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Jan18
Dumbing Down
A large part of my role here at The Alta Group relates to lease training and education, so I am constantly assessing learner needs and attitudes. Just the other day I was talking about lessors’ approaches to training with Mike Pochan, a friend and fellow educator. As befits any pair of old dogs, we ended up talking about the ‘good old days,’ and how people took their training more seriously back then. The next logical question, of course, was “What has changed?”
 
Well, for one, the industry has become more knowledgeable. People are more well-informed about the rules, etc., than they were 20 years ago. This explains a drop in the number of people going through equipment leasing training. It does not address, however, what I view as a change in attitude. Mike talked about how everyone in his old company had to go through a rigorous training program – one that yielded huge payoffs in the long run. We just don’t see this kind of commitment anymore. Are lessors too focused on short term results that they are sacrificing long-term benefits?
 
Another possible factor we discussed is the increasing role of software and automation. Has software reduced the need for people to go beyond simply pushing the buttons and actually understand what they do? Few people understand how to price a lease, for instance, but they do know how to plug it into SuperTrump. Although not suggesting that lease training is life or death, how would you feel if your doctor took the same approach and put some data into the computer, pushed a button, and then read you the diagnosis? The diagnosis may be right, but, unless you fit the exact parameters of the program, it may not be right. In this case, you want someone to think, ask the right questions, and develop the right answers. Do your customers deserve less?
 
I know I have raised more questions than answers here, but are we seeing a dumbing-down of the leasing industry? As Mike put it, maybe the question has changed from “How well should people understand their job?” to “How much don’t they need to know since software does their job?” Personally, I seek ongoing learning/training. It is what I like about the equipment leasing industry – it lets me learn something new every day. How many of you came into the industry and went through a training process? More importantly, did it make a difference in your personal career development? Let me know your thoughts.

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5 Comments/Trackbacks




Shawn,
As an industry veteran of almost four decades, I couldn't agree more with your observations. Keep up the good work.

John Semon
CEO
The Lessors Network

Shawn:
I have lease reps cold calling me frequently. It is unfortunate how often they do a poor job of presenting themselves, and their companies. When I do take the time to engage them in conversation, it is further disappointing how little they understand about the business. It appears to me that the ability to fearlessly cold call is the main criteria for a sales position with many leasing companies today.
Keep up the great work, I really enjoy reading your thoughts.
Doug Dawkins CLP
Tyco Healthcare

Doug,
It is amazing to me that someone would even consider going out and trying to meet a customer's needs without understanding their business requirements. I don't like to get tied up with too many sports analogies, but a knowledge of the rules of the any game is required, and that the most successful players know the rules inside and out, and how to exploit them to their advantage. It sounds like you have moved to the other side of the business. How is that going?
Shawn

Thanks, John. I am certain you have had plenty of opportunities to see these effects as you have put your events together.
Shawn

Hello Shawn,

I very glad that I found your blog here. I am an account executive for an equipment leasing broker. I've been in this business for a couple of years now. It doesn't sound like very long, but most people don't last more than a couple of months doing this type of job. It's true that relentless cold calling is the most important aspect of the job. Think of the statitistics involved in cold calling. I make roughly 200 calls a day. I get a hold of decision makers roughly 12.5% of the time. That means I actually get a yes or no from the correct person about 25 times a day. I may go weeks and sometimes months before someone actually tells me that they are even considering buying some equipment let alone leasing it let alone leasing it through me. The fact that I have gotten any deals funded given these statistics is a miracle. What I have found is that the market is saturated with guys like me. I can't be upfront with any costomer and tell them their APR is 15% even though they have good credit. Also, I have to put 15 points in most every deal or else I won't be profitable. We quote lease rate factors (which is basically an arbitrary number) instead of interest rates. People today are more interest rate sensitive than they have ever been and don't care about hearing what our lease rate factors are. They don't even care what their payments are...they just want to know the APR. We also live in an environment of information saturation. If you give a client more than a couple of choices or let them in on the complexity of the process or the business...you will loose them. The same is not true in relationship selling. I'm just talking about getting deals in off of cold calls. I would love to hear your thoughts on this and know what has worked for you. I don't think that my managers, or even the more experienced sales reps realize what exactly is going on in this market. It was very different getting started 10 years ago than today. They think that the same strategy that worked in 1996 for bringing in new business will work in 2006. I think they are wrong. The old formula of training a guy and giving him a list and a phone and wishing him well is just not going to cut it anymore. Anyway, I would love to hear your thoughts on this. Thanks.

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