Jun
1
2009
Action Plan Online, Part 4 of 10
Author: Alberta VentureHow to land contracts with big customers now
Reconnaissance tips from a sales pro
Sales veteran Allen Harris has sold to major North American retailers for over 20 years. Before he touches the phone to place a call to a buyer, Harris makes sure he knows his prospective client inside and out by conducting some in-store reconnaissance. Here, three tips from his arsenal.
1. Stack up the Competition
Most salespeople and business owners know the ins and outs of their own product, but fail to research their potential customer thoroughly. “I think the most important faux pas made is that the supplier or manufacturer or salesperson isn’t aware of a company’s needs,” Harris says. You should know the sorts of products the retailer stocks and who you’re competing with for shelf space. Try to anticipate potential barriers. For example, maybe the retailer doesn’t have anyone shipping product to them from Alberta and the buyer is worried it will be too expensive. Collect a shipping quote for them; it will eliminate any hesitation that might distract from your initial pitch.
2. Assess Quantity
You should also look at the quantity of products like yours on the shelves. Note if there is a surplus or a shortage. If there are many similar widgets, you need to know why your product is different and be able to articulate it to buyers. If there’s a shortage, it may be because similar products didn’t sell well in the past. You need to show them why your product will fare better.
3. Hidden Factors
Pick up all the other products in an area – plumbing, say – and note who manufactures it. Some stores may receive nearly all their products in that area from one supplier. “If Canadian Tire is buying 90% of their plumbing items from one manufacturer, they may pay less, or pay more, for certain items,” Harris says. That will affect how they view the pricing of your product: they may see it as a steal or a rip-off. There’s not much you can do about that, but it may help you understand how the buyer greets your sales figure. If you do your homework you’ll get an idea of what sort of margins the store works on, and that will help you set an appropriate price.
Interview by Lindsey Norris
RELATED LINKS
Action Plan in Print
Part 4 of 10: Think Big
If business is lagging and your customers are reducing their orders, it may be time to try to land a bigger fish. A contract with one large customer can be worth more than those with a dozen smaller companies. More >
Revitalizing Morale
June’s Action Plan Podcast: How one company managed to score major contractors with megacorps

6 Tips for Landing Large Clients
| 1 | Make sure your profit margin can absorb the extra costs of exporting |
| 2 | Don’t be afraid to negotiate the contract |
| 3 | The government wants to help you export; take advantage of seminars and workshops |
| 4 | Hire a freelance salesperson who already has buyers’ ears |
| 5 | Don’t neglect your existing clients while you’re courting larger ones |
| 6 | Don’t let a cultural faux pas skew your deal |
I remember interviewing then-chairman, president and CEO 

