A View from the Sales Side – Microwave Product Digest March 2007
Our industry, being on the cutting edge of technology, houses some of the brightest minds. As I point out to some of my friends who are professionals in other fields, the talent and caliber of our technical people rival any other professional discipline. Most of the technical advances that protect our freedom or make our everyday lives easier are concepts and ideas developed by our engineers and scientists. It is difficult to explain the attention to detail and talent that is required to achieve such successes.
Engineers must consider performance, reliability and effectiveness in their design approach. What makes this even more challenging is the need for efficient low cost designs. Today, even critical military systems require a true cost reduction phase. The result is cost effective designs that range from technology that enables GPS to guide us, to wireless communications, to the technology that helps soldiers accomplish their missions. Our industry can be justifiably proud of its accomplishments.
Recently, it became apparent to me how significant these contributions really are. While traveling through Miami, I noticed many soldiers at the airport. As always, I made it a point to thank them for their service and their courage. I mentioned to one soldier that I had been an engineer on military programs and that I now sell components to a program that detects and jams IEDs. To my surprise, the soldier knew that program by name and had used the system. He explained how his convoy had just cleared a swamp, when a bomb exploded. He shook my hand and thanked “us” for helping to save their lives.
So the technical contributions are extremely significant, but how is the business/sales side organized to support this technology?
Most companies take advantage of the efficiencies offered by independent sales representative organizations. The basic concept is that each manufacturer can make use of existing channels and personnel as opposed to operating expensive sales offices in major markets around the world.
Representatives are an extension of the manufacturer. They are the local “sales arm” who are technically competent and are focused on helping and providing support to the customer. The manufacturer (principal) does not incur any expenses until products are delivered and paid for. This efficiency passes through to the end customer. Each representative organization handles complementary lines, which creates an inherently positive effect. For example, as we work on a requirement for a mixer, we know that, most likely, there is an oscillator as well in the design and we can offer both at the same time. Both principals and customers benefit through this synergy.
Behind the scenes, manufacturers and representatives work together to create plans and forecasts to ensure that the manufacturer has the resources and manpower needed to operate effectively. Also, smart manufacturers understand the benefits of communication and training. Author Steven R. Covey calls it “sharpening the saw.” It is important to assess what we are trying to accomplish as a team. New technologies and new ideas are usually what sparks growth. Anything from a simple reduction in size or in operating power to breakthroughs, such as reducing phase noise in an oscillator used in high vibration environments, can create significant benefits to our systems. Training and sales meetings help the entire team to move in the same direction, spark activity, and increase mind share. But how do we tell the world (our customers) of our new developments?
Direct communication through the sales organization to customers, ideally through personal visits along with advertising in our trade magazines such as Microwave Product Digest, together with national and local trade shows, are the best ways to ensure that these new developments are not kept a secret.
Once there is interest, a technical meeting is a good next step, but only after the business picture is understood. Program information such as quantity, timing, and program funding is critical to know. Spending resources on an activity with a questionable future can be particularly damaging to small companies and can have negative repercussions for publicly traded companies, where forecasts have to be announced and accuracy is important.
Sales also shares in the responsibility of keeping everyone employed. Lose a program due to incorrect information and the entire team suffers. On the other hand, earn a contract as a result of taking all the right steps and it can be very gratifying for all of us.
The leading manufacturers are realistic and honest about what they can offer. Friendships form based on mutual trust. Sometimes, we must risk losing an order to maintain that level of trust. If we are awarded the contract, it is most important that our customers know that we will be there for them, providing all the necessary support, especially after the order is placed.
So training, sales meetings, forecasting, visiting customers and being sensitive to their needs, knowing the program picture, introducing new products and concepts, and, in the case of representative organizations, being responsible for their own expenses and salaries without the reassurance of a steady paycheck, are all part of the sales side. Sounds tough and it sometimes is, but “In My Opinion,” what we accomplish together as an industry represents a very worthwhile mission that we can all take pride in.
Tekmar Sales, Inc.