house in Scotland. Anyhow, I hope you get the point this guy could sell ANYTHING.

There came a time about ten years ago when I was going to be in Chicago at the same time he was. We made a lunch plan and I was supposed to meet him at a seminar he was giving for sales managers. I got there early and sat in on part of his lecture. I will paraphrase what he said.

No matter how you screen them, if you hire 100 salespeople, 20 will be good enough to retain and, of those 20, three will be stars. Of the stars, you will not keep all three for any more than three years. The same things that make them stars cause them to move on. So don't hire 100 salesmen new. Hire 200 because then you'll get 40 good ones instead of twenty. Also, always be looking to hire someone else's stars because they are talking to yours right now. I know you're thinking "we can't afford to hire twice the number of people we budgeted" but I'm telling you the only way your product will move is if you have a large force of good salespeople. Nothing happens till a sale is made.

I asked him about that last sentence at lunch. Aren't sales people generally selling from inventory? Yes, he said but inventory is just a "hose" If nobody's selling the product that comes out of the hose, eventually there will be no money to put it in front end of the hose. There will be no manufacturing piece or tech service piece and, ultimately, there will be nothing to sell.

He oughta know.

So I take two things from this simple lesson. First, the more good salespeople you have schlacking your product, the better chance you stand to move your product and keep your doors open. Second, they are precious and difficult to retain.

If that's true, why does it make economic sense for Chrysler and GM to close dealerships? They don't pay the dealers to do anything. Dealers buy their product and then try to sell it for a profit. They are, in effect, salespeople. Why would you want fewer salespeople and, in some cases, fewer good salespeople. Why does a lower number of outlets selling your financing, parts, warranties and autos equal a plus. Who's kiddin' who here?

Nothing happens until a sale is made.