Tuesday, April 23, 2013

Do you know the #1 way to increase sales?

Improve your sales skills!!!

I know so many business owners who shake in their heels when we start discussing sales.  The “I’m not a salesperson” statement is probably the most common one that I hear.  Well I hate to tell ya…. If you own a business, regardless of what type of business, you are a sales organization and by default, a sales person!  Now that we have that settled stay with me and I’ll show you how you can make more money without doing any extra work… I’ve gotcha don’t I???

First and foremost you need to know your numbers….and by that I mean that you need to know your “conversion” rate.    Let’s work backwards.  If you have an average sale of $1000 and you want $100,000 in revenue that means you need 100 customers  - easy right?  You need to know how many clients you need to propose to or how many consider your product in order for you to make those 100 sales.  If it takes talking to 200 customers to get 100 sales, then your conversion rate is 50%.    If you invest resources in improving your sales skills and your conversion goes from 50% to 75% you’ve just increased your sales from $100,000 to $150,000.  That’s an increase of 50% without having to talk to even one additional potential customer.  Chances are that the additional $50,000 didn’t cost you as much as the first $100,000 because your fixed costs were already taken care of, therefore your profit margins are higher on the incremental business.

This is just one component of a much larger number formula that you need to consider when developing your sales goals and forecasts. 

The bottom line is that sales is the process of providing a solution to a problem for someone who would welcome your product/services.  I consider sales just GREAT CUSTOMER SERVICE!

People hate to be sold to, but they love to buy!