There’s a funny Bill Murray movie called “Ground Hog Day” where he keeps living the same day over and over, learning from his mistakes and making minor tweaks each day. The months of March, April and May kind of felt like that. Trying to find buyers who would buy, factories that would ship or anyone willing to talk was a monumental task. Driving to the office instead of a customer’s store was only brightened by the fact that there was no traffic. And then when you turn on the news each day, it only makes matters much worse listening to everyone else’s opinion.
Those three months were very challenging for most businesses and the various levels of personnel from owners to staff. The independent sales rep was no exception to the pain caused by a halt in economic activity. In fact in many ways the sales associate was the most vulnerable of anyone in the industry. Because most reps work alone, they are the ultimate small business that is forgotten when challenges hit. There is no real furlough options for sales reps because they need to sell something in order to get paid.
Retailers cancel all orders except sold orders. Factories shut down. If they have quick-ship warehouses, all the product gets shipped out to e-comm accounts while the factory is shut down, so there nothing in stock when retail customers come back looking to replenish the orders they cancelled. Retailers ask factories to extend terms because they have no business coming in the door. Factories generally consent if they can but then the rep doesn’t get paid until the invoice gets paid. As you might guess, reps have had a very tough cashflow problem with few outside of the rep world understanding how damaging it is to a rep’s income when payments are delayed or other concessions are given.
The International Home Furnishings Representatives Assn. released a study of its members that suggested 99.8% of reps surveyed lost income because of COVID-19 shutdown with the average loss being 73%. The study also indicated that 70% of the respondents turned to some form of government assistance, whether it be the PPP loans or unemployment during this time to survive.
Now that the economy is slowly opening back up, retailers are screaming for goods from the very same people who haven’t been paid for several months. It’s tough in conversations with other reps to not hear from guys who are really feeling down, thinking about leaving the industry or otherwise question why they are spending their time as the middleman who has to solve lots of problems but hasn’t been rewarded.
Now as stores open up, retailers are sending around notices of do’s and don’ts regarding interactions with their employees. Many don’t want a rep to come see the buyers in person. Many don’t want a salesperson to show up in a showroom without an appointment even it is just to walk the floor. Most buyers are not even considering looking at new product when the old product is not shipping. Most reps get excited about selling new products, training associates and sharing ideas with retailers on how to improve their sales. Unfortunately all these options are off the table for a while until the supply chain catches up, and retailers can dig through old inventory issues.
With a new layer of rules, I predict one of three outcomes are possible:
- The professional rep will change his performance to comply with demands of the retailers going forward. It may be less efficient in the short term, but the hope is that he will be rewarded for his efforts to comply with the new rules of engagement. If that does not come to fruition, they will either find another job or default to #2 below.
- Some reps will decide the demands being placed on them by stores or factories are unreasonable. They may choose to do the very minimum necessary to keep the account satisfied. After all, many reps have been sequestered at home for months and may realize not travelling every week isn’t such a bad deal. This is not great for the industry as reps bring great value to the sell through of products. But it is very definitely a lifestyle choice especially for younger generations who have other interests in life vs. making money selling furniture.
- Some reps may just leave the industry or retire, deciding it is not worth the hassle. If factories don’t try and learn from their reps, if retailers don’t respect their reps, and if the compensation is better elsewhere, why wouldn’t a rep leave the industry and try something a bit more gratifying or glamorous?
These trends for reps – from an aging sales force to diminishing opportunities – have been developing for a long time in the furniture industry. COVID-19, like it has done in many businesses, has sped up the change cycle, and many are questioning if this is a business they want to be in for the long haul.
Remember, many reps are fighting for survival with little income to show for the past several months of nonexistent sales. If you like a rep and the job they are doing, whether you are a factory or a retailer, let the rep know he or she is doing a good job. It’s great that business has turned very good for many retailers, but this is when a sales rep can be one of your greatest assets. These are the folks on the frontline that see what’s going on from a factory as well as a community point of view. Their job is to help provide the right product at the right time. Now more than ever with people scrambling for product, the value of a good rep is a real asset.
And a final note to my friends in the rep community: Reps by nature need to be a very optimistic group, and now more than ever the situation calls for you to summon that inner strength to get through the tough times.
Actress Lucille Ball said the following that is very fitting advice for reps where we are in the business cycle: “One of the things I learned the hard way was that it doesn’t pay to get discouraged. Keeping busy and making optimism a way of life can restore your faith in yourself.”
We can’t look back at what was but must look forward to what will be. Learn from what has happened to your business these past few months, work hard to make your business great today, and tomorrow will take care of itself. Happy selling. As always feel free to leave positive comments in the space below.
"selling" - Google News
July 07, 2020 at 06:13PM
https://ift.tt/3iBXCNx
Blog: Reps looking for ways to keep selling - Furniture Today
"selling" - Google News
https://ift.tt/2QuLHow
https://ift.tt/2VYfp89
Bagikan Berita Ini
0 Response to "Blog: Reps looking for ways to keep selling - Furniture Today"
Post a Comment