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Software Solutions for Landscape Professionals

“ Landscape Sales” Planning for Profitability 2011 Webinar Series November 17 th , 2011. Software Solutions for Landscape Professionals. Presenter: Marcus v andeVliet Consultant – MV Enterprises marcusv@aol.com. Agenda. Sales Management

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Software Solutions for Landscape Professionals

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  1. “Landscape Sales” • Planning for Profitability 2011 Webinar Series • November 17th, 2011 Software Solutions for Landscape Professionals • Presenter: Marcus vandeVliet • Consultant – MV Enterprises • marcusv@aol.com

  2. Agenda • Sales Management • Sales Metrics, Closure Rates, Sales Pipeline, Weekly Sales Meetings • Succeeding in a Competitive Market • Educate the Client, Differentiation of Process, Know your Numbers, Know your Competition, Referrals, Everybody Must Sell, Sales Tools • DS|Manage360 Demonstration • Conclusion & Discussion

  3. Introduction • Profitable work comes primarily from: • Direct referrals • Repeat customers • Look at all aspects of your company • Systems • Employees • Perceptions • Customer experience • Think Long Term • Don’t listen to the negative

  4. Focus Internally • Can not control your customers. • Can not control your marketplace. • Can not control your competition. • You can control: • Your attitude. This is Critical • Your actions • Your employees • Your company • Your products and services

  5. Sales Management • Sales management is difficult because salespeople operate independently during the sales process. • Trust is required, although verification is necessary. • The sales process must be defined and monitored on a regular basis. • Measurement and metrics are required during the entire sales process.

  6. Sales Metrics • The actual metric is less important than the trends and red flags. • Examples of sales metrics: • Sales goals • Annual • Monthly • Repeat customers • New business development • Backlog.

  7. Closure Rates • Closure rates are critical to understanding and managing sales performance. • The closure rate will determine the amount of work a salesperson must bid to achieve sales goals. • For example a salesperson with a sales goal of $500,000 and a 50% closure rate would need to bid $1 million worth of work. • Be closure rate is typically a historical metric.

  8. Closure Rates – Cont. • I would recommend setting up different closure rates: • Repeat and existing customers • Qualified leads • Unqualified leads • Project type or size • Customer type

  9. Sales Pipeline • The sales pipeline tracks the different phases during the sales process for each project. • Sales Pipeline Example Phases: 1. Initial Meeting 2. Design Phase 3. Estimating Phase 4. Presentation 5. Revision Phase 6. Submitted 6. Short-Term or Long-Term Follow-Up Phase 7. On Hold

  10. Sales Pipeline – Cont. • Sales pipeline tracking helps manage each salesperson’s process by defining required time frames for each phase. • For example: the initial meeting must take place within 7days. • The design phase must be completed within 14 days. • The pipeline will also indicate how many projects each salesperson has in each phase. • The pending and follow up phases should be monitored on a regular basis by the sales manager.

  11. Weekly Sales Meeting • The proposals in the pending phase could be projected based on the salespersons closure rate. • This is a critical tool to be used in holding salespeople accountable. • This meeting will also dramatically improve internal and external communications.

  12. Weekly Sales Meeting – Cont. • The agenda should include: • Action items from previous meeting. • Sales goals / Bid goals. • Week to date, Month to date, Year-to-date. • Proposals submitted this week. • Projects sold this week. • Sales pipeline and report. • Long-term and short-term schedule update ( from production). • Customer feedback. (share information with production) • Accounts Receivable. • Business development / lead generation.

  13. Succeeding in a Competitive Market • Educate the client • Differentiation of Process • Know your numbers • Know your competition

  14. Educate the Client • Challenge: takes time. Due to smaller job size and lower closure rates, the sales process takes longer. • Education begins with the initial phone call or contact. • Discuss your company sales process. • Customer requirements and preparation. • Prequalification.

  15. Educate the Client – Cont. • How your client’s property is going to be used.

  16. Educate the Client – Cont. • How experienced is your crew in making field changes.

  17. Educate the Client – Cont. • How do you handle a problem when you come across it.

  18. Educate the Client – Cont. • Everything we say and do must focus on quality and differentiation. • If we do not justify our value, then the client has no other basis but price for the determining factor. • Look for quality signals in the home or business.

  19. Educate the Client – Cont.

  20. Educate the Client – Cont. • Cheapest Car in America (As per Forbes.com):

  21. Homeownership Ranks at the Top • Home equity remains the cornerstone of most family wealth. • Most Americans invest and earn more in their homes than from their savings, IRAs, stocks, bonds, or other investments combined, • Survey participants were asked: • What is your most valuable investment?

  22. Homeownership Ranks at the Top Source: Survey conducted by National Association of Home Builders, NAHB, 2006

  23. Percent Recovery Rate at Time of Sale High and Low Ranges Landscaping Holds Its Value • Investment in landscaping compares favorably with other home improvements • Recovery rate at time of sale: • Landscaping investments: • 100 to 200% • Kitchen remodeling: • 75 to 125% • Bathroom remodeling: • 20 to 120% • Swimming pool addition: • 20 to 50% Source: Money Magazine; American Nursery and Landscape Association, 2008

  24. Differentiation of Process • Prequalification: • Clearly define the scope of work. • Ask the right questions. • Lead source. • Schedule. • Value versus price. (quality based company) • Discuss budget.

  25. Differentiation of Process • Prequalification – Cont. : • Listen for feedback. • Square-foot pricing requests. • Ballpark pricing requests. • Design or consulting fees

  26. Differentiation of Process • Initial Meeting with Client: • Be prepared and on time. • County website property information. • Google earth. • Vendor and corporate brochures. • Two minute sales presentation. • Portfolio and plan samples.

  27. Differentiation of Process • Initial Meeting with Client – Cont: • Describe the agenda of the meeting to the client. • Primary purpose • Determine the client’s needs and wants • Project scope • Qualification • Develop a concept • Take measurements and estimating information.

  28. Differentiation of Process • Initial Meeting with Client – Cont: • The key for the initial meeting is to listen. • 20% speaking and 80% listening. • There is a difference between listening and hearing. • It is critical to determine the clients expectations and needs. • The success of the sales presentation will hinge on how personal and relevant the design and solutions are. • You have nothing to sell at this meeting.

  29. Differentiation of Process • Design Concepts and Plan: • A creative design or a well engineered solution to a problem is a great way to differentiate your company. • The plan should be professional and easy for the client to understand. • Use CAD or hand drawn if you are graphically talented. • Use other methods of communication. • 3-D • Color rendering • Physical layout. • Do as little as you need to do to close the sale.

  30. Differentiation of Process

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  33. Differentiation of Process

  34. Differentiation of Process

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  38. Differentiation of Process • Presentation Meeting Agenda: • Briefly review and highlight important facts about your company listed in the leave behind presentation. • Discuss the entire scope of work in detail. • Explain your construction or installation process.

  39. Differentiation of Process • Presentation Meeting Agenda – Cont.: • Discuss key contract items • Warrantee • Change orders • Underground clause • Payment schedules • Authority • Verbal agreements • Contract scope of work

  40. Differentiation of Process • Presentation Meeting Agenda – Cont.: • The sales leave behind • A personalized bound document • Brief history of the company • Key persons bio • Key differences and advantages • Referrals • Testimonials • Awards and associations

  41. Differentiation of Process • Presentation Meeting Agenda – Cont.: • The sales leave behind • A personalized bound document – Cont. • Reduced copy of the plan • Very detailed scope of work • Options for materials and phasing • Licenses and certificates of insurance • Supporting documentation and brochures. • Personal portfolio

  42. Differentiation of Process • Presentation Meeting Agenda – Cont.: • The goal of the presentation is to get the client to want to buy our product, therefore not requiring us to sell the product. • We achieve this through: • Designing and creating the presentation package quickly. • Overcoming any objections proactively, therefore not requiring a defense of the objection. • Providing a more creative and professional plan and presentation. • Defining key differences and advantages. • Using testimonials and letters of recommendation.

  43. Differentiation of Process • Key Differences and Advantage: • Number of years in business. • Experience levels. • Sales and overhead • Foreman and field staff • Similar projects • Awards and associations. • Facility. • Insurance levels and types. • Material suppliers.

  44. Differentiation of Process • Handle Objections Effectively • Every potential customer has questions and concerns about your offering that must be dealt with effectively before he or she can proceed with confidence. • This is normal and natural, and to be expected. • Your ability to answer objections effectively is a critical skill that will largely determine your level of sales and income.

  45. Differentiation of Process • Real Objections • Trust or creditability. • Customer does not like you. • Confidence in you, your employees or your company. • Suitability perception to customer. • Convenience and Service. • Not convinced or enough information. • Reputation of the company or product

  46. Differentiation of Process • Real Objections – Cont.: • Appearance: sites, people, equipment, etc. • Appropriateness to the customer. • Not doing what you said during relationship: • On time for appointments • On schedule for process • Communications • Not Prepared for meetings

  47. Differentiation of Process • Action Exercises: • Make a list of every reason that prospects give you for not buying what your product. • Organize this list by priority and frequency. • Determine the major objections you get that stop you from making sales to qualified prospects. • Write these objections down the left hand side of a sheet of paper. • Then write a logical and persuasive answer to each objection in the right hand column. • Get testimonial letters or other proof to demonstrate that the objection is not a valid reason not to buy.

  48. Know your Numbers • In the estimating process it is critical to know your project costs. • Labor • Materials • Equipment • Subcontractor • It is critical to know how much overhead you need to recover. • It is critical to know how much profit has been added to the project.

  49. Know your Numbers - Profit Factors • Size of Project • Risks Involved • The Marketplace • The Need for Crew/Company • Competitive Advantages/Disadvantages • Client Factors

  50. Know your Numbers • Each salesperson should have a project profit range determined prior to the meeting. • Each salesperson should have monthly sales goals, and closure rate goals. • Each salesperson should know their average job size. • Each salesperson should also know where there leads are coming from, particularly the direct referrals.

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