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ProSales logo  December 2000

Prospecting For Gold

By Hilary Kanter, Managing Editor

Admit it.  No one likes making cold calls.  But if you're a salesperson with a lumberyard, there's no better way to acquire new customers — unless you can find someone to do it for you.

That's exactly what Kevin Kamerud found in marketing consultant George Clay, president of San Diego-based Marketing Direct.  Kamerud is a sales rep with Bennett Lumber, a pro-oriented dealer in Minneapolis.  In September 1999, Kamerud enlisted Clay's services to conduct over-the-phone cold calls to builders and remodelers in the Twin Cities market.  "Cold calling takes away from the service that I need to provide to my contractors," Kamerud says.  "And cold calling is something we hate, anyway."

Before getting started, Kamerud and a few of the other sales reps at Bennett provided Clay with the information he'd need to begin.  "Clay had never done any work with anyone in the lumber industry before, so we gave him the lowdown on what this area is like," Kamerud says.  "We told him about the market and a little bit about our company and about our competition."

Then Clay hit the phones.  "He's very good at prequalifying and at getting an insight into what these people are like," Kamerud says.  "So we've got a pretty good idea before we even make that second contact."

The second contact consists of a follow-up letter that Kamerud and Clay developed together.  "Once the prospect is qualified on the phone, we send out a simple one-page letter that's signed by the salesperson at the lumberyard," Clay says.  The success of the cold-calling program, Clay adds, "has a lot to do with the quality of the salespeople at the lumberyard.  It works like a machine now.  I usually don't get the sales rep involved until I feel the prospect is ready and serious about getting an estimate or filling out a credit application."

In the year or so since the effort began, Kamerud has acquired 10 new customers.  "And we have another 10 who are real close," he adds.  "This has really worked well for us."  Ten, maybe 20 new customers in a year?  That would certainly take the chill out of cold calls. —Hillary Kanter.

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