Jodi Miller recently took a sales position with Midwest Carpet Distributors selling a new line of...

 

 

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Jodi Miller recently took a sales position with Midwest Carpet Distributors selling a new line of area rugs. Midwest Carpet is excited about the Nedecon line of area rugs because it will allow retailers of furniture and floor coverings to enter the area rug business with virtually no inventory. Midwest considers this an important selling point because high inventory costs often keep both types of retailers out of the market. This is especially true for fumiture stores, many of which also shun the rug business because of the slow turnover. Although profit margins are excellent on rugs, furmiture stores need to keep most of their inventory dollars in furniture and related stock. The Nedecon line has several innovations. For example, the patented computer injection dying system produces intricate patterns using tufted carpet production technology at moderate costs compared to the competition's machine-woven rugs. A Nedecon six-by-nine-foot rug retails for S699, half the cost of a machine-woven rug. Nedecon has decided to sell the rugs through independent carpet distributors such as Midwest Carpet, who stock the rugs and provide second-day delivery to retailers. To become a Nedecon rug dealer, a retailer simply buys three rugs (one of each size) and pays fifty dollars for a truly eye-catching display that exhibits two-by-two-foot swatches of all the patterns in the line. Each swatch represents one-quarter of a rug's pattern. The top of the display is a flat two-by-two-foot square with perpendicular eight-foot mirrors on two sides. By fitting the swatch against the mirrors on the top of the display and looking into the mirrors, one can see the full repeat of the pattern. Consumers can also view the rugs in a professional-looking pattern book attached to the display. Armed with this stunning display and the promise of second-day delivery, retailers can enter the rug business without making a significant inventory commitment. Jodi is excited about the new line, and she has already started to telephone accounts in the Toledo area that she considers good prospects. One of the first accounts she calls is a moderately high-end furniture store, Thrush's Interiors. The conversation goes like this: "Hello, this is Jodi Miller from Midwest Carpets. May I talk to someone about the possibility of Thrush's taking on an arca rug line?" "We don't sell area rugs," answers a nasal voice. "I see. Well, I have a beautiful line of area rugs that requires no inventory on your part and guarantees second-day delivery and substantial profit for you." A twenty-second dead silence ensues. Jodi stammers, "Uh, would you be interested in such a line?" "We don't handle area nrugs; please hold," replies the voice. After about two minutes, the hold buton clicks off and the same voice says, "Thrush Interiors." "Hello. Yes, well, if your firm did consider buying rugs, which of your buyers would have responsibility for the purchase? "I have no idea," says the voice. “We don't handie rugs." "Yes, you've made that clear. Would you be so kind as to ask one of your buyers who would have responsibility for rugs?" asks an increasingly frustrated Jodi. "Hold, please," the voice hisses. After what seems like ten minutes, the voice returns. "Mr. Hestvik said that we don't handle rugs and have no plans to take on a rug line. He said no buyer is assigned to area rugs." "I sce. Thank you," replies Jodi softly. Jodi is really disappointed by the outcome of her phone call. Thrush's would be a perfect account for the Nedecon rug line. If only she could talk to the right person. Jodi spends the remaining part of the week trying to set up appointments to show the rug line and mostly failing. When telephoning, the receptionist or secretary frequently refuses to let her speak with a buyer. This is especially frustrating because Jodi prides herself on being a superior salesperson and believes that scheduling appointments with buyers is time efficient and demonstrates the salesperson's professionalism. A week later, Jodi is in the neighborhood of the Thrush store. She decides to drop in to see if she was right about Thrush Interiors being an ideal account for the area rugs. She walks in and begins browsing around the store. As she envisions how a Nedecon area rug would look in each display, she feels certain that this account would be a natural for the Nedecon rug line. One of Thrush's salespeople walks over, introduces herself, and asks what rooms Jodi is decorating "Oh, I'm not decorating any rooms. My name is Jodi Miller. I'm with Midwest Carpet Distributors, and we've got a great new line of area rugs that I was thinking would be a natural for Thrush's. What's really neat about them is that dealers don't need to stock the line because we guarantee second-day delivery. Here, take a look at these patterns." Jodi hands the pattern book to the salesman. The salesman looks at the pattem book and after a minute asks, "What's the retail price for these rugs?" "Four hundred and nincty-nine dollars for the four-by-sixes, and eight hundred and ninety-nine for the nine- by-twelves. The rugs are made from tufted carpet using a computerized injection dying technology that creates a product almost as good as a machine-woven rug at half the price," Jodi explains quickly. "Hey, that's not bad! Maria, look at these rugs. We could sell these. I've tried to tell our head buyer, Sam Hestvik, to stock area rugs, but he always says he doesn't have any available inventory dollars, and doesn't need another slow-moving line." "Well, the pictures look nice, Marty, but I wonder what the goods look like," replies Maria, another Thrush salesperson. "Wait here two minutes, and l'll bring you some samples," says Jodi, as she hustles out to her station wagon. Jodi knows that these two can't buy the line, but after such a long, relatively unsuccessful week, she needs some positive feedback. Anyway, she is interested in whether they think the line is worthwhile. "Here's a four-by-six and a six-by-nine," says Jodi, as she spreads two rugs out on the floor and begins brushing the pile. The two Thrush salespeople start to examine the rugs carefully. At one point, Jodi thinks they are going to rip the rugs up in their intense inspection. They ask numerous questions and seem satisfied with Jodi's answers. They also seem to listen as she describes the Nedecon area rug program. "This would be perfecet for us Maria-no inventory, fifty-six patterns, second-day delivery, reasonable prices, an attractive product. What a great add-on item!" exclaims Marty. "You're right. Now, how can we convince Hestvik to take it on?" asks Maria. "He's always interested in add-on sales. He'll go for this. What's he doing now?" asked Marty. "I think he's working on the inventory." "Jodi, let me take your samples in to show him. I'll be right back." Marty hurries into the back offices. Jodi can't believe her good fortune. One of the store salespeople is actually going to sell the line for her! She can't help feeling that she should have gone along to explain the program, but Marty was so impulsive that he disappeared before Jodi could even suggest it. After five minutes, Marty comes back looking upset. "That stupid clown. He told me that I should stick to selling, and he'll do the buying. I think he's jealous of my interior design degree, so he hates to accept any of my suggestions. l'd be a much better buyer than that no-taste accountant. As usual, he brought up those vases I suggested he buy two years ago that didn't sell well. He never even looked at the rugs. Sorry, I guess I didn't help you any." "Marty, you never should have gone in there while he was working on his precious inventory figures," scolds Maria, "You know how grouchy he gets when he learns how much we have in stock." "That's the irony of it. This program doesn't require any inventory, but Hestvik thinks 'new line' means more inventory. The guy's got a closed mind and won't listen to new ideas." Jodi thanks her two new friends, gives them the pattem books that Marty requested, and leaves the store with the strong feeling that selling this line is going to be tougher than she thought. 1. What do you think of Jodi Miller's general approach to selling the new line of area rugs? What could she do differently to obtain appointments with buyers? 2. Critique Jodi's performance in trying to sell the area rugs to Thrush's. What positive moves did she make? What mistakes did she make? How would you have handled this account? 3. What might Jodi do now to sell the area rugs to Thrush's? 4. What strategies would you advise Jodi to use in (a) scheduling appointments with retail buyers, (b) preparing for the sales call, and (c) approaching prospects for the first time? Jodi Miller recently took a sales position with Midwest Carpet Distributors selling a new line of area rugs. Midwest Carpet is excited about the Nedecon line of area rugs because it will allow retailers of furniture and floor coverings to enter the area rug business with virtually no inventory. Midwest considers this an important selling point because high inventory costs often keep both types of retailers out of the market. This is especially true for fumiture stores, many of which also shun the rug business because of the slow turnover. Although profit margins are excellent on rugs, furmiture stores need to keep most of their inventory dollars in furniture and related stock. The Nedecon line has several innovations. For example, the patented computer injection dying system produces intricate patterns using tufted carpet production technology at moderate costs compared to the competition's machine-woven rugs. A Nedecon six-by-nine-foot rug retails for S699, half the cost of a machine-woven rug. Nedecon has decided to sell the rugs through independent carpet distributors such as Midwest Carpet, who stock the rugs and provide second-day delivery to retailers. To become a Nedecon rug dealer, a retailer simply buys three rugs (one of each size) and pays fifty dollars for a truly eye-catching display that exhibits two-by-two-foot swatches of all the patterns in the line. Each swatch represents one-quarter of a rug's pattern. The top of the display is a flat two-by-two-foot square with perpendicular eight-foot mirrors on two sides. By fitting the swatch against the mirrors on the top of the display and looking into the mirrors, one can see the full repeat of the pattern. Consumers can also view the rugs in a professional-looking pattern book attached to the display. Armed with this stunning display and the promise of second-day delivery, retailers can enter the rug business without making a significant inventory commitment. Jodi is excited about the new line, and she has already started to telephone accounts in the Toledo area that she considers good prospects. One of the first accounts she calls is a moderately high-end furniture store, Thrush's Interiors. The conversation goes like this: "Hello, this is Jodi Miller from Midwest Carpets. May I talk to someone about the possibility of Thrush's taking on an arca rug line?" "We don't sell area rugs," answers a nasal voice. "I see. Well, I have a beautiful line of area rugs that requires no inventory on your part and guarantees second-day delivery and substantial profit for you." A twenty-second dead silence ensues. Jodi stammers, "Uh, would you be interested in such a line?" "We don't handle area nrugs; please hold," replies the voice. After about two minutes, the hold buton clicks off and the same voice says, "Thrush Interiors." "Hello. Yes, well, if your firm did consider buying rugs, which of your buyers would have responsibility for the purchase? "I have no idea," says the voice. “We don't handie rugs." "Yes, you've made that clear. Would you be so kind as to ask one of your buyers who would have responsibility for rugs?" asks an increasingly frustrated Jodi. "Hold, please," the voice hisses. After what seems like ten minutes, the voice returns. "Mr. Hestvik said that we don't handle rugs and have no plans to take on a rug line. He said no buyer is assigned to area rugs." "I sce. Thank you," replies Jodi softly. Jodi is really disappointed by the outcome of her phone call. Thrush's would be a perfect account for the Nedecon rug line. If only she could talk to the right person. Jodi spends the remaining part of the week trying to set up appointments to show the rug line and mostly failing. When telephoning, the receptionist or secretary frequently refuses to let her speak with a buyer. This is especially frustrating because Jodi prides herself on being a superior salesperson and believes that scheduling appointments with buyers is time efficient and demonstrates the salesperson's professionalism. A week later, Jodi is in the neighborhood of the Thrush store. She decides to drop in to see if she was right about Thrush Interiors being an ideal account for the area rugs. She walks in and begins browsing around the store. As she envisions how a Nedecon area rug would look in each display, she feels certain that this account would be a natural for the Nedecon rug line. One of Thrush's salespeople walks over, introduces herself, and asks what rooms Jodi is decorating "Oh, I'm not decorating any rooms. My name is Jodi Miller. I'm with Midwest Carpet Distributors, and we've got a great new line of area rugs that I was thinking would be a natural for Thrush's. What's really neat about them is that dealers don't need to stock the line because we guarantee second-day delivery. Here, take a look at these patterns." Jodi hands the pattern book to the salesman. The salesman looks at the pattem book and after a minute asks, "What's the retail price for these rugs?" "Four hundred and nincty-nine dollars for the four-by-sixes, and eight hundred and ninety-nine for the nine- by-twelves. The rugs are made from tufted carpet using a computerized injection dying technology that creates a product almost as good as a machine-woven rug at half the price," Jodi explains quickly. "Hey, that's not bad! Maria, look at these rugs. We could sell these. I've tried to tell our head buyer, Sam Hestvik, to stock area rugs, but he always says he doesn't have any available inventory dollars, and doesn't need another slow-moving line." "Well, the pictures look nice, Marty, but I wonder what the goods look like," replies Maria, another Thrush salesperson. "Wait here two minutes, and l'll bring you some samples," says Jodi, as she hustles out to her station wagon. Jodi knows that these two can't buy the line, but after such a long, relatively unsuccessful week, she needs some positive feedback. Anyway, she is interested in whether they think the line is worthwhile. "Here's a four-by-six and a six-by-nine," says Jodi, as she spreads two rugs out on the floor and begins brushing the pile. The two Thrush salespeople start to examine the rugs carefully. At one point, Jodi thinks they are going to rip the rugs up in their intense inspection. They ask numerous questions and seem satisfied with Jodi's answers. They also seem to listen as she describes the Nedecon area rug program. "This would be perfecet for us Maria-no inventory, fifty-six patterns, second-day delivery, reasonable prices, an attractive product. What a great add-on item!" exclaims Marty. "You're right. Now, how can we convince Hestvik to take it on?" asks Maria. "He's always interested in add-on sales. He'll go for this. What's he doing now?" asked Marty. "I think he's working on the inventory." "Jodi, let me take your samples in to show him. I'll be right back." Marty hurries into the back offices. Jodi can't believe her good fortune. One of the store salespeople is actually going to sell the line for her! She can't help feeling that she should have gone along to explain the program, but Marty was so impulsive that he disappeared before Jodi could even suggest it. After five minutes, Marty comes back looking upset. "That stupid clown. He told me that I should stick to selling, and he'll do the buying. I think he's jealous of my interior design degree, so he hates to accept any of my suggestions. l'd be a much better buyer than that no-taste accountant. As usual, he brought up those vases I suggested he buy two years ago that didn't sell well. He never even looked at the rugs. Sorry, I guess I didn't help you any." "Marty, you never should have gone in there while he was working on his precious inventory figures," scolds Maria, "You know how grouchy he gets when he learns how much we have in stock." "That's the irony of it. This program doesn't require any inventory, but Hestvik thinks 'new line' means more inventory. The guy's got a closed mind and won't listen to new ideas." Jodi thanks her two new friends, gives them the pattem books that Marty requested, and leaves the store with the strong feeling that selling this line is going to be tougher than she thought. 1. What do you think of Jodi Miller's general approach to selling the new line of area rugs? What could she do differently to obtain appointments with buyers? 2. Critique Jodi's performance in trying to sell the area rugs to Thrush's. What positive moves did she make? What mistakes did she make? How would you have handled this account? 3. What might Jodi do now to sell the area rugs to Thrush's? 4. What strategies would you advise Jodi to use in (a) scheduling appointments with retail buyers, (b) preparing for the sales call, and (c) approaching prospects for the first time?

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ANSWER1 Jodi Millers strategy for selling the new range of area rugs has failed miserably She has sought to make cold calls to local furniture and floor coverings stores that could be interested in en... View the full answer