"Sales Goals Are Too High? It's Groundhog's Day for Reps"
The Business of Furniture - 12/07/16 Edition
Stephen Says Column

 Dear Stephen,

 
 I am a sales rep for a manufacturer. This is the time of year we get our sales goal (or quota) for the new fiscal year, which aligns with the calendar year at my company. I am about to get a huge increase in my sales goal I will have to hit if I want to make any money beyond my mediocre base salary. Needless to say, I am not so excited. It used to be that we would just receive some type of increase in the overall sales goal alone, but now manufacturers are doubling down on ways to earn the bonuses, commissions or whatever else companies call it. They want us to sell more of a specific product, mixing up the products, so to speak. For instance, if we manufacture chairs, tables and lighting, maybe we only get our bonus if our lighting sales alone equal the seating sales. Essentially, they take product we are already selling well and complicate the situation by adding a new product to the mix, which takes time for us to learn. I hear the same thing from a friend of mine who is a floorcovering rep. Her company has made broadloom for the last 50 years, and she’s been selling it for 10. All of a sudden they want her to sell carpet tiles, too. Suddenly, she does not get her sales goal bonus unless her carpet tiles quota equals her broadloom sales quota, even if she meets one quota.
 
 You get the idea. It’s always something. By changing our quota and the formula each new year, it feels like companies are setting us reps up to fail — or at least making it really hard to earn anything above our base salaries. I am in sales because I wanted an occupation where I thought my salary would be based on my performance. I have always been a good salesperson, and I’m confident in my skills. I nurture my relationships, support my clients and teach them about my product and brand. I am good at my job, but they are making it harder and harder.
 
 What gives with sales goals? Where do these new accelerated numbers come from each year? Even back in the recession my goals always went up. When I try to negotiate the sales goal (or quota) or discuss it with my boss, I rarely get anywhere. Any thoughts short of finding a new job?
 
 My Quota Makes Me Queasy
 
 

 Dear Queasy,

 What you are describing is an age old dilemma every salesperson has experienced at some point in their career. At the same time every year, I begin to hear these grumblings from sales reps that work for manufacturers, no matter which city they work in. A sales rep has a great year, makes more money than they expected and then they see their sales goal/quota go up to some unachievable height. It can almost seem like you are being punished for doing a good job. It’s part of the reason why you through next February is the easiest time of the year to recruit new salespeople — all the salespeople get pissed at their new goal, so they take their bonuses and leave. Without a doubt, this can all be horribly frustrating. But, let me tell you, as good as the alternatives may seem, the grass is rarely greener on the other side.
 
 First, you need to understand that sales goals in the furniture industry are not pulled from your bosses’ asses, even though it may seem that way to you. The new sales goal rarely comes from your boss; he or she is just the messenger. Most manufacturers use a number of statistics gathered from various data sources and surveys that help them decide where they can find growth. Today, the majority of manufacturers belonging to the Business & Institutional Furniture Manufacturers Association (BIFMA), so they all have survey data and real time statistics on who is building what in which cities and what types of new product they may need. They also survey new construction data and industries that may be growing. There are numbers on what type of interior products may be needed for certain industries, and it gets broken down by geography as well. They can tell what people may buy in every territory.
 
 So, like it or not, there is some real hard data out there that helps manufacturers focus their salespeople on particularly active industries, or in cities where lots of new buildings may be going up that will have to be filled with interior products from end-users. This is, for example, how we knew in advance the hospital- ity industry would be busier than previously anticipated over the last couple of years, how we knew the Silicon Valley style would take off and which end-users want wood furniture as opposed to something else. All of which is to say there is logic and real facts and figures that go into increasing sales goals.
 
 Now, of course, sometimes your boss — if they happen to be a regional manager or regional VP — gets a goal for their territory, and it is their job to divide up that number amongst the local sales teams. The final numbers are then at the discretion of your manager, who may arrive at the goal based on a number of factors, like your current base salary, the number of customer accounts you have, the quality of those accounts, which are often ranked as A, B or C accounts, and the clearers you may cover. The bottom line is no one is trying to rip you off; the company is just trying to increase revenue while turning a profit. I should point out this scenario applies mostly to manufacturers where you get a base salary plus a bonus or commis- sion, not when you are working on straight commission, like at most dealers.
 
 Onto what to do if you are handed some crazy goal. You should definitely discuss goals with your regional manager or regional vice president or whoever is handing you the goal if you think it is unfair. Discuss with them things like what category of accounts you have, talk about whether they are A&D firms, dealers or end-users. Then ask if these accounts are A, B or C level customers. Usually the senior people have hoarded all the good ac- counts. Do you have a “pooled” goal for your sales team or an individual goal? Your boss may not adjust the goal, but it doesn’t hurt to ask. Be realistic and see your boss’s reaction, but make a logical presentation not an emotional one. He or she might not care that you have tuition to pay for your kids and that you need to make more money; your boss has
 
 been handed this huge goal from corporate and needs to divvy it up. Be nice and congenial when explain- ing why you want your sales goal reduced and a little brownnosing never hurts, but ultimately finding a good numbers-based argument for why a sales goal is too high is what will make a difference.
 
 I remember at my first job selling for Haworth one year I had a sales goal I never thought I would make, but then I landed a huge job I was not counting on and made double my base salary. The nature of sales is that they are unpredictable, try as we might to build models to predict them. I also remember that as time went on and goals went up, I felt like I was working very hard and doing my best, but I did not have the best dealers or end-user accounts, so I missed my sales goals for a couple of years. I shared my frustration with my boss about impossible dealers and terrible accounts (The customer base I was assigned was farm equip- ment manufacturers, while my col- leagues had banking and legal firms, and my territory was New York City. No joke!), and my boss did nothing. Eventually, I quit and never looked back. You may need to quit sooner or later, but I would try not to rush into it. And remember if it comes to that, never quit your job without find- ing a new one first; that’s the most important rule. Last but not least, remember, even when you find that new job, come this time of year it is like the movie “Groundhog Day.” Sooner or later, at any company you will come to work and be handed an unrealistic sales goal. Welcome to the world of sales. You are only as good as your last order.
 
 Stephen

 You can send your workplace questions to Stephen at: StephenSays@bellow.press.
 
 Questions selected to be answered, will appear in this column. Please use the Subject: Stephen Says for all emails. Stephen Viscusi is a bestselling author, television personality, and CEO of The Viscusi Group, global executive recruiters located in New York. Follow Stephen on Twitter @WorkplaceGuru. Like Stephen on Facebook; and follow him on LinkedIn.