Commisioned sales guys....questions!!!

[mikesride]

So for years now I have been a commissioned sales rep, for a large construction equipment dealer. My sales have always been in the parts and service end of the business, building relations with customers so they automatically call in for parts and service.
I have been (pat myself on the back moment) successful in these endeavors and have led a steady increase of almost 20% per year for the five years I have been with this company.
I make good money but am getting bored.
Management comes to me this week asking if I would step up and take over a territory selling the actual equipment. (these guys are the super stars of our company....top earners, big / cool bonuses including vacations...and lots of good on going factory training).
Earning potential is very attractive and the fellow I would be replacing averages $50000.00 to $80000.00 more per annual pay period than I currently enjoy.
I am wondering how well my current skill set would transfer over to this new position....and am very anxious about my ability to close on these big deals...
Any body here ever been in a similar situation? If I am nervous about it before I even accept the position does that make any of you management types doubt my ability to succeed at this?
Any insight from fellow commissioned sales reps and or their managers would be greatly appreciated.

[81Kremer930]

You have to stay confidenent in your ability. I went from salesperson, to sales manager, to purchasing manager, to general manager. You obviously have shown your ability to superiors, and they have taken notice! As you know, selling is the same no matter what it is you sell or how much. Do what you've always done, and go for it!

[zehnd]

My BIL used to be a mechanic at a John Deere dealer, he was always trying to get into sales at the same dealer. He moved on to another implement dealer to be in sales. He made 250,000 last year, has some paid vacations through suppliers. That same dealer along with other ones have been phoning trying to lure him away. I think his back round in mechanics helped him along with being good in sales. I say go for it.

[porsche4life]

You have to stay confidenent in your ability. I went from salesperson, to sales manager, to purchasing manager, to general manager. You obviously have shown your ability to superiors, and they have taken notice! As you know, selling is the same no matter what it is you sell or how much. Do what you've always done, and go for it!

This! And knowing the parts and service side of the biz should give you a leg up! It's worth giving it a shot!

[VincentVega]

I've been in IT sales but I assume the concepts are the same. Build relationships and trust. Build a pipeline of short, medium and long term projects. Many projects wont come through but if you are planning far enough ahead you will be ok.

I've seen many guys get stuck in the short term quarter to quarter business, it's important, but they fail to prospect and set up deals for next quarter, next year... These guys are usually going crazy the last week of the month/quarter praying they meet their #.

It can be a lot of fun and rewarding if you like gig but it can also be a grind if your mgmt rides you and/or if you dont produce.

Good luck, it sounds like a logical next step.

[Rick Lee]

I wouldn't turn down a promotion like that. As long as you can handle the travel and are disciplined enough to run your day properly when there's no one watching over you, you'll be fine. I went from outside to inside and I think going back might be difficult. I swore I'd never be able to work in an office again, but it's been pretty nice, zero stress, I leave the job at the office when I go home, no Blackberry, never work a minute after 4pm and every day is a new day with no issues leftover from the previous day. Outside sales is the opposite. The only way you're watched is when your boss pulls your pipeline report. You get calls at all hours, and when they're after hours, they usually won't take no for an answer. Travel can be rough on the family. I'm taking my first airplane ride on Mon. since last July and I used to fly a few times a month. I've really enjoyed riding my motorcycle to work instead of driving to airports.

[mreid]

You actually have an advantage, use it!

Coming from the parts and service side you can knowledgeably and confidently speak to the reliability and life cycle cost end of the business. Sales is about inspiring confidence in your customers. You have this down better than the others and I predict the number one sales district is in your future. Congratulations!

[oldE]

Originally Posted by mikesride

My sales have always been in the parts and service end of the business, building relations with customers so they automatically call in for parts and service.
I have been successful in these endeavors and have led a steady increase of almost 20% per year for the five years I have been with this company.
I make good money but am getting bored.
Management comes to me this week asking if I would step up and take over a territory selling the actual equipment.

You've said it all right here.
You have the three things required to do this. Awareness, Attitude and Skills.
Your bosses have recognized this.
I think you will have a heck of a good time, after you get up to speed on the new responsibilities.
Have fun.
Les

[look 171]

You have a gift. That is building relationship and people trust you. I say go do it. The only difference it that, your currently clients trust you and call you because they need parts for their machinery yesterday, so they can keep going. New equip. maybe a little bit different. I don't know the business, but I have to sell my service and convince people they should trust me. Sounds like fun.

[strath44]

feel the fear and do it anyway! - this is a cliche but cliches are only cliches because they are true......

your doubts are natural and you'd have more to worry about if you didn't have them.

good jobs are hard to come by, you have clearly worked very hard as these roles aren't given by accident or default.

Good luck, let us know what you do.

ps just to add it is important that when asked officially and accept that you do so in a reasonably confident manner and don't put doubt in the powers above!

[imcarthur]

I have been outside sales since 1977. Once you taste the freedom, it is really hard to go back inside & I am surprised that Rick is loving it.

Sales is easy once you realize that it is only communication & I think that you have that squared away. You talk. You listen. And the more listening that you do, the bigger the commission check.

Ian

[onewhippedpuppy]

Do it! I saw a quote from Sir Richard Branson that I really liked: "If someone offers you a great opportunity, take it! You can figure out later how you'll do it." Paraphrasing of course, but a great message. Fortune favors the bold.

[74-911]

Originally Posted by mikesride

.....Management comes to me this week asking if I would step up and take over a territory selling the actual equipment. (these guys are the super stars of our company....top earners, big / cool bonuses including vacations...and lots of good on going factory training).

What will management think of you if you turn it down ?? I suspect there could be a real downside if you decline to step up.

[mikesride]

Thanks guys....some good insight and a lot of appreciated cheer leading!!!! My current position actually has a little more freedom than this new opportunity. My current office is at home and I rarely go to the shop...this position comes with an office at the branch and I would be reporting directly to the branch manager.
We sell John Deere construction equipment, Bomag packers and pavers as well as Ditch Witch trenchers, directional drills, vac trucks and pipe bursters. This position would focus on the Ditch Witch side of things. (We are sitting on top of an oil field and our cities are sitting on crumbling infrastructure, so the opportunities are vast)
An extra 50 - 80K at the end of the year is a BIG motivator as is the increased challenge of the job.
I will make my way to the office Monday and start the official discussions and see what the offer looks like!
Thanks again.

[mikesride]

Originally Posted by imcarthur

I have been outside sales since 1977. Once you taste the freedom, it is really hard to go back inside & I am surprised that Rick is loving it.

Sales is easy once you realize that it is only communication & I think that you have that squared away. You talk. You listen. And the more listening that you do, the bigger the commission check.

Ian

Totally agree....

[mikester]

Careful what you wish for...

I'm a little new to sales myself, been doing it about 4 years.

I'm learning that you should be careful what you wish for. Big accounts or big goals don't always equate to huge payouts. Watch how they goal you if you even get a say, I really don't but I have a pretty high base salary.

For example, first year I was just over 100% of goal, same as second year so my income was about the same. Third year I knocked it out of the park at nearly 150% so I got the growth to go along with it. Now I'm sitting at about 100% of plan for the year with a quarter left and I'm at about 65% of what I was making in commissions last year.

These last two years I've been sitting on a huge account and really just the one account where as before I had 3-4. With just one I'm limited but with the 3-4 my goals tended to be lower and easier to attain but my chances of hitting it out of the park were much lower.

I'm contemplating my next move carefully. Lets say my goal last year was $8 million. This year because we ended up at $13 instead of $8 I was rewarded with a $25 goal. Now if I hit 100% this year I'm expecting something in the neighborhood of $35-45 and to get there I'm going to have to work a lot harder and I'm already working pretty hard and if I just get 100% then my commissions won't be that great compared to how good they were where I wasn't working nearly that hard and I was enjoying the job more.

[mikester]

Originally Posted by imcarthur

I have been outside sales since 1977. Once you taste the freedom, it is really hard to go back inside & I am surprised that Rick is loving it.

Sales is easy once you realize that it is only communication & I think that you have that squared away. You talk. You listen. And the more listening that you do, the bigger the commission check.

Ian

I agree with this too and if your job is to know your customers the other thing you can do is simply be there.

Seriously - if you can work out of their office and are there for them without them having to work to get to you then you will win with them every time. A lot of times it isn't the product, it isn't the price, it's the relationship. I don't mean that in a sleazy way either - a lot of guys who buy what I sell have the same interests. We become friends easy. I don't take advantage of those friendships but the trust gets me business and I value that trust.

[mikesride]

Mikester.....
I am not new to a commission style income.....been doing that or the self employed thing for almost my entire working life.
This comes with a pre existing client list, running the 80/20 rule.
I have been in situations like you are in....more like a 95/5 rule.....and yes its scary... kind of an "all your eggs in one basket" situation, and depending on product and territory it can be tough to diversify.
Good luck to you...I have a feeling you will pull through.

My fear in this was going from selling guys on our parts and service business is different than standing in front of somebody asking them for a $350,000.00 dollar check......

What the hell....if this does work out I will never look back. If it doesn't work out I have a skill set other employers are looking for!!!!!

[cstreit]

Sales is Sales. If you are educated in your product you will be confident. You already know the customers, huge leg up. Your highs will be higher and lows lower, but why turn down the opportunity to get reinvigorated? I sell software but bet it would transfer to other areas. Its your skillset that wins.

[cantdrv55]

I have done/am doing exactly what you've described. I went from managing accounts (servicing my customer base and upselling) to pure capital equipment sales. The transition was more difficult than I had imagined because in territory management, I was more connected to my customer base. My customers became my friends. I was the face of my company, the main point of contact. In equipment sales, I am now the closer, the hired gun. It's kind of like transactional selling in that after the sale, at least in my industry, you have to let go and move on to the next opportunity and let your territory managers take care of implementing the solutions you sold.

In my industry, equipment sales positions are the most highly compensated because of the inherent risk. If you can't close, you will not be successful. You won't be able to close unless you truly believe in your product. Customers can smell insincerity. If you can't believe in your product, find another that speaks to you.

Good luck. You can do this.