Recently, a “youth” of my acquaintance informed me that they were quitting work they were doing to sell high-end vacuum cleaners door-to-door. They then asked if they could give me their pitch and get some feedback. Initially, I was willing to do this, until I found out they wanted me for two hours, maybe a bit more.
I wish I had known when they were first thinking about this, as there would have been a few things I would have suggested they do and/or think about. First up, I know that for this type of job the emphasis is always on potential earnings, which can be quite high. Experienced or smart sales people know that you need to look at this number, and then get solid data on base earnings, forecasts, and actual current sales. Potential income doesn’t pay the rent, you are going to be dependent upon that base for several months given the need to build clients, get things through the bookkeeping system, etc. Forecasts can be pie in the sky, so what are the base estimates for it? What are comparable sales people in the area/region doing? Not the top, the new people who compare to you? What are the drop rates for the area?
Second, you need to do some homework. What are the public filings for the company? Trends? Wall Street Ratings? How does the BBB and other organizations rate them? What are the various consumer satisfaction ratings for them? What are their return rates? Note, not what the company says and gives you in their recruitment pitch, but independent data with full context.
Third, two hours? Back in the day, thirty minutes was a LONG pitch and a good working estimate was that you had to make the pitch worth about $40.00—which is what their time was worth. If you are selling a high-end product, you aren’t selling to minimum wage earners. In this area, given the number of science-types around, you better figure on a much higher per-hour investment on their part. For example, my consulting rate is $125.00 an hour plus expenses. You figure your science types are much more likely to be pulling in $250.00 per hour minimum. If you targeting the spouse, you have to give them roughly the same for planning purposes. So, you had better plan on your pitch being worth up to $500.00. Is it?
Fourth, while we are not in a recession (though we have plenty of pundits and MSM-types trying their damndest to talk us into one), the economy is slow. Parts of it are not good (and parts are). Take a look at the state you are in, the region of that state, and the local area economic statistics. How is it? Who is it? As in, what population segments in the area are going to be able to afford your product? The number who will buy product X, no matter what, figure at 1 in 100. Pessimistic in some respects, but it gives a fair off-the-cuff assessment. Do you have enough people in the area to make sales worthwhile?
This all adds up to the time of your cost. It’s not the cost of the target’s time, but rather the time (and target population) you will need to meet your costs, goals, and projections. Can you afford that time? Will you be given that time?
As for me, I wish my young friend well. While their friendship is valuable, that which they are selling is not worth my investment of $250.00.
LW
