The Top 10 Sales Mistakes

As I've done before, since lists are so popular, I thought I'd share yet another with you: the most commonly seen errors in managing a sales force. As with many lists, this won't include all (there are more than 10), and my order will probably differ from yours. The hope is that it will foster ideas & provide assistance as you look at your own operation.

1) Paying your sales people on volume instead of value added profit. Great sales people are creative; they will follow the recognition and money. If you not only ask them to sell more profitably, but pay & recognize them accordingly, your results will be stunningly better.

2) Pricing job types or customers identically. First know your core competencies, what you do best, and then price to bring those jobs in. This goes for customers as well; you make more money with customers who value what you provide & cooperate.

3) Having a less than effective or non-existent training program. As a guideline, it should be written, & at least a syllabus directed program that provides a smooth transition into the company & its culture, which many overlook. Obviously, each person must be taught according to their background & experience level, ideally from members of the sales force as well as management. Field sales calls MUST be made together with senior sales persons as well as managers, and at least weekly 1 to 1's conducted with each sales person (ongoing) to assist in their development.

4) Not providing realistic forecasting. Most organizations forecast, but rarely do it right. The disjoints usually involve the sales people not liking it (they'd rather DO than PLAN), or management "beats up" sales for not forecasting high enough. What happens next is that sales tells management what they want to hear, & everybody suffers as a result.

5) Failing to have concrete and realistic goals. Given the challenge, a good sales force will rise to the occasion. Without knowing what's needed or expected, Sales will be a rudderless ship.

6) Lack of measuring and rewarding for outstanding performance. What is measured will be done. We as people in general, and sales people in particular, will rise to a challenge. And we like to be recognized for getting it done. Recognize & celebrate.

7) Avoiding "Fierce Conversations" that hold each person accountable. In many companies, this should be at the top. Some confuse having an employee oriented organization with one by a "mister nice guy". Constructive & caring criticism is a gift; use it often.

8) Allowing an imbalance (either way) between operations and sales on delivery requirements. I often hear, "We are a Sales run company", or "Operations always calls the shots"; each is not a good thing. Balance & consensus should rule, but this doesn't happen without a planned & fair approach coming from the very top.

9) Asking your sales manager to sell as well as manage. In small companies, or in certain circumstances, this needs to be done, but should not be permanent. What happens most of the time, is that training and development of the sales force suffers, especially if the manager is only paid on their sales volume.

10) Always believing your customers when they tell you your price is too high and/or your ship date can be beat. As much as we want to give customers what they want, this is a different issue. On matters of price & delivery, and sometimes even quality, a more traditional customer will try to force your performance by thinly-veiled problems. Play the game if they do, and know why it's being done.

11) Mixing sales force types within the same division or company. Considering a direct sales force (your employees), independent reps (self-employed, but loyal to you for your product line), & brokers (self-employed, loyal to no one), it is a real challenge to have a mixture, let alone all three. Rarely, I believe, are brokers the answer. They generally operate on a price basis, and often add little value, which erodes profits, and makes for more fluctuation in production levels. But mixing them is usually disastrous because they compete with each other and confuse customers.

OK, so there are eleven! More to stimulate your thinking. Whatever the relevance of each, the process of discussing them will be a positive venture.