Reaching Decision Makers

What are the most common mistakes vendors and/or industry partners make when approaching decision makers?

1. They are not confident in their product or service.
2. They didn't do their homework and know the in's and out's of the company they're seeking to build a relationship.
3. They are assuming
4. resources/project management

When I worked on the client side, I loved building new relationships with possible vendors. They knew so much more of the inside scoop on what was happening in areas that piqued my interest, but because I came across so many, I could quickly sniff out those that really knew what they talked about to those that while they may have a good program, weren't fully ready to have me as a client. And lucky for them (I think) I was quick to point that out and let them know that they had a bit of homework still ahead of them to win us as a new client. I take that to heart now that I am on the other side of the table and it works (again I think) to my client's benefit.

Cheers!
Carmen

The most common mistake is the “used car sales man” approach. They immediately start trying to sell their company heavenly without properly understanding what your needs are. The vendor approach should be figuring what the need of the customer might be, and how their company can do for them on that particular need. Trust me, by doing that, you would automatically sell your services without coming across as a “used car sales man”.

If a vendor can find someone who has recommended that they speak to the decision make (such as, "I was speaking to one of your friends in the industry, Amy Jones, and she thought you might be interested in our services" it often goes a long way. The key is that the recommendation must be authentic. Too many folks name drop without permission or a real recommendation.

Esther,

I couldn't agree more with your comment. But strangely enough in this industry a lot of times this still isn't enough to get a return phone call or e-mail.

I personally could tell you dozens of times where I have chatted with the boss and they give me the contact info of the person to call in their firm -- and yet this person still doesn't return the call or e-mail! Odd but true.

I will also say there are plenty of firms where I get a return message within a few days. Nice to see and hear!

Anyway the best way I have found to get past this -- is to get on the road. Conferences and office visits go a long, long, long way to making inroads in this industry. Face time is real time. You are dealing with a people business -- and this industry likes to meet the people they are dealing with first hand.

Just my thoughts.

Best regards,
Leigh

Leigh,

I'm so glad you brought up "in person". There are many vendors (new & established) who are using the "dialing for dollars" sales methodology to keep costs down and try to get the biggest bang for their sales buck. While this may eventually get a returned call or email, it increases the sales cycle by months and tends to create a client who doesn't really have a personal tie to the product or sales person. Many of these new vendors do not come from the multi housing industry and are not aware of how it has grown with "face to face" sales opportunities. Technology can definitely save a lot of time and expense on the front end to better qualify prospects, but closing "the big portfolio" is not going to be done over the phone or in 30 days.

Most of the technology vendors come into this industry with great products and incredible innovation that could be very useful for management companies and apt. communities. There are 2 big mistakes I have seen them make:
1. They tell their sales people, "Get those big portfolios and you can make a lot of money.. quick." These new vendors think it is only a matter of a rolodex to make introductions, present the product via web demo and then close with an emailed contract. Unrealistic expectations increase the number of contacts by sales people and have put many vendor companies in jeorpardy.
2. Do vendors realize there are 70+ products related to just leasing & marketing that all want to do the same thing...get the attention of decision makers? These property mgt. professionals are inundated with local sales people, telesales, sales mgrs, customer service & even the "big boss", on an hourly basis. I spoke w/ one mktg dir who said she receives hundreds of vendor calls & emails vying for her attention every month. While she wants much of the info, she just doesn't have enough time to run the properties & answer all of those vendor contacts.

My recommendation is set proper sales expectations, be well funded, network with other successful vendors who are well connected and most of all UNDERSTAND the basics of property management. Knowing your customers and the issues that are important to them will give you more than "product information" to discuss.
Remember this: RESULTS + RELATIONSHIP = RENEWAL

Thanks for listening as I'm pretty passionate about the disappointing direction vendors are headed in this industry.

Pat

Thanks everyone for your comments. This all rings true and validates what I have been witnessing for some time now. I posted this discussion as stepping stone to the social media for suppliers webinar that Brent and I are discussing next week here on MFI. Your thoughts will lend much weight to the topic. It is all about developing relationships and not treating people like mere transactions.

Jonathan, We get a lot of great learning from the conferences as well. This year we've sent team members to 5 or 6, the most recent being Brainstorming where we met you as well! I think industry events and meetings are invaluable for understanding the market and forging relationships. We've met and hung out with a lot of great folks this year attending events and conferences.

Pat,

Loved your post. Loved it. Loved this part so much, I want to repeat it:

My recommendation is set proper sales expectations, be well funded, network with other successful vendors who are well connected and most of all UNDERSTAND the basics of property management. Knowing your customers and the issues that are important to them will give you more than "product information" to discuss.
Remember this: RESULTS + RELATIONSHIP = RENEWAL

Setting real expectations is so important. I have many years of experience in this space, and have some amazing personal relationships in this biz. Generally, I love the people I sell to. The term I have for many of my PMC clients is structurally distracted. They have waaaay too much on their plate, and it is quite a challenge to both break through and then keep the sales momentum alive. Most of them really care, but have scant time to listen to an unprepared sales exec.

My advice to salespeople is this: invest time in knowing and understanding your client/prospect. Invest in knowing what software platforms they use, what type of management style the company has, what ancillary products they favor, what type of properties they have and how they make buying decisions. It costs an average vendor company roughly $850 for a new sales call. (add up everything, and you will see this figure is real accurate). At the least, spend the same amount of hours researching your prospect as you would in buying a big-screen tv.

Never ask the stupid, bone-head, and selfish question "how many units do you have?" Get every bit of information in advance. Earn your right to their attention. Think about what you are asking from them (in terms of the time value of money), and treat their time with respect. If you are a fellow vendor, send me a note, and I would be happy to share with you a pre-call preparation form I have developed. This way, you can be serving your client, and not simply serving your own self-interest. Trust me, when you really care, it comes through, and people will respect you as you respect them.

Kind of like the old adage---people do not care how much you know until they know how much you care.

Ed it was great meeting you as well and your team. Conferences are great opportunities to talk to people and have that face to face contact like Leigh mentioned. It's important to be real and authentic. Allow them to perceive a reason to keep in contact.

@Esther -- I had someone contact once whom I had never even spoken to even once who wanted to know if I could exchange leads. I was mortified and of course wrote a blog post about vendor etiquette.

The cycle should never be abusive. It really needs to flow. Too many companies I feel are so concerned about quotas and hard closing and scheduled follow ups. I have been pitched too many times by people and the worst ones are those who have a scripted speech or who just talk so much that you immediately are disconnected. Be real and be careful on how many books you read on "how to sell". The Brains on Fire crew are folks after my own heart. I hope we all can learn more from people like them...they have heart and their circle of connections adore them.

Yes, the intent is not to contact people you haven't spoken to and ask for leads. However, if I work with a good vendor partner and they ask if I know someone else in the industry and would mind if they used me as a referance, I'm always happy to agree. When vendors contact me and say something like, "I work with Karen Kossow at Kettler and she mentioned that you might be interested in this service," I'm alwasy more likely to pay attention to what they are promoting. After all, someone I know and respect endorses them. The key is--it has to be a genuine referral or reference. No bull--no empty name dropping.

Great point Esther and it all goes back to the fact the this is a people industry -- and the folks that make decisions want to know their vendors --- or at least others who work with them.

I tell my clients that I almost immediately get asked the same two questions when I introduce a new product or service to them:

1.) How much is it? -- Because they want to figure out initial ROI

and

2.) Who else uses it? -- i.e. who else in the industry is using them.

If you can't answer these two questions, good luck trying to sell it.

Again just my experiences.

Esther that is spot on. It's important to keep those relationships building. To clarify my previous comment, I was not trying to single any one company out, which it appears I did in my comment which I am sorry for. In general I hope that industry partners/vendors will continue to work to build mutual respect for each other and for the property management professionals. Maintaining a positive approach with each other can only strengthen these bonds. This has been a great discussion.

I personally could tell you dozens of times where I have chatted with the boss and they give me the contact info of the person to call in their firm -- and yet this person still doesn't return the call or e-mail! Odd but true.

I have run into this many times and am always blown away by it. If I were the boss, I would find it incredibly disrespectful if a subordinate doesn't take the time to make the call-back, no matter how busy they are. And not only are they not doing what their boss asked them to do, but they are not doing it right in front of someone outside the company.

Please send your pre-call preparation form you mentioned to my email address:[email protected]
Thanks so much,

SN

If this happens within Pinnacle management, pleaselet me know personally at [email protected] and i will help you.

Thanks1

Carey Bradburn
Investment Manager

Thanks to all who have taken the time to answer. We are a vendor new to the multi-family industry, and we're prepping to dip our toes in over the coming months. This information has been invaluable and will save us lots of time-- and, in turn, save the decision maker time!