Issue link: http://read.dmtmag.com/i/236097
Parts and Service ("Arm Yourself: Know Your Market Potential and Go Get Those Customers" continued from page 54) dealerships determine their actual market potential for parts and service so they can establish programs and strategies to obtain more of the available market. Obtaining more of your market share has become increasingly important as we see most markets across North America becoming rather static, not growing as rapidly as The Parts Order Taker Passes On Although written for the forklift industry, this mock obituary contains truth for the CE dealer's parts team. BY NIELS C. OSTERGAARD It is with great sorrow and regret that I notify you of the passing of our old friend the parts order taker. Over the years, we grew to love this individual for he had the unique ability to explain his product to a customer and gain the order – the product, with its unique features and advantages, provided obvious benefits to the customer, negating the need for our friend the order taker to develop any type of relationship with the customer. Understanding the customer's business was not necessary as the orders frequently rolled in. Our friend the order taker was admired for his success but, unfortunately, the market and economic times, in addition to his lack of interest in improving his skills, led to his unfortunate demise. You see, the order taker started slow but as the market and economy began to expand, interest and demand for his product grew rapidly. Economic growth also led to increased demand for support of the products, leading to greater profit for his business. Business grew rapidly, and our friend the order taker was writing more and more orders; too many to handle, so the business hired more people. These people took notice of the success our friend was having and began to do what he was doing. Before long, the business was comprised of numerous order takers, many of them experiencing the similar success of our friend. As the orders flowed in, the support team grew as well. Everyone began doing everything they could to take the order. Suddenly, the growth of the market and the economy began to sour. Our friend the parts order taker continued his usual approach and found it more and more difficult. He began to reduce his GP, ask for greater discounts and ultimately gave up his commission to get the order. It's unfortunate and didn't have to happen, but the order taker did not want to change. Ultimately he passed and faded away while stating, "My price was too high, so I could not get the order." 56 | www.cedmag.com | Construction Equipment Distribution | January 2014 they once did. Of course, there are exceptions – consider the oil and gas industries. But the common thread to the market we see in 2013 and beyond is: If you are going to increase your sales, you will do so by obtaining business from customers that your competitors have been enjoying. Customers are much more capable business partners these days than ever before and are more knowledgeable about the products and services available to them. Obviously, the availability of information for them has never been Again, it didn't have to happen. Recent studies have shown that 25 percent of the professional sales consultants (equipment, rental, support, parts) generate 90 percent of the company's revenue and gross profit. What do these 25 percent do that the order taker did not? Recognize that price is not the No. 1 issue with customers, no matter what they say. (The order taker always viewed price as the issue.) Customers are looking for partners willing to work with them through the good and bad to bring value to the relationship for all parties. Recognize the importance of thoroughly explaining their products' features and advantages and confirming the customer recognizes the benefits the product will provide them. (The order taker asked for an additional discount.) Recognize the importance of thoroughly understanding their customer's business and asking probing questions as to why they do things a certain way – always willing to try something else to add value to the business relationship. (The order taker knocked a few more dollars off.) Recognize that developing a business relationship takes time. (The order taker did not have the time for relationships – too busy taking orders.) Recognize the importance of empathy, feeling the customer pain and offering suggestions to overcome the pain. (The order taker did not care how the customer felt – no time for feelings in this business.) Recognize the importance of continuous education, practicing the basics, and keeping abreast of changes in the industry. (The order taker did not find it necessary to invest in himself; it's easier to blame a lost order on the price or product.) Recognize that no matter what the customer claims is his priority, you should never provide a quote for your product until you have had the opportunity to discuss what you, your business and your product can do for the customer. (The order taker only talked price.) It's about time the order taker passed on. Our new economy is creating tremendous opportunities for all of us in the forklift [and CE] industry; these are the good old days! Invest in yourself, invest in your customers, and invest in your business. NIELS C. OSTERGAARD is the training manager for Sales, Product, Parts & CSSR, Toyota Material Handling U.S.A. He can be reached at nostergaard@sbcglobal.net, or 812-341-3607