Location, Location, Location
February 08, 2007
Turns out, where you sell may be just as
important as what you sell.
By Rebecca Aronauer
Turns out, where you sell may be just as important as what you sell. Let's face it, some locations are just better for closing the deal than others. Each year, Sales and Marketing Management offers its take on the best U.S. cities for selling.
While these five cities hold no magical powers, they do have several things going for them that can make your sales team shine. What? No New York? No Chicago? No San Francisco? Say it ain't so. But did your town make our list?
Atlanta, Las Vegas, Miami, Phoenix and San Diego are all fantastic places to live. All have affordable housing, temperate weather and a booming economy. This year, we found that what makes a city great for living also makes a city great for selling. Coincidence? Maybe not. After all, a high quality of life reflects a strong economy. Of course, closing a sale takes a lot more than sunny skies, but it's a nice place to start. Here's a look at what makes these five locations hot spots for sellers.
Atlanta
Smart minds think alike, and the smart minds are moving in droves to Atlanta. The unofficial capital of the South is experiencing an influx of educated young people.
The reason is simple: There are jobs, and lots of them, in Atlanta. With headquarters for 15 Fortune 500 companies in the city, there is a lot of opportunity for young people. "There are so many large companies," says Marisa Pensa, the owner of a franchise in Atlanta of DEI, a sales training and development company. Many college graduates come expecting to build a lifetime worth of connections here. "They are happy to get in at the bottom, but they're looking for a career," she says.
The city also is also an easy one to live in: Residential areas are near offices and restaurants, housing prices are low and the weather is temperate. "The biggest reason so many people come to Atlanta is the cost of living; No. 2 is the weather," she says. Traveling out of the city is easy, too. Atlanta was founded as a transportation hub. Delta is headquartered there, and Hartsfield-Jackson Atlanta International is the busiest airport in the world.
With its proximity to universities such as Emory, Georgia Tech and Morehouse, recruiting is easy and talent is plentiful. That, along with the low cost of living and vibrant business community, makes Atlanta a good choice for new businesses. "There's a good mix of Fortune 500 companies and entrepreneurial start-ups," says Bob Kelly, vice president of sales operations for S.P. Richards, an office products distribution company based in Atlanta. "The general health of the economy is good."
The business population density in Atlanta makes it ripe with prospects, yet another advantage for salespeople. "In Atlanta, there is such a huge market for sales it's almost impossible to saturate your market," Pensa says. "There are so many companies for a person to call on."
Las Vegas
In a city where it's all about the odds, the chance of running a successful business in Las Vegas is high. Due to Nevada's population boom, business-friendly environment and low unemployment rate, Las Vegas is a great city in which to manage a sales team. The government does it part—the state levies no business income, estate or franchise taxes. This results in fewer roadblocks for businesses, according to Cara Roberts, director of public relations at the Las Vegas Chamber of Commerce.
"We're a state that tries not to impede growth with a lot of regulation—it really makes it easier for entrepreneurs," she says.
The entrepreneurs most associated with Las Vegas are in entertainment, which has grown tremendously in the last 10 years. That success has spilled over to other industries. Roberts estimates that for every new job in entertainment, there is another one in the non-entertainment sector.
In 2005, the city created almost 70,000 new jobs, so even while the state population grows at 3.5 percent, unemployment in Las Vegas has stayed low, and last year was at 4.2 percent. "Other sectors have grown tremendously," Roberts says. "I think that creates a lot of additional opportunities for people in the sales industry."
John Thedinga, the Nevada sales director for American Family Insurance Company in Las Vegas, has benefited from the city's growth. With so many new residents, there's always potential customers. "All business benefits from growth in Las Vegas," he says. "You have so many people moving in every month, it's an advantage."
Las Vegas has been one of the fastest growing U.S. cities for the past 20 years, which means that most folks aren't Las Vegas natives. This levels the playing field when it comes to status in the city; don't expect an old boy's network here.
"This is a town that's less about who your family is and more about what you, as a person, can offer," Roberts says. "There's a premium put on hard work in this city."
Miami
While the debate over immigration is far from settled in America, business in Miami benefits from the large Hispanic community. Immigration from Latin America, Cuba and the Caribbean has been a boon to Miami's economy.
"It appears that Miami is in a continuous growth mode," says Stephan Schiffman, the New York–based president of DEI, the sales training and development company. The city has benefited from its population's ties to the Latin and Central American markets, he believes. Much of the immigrant community in Miami comes from exclusive and wealthy communities in their countries of origin, making it a strong demographic to sell to. "Good salespeople in a marketplace like Miami can really earn comparable incomes to the major world centers like New York," Schiffman says.
The immigrant community has also influenced the nature of sales in Miami. The sales culture is based on service and rapport, and recommendations make up a huge percent of new business.
"It's a very relationship driven market," says James Rivera, the director of business development for Advaion, an accounting service firm based in Miami. About half of Advaion's business comes from Latin American companies.
So while the immigrant community has adapted to the U.S .business model, it has also brought its brand of sales to Miami. "Because of the international flavor of the city, there's a very sophisticated sales environment among the industries that are represented," Schiffman says. To succeed in this city, salespeople need a deep understanding of their business and the ability to foster customer loyalty.
Phoenix
Maybe it's the warm weather or the affordable housing, but for whatever reason, Phoenix is the fastest growing city in America. New homeowners, a fertile business environment and low cost of living make Phoenix one of the best cities for sales.
"You have all these things going on together, so it's sort of like the perfect storm for sales," says Randy Bailey, vice president of marketing for the Greater Phoenix Chamber of Commerce.
Phoenix also actively encourages business growth with tax incentives and an active chamber of commerce. The city awards businesses a tax credit up to $3,000 for each new job created, and business inventory is not subject to personal property tax in Arizona.
Susan Haugland, who relocated to Phoenix, credits the city with the success of her business, Best Bill, a billing and payment outsourcing company. "I wouldn't be able to be a small-business success story if we didn't have a small-business climate to thrive in," she says. In 2006, Best Bill was named small business of the year by the Greater Phoenix Chamber of Commerce.
Major corporations are also taking advantage of the friendly business environment and low cost of living. "A major corporation can afford to have one thousand employees much more easily here than they could in New York City or San Francisco," says Bailey.
Cox Communications is one of many Fortune 500 companies with regional headquarters in Phoenix. The company has benefited from the booming population: New residents need new products, and there are a lot of chances to do well here, according to Steve Rizley, the vice president and general manager of Cox Communications's Phoenix branch.
"The market has more than doubled in the last few years," he says. "Cox Communications believes in this place." And it should: Since coming to Phoenix the company has made net gains in the Arizona region.
San Diego
For road-weary salespeople, San Diego could be a utopia. Instead of having to travel to meet with new customers, because of a growing convention market, customers come to San Diego. Tourism, including conventions, is the third-largest industry here.
"San Diego is on fire," says Steven Johnson, vice president of public affairs for the San Diego Convention Center. In 2006, the convention center had over a million attendees. According to Johnson, most of the guests are in business-to-business sales, with a focus on biotechnology, a major industry here.
Biotech companies have benefited from the convention center, along with other venues, such as the Hilton Mission Valley. Rather than meet in a hotel room or onsite at a client's office, biotech companies in San Diego are able to give tours of their facilities to business visitors, according to Joleen Schultz, national practice leader for Mentus, a public relations firm in San Diego. Salespeople can show off their company to clients instead of just talking about it.
The convention industry is great for networking, too. "The trend in biotech is pharmaceutical companies in-licensing technology," Schultz says, referring to the practice of doling out research among different firms. "A lot of the exchange of this information happens at these conferences." Schultz adds that the strong local biotech industry also attracts more conventions: "We're seeing more and more biotechnology and pharmaceutical conferences coming to San Diego."
The strong convention industry has had a spillover effect to the rest of the city.
The Gaslamp Quarter, the historic neighborhood near the Convention Center, has almost 400 businesses, including 100 restaurants. "It has created opportunity for businesses to move down here and feed off the business from the convention center," says Dan Flores, the marketing manager for the Gaslamp Quarter. The strong economy, along with the year-round mild weather, makes San Diego a great place to live and work.
Sales & Marketing Management Magazine
This article is brought to you by Sales & Marketing Management, the leading authority for executives in the sales and marketing field.
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