12/8/2013 3:16:00 PM
NEWS BRIEFS
STAFDA’s Lamb: Expand By Training Sales Team
“Reach for a product or market that may seem out of your business realm or something you hadn’t considered,” the president of the Specialty Tools & Fasteners Distributors Association advised members in his 2014 “State of Distribution” address.
Rick Lamb recalled that Albuquerque-based Frank’s Supply Co – where he is executive vice president – once served primarily commercial contractors. In 1996, the distributor chose to pursue federal government contracts.
“Then Los Alamos National Laboratory announced they were releasing a five-year bid for a Just-in-Time contract for industrial tools and equipment,” Lamb explained.
The nuclear research laboratory employs 10,000. It is where Oppenheimer developed the first atomic bomb, Lamb noted.
“Not only were the contract requirements of a Just-in-Time concept daunting – a 95% service level – on stock items within 24 hours – but many of the product lines in the bid market basket we did not have much familiarity with, such as, precision tools and carbide inserts,” Lamb said. “And needless to say, the price had to be very competitive.”
“The laboratory wanted to know everything about how our company operated and how we planned to change or develop business methods to meet the requirements of the contract, such as quality assurance on inspecting products for suspect parts,” Lamb recalled.
“Early in the bid process, our team knew that the presentation of our bid was just as important as the information it contained,” Lamb explained. “Each team member was required to present its section in the same format regardless if it was IT capabilities, vendor relations, warehousing reports, or quality assurance procedures.”
Each presentation was reviewed and modified numerous times to make the proposal as clear and concise as possible.
Subsequently, Frank’s learned it was not the lowest bid, but won on “best value.”
“It was the presentation of our contract proposal that made the difference.”
After winning the contract Franks Supply had to open and staff a branch, negotiate with manufacturers, buy specialized computer hardware, have employees get security clearances and develop a quality assurance program and affirmative action plan – all within three months.
“Sixteen years later, we’re still under contract with Los Alamos Lab,” Lamb pointed out.
In addition to meeting contract requirements over the years, “end-users at the Lab gave us an “A” in customer satisfaction.”
Frank’s Supply was named national small business subcontractor for 2006 by the Department of Energy.
Such customer satisfaction is vital because “it costs far less to retain a happy customer than it does to find a new one,” Lamb emphasized.
“Businesses that are successful in retaining the business of their loyal customers have shown over time to consistently increase profits.”
It may be hard to find the time to survey customers, but “the benefits of evaluating our businesses and the services we provide can only help us keep a competitive edge in the markets we serve.”
The Frank’s Supply success with Los Alamos has led to a Federal GSA contract plus Sandia National Laboratories released an RFP for a five-year blanket purchase agreement.
“Our bid team practiced our presentation many times and we tried to anticipate the questions that would be thrown at us,” Lamb said.
Presentation skills matter, Lamb said. “When the Sandia lab team came to our store to discuss implementation procedures, they informed us it was the best contract presentation they had seen regardless of the type of products being bid.”
Today Frank’s has 120 employees at five industrial and construction supply stores in New Mexico and Texas.
Lamb’s first sales job was at age 16 pumping gas on the Ohio Turnpike for $2.75 an hour – when gas was 35 cents a gallon.
In the days of full service, he was to check the customer’s car and suggest any fluids or parts. “You earned commission on everything you sold: 8 cents for every quart of oil; 25 cents for a breather element; 50 cents for an air filter and the “big one” was $2 for a hose or belt, which my uncle put on in the garage area.”
In addition to commissions, Lamb learned about SPIFs. For example one manufacturer put quarters in cans of coolants. “What brand of coolant do you think I grabbed when a customer told their car seemed to be running hot?”
“At the end of the day, I was sitting on the ground with my can opener collecting my quarters.”
The station owner required clean and pressed uniforms and courteous treatment of customers. “I was naïve and thought, ‘What does it really matter?’ These travelers are passing through and will not be back.”
Lamb soon learned many customers were business travelers going back and forth between Pittsburgh, Cleveland, Detroit and Chicago. “It didn’t take long for me to realize the reason they stopped at our service plaza was the service they received.”
“The lessons I learned about sales and customer service on the Ohio Turnpike for three summers, 40 plus years ago, has stayed with me throughout my career. Little did I know, my career would be centered around the concepts of customer service and customer satisfaction.”
When Lamb graduated from college he didn’t know what his career path would be. After a job search, Lamb was hired by Ingersoll-Rand to be salesman for air and hand tools.
“In the years since I worked for IR, I’ve looked back and learned to appreciate their management at that time,” Lamb reflected. “They understood one of the major components to customer service was presentation skills. They instilled in our sales team that presentation skills are a key component in providing good customer service.”
In seven years at IR, Lamb attended three seminars on how to present products and company to customers. “Certainly, a salesman must hone up on the features and benefits of his or her products, but what good is it if this information isn’t passed on in an interesting, exciting or professional manner?”
“I imagine all of you have sat through a meeting listening to a presentation on new products or programs that has been brutally boring or ill prepared. Do you want your sales rep to be that guy who makes your customers cringe when he asks for a meeting to present new information?”
Do your customers know what your company offers? “They may know our products, but do they know about the valued-added services our companies can provide or are willing to provide?”
“If we aren’t training our sales teams in presentation skills such as meeting preparation, how to practice their presentation, and how to deal with difficult customers – our companies’ messages may not be getting through.” ©2013 GlobalFastenerNews.com
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