Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60MARCH 2017 GERMINATION.CA 35 YOU CAN’T BUILD a machine with premium parts and ask for a lower price point, which is why you shouldn’t sell on price. This often surprises many people, who believe that having the lowest price is the best way to drive equipment sales. Instead, you should sell on quality. These days, the word quality is thrown around very casually, to the point where it’s almost lost its meaning and people are beginning to tune out. Everyone says they have a quality product. But selling on quality can still be a hugely useful tool in your arsenal, if you approach it right. First of all, make sure you sell based on facts. Tell the customer you have a high-end brand that will last 30-plus years. Do you pay for that difference up-front? Sure you do. But going with a premium brand makes all the differ- ence. It will stand the test of time. A lot of people get stuck on a certain brand, and instead of keeping their mind open and looking at what else is out there, they sometimes close their mind and say, “I’ve gone with this brand for 20 years, so I’ll pick the MOST COMPANY LEADERS measure success by whether or not they achieve their sales and profit goals. But in today’s volatile ag marketplace, smart leaders have learned that sales and profit are no longer the most relevant indicators of long-term success. Instead, it’s their customer retention rate. The seed industry has one of the worst records for retaining customers. The average customer retention rate among ag companies ranges from 60-70 per cent. It’s impossible to achieve your goals, let alone stay in busi- ness, when there’s that big a leak in the customer reten- tion boat. The following are reasons for these horrendous customer retention rates: 1. Companies don’t implement a minimum order size policy. Sales reps often take even the smallest sale, just to advance toward their sales goals. A minimum order size strategy results in a larger order from first-time buyers, increasing the chances of creating a longer-term customer. 2. Salespeople haven’t been taught that customers only include those who buy at least 51 per cent of their needs from them. Until a farmer is buying more than half of his needs from the rep, he is the rep’s competitor. The farmer PROCESSING EQUIPMENT WHY YOU SHOULDN’T SELL ON PRICE Jason MacNevin Can-Seed Equipment Owner @jason_macnevin • jmacnevin@canseedequip.com • canseedequip.com same thing,” and they don’t take the time to see if there’s something better out there. Don’t step over quarters to pick up dimes, is the motto I use. When I sell based on quality, I often hear people say, “Wow, that’s expensive.” But when you factor in the fact maintenance costs are lower because the machine is made from premium parts, you are going to have fewer problems in the long run. Your upfront cost has to be higher, but over the long term, you will save. Let’s not forget that quality equipment results in a better quality product, as well. Better quality equipment is also more efficient when it comes to automation and good stewardship. Quality is a win-win on so many levels. At the end of the day, selling a new piece of equip- ment is all about making the customer happy with their purchase. If you can make them happy about the fact they’re buying the best quality, and not just being sold something because it has a lower price, you can attain a whole new level of sales proficiency. SALES COACHING HOW ARE YOU QUANTIFYING SUCCESS? Rod Osthus RC Thomas President @RodOsthus • rod@rcthomas.com • rcthomas.com is more loyal to the competition than he is to the rep. Non-customers leave most often. 3. Companies reward first-time buyers, while ignoring current loyal buyers. Want to drive off your current cus- tomers? Give new buyers rewards for buying the first time and ignore your current customers. 4. Companies base internal reward programs on achieving sales and profit goals, instead of customer reten- tion rewards. Field sellers should be rewarded for retain- ing customers. 5. Company salesforces are too small. Customers (those buying 51 per cent or more of their needs from you) are your salesforce. Field sellers need to focus on taking more buyers to the customer level. The number of farmers continues to decline. Few sales reps or managers spend enough time thinking about the effects of that decline and how it compounds the impact on their business from losing even a single customer. Customer retention rates need to be as close to 100 per cent as possible. Not one farmer should leave you unless he dies, quits farming or doesn’t pay his bill.