How to better sell commercial accounts was on the mind of Green Industry Expo attendees who sat in on a panel discussion on Sunday, Nov. 11 in Tampa, Fla. After brief presentations from each panelist, attendees questioned the panelists about the techniques they use to build commercial business.
Bart Parker, Omni Facility Management, Atlanta; Rick Doesburg, CCLP, Thornton Landscape, Inc., Cincinnati, Ohio; and Jeff Sebert, Sebert Landscaping, Inc, Barlett, Ill., answered the following questions from the crowd. The session was moderated by Joe Burns, Color Burst, Atlanta.
Q: Moving into a new area, what marketing plan did you implement and what was the focus?
Parker: We were drawn to the Birmingham market through another relationship. We didn't end up getting the large account we were going after, but we did land the smaller one. We don't do a lot of direct mail, but we do put an advertisement in a directory there. Most of our efforts were focused on prospecting. We talked to members of associations and through that, we got several good opportunities and continued to build our presence in the Birmingham market.
Q: How do you overcome cost objections?
Doesburg: It varies. I never give people unit prices. One of the first questions I ask is to find out what the Performa for the subdivision includes. I try to relate back to value. If they want me to lower the price, I'll try. I'll suggest things for how they can spend less. But, in design/build, you have to focus on the cost of the entire project - you can't let the client nit pick at the cost of a certain tree or plant. People are paying for my service. My belief is that my price for a tree or plant is the cheapest because they are getting more value than if they bought it themselves.
Q: How many sales people do each of you have?
Sebert: We have one sales person and an account manager who handles the account once it's sold. At one time we had three sales people who were also managing the accounts. I found that that wasn't a win-win situation, so we eliminated overhead by cutting back on our sales force and focusing on marketing with mouse pads, calendars, telemarketing, etc.
Doesburg: We have three dedicated sales people. We don't design and sell, we design or sell. What I'm good at is selling, so why waste my time designing?
Parker: We have two to three sales people, including myself for maintenance. We bring in opportunities for installation through that group. We have one person who sells arbor care and we have account managers who sell upgrades to our 300 maintenance accounts and provide customer support.
Q: Is asking your first-year sales force to sell $1 million a year asking too much?
Sebert: That's expecting a lot. I think it would be dangerous to expect someone to sell "X" amount.
Doesburg: I look for a relationship with clients rather than a target sales number. I want to make sure there's a growth pattern. So, it's not important what they sell the first year as long as they continue to grow. Three to five years out, they should be at about $300,000 to $500,000. I think it takes five years before you're good at landscape sales. Selling is about knowing what to say.
Parker: We're large, so it's easier for us to sell a large volume. It takes a good six months for the sales staff to learn the company, but after that, I don't think asking them to sell $1 million is too much.
Q: Who estimates?
Doesburg: We're computerized, so anyone in our office can price a job. The sales person is responsible for the job, so even if the designer messes up, the sales person is responsible for rectifying that. The key is that in our office the operations manager has to sign off on all sales - even mine.
Q: When does a company warrant hiring a sales person?
Parker: We were probably a $6 million company before we hired a sales person. Before that, George Morrell and the other managers did a lot of the selling. We'd sell to people in our routes, but we weren't a dedicated sales staff. Once we reached $5 million, the company was too big for us to continue selling. You have to watch how much you sell though, because if you sell too much, the organization won't be able to handle it.
Q: Tell us about your sales process?
Parker: It starts with prospecting. I drive around areas and pick certain businesses and ask the receptionist who is responsible for the landscaping. I get that person's card and then write them a letter and include our brochure. I then call to set up an appointment to meet with them. Often success or failure depends on your timing - a good time to get in is when there is a new owner.
On my presentation I show the prospective client photographs before I start talking about costs. I explain that their company is in our prime market and I point out projects locally that they're familiar with. I talk about how professional our crews are and how much we focus on safety. After all that, I talk about the costs.
