Prospects don't like it when you give them the wrong price

Published: Wed, 02/09/22

February 9, 2022

Welcome back. We know you’ve been hard at work chasing slippery prospects, but we’ve been hard at work too, building a website to go along with this newsletter! After months of development, it’s finally ready, so if you want to take a peek, you can check it out here. But don’t worry, this newsletter will still be the place where we put the newest, most relevant, and most important content – we just wanted a way to share some of what we do with people who haven’t subscribed (yet). So without further ado (adieu? adoo?) let’s get into this week’s edition of The Quota.

NUMBER OF THE WEEK

The percentage of sales reps who report that they’re working more hours now than before the pandemic.

Source: Dooly (2022 Sales Happiness Index)

SALES ROUNDUP

Here’s what’s happening in the sales world this week

A Houston furniture salesman known for placing big bets has done it again, wagering $4.5 million on the underdog Cincinnati Bengals at +170 odds to upset the favored Los Angeles Rams in Super Bowl LVI. Jim “Mattress Mack” McIngvale stands to win over $7 million if his bet pays off, in what Caesars Sportsbook called the second-largest bet the company has ever taken on the Super Bowl, and the single biggest mobile wager of all time (McIngvale placed the bet from his phone at a Louisiana gas station). You can read the whole story here.
Just how big is LinkedIn’s sales tools business? Really big. Like, capital B big. In a recent article, Business Insider interviewed a LinkedIn executive to find out how the company used its unique access to customer profiles to grow its Sales Solutions business to over ten figures in revenue. According to Alyssa Merwin, Global VP of LinkedIn Sales Solutions, the company saw its growth explode during the pandemic by targeting companies that hadn’t yet fully digitized their approach. You can read more about their growth here. (Subscription may be required)

FEATURE

The story of Ross Perot, one of the greatest salespeople of all time.

If you’re old enough to have been paying attention to politics in the 1990’s, then you’ve probably heard of Ross Perot. The short, fiery Texan ran for president in 1992 as an independent, facing off against George H.W. Bush and Bill Clinton, capturing the nation’s attention with his no-nonsense, anti-establishment approach, which earned him more popular votes than any other third party candidate in history.

But long before Perot stepped into the arena as a viable candidate, he was a hard-charging salesman, businessman, and philanthropist, overcoming the odds to become a business titan, and excelling through grit, willpower, and a seemingly preternatural ability to keep pushing through rejection, becoming what Fortune magazine described “the fastest, richest Texan,” in their 1968 cover story on the (then) young entrepreneur.

Early life

Ross Perot was born in Texarkana, Texas, in 1930. He got his first job at the tender age of 8, distributing the Texarkana Gazette as a paperboy. Later on, he joined the Boy Scouts and became an Eagle Scout in just 13 months, an early indicator of his penchant for overachievement.

After graduating from high school, Perot entered the United States Naval Academy, serving as a junior officer on a destroyer, and later, an aircraft carrier. Once he left the Navy, he was ready to start his business career, and was naturally drawn to a role where someone as energetic and self-motivated as he was could thrive – the role of a salesman.

Selling for IBM

From RossPerot.com: “At IBM, Mr. Perot became a top computer salesman. He did so well that IBM considered cutting back his sales territory. To keep the territory, he offered to cut his commission rate instead. Then IBM decided to cap commissions. In 1962, his fifth year at IBM, he made his entire year’s quota in just 19 days."

"Admittedly impatient and bored, he became intrigued with the idea of servicing computer software, noting that companies leasing from IBM sometimes had trouble learning how to use the technology. He saw a need for a service to design, install and operate data processing systems on a contract basis. He knew there was a market for building and running customized computer systems."

"What I gleaned from my customers was that they were desperate for more than the hardware. They wanted a finished product. They wanted the hardware, the software, the programming and operations, all optimized for their particular businesses, all at a predetermined price," he said.

He pitched the idea to IBM executives, but they rejected it, apparently content to stick with its near-monopoly on the hardware market.

Entrepreneurship

In 1962, his wife Margot loaned him $1,000 from her teacher savings, and Perot (with his wife and sister as directors), started Electronic Data Systems, or EDS.

Never afraid of a little prospecting, Perot traveled the country, making 77 in-person or telephone sales calls before he was able to land his first client: Collins Radio, a communications company in Cedar Rapids, Iowa.

“The company hired EDS to process weeks’ worth of data. With no employees, Mr. Perot recruited two computer experts to moonlight for EDS after working for their daytime jobs. Together, they processed Collins Radio’s data in just six weeks, finishing in late 1962. Payment meant that, for the first time, EDS had enough capital to hire a real staff.”

"Failures are like skinned knees," Perot once said, "painful but superficial."

Later business success

Under Perot’s leadership, EDS continued to thrive, and in the 1970’s, began to win state Medicare contracts, growing the company’s footprint (and revenue) by leaps and bounds. The company then broke into the banking sector, before expanding internationally. In 1980, EDS had over 10,000 employees.

In 1984, General Motors bought EDS in a $2.5b deal – with EDS becoming a wholly owned subsidiary of GM. Later, Perot started Perot Systems with his son, Ross Jr. In 2009, Dell acquired Perot Systems for $3.9b. Perot was also an investor in Steve Jobs’ company NeXT, which he’d founded after leaving Apple in 1985.

Philosophy

While Perot is best known for his unorthodox presidential bid, his business success is just as impressive, with his son once calling him the “Bill Gates of the 60’s.” Perot was a brilliant entrepreneur, a high-achiever, and a straight-talking Texan.

But, perhaps above all, Perot was a consummate salesperson. He understood business because he understood people and how to solve their problems, once remarking: “Business is not just doing deals; business is having great products, doing great engineering, and providing tremendous service to customers. Finally, business is a cobweb of human relationships.”

MEME OF THE WEEK

Source: Instagram -- Sales Humor

QUIZ

Which company invented the first digital CRM?

A. Siebel Systems
B. Oracle
C. ACT!
D. SAP

SALES FAILS

Each week, we bring you the most cringe-worthy sales moments from across the web. To submit your sales fail story for consideration, click here. (Don't worry, you'll remain completely anonymous).

“Let me just start off by saying that this was 100% my own doing. I'm in the mortgage industry. I work for a bank now, but I started my career working for a big company that you’ve probably heard of – they advertise a lot on TV and radio.

I had finally finished my training and passed my licensing exam. The sales manager who was training me said I was ready to work deals by myself, so that's exactly what I did.

My first call was from a guy who wanted to pull some cash out of his house. I went through all the questions, looked at the day’s pricing, made all the adjustments and told him what we could do. He immediately perked up and asked me to confirm it for him again. I confirmed it and he said he wanted to get the process started. It was my first call by myself so I was thrilled.

About an hour later, I got a call on my direct line from someone who said they were this guy’s (the one who I had just talked to) brother, and that he was interested in working with me too. By this point, I’m on cloud nine. I’m thinking I’m gonna kill it in this business… I’m a natural.

All of a sudden, my sales manager emails me and tells me that I misquoted the first customer. He was reviewing the file I’d just submitted, and noticed that I missed two big adjustments. No clue how it happened, but I misquoted him by almost three quarters of a percent.

I finished taking the brother’s information and promised to call him back, and immediately called the first guy and explained what happened. I apologized over and over again, but he told me since it was my mistake, we had to honor what we promised, which my manager said we wouldn’t do. Finally, he said that after talking to his wife, he didn’t feel comfortable with someone who would pull a “bait and switch,” and that his brother wasn’t going to be working with us either. Total Sales Fail, but I’ve done pretty well for myself since then :)”

Anonymous, 32 Arizona

GRAPH OF THE WEEK

Source: LinkedIn Poll -- January 2022

ASK THE QUOTA

Want to submit a question and be featured in our advice column? Click here. (Don't worry, you'll remain completely anonymous).

Dear Quota Team,

A few months ago, I had an unpleasant experience with a customer. He started out being cool but after we couldn’t give him what he wanted (which was an unrealistic demand) he changed completely, cursing me out and sending a nasty email to my manager.

Since then, this person has gone on every single review site, including onto our company’s social media pages, and written nasty negative reviews about the company and about me specifically, singling me out by name every single time.

My manager and the company owner are aware of the issue and they say to just ignore it and let it blow over, but I feel like my reputation is on the line here too, and I want to get back at this guy for coming after me like this. Any tips for how to handle this. Lawsuit? Or should I find out where he works and do the same thing back to him?

Angry in New York

Dear Angry,

Your manager and the company owner are right, and you should take their advice. Once in a while, we come across someone like your customer, who takes things to another level, and refuses to let it go. George Bernard Shaw once wrote: “Never wrestle with a pig. You just get dirty and the pig enjoys it” – keep this in mind before escalating the situation.

Take the high road. Technically, you could sue this person, and if what they’re saying is false and defamatory, and (more importantly), if you can prove it, you might even win. But what will you really gain? Months or years of wasted time and thousands of dollars in lawyer and court costs? For what? Is it really worth it?

Don’t let this guy live rent-free in your head. And if you’re worried about your reputation, reply to the bad reviews and give your side of the story in a calm and professional way (or have your sales managers do the same if access is limited).

Stop wasting your time with this and go close some deals. Chances are, sooner or later, this person will move on and try to make someone else’s life miserable. Shit happens. Ignore it and move on.

Quiz Answer: C

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Today's email was written by Ken Kupchik, Steve Rado, and Emily Hill.

Got a tip or an idea for something you'd like us to cover? Send us a message at [email protected]

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