How do you ensure that the New Incentive Scheme Management has approved will give you increase in Sales and Revenue?
Salesmen are known to cry about prices never being right, it is either Competition is doing this or that, or competition has lower pricing hence Competition is doing better.
Candidly, this is a lousy excuse.
Each Company has a unique array of products and personalities, logistics is different, Modus operandi differs.
The Major problem lies with these Salesmen. They lack the creativity to apply resources to achieve desired growth. I agree that in some Markets, the saving segment is a numbers game, Savings segment brands are used to fight for Market Share and Numeric Distribution, Companies whom live of their Savings Segments brand are either bought by bigger brands to supplement their own brands. As a salesman it is safer for you to be with a Premium Segment Company than a Savings Segment brand.
Have you ever asked yourself why Saving Segment brands pay crappy Salaries? Your guess is as right as mine, The Company has evolved to discounting all the revenue in order to stay in business, you are just a pawn. If you want to earn more money, you have to earn your keep.
Sales incentive is a growth tool not a discount
Let’s paint a Story.
You work for a Company who sells Palm oil
Cost of Sales ( Including your Salary) = N 30/Bottle
Shareholders/ Expansion Plans = N50
What is left for Sales and Marketing to play with is ( Selling Price) – ( Cost of Sales + Stakeholders)
N 100- ( 30+50) = N20
So we have N20,
Management Says to increase Sales/ Volumes we would give a N10 Sales Incentive to trade.
The Typical Nigerian Sales man will just rush to the Market and Scream out “Management has given N10!!!!!!!” and the Trade/ Value Chain/ Route to Market clamors for the N10 off the Company/ Major Distributor.
The N10 has a slim chance of getting to the consumer, indirectly Management has thrown N10 away from the Company’s Profits.
A smart Salesman ( like Oyindamola) will always assess the Sales Incentives versus the Markets, and thinks up a plan.
How can I increase my numbers?
- Plan : You must have a plan! You have to sell the incentives, build a feature and benefit story, if you want to increase your Sales by 25%, who is going to do what for you and when? Tie the benefit( N10) to the Task, the N10 should be used as a reward system, not to be thrown away. Give extra Targets for the latest incentive.
- Organise: Organise your Team/ Logistics to meet the new demand
- Lead : Manage and Motivate your people, give them a piece of the pie for effective execution
- Control: Monitor and evaluate the N 10, was it worth it, or you should have saved the N10 for Management.
We all have our unique way of selling
Salesmen are required to have entrepreneurial mentality, your territory is your own business.
Innovative Sales Solutions