The Fundamentals of Increasing Your Sales Income
Today I am going to discuss the fundamentals of increasing your sales income. This income depends on two factors:
1 – your commission, and
2 – your sales volume.
You have no control over your commission, but you can control your sales volume. Sales volume is the direct result of two factors: your closing rate and your average sale size. Let’s look at these two factors more closely.
Your closing percentage is how many presentations you make, divided by the number of presentations you close. Ten demonstrations and 3 sales make a 30% closing rate. To increase your closings you make more demonstrations. It doesn’t matter what business you are in; showing more will sell more. This is a matter of good use of time. If you are not face to face giving a demonstration, you should be on the phone setting up appointments. Anything else is not income generating activity.
By increasing your skill you will also convert more demonstrations into sales. How do you gain skill? Through quality training and faithful application of what you learn. Invest in yourself. Take advantage of whatever training is available. Find a mentor to help you. As your skill increases, so will your closing rate and your income.
The second part of your sales volume is your average sale size. To increase your average ticket, add-on to the sale to create a bigger package. Depending on your industry, you can do this by either adding additional merchandise to your demonstration, or by offering additional value-added services. Either way, explain the benefits, provide options, and some of your customers will expand their purchase.
You can also increase your average sale by showing higher priced merchandise. Higher priced options offer greater value, and greater satisfaction. Be very benefit focused so that people know what they are getting for their money. But always show the higher priced option. The decision to buy it or not is up to them, not you.
Close more sales and make bigger sales and you will automatically make more money.
Be Free!
This article was written by David Denis owner of http://www.rocksolidwriting.com
David is a freelance writer for hire offering article writing, sales letters, training manuals, speech writing, seo content, sales writing, blog articles, copy-writing service, sales scripts and business name ideas.
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David-
I am in a business where I am in direct control of my commissions. I also consistently get 1-2% more than my competitors who are basically offering the same thing. Why?
You talk about closing percentages, success rate-and offer that the more presentations, the more sales. While this might work in the short-term, most folks are unable to keep up hustling around twice as hard for the same amount of money for any great length of time. It gets old-and it gets depressing!
I believe it makes the best sense to figure out how to convert more of those appointments to sales. Yes, increasing your skills will certainly translate to more sales…Clearly- selling smarter is a lot more effective than selling harder.
If you are unable to succinctly and precisely describe the BENEFIT to a potential client of doing business with you, and you above and beyond all others, this is where you need to concentrate.
Sales are benefit driven-The benefits to a client should be of the utmost importance. If they see the value in doing business with you above all others, they will. Of course, you need to believe that wholeheartedly! If you don’t, sales is probably not where you need to be…
You must offer a potential client things that are of value to them, as you were able to quickly ascertain by solid sales skills what is MOST important to them – before making the pitch! Offer them what they want, explain the value to them based on what you have learned by asking the right questions, and make the sale.
Sometimes, what they want or need is not the higher priced merchandise-so be it! Make the sale based on a clients needs. Make the sale because you were compelling enough to convince them what you are selling is the only real way to fulfill their needs, AND the only option they WANT.
p.s. I also firmly believe to be truly successful, you must also absolutely believe in what you are selling-and also know before you go in that you-because you are in the BEST position to do so- will get that sale each and every time!
Comment by Paula — March 25, 2008 @ 12:31 pm
Paula, you are right on when you talk about value. I am working on the assumption that price is usually proportional to value, often exponentially proportional to value. In other words, higher priced items often carry value much much greater than the increase in price. Therefore, a good salesperson doesn’t shirk from showing the higher priced item. He/she wants to provide the greatest value to the client.
Of course, perceived value will vary from customer to customer. You are correct that the sales professional will understand what is most valuable to his/her client, having learned this through careful questioning and listening. If it is clear that saving money is much more important to the client than any other value, then act accordingly. Yet, I have found that often money is not the most important issue on the table.
I am simply encouraging sales professionals to not shy away from presenting the most expensive option simply because it is the most expensive. Don’t be afraid of the price. You may well be doing your client a disservice. Present the value – the benefits – of the product, and let the client decide if the price is worth it.
When you move beyond the question of “do you like it?” and you start discussing, “How can we help you get it?” that’s when things really get fun.
Comment by Dave — March 26, 2008 @ 9:06 pm