Stuffing the Channels

Posted on March 20, 2016 by Logan Rivenes

Move product and make quota at all costs. This is how Sales Professionals are incentivized.

It is no wonder then, Sales tends to stuff the channels. They are provided all the short term incentives to do so.

This method is opposite of how the company as a whole would like to operate. The company as a whole would like new customers, organic growth, sustainability.

Channel stuffing causes volatility and becomes unpredictable. You begin to lose control and have big swings in business. This is not good for a commissions, quota, and is undesirable in the eyes of investors.

So when the company has a few good quarters, then one terrible quarter, the question isn’t why did we miss this quarter. It is understanding why product did not move off the shelf in that particular quarter.

If you look back at the channel stuffer, and see sales are increasing, but there are no new customers, the answer is pretty clear. The product needed to go somewhere.

Channel stuffing only works for a short period. Whether you are selling directly to end customers, or it’s your distributors ability to move product, you can only stuff the channels for so long.

Channel stuffing can become rampant within an organization for two reasons:

Compensation encourages it
Sales professionals are untrained in helping customers use more product

In the first scenario, it’s not the Sales Professional that is to blame for stuffing the channels. Their compensation is set up to encourage this behavior. When bonus is achieved based upon percent to monthly quota, the Sales Professional will naturally do anything possible to get to that number this quarter. They will not worry about next quarter. It is short term thinking.

In the second scenario, it is upon the sales professional to train their customers to use more product. They need to help the customers build their business, which in turn builds their business. This means the Sales Professional needs to be forward thinking, and understand the customer or distributor needs product training. This is the win—win principle.

If your business is volatile, with rampant channel stuffing, possibly it is time to look at the system, not the people.

Good luck and good selling!

Productive Procrastination—Don’t Let Busywork Consume You

Posted on March 13, 2016 by Logan Rivenes

The best time for creative endeavors is between 2 – 5 hours from the time you wake up.

What is the first thing you do after waking up?

Mine tends to be looking at my phone for emails, social media, and general “waking up.” Looking at what potential problems may greet us before going to the office. In other words, avoidance of the real work at hand.

Arriving at the office, the first thing I tend to do, and most of the people around me, is check email. Discover the problems other people would like us to take care of. This is the start of a reactionary day.

On the surface, this appears to be productive. Taking tasks of the to-do list. But not all tasks are created equal.

This scenario is productive procrastination.

Living in the small tasks that make us think we are productive. In the context of our mornings, maybe this is “warming up” for the day.

In the context of solving important problems, it is avoiding difficult work and providing effective solutions.

Productive procrastination is busywork. It’s like a bad drug. You feel great while doing it, but afterwards, you’re left wondering what happened. Where your day went.

Productive procrastination is dangerous. Especially, when we continually let ourselves fall into busywork during our peak energy levels. Allowing the tasks which do not deserve our optimal energy, to consume the most productive parts of our day.

If you have set your priorities, then you already understand what work will generate the largest impact to your business.

Why not get started with this first?

Good luck and good selling!

You are going to love this…

Posted on March 6, 2016 by Logan Rivenes

You are going to love this…

Is a loaded statement. As if when you do not love this, the person sharing their love with you will be offended.

What could be more appropriate is “I love this and want to share it with you”.

It could be a product, a restaurant, or a book. The receiver may not like it as much as you, but would most likely be delighted to experience it anyways.

There is a Mexican Restaurant in the town where I grew up. The restaurant is Anita’s. If you are in Livermore, you have to go there. In my opinion, it is the best Mexican Food; ever.

Now, you may like it or you may not like it. Either way, I would like to share the restaurant with you. If you don’t enjoy it, I will not be offended.

Seeing as you may not enjoy this restaurant as much as I do, “You are going to love this…” is not applicable here. But, “I love this and want to share it with you” is.

It is not so important to love the same things, experiences, and think the same way. More importantly, it is about sharing, as you may give someone else a new found love.

Good luck and good selling!

Delaying The Launch

Posted on February 28, 2016 by Logan Rivenes

Businesses—whether a conglomerate, Startup, or any size in between—make a big deal about The Launch.

The conglomerate might put large sums of money, time, and research into ensuring a product is going to be a success. It is about mitigating the risk associated with potential failure.

The Startup will seek funding based on a minimal viable product (MVP). Resulting in its ability to go back to the drawing board, perfect the product, and do further research and market testing. The goal being the same as the conglomerate. Mitigating the potential risk of failure.

“The Launch” is about starting. Starting to sell to clients. Starting to build an organization. Starting to hire employees.

We fail to launch for two reasons: timing and fear.

Timing a launch can be an important step to have the largest initial effect of publicity and attention. This could provide the needed traction to get things moving.

Timing a launch could also be a question of whether the market is ready for your product. The need may not have built enough momentum. The problem you solve is not great enough to justify paying for it. The company is not prepared to rapidly scale.

Fear of launching, on the other hand, is having a lack of confidence. Lack of confidence in the preparation and research conducted. Being unsure whether things will work out. By not launching, you can hide for just a bit longer behind “building”. Delaying potential rejection or massive success. Both could be difficult to manage.

Launching can be scary. You might ask:

What if they don’t love our product?

What if they don’t love our organization?

What if I chose the wrong strategy?

What if they won’t buy from me?

Sometimes, no matter how much research is conducted, the flaws in a product will be unknown until the market provides feedback. It might be better to launch and fix problems along the way. Delay could mean spending more money, discussing the same problems, and not moving forward.

Timing a launch may provide the necessary environment to be effective.

Fear of launching might be the reason you should just take a deep breath and dive in head first.

Good luck and good selling!

Delegation—Empower Those Around You

Posted on February 21, 2016 by Logan Rivenes

Delegating tasks is about empowering people. It lightens your work load. It is inclusive.

Failure to delegate puts the pressure on. All the responsibility is yours. Therefore, when things do not get done, as they may not, there is only one person to blame.

An unwillingness to relinquish control and delegate, shows there is a lack of trust in those you work with. A lack of trust in the system you created. A failure to define and explain a vision. It provides no upward opportunities for those you work with.

Delegation is a skill, which requires developing a system that can be repeated. It means defining your vision, your companies vision, and finding the correct people to execute that vision.

Delegation requires trust in your ability to hire, develop a vision, and build a scalable system.

Executing well in these three areas is how you create a highly functioning team. When there is a team, there can be a culture. With a culture you can have a shared vision. This results in working towards a common goal. Something to bond, connect with, and share.

Everybody has strengths. It is best to delegate tasks to those who have the strengths to execute them flawlessly.

Good luck and good selling!