How to interview after getting laid off

Published: Wed, 08/07/24

Updated: Fri, 08/09/24

August 7, 2024

TOGETHER WITH

Good morning sales world. It feels like summer’s flying by, and before we know it, prospects will be using the upcoming election as an excuse to put off making a decision, (as opposed to other, less concrete excuses). In this week’s newsletter, we’ll look at Tesla’s struggling sales teams, share a Sales Fail about a gym membership sale gone wrong, and give some advice to a rep who doesn’t know how to talk about their PIP. Let’s do this.

NUMBER OF THE WEEK

48% of sales professionals offer free options to prospects, with a free trial being most effective for conversions (50%)

Source: HubSpot

SALES ROUNDUP

Here’s what’s happening in the sales world this week:

A Korean car salesman has won the title of Hyundai grand sales master by selling 5,000 cars since 1993. Only 19 other salespeople have won that title so far. The salesman, Baek Jong-won, attributes his success to taxi sales, which he says account for 60 percent of his record. You can read more about Jong-won here.
Sales tech is in for a major overhaul, according to legendary venture capital firm Andreessen Horowitz. In a recent post titled “Death of a Salesforce,” several prominent a16z investors make the case that AI will “will so fundamentally reimagine the core system of record and the sales workflows that no incumbent is safe.” You can read about their thesis and predictions here.

FEATURE

Image: Grzegorz Czapski/shutterstock.com

Tesla's salespeople are struggling to sell cars

Tesla, once synonymous with high demand and long waitlists, now finds itself grappling with an unexpected problem: finding customers for its cars. For the first time, the company's share of the US electric vehicle (EV) market has dipped below 50%, a stark contrast to its previous dominance. This shift poses significant challenges for Tesla's sales team, which is struggling to adapt to a changing market landscape, according to Business Insider. The publication interviewed 14 current and former members of Tesla’s sales team to understand what’s been going wrong and how Tesla should adapt.

Over the past two years, Tesla has implemented a series of initiatives to boost sales, like offering discounts, reorganizing its sales teams, and bouncing between providing commissions to salespeople and threatening them with PIPs. Despite these efforts, Tesla's sales figures continue to decline, reflecting weak consumer interest in EVs and mounting competition from other automakers. The challenge is compounded by negative publicity surrounding CEO Elon Musk and a lack of traditional advertising strategies.

Historically, Tesla's sales approach has been unconventional. The company eschews the dealership model in favor of direct-to-consumer sales, keeping inventory off-site and maintaining a no-haggle pricing policy. Tesla's showrooms serve more as educational spaces than typical sales venues, and the company has relied heavily on online sales. The underlying philosophy has been that the product should sell itself, with sales “advisors” acting as guides rather than traditional salespeople.

However, this strategy has begun to falter. With no new models released in recent years and only minor updates to existing vehicles, Tesla's once-captive audience is dwindling. The absence of fresh products has led to a surplus in production, outpacing demand. As a result, Tesla's sales team has been unable to rely on the product's appeal alone to drive sales.

Recognizing the need for a change, Tesla started hiring sales staff with traditional automotive and sales experience in 2022. This shift was intended to bring a "hunter" mentality to the sales team, moving away from the previous model of passive advising. However, Tesla's approach to compensation has been inconsistent. While traditional dealerships often offer commissions as a significant incentive, Tesla's experiment with commissions—ranging from $25 to $100 per vehicle—proved insufficient. The compensation structure, often contingent on meeting regional sales targets, left many employees (unsurprisingly) dissatisfied and unmotivated.

Further complicating matters, Tesla's sales targets have been erratic, with frequent changes creating uncertainty and frustration among staff. Performance reviews and daily sales goals have been inconsistent, leading to unrealistic expectations and a demoralized workforce. The company also mandated in-person demonstrations of its Full Self-Driving (FSD) software, a feature that not all customers are interested in, adding another layer of complexity to the sales process.

Tesla's recent attempts to boost sales include offering price discounts, which, while attracting some initial interest, ultimately led potential customers to hesitate, expecting further price drops. This strategy has not alleviated the issue of overproduction.

As Tesla navigates this challenging period, the company faces the critical task of transitioning from serving early adopters to appealing to a broader market. This will likely require a more aggressive sales and marketing approach, alongside addressing the aging lineup of vehicles. While CEO Elon Musk has hinted at a new, more affordable Tesla model potentially arriving in 2025, the current lack of new products leaves Tesla's salespeople and managers waiting for something to reignite customer interest.

IF YOU LIKE THIS NEWSLETTER, YOU'LL LOVE THIS BOOK

When was the last time you came across a workplace book that you actually enjoyed?

The publisher and designer of this newsletter teamed up to write (and design) I Hope This Email Finds You Never, a hilarious workplace handbook that won't teach you much, but will definitely make you laugh, even if you're dead inside!

With an average 4.1 star rating on Amazon, here's just some of what you can expect:

How long you can get away with being “new” until you’re held accountable
How to make it look like you’re sorry without giving up any power
How to find a workplace friend and make a workplace enemy
Camera position: how to set up your laptop for maximum dominance
Organizing your calendar while leaving time to cry
The rules of the kitchen (stealing someone’s yogurt is literally a crime)
Writing a letter of resignation when you’ve already been resigned from day one

From Orientation (The Descent), Workplace Etiquette (No Eye Contact Before 11 AM), Working Remotely (Wink Wink), Coworkers (Getting Along with your fellow inmates), and everything in between, this book is your must-have guide to surviving (thriving is not realistic) in the modern workplace.

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MEME OF THE WEEK

Source: Instagram -- Sales Humor

QUIZ

In the movie Wall Street, what is the job title of Charlie Sheen’s character Bud Fox?

A. Account Executive
B. Senior Sales Representative
C. Securities Broker
D. Investment Advisor

SALES FAILS

Each week, we bring you the most cringe-worthy sales moments from across the web. To submit your sales fail story for consideration, click here. (Don't worry, you'll remain completely anonymous).

I've been in sales for over a decade. One of my first sales experiences was working at a gym when I was in my early 20s. I was a gym rat back then so it was a pretty great fit for me. I always use this story as an example for why you should never make assumptions in sales.

This scrawny looking kid came in one day and said he wanted a membership. He was with his mom, and it seemed like he was right around driving age. I gave them the standard tour. The kid was asking questions, and he seemed excited to start lifting. I got them back to the counter and gave them the different membership tier options with pricing. Since he was with his mother, I decided to pitch them the family membership (I'd get a bigger commission) and said, "We also offer family plans that have a pretty big discount if there's other people in your family who want to use the gym."

I kind of looked at the mother while I said that, since I figured she'd be the decision-maker. Her facial expression immediately changed and I knew I messed up. She got offended and said, "Does it look like I need to go to the gym?" She was certainly not in perfect shape, but she wasn't overweight either. I apologized profusely and tried to save myself, but she was already out the door. I lost the deal, but the lesson was worth it. I never make assumptions any more.

Anonymous Location withheld

GRAPH OF THE WEEK

Source: LinkedIn Poll -- August 2024

WORTH A PEEK

Are you struggling to land a sales job or in between gigs and not getting called back? One poster on the r/sales subreddit asked for advice on why they weren’t getting job offers, and the community weighed in with plenty of useful tips. You can check out the conversation here.

ASK THE QUOTA

Want to submit a question and be featured in our advice column? Click here. (Don't worry, you'll remain completely anonymous).

Dear Quota Team

I'm in a bit of a pickle. I got let go from my AE job last month. I missed my quota for 3 months and got put on a PIP. I wasn't able to recover and they let me go. It wasn't just me though. I would say that about 60% of the sales reps got put on PIPs within the last several months. The company was in panic mode and execs were looking to make a change and decided that the sales team was the problem. Needless to say, my reason for being let go doesn’t look very good.

I'm applying to jobs now and I'm struggling with how I should approach conversations about what happened. I definitely don't want to lie, but I imagine that mentioning I was put on a PIP and let go won't go over well with hiring managers. What’s the best way to handle this? I want to be honest with future employers, but I feel a bit unemployable right now.

Honest in California

Dear Honest,

Sorry to hear you got let go, but you shouldn't let it discourage you. Just because you lost one job doesn't make you unemployable, especially because it sounds like there were bigger issues at play.

The good news: most companies want to avoid legal risk from employees they've let go, which means they're unlikely to tell your potential employers much detail about why you no longer work there. If asked, they'll most likely just confirm the dates of your employment and maybe comment on whether or not they would hire you again.

That being said, you shouldn't lie in interviews. They probably won't ask about the PIP, so don't bring it up. If they ask if you decided to leave or were let go, you should say "I was unexpectedly laid off," which is true. They might just accept it and move on, but if they press further, you should absolutely mention that it was department-wide and the majority of the sales team was let go as well.

Don’t lie, but also don't be afraid to artfully dodge a question or flip it back on the interviewer to close the deal. Best of luck!

Quiz Answer: A. The job title of Charlie Sheen’s character Bud Fox in the movie Wall Street is Account Executive (you can read the source article here)