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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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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
Posted by: Anonymous | January 19, 2006 4:23 AM | Permalink to Comment