Cold Calling Fears

As sales reps, we don't get to spend much time in the office. When we do, there's a whole range of things waiting for us, such as finishing order extension and entry, reconciling invoices and commissions, making calls to check inventory levels, and booking future appointments.

After those tasks are finished, we have to do the one thing that flusters us more than any other: the cold call. Like a stiff north wind, a cold call can send a chill up the spine of sales reps. Even most sales managers have a deep-seated fear of cold calling.

But let's be rational here. Where does the fear of cold calling come from? Do you think that if you call you'll be speaking to a retail version of Hannibal Lecter? We admit, we've worked with some tough customers in our day, and business may be particularly challenging right now, but we've yet to make a sales call that intimidating.

If you really want to be scared, think about this: Aside from trade shows, cold calling is the best means we have of adding new accounts. And if you don't add new accounts, your sales volume will shrink by natural attrition. Every year, 15 to 20 percent of your business will be lost to accounts that either go out of business or no longer purchase a line from you. If you don't replace them, your sales will wither away.

You must see your buyers to build your accounts — and if you don't call them, you can't go see them. Think of cold calling like a trip to the dentist: You've got to do it sooner or later, and the longer you wait the more painful it will be. Our own success with cold calling comes from basic beliefs about the process as well as common-sense research and preparation. Here are a few "trade secrets" that will help you brave the chill of cold calling.

We already mentioned the first and most basic truth about cold calling, which is that it won't kill you. Even if you call during a lightning storm, wearing aluminum pajamas, the odds of being killed aren't any greater than if you didn't make the call. So don't be shy.

Another simple truth is that retailers want to see new vendors, provided that you tell them why doing so will benefit their business. To better advise them, do your homework. Knowing just a little bit about the account and its competition will allow you to speak knowledgeably about their store, their customers, and their product needs.

So here's our cold calling trade secret, number one: Visit the store before the cold call, and make notes. Find out which of your competitors they purchase from, and what compatible categories of products and vendors they stock. If it isn't possible to visit the store first, call and ask a store employee. With large accounts or chains, a good relationship with a receptionist or administrative assistant is invaluable, and knowing the buyer's product mix will set you apart from your competition.

When you call an account, you need to be able to say things like, "I understand you are very successful with 'Brand X.' Our 'Y' brand of products has shown to be very successful when placed alongside Brand X." If you know the buyer's stock, you'll sound much more credible than the salesman who merely leaves his phone number for an appointment. By doing a little research you can communicate to the buyer that you 1) know the store, 2) know your competition, and 3) know the dynamics of selling in your product category. Gaining this knowledge will also give you more confidence in making cold calls, and will likely result in getting more appointments.

Here's trade secret number two: Not too many retailers wish to be "pioneers." They want to know that they have a winner before they buy. If you're selling a new line of products, it's helpful to mention the name of another retailer that is already carrying it successfully. Mentioning consumer press coverage also gives the line greater credibility.

When I cold call, I might say, "Hi buyer Bobbi, I'm calling on behalf of Creamy Goodness, a new line of hand lotions. You may have seen them featured in the October issue of Good Housekeeping. I placed them in Bubba's Body and Nail Emporium last month and I've already received three reorders." This is always a good approach. However, you still have to do your homework. Make sure you're not mentioning your prospective buyer's direct competition, and that the readership of the magazine you mention is the target account's consumer type.

The most important trade secret is honesty. Be up-front with a buyer during any cold call. Acknowledge that there are very few product lines that they really need, and few that can't be replaced. Tell them you know that their time is already stretched, and they'd be doing you a favor by making time. Listen carefully to learn more about their needs, and present only appropriate items. It's hard for people to say no when you are direct with them.

And don't give up. Persistence pays off. You might have to call three, four, even five or more times to get to the buyer, or to get them to call back. Acknowledge in phone messages that you are persistent, and that you'll call back. This is not just being honest, it also lets the buyer know that you're professional and relentless, so they might as well speak to you sooner rather than later.

Successful cold calling is not limited to being persistent with an individual account, it's also about making lots of calls. Be prepared to make 20 unsuccessful calls for every successful one. You have to kiss a lot of frogs before you find Prince Charming.

That's not really a trade secret, but it's the truth.