Sunday, May 17, 2015

The reason most sales people - and companies - fail...

The first step in determining how to grow your business or increase your individual sales is to carefully identify a market and determine how much business is available. Then set a realistic goal for achieving your objective.

Here are several "for examples":

A full line food service distributor sales rep should be working on 50 customers and prospects. A conservative estimate of the total food, supplies and related purchases for restaurant would be $4,000 per week, or approximately $200,000 per year. In 50 accounts the total would average $10,000,000. If you are selling $2,000,000 per year, you are at 20% of the total market.

If your company has 25 sales people, the total market is $250,000,000. If your sales are $62,500,000, you are at 25% of your total market. If your sales people are only working 25 customers and prospects, your market is reduced to $125,000,000.

If you are a company that sells only supplies and related products other than food, as a sales rep you should be calling on 125 customers and prospects. If you do the math, the total supplies and related products in 125 customers and prospects is approximately $7,500,000. If you have 30 sales people your total market is $225,000,000.

If you are selling real estate you need to stake out an area with 500 houses and start making contact. There will be enough houses go on the market to make a good income provided you have positioned yourself as the area expert.

If you are a restaurant owner and you need to sell 2,000 meals per week to survive, you need a market of 10,000 customers coming in once every 5 weeks. Your marketing should be focused on how you can get 10,000 customers to return every 5 weeks.

If you are selling cars, every 5 people you talk to will, on average, buy a car from you. That means that if you want to sell 10 cars a month you have to talk to 50 people. If you want to sell 12 cars a month you have to talk to 60 people.

If you want to become a professional sales trainer you have to put together a prospect list of 720 companies who could hire you. Then you have to send letters, or make contact with, 12 every day. That way everyone on your list will be contacted once every two months. If you have identified the need and have a solution, you will sell 30 to 40 programs a year.

Now, for the reason most companies and sales people fail, or fail to reach their sales objectives, they don't make enough customer contacts. They fall into the trap of "nobody's buying" or "there's no business out there" or "my territory is saturated". They are buying, they are just not buying from you.

And that's where I come in. I show your sales people how to focus on the opportunities and teach them how to play the game better than the competition. Selling is not a game of chance, it is an exact science.

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