How the Tough Get Going ? And Why
Distributors talk about evaluating and compensating their sales representatives' job performances.
These are penny-pinching times and, more than ever, sales professionals must go the extra mile to edge out competitors and convince customers to expend precious financial resources. So, just what is it that keeps printed products distributors going day after day?
Here, 12 company executives—identified in the chart below— share their views on compensating, training and hiring.
New Blood
When it comes to hiring sales representatives, the consensus is that industry experience is a definite plus, although both Sherie Bartlett and Walt Smith observed that it isn't always easy to come by. Mark Duchene added that very few talented, successful reps ever look to make a change.
Smith concurred. "We have found it difficult to locate well-trained industry professionals to fill sales positions. The last major hire was from outside of the industry, and he is doing a wonderful job. Instead of looking for print salespeople," he said, "we now locate and groom what we call contract and systems sales professionals. We want computer-literate, money-motivated candidates with strong written and verbal communication skills, a professional appearance, and high energy and vision."
Said Glenn Martin, "Industry experience is a must because we don't have a formal training program. But, we also look for an energetic team player who manages time effectively." DPS Printing Services requires an experienced rep to also have a transferable account base.
For Robert Troop, character and desire to succeed are more important than industry experience. "Our business model breeds entrepreneurialism," he explained, "so we look for professionals with that mentality."
At Voluforms, printing and technical knowledge are evaluated, as well as scores on a sales test. GBS conducts personality profile testing on college-degreed applicants who undergo a multi-stage interview process with management and human resources. "We also run credit checks," added John "Skip" Dragoiu.
Interestingly, John Osborne commented that Midwest Single Source has never hired from within the industry. "Our decision is based on the quality of the individual," he said. "We generally hire people to start in customer service, where they can learn the customer base and our industry. After six months, they are eligible to move into sales."
And, at Commercial Business Forms, Michael Gordon discovered that industry experience can actually be a negative that involves, as he put it, "too much baggage."
Once on board, promising recruits and seasoned veterans are oriented in a number of different ways. Troop, Duchene and Martin typically have new hires make calls with tenured reps until they learn the ropes.
At DPS Printing Services and Advent Print Resources, monthly sales meetings serve as important exchanges of information and venues for discussing challenges and solutions. Smith mentioned the value of manufacturing partners in training personnel in the proper techniques and presentation packages available with new product roll-outs. "IDS will also pay for the cost of the CDC exam, along with a bonus after completion," he said.
Voluforms has established a training manual, which it sometimes supplements with outside training. Commercial Business Forms takes advantage of DMIA training sessions, while GBS bases its training on the publication The Science of Selling.
All 12 contributors find that regularly scheduled reviews—where quotas and margins are established or adjusted—and reports comparing current activity with the previous years' is the best approach to monitoring and evaluating sales performance.
Voluforms pays special attention to new accounts opened and new product sales. At Discovery Business, Duchene noted, the system is based solely on performance. "If a rep is growing, management stays out of the way," he said. "If not, then we go on joint calls and help the rep get back on track."
Jobs Well Done
Five of the 12 respondents—Michael Mudd, Gary Amon, Steven Hawes, Bartlett and Duchene—have no formal recognition or performance award for individual sales reps, and noted that healthy commission checks provide sufficient motivation and reward. "We have never been big on awards," said Duchene. "The owners here came from an award-oriented environment, and they felt that it was less than encouraging. We help our people make money so that they may appreciate their own efforts."
On the other hand, C. Michael Stewart, Smith, Osborne, Dragoiu and Troop reported that their companies formally recognize top performers, including the sales pro of the month and/or year. Said Smith, "The Salesperson of the Year Award is presented at our annual kick-off meeting. It is a traveling trophy, and it can change homes annually," he continued. "David Myrick of our Chattanooga office was the most recent awardee for accomplishing his personal sales quota and income incentive."
At Voluforms, outstanding performers of the month—such as Charles Pollard, who increased his sales by 50 percent from the previous year—are again recognized at a year-end dinner. GBS acknowledges them at sales meetings. "We were delighted to award our sales pro of the year, Geoff Latham, with an imprinted blazer, a plaque and a monetary award," said Dragoiu. Midwest Single Source welcomes members to its $1,000,000 round table and bestows other awards during an annual dinner.
On the other hand, top performers at Control Printing Group and Commercial Business Forms are awarded additional bonuses. "We also pay a 10 percent bonus on commissions for the most profitable new account for that year," added Martin.
CONTRIBUTORS:
• Advent Print Resources, Tukwila, Wash.
Steven Hawes, President
10 Sales Reps
Offers commission only.
Offers health-care insurance, a 401K and 10 days of vacation per year.
• Central Valley Business Forms, Visalia, Calif.
Gary Amon, President
6 Sales Reps
Offers commission plus bonuses.
Offers employee heath-care, dental and vision coverage, and a 401K.
• Commercial Business Forms, Cedar Knolls, N.J.
Michael Gordon, President
4 Sales Reps
Offers salary plus commission.
Offers health-care and disability, profit sharing, plus bonuses. pension plans, and up to four weeks of vacation after 10 years.
• Control Printing Group, Independence, Mo.
Glenn Martin, President
10 Sales Reps
Offers commission plus bonuses.
Pays the majority of the costs for employees' health-care insurance, offers short-term disability, a 401K and two weeks of vacation.
• Data Source, Kansas City, Mo.
Sherie Bartlett, President, CEO
7 Sales Reps
Offers salary plus commission.
Offers 100 percent of health-care insurance for employees and 50 percent for dependents, and no retirement or disability benefits.
• Discovery Business, Oak Park, Mich.
Mark Duchene, Vice President
7 Sales Reps
Offers commission only.
Offers comprehensive Blue Cross health-care coverage, a 401K, and one week of vacation after one year, three weeks after five years and four weeks after seven years.
• DPS Printing Services, Edmund, Okla.
Michael Mudd, President
4 Sales Reps
Offers salary plus commission.
Does not offer benefits.
• GBS, North Canton, Ohio
John "Skip" Dragoiu, President, CEO
40 Sales Reps
Offers salary plus commission plus bonuses.
Offers health-care and disability coverage, a retirement plan, stock options and vacation benefits.
• IDS-Integrated Document Solutions, Dallas
Walt Smith, President
6 Sales Reps
The two owners are salaried, the manager recieves a salary plus bonuses, and the rest receive commission plus bonuses.
Pays 50 percent of employees' coverage cost for group health-care insurance (with no contribution for family members who may be added), offers a company-contributed SEP plan after three years, and one vacation week after six months, two weeks after 12 months and three weeks after two years.
• Midwest Single Source, Wichita, Kan.
John Osborne, President, CEO
11 Sales Reps
Offers salary plus commission.
Pays 50 percent of health-care coverage, which includes disability, 401K contribution up to 5 percent of salary, and offers two weeks of vacation until the 5th year, three weeks until the 10th year and then four weeks.
• The Shamrock Companies, Westlake, Ohio
Robert Troop, CEO
52 Sales Reps
Offers commission only.
Offers a comprehensive health-care plan, long-term disability, a 401K with a 25 percent match, effective profit sharing, and vacation based on years of service.
• Voluforms, Jeffersonville, Tenn.
C. Michael Stewart, President, CEO
13 Sales Reps
Offers a choice between commission only, salary plus bonus and commission plus bonus.
Offers a 401K, medical, dental and disability coverage, and paid vacation for salaried employees.
By Maggie DeWitt