University of Phoenix Material
Furniture to Go, Inc.
Susan Kurczak, owner of Furniture to Go, Inc., is discouraged with her salespeople and is thinking about hiring some new individuals. Kurczak has been running Furniture to Go, Inc. for 10 years, and has slowly built the sales to $3.5 million a year. Her store is located on the outskirts of a growing city of 275,000. The city is highly industrial with many factories, and as a result, Kurczak’s target market primarily consists of blue-collar workers. She carries a line of higher-priced furniture, but emphasizes budget combinations and easy credit terms.
Kurczak is concerned that she may have reached the limit of her sales growth. Her sales have not increased during the last 2 years even though total furniture sales have been increasing in the city as new people move into the city. Her local cable television spots and newspaper advertising seem to attract her target customers, but many of these people come in, look around, and leave without returning. Some of them do return to make a purchase, but most do not. She thinks her product selections are suitable for her target market, but she is concerned that her salespeople are not closing sales with potential customers. She has discussed this matter with her 10 salespeople many times. Her salespeople think they should treat customers the way they personally would want to be treated. They argue that their role is to answer questions and be helpful when asked, not make suggestions, or help customers make decisions. They think this would be too pushy and overbearing.
Kurczak says that customers interpret the salespeople’s behavior as indifference. She has tried to convince her salespeople that customers must be treated on an individual basis and that some customers need more help in looking and deciding than others. Moreover, Kurczak is convinced that some customers would appreciate more help and suggestions than the salespeople themselves might want. To support her views, she showed her staff data from a study of furniture store customers that she found on the Internet from a furniture trade association. She explained the differences in demographic groups and pointed out that her store was trying to aim at specific people. She argued that the salespeople should cater to the needs and attitudes of the customers, and think less about how they would like to be treated. In this way, customers would be inclined to return. Further, Kurczak announced that she is considering changing the sales compensation plan or hiring new salespeople if the present sales representatives do not improve in sales. Currently, the sales representatives are paid $22,000 per year plus a 5% commission on sales.
This assignment should be done in a power point format (slides) with speaker notes.
Step 5: Develop a Presentation Strategy (Ch. 11, 13, & 14 of Selling Today)
- Describe how the company can help salespeople overcome rejection and maintain a positive sales attitude.
- What policies should the company adopt to provide postsale follow-up? How are the salespeople involved in the process?