Jeweller - April 2022

BUSINESS
Management
Sales management during tough economic times
Management can be a frustrating endeavor during harsh economic times and knowing how to weather
the storm is crucial to success. BRIAN JEFFREY shares his thoughts on managing staff during a crisis.
It doesn’t matter if the global economy
goes bad - around the country, around
the block, or around your industry or
market - because managing means
making difficult decisions. And as an
owner or manager, you’re the best
person who has to make them.
and apart from closing doors on the
business, putting people out on the street
is something to consider.
The key is knowing which people to keep
and supporting them with all you’ve got
while you weather the storm.
Even with small retail businesses such
as jewellery stores, I know there are
many sales management challenges,
but during tough economic times, two
always stand out.
First, maintaining the overall morale
and motivation of your staff, so that they
continue to perform at the highest level
possible no matter the market conditions.
Second, fine-tuning the business to
ensure optimum performance. Finetuning
can involve thinning out the herd
by laying-off people and, obviously, any
downsizing can have a huge impact on
motivation and morale.
Mismanaging during tough times
When times are tough, you need to review
costs, but not necessarily slash and
burn. Larger companies headed by nonmarketing
people, such as an accountant,
or an engineer, often use difficult trading
periods to justify cost cutting.
They terminate training, advertising, staff
- anything else they see as a cost to the
company. This is a short-sighted view.
The problem with cutting costs on
advertising, as an example, is that it
diminishes visibility in the marketplace.
It stops people buying and, as a result,
revenue drops further. The powers at
the top - seeing less revenue - make
even more cuts and the downward
spiral goes on.
When the cost-cutting gets to downsizing,
at times the wrong people get affected,
since it’s often tempting to sack highly-paid
salespeople.
The sales arrow
It’s easy to forget that the salespeople
are the tip of a ‘sales arrow’ and, like any
If you see tough times on the horizon, plan ahead.
arrow, it’s only effective when it hits the
target.
Let’s look at what makes up an arrow. The
tip penetrates the target, the shaft provides
mass, and the feathers provide direction.
Your salespeople are the tip of the arrow,
the company’s products and services
are the arrow’s shaft and the feathers
represent management.
As a retail sales manager, you need to keep
the tip of the arrow sharp at all times.
Sharpen the arrow
Tough economic times are often an ideal
opportunity to sharpen the arrow. While
investing in external sales training and
motivational meetings may be out of the
question, don’t rule them out. It could
make a difference.
Fine-tuning your staff
One of the most difficult decisions for
a sales manager is parting ways with
people he or she knows and likes. Deciding
who goes or stays is a gut-wrenching
experience for even the most seasoned
manager.
Avoid the last-in/first-out approach and
certainly do not play favourites. If you’re
going to reduce your staff, make sure
you’re keeping proven performers and
those with the potential to quickly develop
into performers.
Desperate times, desperate measures
Desperate economic times - global or
local - usually call for desperate measures
It’s somehow
easy to forget
that the
company’s
salespeople
are the tip of
a ‘sales arrow’
and, like any
arrow, it’s only
effective when
it hits the
target.
Walking the thin line
As a sales manager, you often walk the
thin line between upper management and
your sales staff. It is equally important for
you to represent the needs of your staff to
management, just as it is to carry upper
management’s message to the staff.
It’s critical for your staff to see you as
their champion, particularly during tough
times. It’s crucial that upper management
sees you as proactive or part of whatever
solution is required to weather the
economic storm.
As the staff’s champion, you must be
prepared for measures that could hurt the
businesses ability to operate effectively.
Taking risks is a part of business.
Advertising cuts or other marketing
measures that endanger the source of
sales leads should be opposed if the
reason for the cut is simply to save on
expenditure.
It goes both ways of course, and you
should always be prepared to cut
members of staff if needed.
The bottom line
If you see tough times on the horizon, plan
ahead and be prepared to make difficult
decisions when needed if you expect to
come out safe on the other side.
If you can stay ahead of the curve, even
when it’s heading down, you’ll be in a
better position to take advantage of the
situation when the time comes and the
market improves and sales increase.
BRIAN JEFFREY has more than 40
years’ experience in sales management,
training, and business consulting.
thesaleswizard.ca
62 | April 2022