A common misconception most companies have concerning sales is that everything will improve if they only had more customers. They spend countless advertising dollars trying to increase the number of clients.
Most sales people have never been trained how to sell products or services. Companies give training on company procedures, paperwork, etc. They confuse DEMONSTRATING the products with SELLING the products. Knowing how to drive a Lamborghini is not the same as knowing how to entice customers to purchase it.
Research has shown more than 200,000 companies will go out of business each year for the following reasons:
Turnover of Sales People
If you plan on having people work for you, keeping and developing them is the most efficient way of making a profit. Yet most companies keep pouring money down a giant-profit-sucking-hole trying to replace good employees no longer with them.
Lack of Profits
Companies do a great job of cutting back on overhead, staff and services in order to increase profits. This works short term but long term they end up losing more profits because of lack of customer loyalty and “burnt out” sales people.
Incompetent Sales Staff
A typical sales training program consists of pairing novices with veteran sales people and having them “learn the ropes”. The problem with this method is the newly hired sales person learns the “good habits” and the “bad habits” of his teacher. The veteran sales person has learned how to make sales. But, if you FACE the FACTS, he has also learned how to lose sales. Companies should realistically and objectively look at the closing ratios of their sales staff. Herein lies the answer to all prayers and sins. In many industries the average closing rate is two out of every ten clients! If they were shown how to close one more customer out of the ten opportunities already available – there would be an astounding fifty percent increase in sales!