Todd Sattersten :: Astronaut Projects

Look for the Growth

I enjoy the Catalog Critic each Friday in the Wall Street Journal. This week they looked at [sub. needed] a particular type of knife known as the santoku. The business side of story was equally interesting:

[Santoku] knives have been available in the U.S. for more than a decade, but only recently have they really started to take off. Knifemakers give some credit to chef Rachel Ray, who praised the knives' handling and sharpness on the Food Network two years ago. Knifemaker Wusthof's santoku sales have increased tenfold from three years earlier, replacing the chef's knife as its best-seller and now make up 10% of the company's total revenue. While houseware sales nationwide are flat, cutlery sales rose 5% last year from the year before thanks in part to a four-fold increase in the number of santokus sold, according to the marketing-information company NPD Group.

Lesson #1 - Speak Your Customers' Language

My father's business was a small sheet metal fabrication shop. The majority of what we produced was custom based on drawings we would receive from our customers. Over the years, we had built a strong base in serving the transformer industry. Our ability to make short runs at a low cost matched well with the industry's need for custom brackets and enclosures in low quantities.

One exception to our custom focus was a line of electrical enclosures we made. It started as a custom collaboration with one customer, but after seeing there was a market for them, we started offering the enclosures as a standard, stocked product to everyone.

As a sheet metal fabricator, we described the enclosures using the same specifications we would get for custom jobs. It was all about dimensions and specifications. Whenever a new customer called, there had to be a long conversation as the buyer calculated their size of the transformer and I searched to determine which box was right for his need.

One day, the customer whom we had originally collaborated with called to place an order. Dave was a talkative fellow and he was going on about how he had gotten a large order for some three phase transformers. He said his next call was going to be to order more 1.5" EI laminations [these serve the base for some transformers].

I said, "Dave, are those standard laminations for the entire industry?"

He said, "Oh yeah, everybody uses the same ones."

I queried, "Are the enclosures you designed with us built around those lamination sizes?"

He said, "Of course, the 13" x 13" x 15" is perfect for 1.5" lams."

Dave quickly walked me through our entire line of enclosures and how they matched up to the different sizes of lamination.

My entire paradigm changed. I had been given a new language to speak to my customers in. I could ask them what they were using in their language and tell them exactly which of my products would work perfect for them.

Speaking the same language led to all sorts of things. We found that customers were drilling holes to make the enclosures work in some cases. That led to us redesigning each cabinet to meet a wider range of needs.

We found one cabinet couldn't support enough weight and that customers were adding steel angle to reinforce it themselves. We scrapped the case and came up with a whole new design.

The most important thing it led to was a doubling of the number of customers that used our enclosures and doubling of the number of units we sold.

We went from being another sheet metal fabricator to a partner in our customers' supply chains.

OK, here is an interesting story

I like this story about Distant Replays of Atlanta.

[via I can't remember]

Selling Chopper Style

Last night, I was watching TLC's Faking It. Here is the show's premise from the website:

Ever wonder what it would be like to have another profession? Well, you're certainly not alone. Our Faking It participants, for one reason or another, have decided to turn their worlds upside down. With much guidance from professional mentors, our fakers attempt to prove that they're the real deal. Can they fool the real pros? Or will they be called out as imposters?

In this episode Clark, an associate Episcopal minister from Maine, is transported to Las Vegas and in four weeks, Clark is transformed from preacher man to car salesman. The senior minister at Clark's church wanted him to feel more comfortable talking to people and thought this would be a good way of doing it. His mentors are Chopper (owner of Towbin Dodge, the #1 used car dealership in Nevada) and Chilly Willy, the sales manager.

I thought it was a good lesson in selling. So let me present Chopper's Rules for Selling:

1. Excitement is infectious - Chopper is always creating an environment were people are having a good time. On the weekend, there are cookouts and clowns. Every person that buys a car gets to strike a gong and is cheered by the entire staff. Happy people are more willing to buy.


2. Know your stuff - You have to know what you are selling. Chopper was giving Clark binders of stuff to read about cars. What how much horsepower does this have? How big are the wheels on this? I think it is what Scoble was talking about this weekend. Being an authority helps you sell.


3. Provide incentives - Saturday is the big day the dealership. 60% of sales happen on Saturday. Chopper offers a diamond watch to the top salesman of the day. He has cash sitting on the table and tells everyone you will go home with cash in their pocket if they sell cars. He is providing rewards that people can associate directly with their actions. Chopper even goes to church with Clark after the minister wins a challenge of landing three test drives in a single day. That also shows the importance of knowing how to motivate different people.


4. Track progress - On a typical Saturday, 150 prospects will sit down to talk about buying a car. Each prospect is tracked by name, what they are buying and how they found out about the dealership. Each salesman (and they are all men) is tracked on his ability to close dealings. Their continued employment depends on it. The close rate is about 30%.


5. Final words - The night before the final challenge, Chopper invites Clark over to the house for dinner. Clark is very anxious about the next day and Chopper says "I just want you to remember these three things - Relax, listen, and be yourself."

There is a 25 minute video on Chopper's website that is taken from A&E "It's a Living". Chopper and the dealership were featured on an episode focused on selling.

P.S. Clark was able to fake out two of the three judges and the third couldn't believe he had only be selling cars for four weeks. I think he had good teachers.