Simmons' PR blunder: Ignoring rep cutbacks
David Perry, Executive Editor -- Furniture Today, January 1, 2006
A respected bedding veteran was reviewing the press release issued by Simmons a few weeks ago in which the company announced a new Sales Effectiveness Strategy.
The release began by noting that Simmons had taken steps "to realign its sales organization in a move to deliver significantly higher service levels to its dealers." It outlined a new structure of strategic account managers, retail sales managers and retail account managers. Further, it said that new sales support and centralized dealer services teams had been established.
"It sounds like they are adding people," the bedding veteran observed.
Not so. Actually, Simmons is moving in the other direction. The new sales force structure has resulted in a substantial reduction of sales representatives. One former sales rep estimates the size of the reduction at nearly 30%.
You won't find that figure in the upbeat press release issued by Simmons. In fact, you won't find any indication that Simmons has made any cuts. The press release simply ignored the unpleasant reality that a number of talented sales representatives are now out of work.
It was no secret that Simmons was going to make big changes in its sales force. I heard the 30% cutback figure bandied about weeks before it became official. But Simmons unwisely decided to ignore the human cost of the restructuring in its press release. Compounding the problem, Chairman Charlie Eitel declined to specify the size of the cutbacks when I asked him about them. It would not be in the company's best interests to reveal that figure, he said.
Well, I have to wonder if it is in the company's best interests to ax 30% of the sales force. If the size of the cuts is so large that it would look ominous, that should have given company executives pause about making such a dramatic move. It is absurd to think the figure won't come to light; every former sales representative is a source — and I've already heard from a couple. And competitors have a good read on what is happening at Simmons.
Speaking of Simmons' competitors, they were stunned by the size of the cutbacks. In general, they don't believe that significantly fewer sales representatives will be able to deliver higher levels of service. "I am trying to figure out myself how fewer people will give better service than we had before," one former Simmons rep admitted to me.
Eitel maintains that Simmons has re-engineered the sales force to make it more responsive to dealers' needs. Indeed, Simmons may have developed a better sales model; time will tell on that front, I guess.
But the company stumbled badly on the public relations front. The cutbacks in the sales force are newsworthy; they can't be swept under the rug with a cheery press release.
Contact David Perry at dperry@reedbusiness.com
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Simmons’ PR blunder: Ignoring rep cutbacks
Jan 6, 2006
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