THERE'S NO SUBSTITUTION... FOR GOOD SUBSTITUTION

THERE’S NO SUBSTITUTION…FOR GOOD SUBSTITUTION

The sales art of product substitution (and it truly is an art) is a skill veteran salespeople should continue to hone, and one new salespeople should learn to master.

The scope of my professional sales experience is almost entirely in the steel pipe and tube, so that industry will be the focus of this article. However, in my discussions with other sales professionals over the years I have certainly found this topic to be quite relevant to just about ANYONE in sales as its principals are rooted in sales professionals honestly seeking the win-win.

YOU THINK YOU HATE IT NOW, WAIT TILL YOU DRIVE IT!

At its very best, done properly product substitution maximizes economic and operational value for everyone while also building valuable trust between buyer and seller. Even in instances where a substitute is not accepted, a salesperson offering reasonable alternate options at the very least builds on his/her reputation as an expert in their field and as a trusted advocate for the buyer. At its worst, product substitution is a manipulative effort to benefit the seller with any residual benefits to the customer being simply a happy accident. Harken Clark Griswold’s experience buying his metallic pea Family Truckster. While the Truckster did end up becoming one of the most iconic characters in American comedy, I think we can all agree that Eugene Levy’s sales tact was less than honorable. Folks, please don’t engage in these win-lose sales tactics. You’re only fooling yourself as you tarnish not only your reputation but also the reputations of true sales professionals. Ours is an honorable craft and sacrificing long term relationships for short sighted gains does nobody any good.

HOW TO DO IT

In the steel pipe and tube business there are many factors which make product substitution so important; recent trade tariffs limit what distributors are willing to stock, a saturated distribution network means more (and sometimes fewer) options for buyers, the gap between what engineers spec for a project and what is actually available (or even MADE) in the market, changes in manufacturing processes of which buyers may not be aware. I could go on of course but you get it, and anyone not in our industry who is reading this could probably make up a similar list relevant to their industry. No matter what market force is affecting a given product, this same basic principal guides those sales professionals effectively engaging in product substitution: using the salesperson’s knowledge and skill to maximize value for the customer.

 Earlier I called product substitution an ART…and I stand by that. There are so many intangible skills a sales professional must master to be great at this art, but I find there are some common basic skills and behaviors we can train to which help develop and refine this sales skill.

ASK A LOT OF QUESTIONS

Salespeople who talk more than they listen are typically going to fail. Buyers want us to help THEM solve THEIR problems. We can’t do this if we’re too busy promoting our product or droning on about this or that. If a customer is contacting you for pricing then they are really asking you for HELP…so HELP them! Start by asking a lot of questions about the specifics of their project or situation. Find out what the product is being used for, what are the limits concerning specifications (size limits, import or grade restrictions, manufacturing methods, etc.), when will delivery need to be made to the job site, is this a bid or is someone ready to buy, if it’s a bid then when will the buy be made, who is OUR competition (OUR competition…talk as though you are a TEAM), and for heaven sake do not let the conversation end without making a plan for the next step. And don’t be afraid to ask the customer to get you more information if such is possible or appropriate. Key to this discovery phase is the salesperson’s HONEST DESIRE to understand the whole situation so he/she can help the customer. Customers will generally answer these questions willingly and honestly so long as they trust that the salesperson is trying to HELP them and not SELL them.

BE A PRO…KNOW YOUR PRODUCT AND KNOW YOUR MARKET

You are a sales PROFESSIONAL. I trust that my doctor and financial advisor are dedicated to being the best and being masters of their craft. So too should a sales professional dedicate themselves to staying on top of all facets of the market(s) in which they play. Know what your competitors offer…what do they and don’t they have in stock…who are the people on their sales teams and what are they like. Be aware of the macro market pressures effecting your product as well as the micro market pressures effecting your customer’s market. Has a recent tariff effected a group of products making them cost prohibitive or unavailable all together? Is a competitor two states over dumping product because they are overstocked or in financial trouble?

You also need to know not only your product but related products inside and out. My company stocks high yield line pipe, but our competition might be offering heat treated, used, reject, or surplus pipe. What are the benefits and drawbacks of these other grades? What are the structural, pressure, or chemical concerns related to the end use of the product? He/She who knows their stuff speaks with confidence which in turn makes the customer believe the salesperson can safely guide them through the best channel. Conversely, a salesperson lacking in product or market knowledge cannot hide their lack of understanding which of course harms the trust in the relationship.

It is virtually impossible to know everything when it comes to product or market knowledge, and that is okay...so long as you don't try to fake it. If you are unsure or if the customer is challenging your knowledge, its perfectly alright to admit that you are unsure or that you will look more into "that" and get back with them.

HAVE A PROCESS

This is the part which is a bit more self-serving, but this principal will help you and your customer in the end. It does nobody any good to offer tonight’s seafood special to a customer who wants an oil change. Its even more harmful if you offer tonight’s seafood special anyway because now you’re wasting everyone’s time. Have a process for identifying opportunities for you to bring value to a customer via a product substitute, as well as how you go about offering that substitute. This principal would no doubt be better illustrated in a series of articles, but a sales professional should at least have a general process or plan regarding how they deal with product substitution. Quick example; I have the grade a customer wants but not the exact size. Through my questions I surmise that my customer’s project requirements are rather ridged but I know the size they want is not a size anyone is producing so I quickly quote them on my alternate sizes and encourage them to call back if the job is redesigned and plan a follow up call with the customer.  Another quick example: I discover that the customer is just needing a price so they can bid a project. The project will not start for a few months and the material specifics seem rather wide open. Because I know my market and product, and have conducted a good discover session, I am able to quickly offer several options to the customer and encourage them to call back to make a more specific plan as the project gets closer. I’m also sure to tell the customer that I will be following up at a specific time relative to when the buying decision will be made. Having a process is VITAL. Managers should be there to help salespeople develop their processes, but salespeople should not wait for help if their managers are not so inclined.

The art of substitution in its entirety is a creative process mastered only by salespeople who commit themselves to being the best. Not everyone has the same ability to look at a business problem and see a creative solution, but then again not every successful salesperson needs to master product substitution. Product substitution is certainly more relevant for salespeople who operate in more flexible organizations, but I’d also suggest that many of the principals outlined in this article are applicable to sales professionals operating in most any arena.