This is part one of a series of posts about overcoming sales failures
Here is a “normal” business scene.
The marketing manager of the winery is being called to the office of the CEO.
CEO: “Sales of our Merlot are dropping for the last three months, what the hell is going on?”
MM (Marketing Manager): “The demand for Merlot has dropped all over the market.”
CEO: “Let us hope this will change in the next months”
A smarter CEO will probably respond….
CEO: “Don’t people like Merlot anymore?”
MM: “no, actually the overall Merlot market is bigger, but there are so many more producers…”
CEO: “So we have trouble competing with them?”
MM: “Yes, there are many more wineries that sell Merlot at a cheaper price..”
CEO: “But I spoke yesterday with Joe, the owner of the winery next door and he said his sales of the Merlot are the same for the last six months, and his Merlot is more expensive than ours!”
MM: “Yes, but he is so many more years in the market..”
CEO: “That is true, but we used to sell double his amount a year ago”
MM: “I heard that he sells the Merlot because people like his label…”
CEO: “So if we change the label can I count on more sales?”
MM: “Nobody really knows the reason for people liking his label. so I can not be sure we will sell more with a new label…”
A VERY smart CEO will say …
CEO: “All that you said might be valid, but I want you to tell me what should we do in order to sell more Merlot! Give me a solution in a week.”
The truth is that there are very few CEO, MM, Sales managers, or winery owners that will look for a solution they can actually do instead of believing and agreeing that the true reason for their sales decline is something that happened outside of their control.
Most just agree that the situation in the market is the real reason for the drop in sales and they just either give up or look for a solution that is based on the problem presented by the “reality”. In the case of dropped sales, the owner or CEO might decide to lower expenses, fire some staff, or another destructive solution.
There is a strong correlation between those who look for a solution to a problem, one that they can control, and the success of their business.
What do you think about this post? and tell me if you have any experience concerning such situations.