Randy Chilton...May 1999

Know Your Customer

I've never been a very good route man. As a technician, I finally had my keys taken away, since I was doing more damage than good to the machines. The majority of my 18 years in this industry has been spent acting as our company's liaison to the locations. I have found that dealing with people from all types of backgrounds and training makes every negotiation a different sort of challenge. Our industry is more unusual than many others, due to the fact that you may meet with a person in the morning that is a "suit and tie" who controls hundreds of locations...then, that afternoon, find yourself working with Joe, the proud owner of "Joe's Dart and Drink." So I've categorized the people I've encountered over the years. The first thing you want to figure out when you're negotiating with someone is: "What type of negotiator am I working with?" Then adjust your negotiating style accordingly. These names aren't plagiarized; I just made them up.

The "Slayer": This guy is first because he, and equally as often, she, is toughest for me, and for anyone who really thinks that everyone wants a fair deal. It isn't so. The "Slayer" wants you on the floor, bleeding from all orifices, after the negotiation. Anything less and he feels he's left something on the table. To him it's not about a fair deal at all, but "conquering" the opposition. He's not in this to make friends.

The only way to escape this negotiation alive is to know what you're prepared to do before you walk in the door, and don't move a dime more. You'll end up being chastised, laughed at, berated, and then you'll leave with your offer on the table. Be careful what you offer, he, or she, is liable, if not likely, to accept after you walk away. They must know that they pushed you to the limit, and when they know what your limit is, they stop pushing.

The biggest mistake you can make with this person is to listen to his insistence that he needs more, and you keep giving a little more, a little more, and before you know it, you've bought him a new boat. I've been guilty of this too many times just to find out when I finally say, "THIS IS IT," the relationship then becomes very friendly and professional and much less stressful.

The "Nice Guy": The nice thing about this business is that, on occasion, you meet people and do business with people you really like and enjoy. Often they become lifelong friends. Up until the last day we owned our Kansas business, there were still customers who preferred to work with Stan, my father, due to their lifelong friendships.

The downside here is just the opposite of the Slayer. Be sure you don't take advantage of this customer. They would never ask you for something, and when they do it takes all their courage because they value your friendship. My acid test is to be sure I'm treating them with at least, and whenever possible, more, generosity than I would a more-demanding, less-pleasant customer.

The "Nice Guy Imposter": This is a dangerous situation. Impostors befriend you, and lull you into a feeling of complacency. It's about these guys that I might end up saying, "We don't need a contract with Joe, we'll just shake hands on this deal." One year, two years, or more later, without any warning, you get a call and Joe's changing vendors. The entire time he was your friend, he was continually shopping around, looking for a better deal. You thought he loved you like a brother so you never called him to check in.

This is our fault when this happens. If you wait till you have a problem with a customer to call on him, you'll end up regretting it. The time to call on a customer is when nothing is wrong...not when the barn's on fire and you're there with a bucket of water.

The "Wrong Guy": This is pretty basic negotiating. Be sure you're negotiating with someone who has the authority to say "yes." If not, make your presentation to the appointed person and then try to get with the real decision maker as soon as possible. If you're talking to an assistant, and your competitor has made inroads with the key person, you'll lose.

The "Drunk": There are very few businesses where you may make a sales call at 8AM on a Tuesday morning and everyone you're talking to is already drunk. Ours is one of them. Many people end up in the bar business because they like to drink. I know some operators who deal with this daily and I don't know how, or why you would want to. Probably they put up with it because these location owners run very desirable locations. Don't risk a thing here; get it in writing and hang on.

I called on an bar account (really a joint by every definition) one mid-morning winter, after coming from a bank meeting. I not only had on a suit, I had on a new full-length winter coat and leather gloves. I was 25 years old. For the bank meeting, I was looking good. At the bar, at 10AM, I was totally overdressed. Jeans that were clean would have been overdressed. The bar was full of (clearly regular) patrons who hadn't just arrived. One of the patrons summoned me to the bar and ask me to take off my gloves. I obliged. He then handed the other patron $5 and said, "you're right J-J-J-Joe, he's never worked a hard d-d-day in his life." I quickly exited without an agreement and never went back. It was a error I never made again.

The "Here today, gone tomorrow, here today" guy: One day they love you, the next day your're a dog, and the next day they love you again. This rollercoaster takes its toll on everyone in the building. This customer thrives on keeping you on the edge at all times by never letting you know where you stand. Every day it's something different. If we are talking about relationships, this one is classified "high maintenance."

The "I'm the decision maker, but I don't know what I'm talking about" guy: This guy may have just gotten a promotion from the popcorn concession stand, to the theater gameroom. Now he's in charge. Here you must educate your customer and then sell him. The magic here is not to insult this person while they're being educated. This is an art form that separates the men from the boys in the sales department. The challenge is greater if the person is guilty of "not knowing what he or she doesn't know," and he wants you to know he's in charge. Walk gently!

"Good Guy, Bad Guy": This is so old I hardly dare mention it. If you're still trying this approach as a regular means of selling, you're toast. That doesn't mean that you shouldn't identify who you're dealing with and make a decision on which member of your team has the most in common with this customer. My father and I did this regularly when I was clearly a young, daddy's boy come to work, lad. If we needed to make a call on a customer who was 30 or more years older than I was, Stan would make the call, and with greater success.

Someday, I want to be on the other side of the fence. I want to be the vendor's customer. Knowing what I know, I would be the vendor's best friend. I would always offer him additional commissions to ensure that I had the best games in town. If there was a service problem, I would tell him over coffee in a respectful manner. I would give his service people complementary soft drinks and if in the evening, I would buy them an occasional beer. I want to be to my vendor, what a donut shop is to police officers.

I would do this because I know that vendor gets in a small number of new games every month and that he must make a subjective decision as to where these games are set. I also know that potential earnings are a small part of the decision-making process. The "get-along" factor is much more important. I want my vendor to bring all of his friends into my location when he socializes. I know he'll have favorite customers on his route, and I want to be his number one. He can frequent my establishment with the comfort that if I do have a problem with his games or service, I won't bring it up in front of his friends, but rather, I'll wait till the next day. If a game is out of order, I'll call his service department just as I would if he wasn't there. Ah, but that's a subject for another column...maybe in a trade magazine for location owners!



Return to Randy Chilton's Menu of Past Columns