Build Business with Current Inventory

All sales reps have a lot of luck, and a lot of that luck is bad. If there is one thing a rep can count on with a new account or prospect is that the first thing the customer asks for is the one thing you don’t currently have available. I’m exaggerating of course, but the point is true, this sort of thing happens all the time. How can you build new accounts with the inventory you already have?

Setting the Stage

If at all possible, build up existing accounts before going for new accounts. This assumes a lot, namely that you have a long enough list of customers and that you have enough current sales and potential. This article excludes the sales rep who has no choice but to open new accounts. I assume here that you already have a decent book of business, so keep that in mind when reading these recommendations.

By building up these accounts first and going after all their business, you’re learning what their needs are and getting set up accordingly. Getting set up means having access to the product lines you need, knowing how to order, and with proper costs. Different customers will be willing and able to give you different lines of business. Use this not only to build your inventory levels but to learn about the different customers and their operations. This will decrease the odds of receiving a curveball from a prospect.

Setting the Tone

Be it a prospect or a current customer, whenever you’re building business there’s one thing you need to make absolutely clear: current inventory levels are largely for current customer demands. You may very well be able to meet their needs but there may be growing pains. Ideally, your accounts go so well that you have to constantly increase your inventory levels and the pace of your orders.

What will happen, and it will happen often, is that a customer will be sold by you, give you an order, and you may not be able to fill the whole order. This will be frustrating for the customer. Hopefully, before this happens you set the tone and explained to your customer that with them on board you will need forecasts from them to be able to support them. If not, you have to adjust on the fly, and this will be slower. So if/when this happens that you can’t fill an initial order, take the opportunity to assure the customer that this is what you meant by needing forecasts.

The reason they won’t want to give a forecast is that they don’t want to be on the hook for parts you brought in for them. Assure them that you will prepare for them, and if in the unlikely event, they do not buy from you, you will sell the parts to someone else. This will assure the customer and reinforce the customer at the same time. Coolly and confidently explaining you’ll sell the parts elsewhere also send the message that you’re competent and confident.

Conclusion

By building a foundation in your inventory levels as well as your professional knowledge though experience you will be ready for the new prospect coming on board. By coolly and confidently explaining that bringing on a new customer on board may take a bit of time but will go well is going to help you land new accounts and keep them. One reality is that the customer did okay before you came along, you won the business by offering something better, it’s not the end of the world if it takes a few weeks to always have everything they need. Keep it in mind and build your book of business with confidence.