| Have you ever wondered what the real cost of | | | | looking at possibilities to make the next day's |
| mediocrity within your organization might be? | | | | presentation work, even though it was to be in |
| Sales managers must wake up! Has there ever | | | | the hotel's restaurant, during service hours to the |
| been a time when a mess-up by someone | | | | general public. The hotel general manager |
| internally, proved to be quite costly in both money | | | | explained to me that he, and his staff had been |
| resources and time/energy? Has there been a | | | | working on the problem for the past three days. |
| time when a mess-up by someone in your | | | | They had even called other hotels to try and |
| organization caused a huge toll on an outsider, i.e. | | | | move the meeting--but without success. |
| supplier or customer? | | | | Let's take a rough look at the real cost to this |
| In the world of selling, mediocrity can demand | | | | hotel: A hotel general manager making around |
| untold costs. In selling, there are generally two | | | | $100,000 a year, working a six-day work week |
| categories: hunters and farmers. The hunters are | | | | equates to about $333 per working day. If we |
| the sales people, both inside and outside, that | | | | take into account that the general manager, food |
| specialize in going after new business--their thrust | | | | & beverage manager, sales staff and others had |
| is the hunt, bringing in new customers. Farmers on | | | | been dealing with the issue for three days and |
| the other hand specialize in nurturing house | | | | just add up the general manager's pay, that gives |
| accounts and business that the hunters have | | | | us about $1,000 cost to the hotel. I'm sure Lois' |
| brought in. Too often, organizations will settle for | | | | commission on the sale of the room and F&B |
| farmers that are mediocre, or careless and don't | | | | was nowhere near that much. |
| tend to their crops. The prices businesses or | | | | Now let's add in the damage to both the national |
| organizations pay for allowing this kind of behavior | | | | brand and that particular location. This group |
| are truly unnecessary. | | | | happened to be a gathering of local-area |
| My first real job in outside sales, other than selling | | | | professional speakers. Since many are intimately |
| encyclopedias door-to-door, was in selling to | | | | familiar with hotels, their expectations tend to be |
| retailers. The owner of the business, Ray Kahn, | | | | a bit higher than most. What will they say to local |
| once told me, "If you lose an account because | | | | meeting planners about this hotel? I doubt it would |
| you were out sold, it's okay. But, if you lose an | | | | be complimentary. If the approximately 50 |
| account because you weren't paying attention to | | | | professional speakers mention the situation to |
| that account--you're out of here!" Several years | | | | only one meeting planner over the following |
| later, I saw first-hand that he meant it. Ray fired | | | | year--that's potentially 50 local meeting planners |
| a hunter/farmer salesman, Mike that had been | | | | that have received a poor report about this |
| with him for a decade. Unfortunate for all that | | | | property. What's the cost of that? |
| were involved, Mike got complacent and lazy, | | | | If only one of those 50 meeting planners decided |
| losing a major account because he wasn't paying | | | | not to book a meeting at that property based on |
| attention to the needs of the customer. | | | | what they heard, how many thousands of dollars |
| When a farmer doesn't pay attention, it is an | | | | would that property not receive in future revenue |
| absolute travesty. Mike was an okay hunter, but | | | | because of Lois' behavior? Let alone the tarnished |
| not a great farmer. This situation is not unusual. If | | | | perception of this particular brand nationally could |
| you manage sales people and you tolerate a | | | | cost the chain dollars. Surely it would be more |
| farmer not tending to their crops (accounts), I | | | | that Lois' commission on that particular room, on |
| believe that you are just as guilty as your farmer | | | | that particular Saturday. |
| sales person. It is you, after all, to whom they | | | | The Rest of The Story |
| are accountable. | | | | This had been the second time that this property, |
| Not long ago, I traveled to the American East | | | | or should I say Lois, had pulled this kind of |
| Coast to speak on selling at a chapter of the | | | | situation on that particular NSA Chapter. As such, |
| National Speakers Association (NSA), of which I | | | | the board of directors immediately decided to |
| am a member in Los Angeles. This NSA chapter | | | | start looking for another property at which to |
| had been meeting at the same suburban area | | | | hold their monthly meetings. By the next month's |
| hotel on the same Saturday of each month for | | | | meeting, the chapter had already found a new |
| the previous three years. This particular Saturday | | | | home for their monthly meetings. That adds even |
| in January was to be different. | | | | more to the real cost, as the revenue from the |
| The "you know what" hit the fan late Friday night. | | | | chapter was valuable to the hotel during slow |
| Following dinner that evening, my contact with the | | | | times. |
| group dropped me back at the hotel where I was | | | | Gosh, because that farmer, Lois, was too |
| staying and where the meeting would be the next | | | | unorganized, oblivious, lazy, apathetic, ignorant or |
| day. In passing, she asked if I knew that I'd be | | | | greedy, the real cost to the hotel's productivity |
| presenting the next morning in the hotel's | | | | and revenue was, and will continue to be, |
| restaurant...during regular service hours...to the | | | | substantial. What does this mean to you? In |
| public? Their usual meeting room had been | | | | selecting and/or maintaining the wrong people to |
| booked out from under them. Well, that was a | | | | represent your organization's interests, you will |
| surprise that was to me. | | | | pay dearly for their impoverishment of skills. |
| Three days earlier, when the NSA Chapter's | | | | Solutions |
| program chair called the hotel to check if | | | | The TEA Master Key should prove helpful. The |
| everything was in place for their coming Saturday | | | | three key areas necessary to explore in serving |
| meeting, the hotel sales contact, Lois, told the | | | | your customers well are: Training, Ego and |
| program chair that they had no reservation for | | | | Attitude. |
| the group for the coming Saturday. And, Lois told | | | | !. Training your employees well is a given, the |
| the program chair that the room they usually use, | | | | subtleties are in their understanding the DNA of |
| along with every other meeting room and space | | | | your organization's culture and an advanced |
| in the hotel was also sold out. Wow, what a | | | | understanding of how to most effectively use the |
| predicament! Even worse, Lois offered no possible | | | | "tools" that you have made available to them. |
| solutions to a long-time customer. | | | | Understandably, this takes time, but few |
| The meeting chair asked Lois how this could be? | | | | companies devote the necessary hours to this |
| Especially since the group had been using that | | | | endeavor. And, if your employees are not |
| meeting room the same Saturday of the month | | | | continually learning, you must re-examine the |
| for the past three years and had an on-going | | | | limited value they deliver to your organization. |
| relationship. Lois answered by stating that she | | | | 2. Ego is good, when kept in check, allowing one |
| thought it was odd that the organization had not | | | | to be confident, yet not arrogant. Unfortunately, |
| signed a contract for the coming year. Lois | | | | too many employees let their ego get in the way |
| continued by stating that since the hotel's | | | | of their performance, i.e. too much ego that they |
| customers "call them" she didn't give it a second | | | | never admit a mistake. Mistakes are good, if one |
| thought. Excuse me! If I was Lois' boss, I'd do to | | | | learns from their mistake. Years ago, Ray Kahn |
| her what Ray Kahn did to Mike--fire 'em! There is | | | | would say, "If you are not making mistakes, you |
| no excuse for this kind of behavior. | | | | are not learning, and I don't need you. But, if you |
| That farmer, Lois, definitely was not tending her | | | | do not learn from your mistakes, I don't need |
| crops (accounts). Can you believe it? Worse, the | | | | you either." Other ego issues revolve around one's |
| sales person was ignorant enough to state, "Our | | | | need to be right! In serving customers, it is more |
| customers call us." She sold the room out from | | | | important to get things done, than to focus on |
| under this group. Perhaps because the group to | | | | being right. |
| whom she sold the room was generating higher | | | | 3. Attitude can make, or break, an employee and |
| revenue? Perhaps she was only mindful of her | | | | a customer's perception of your organization's |
| commission check? Perhaps it was her way of | | | | value proposition. Employees with an attitude of |
| telling this NSA Chapter that they were no longer | | | | apathy are like termites eating away at the fiber |
| welcome at that property? | | | | of your organization and one day that fiber that |
| The Real Cost | | | | holds your organization together will give fail. On |
| What do you think might be the real cost to the | | | | the other hand, employees with the attitude of |
| hotel from Lois' debacle? | | | | service, not servitude, flourish and with them so |
| To the credit of the hotel's General Manager, late | | | | does your organization. Give your employees |
| that Friday evening, I worked with him and food | | | | plenty of reasons to have superior attitudes--it will |
| & beverage (F&B) manager for over an hour | | | | serve you well. |