Increase Sales

Every company's main goal is to increase sales. This is because the rise in sales translates into more revenue which is profitability in a company. Sales are the parameters which are used to figure out the levels of development in many organizations. Due to the importance of sales, the sales departments are put under close scrutiny so as to increase sales and ensure customer satisfaction.

Sales managers are always developing new strategies to increase sales levels. These include actions like advertising, giving discounts, branding and sales promotions. Research is also carried out in a bid to find out if the products they offer meet customer requirements and meet their needs. This is very important in sales increase and management. The sales strategies should always be agreed upon and backed up by facts from market research.

At times, the company may not be in a position to carry out the research on its own. In such situations, it is advisable that the contract a market research company that has been in the research industry for a considerable period of time. This is advantageous since a research company will give the required feedback and give the recommendations that can increase sales as well. These reports are based on the research done and on the experience the company has had from previous researches. More often than not, when the recommendations are applied the sales increase.

Application of marketing strategies that are intended to increase sales should be done in a very systematic manner. This includes identification of the target consumers and their preferences. It also involves regular updates on the market trends and learning about seasonal preferences. Introduction of a new product in the company should be followed up by frequent advertising and reviews. It should also be done when there is high demand for the product. This strategic approach requires one to be very keen on decision making. This is because a new product's main aim is to increase sales. When a sales team is aware of all these tips, they are in a position to apply sales strategies that will increase sales in every season and this will result in great profits for the company.

It is important to keep consulting research companies when an organization wants to apply new ideas to ensure an increase in sales. This consultancy should be from a company that follows the market trends.

Increase Profit

For a business to grow, one is required to derive ways to increase the profit. Planning is the most important thing before any strategy can be set in motion. One must plan the whole profit making exercise, how it will be accomplished, and the necessary steps to take to achieve the plan. The best way to do this is by improving the services offered to the clients. However, there are measures that need considering to increase profit. The changes are vital for the business to improve since if no changes are made then the business will not change, sales won't grow and profits won't increase. Begin by increasing the price of the products slightly but make sure to reduce the production cost and the difference will increase profit.

The company will have to find ways to stay above the competition. This will mean finding ways to differentiate the product or service provided. Enhance effectiveness of the business' systems and methods greatly and this will increase profit. Some changes in business operations might be necessary to enhance the effectiveness of the workers for example time management. Other service improvements like using cheaper raw materials without affecting quality may also need to be made to meet the overall goal of the business, which is to increase profit.

Reduction of cost will increase profit. Saving time will reduce the labor cost reducing the overall business operation cost. Identify any leaks in the business budget. Slight adjustments to the business budget and overall business plan will lead to better sales thus an increase in profits.

Marketing strategies and advertising are important, as they will create awareness of the product in the general public opening up the market for the business. The more the people are aware of the existence of the business and the services offered the better. Making use the online marketing strategies will attract potential clients as well. If the target audience like the produce or service provided there would be more demand, thus increase profit.

Keep in contact with regular customers. To entice clients to purchase more, one must talk to the customer often. In addition to that, promotions and various discounts will encourage bulk buying of products. Find out about the clients needs this shows that one is interested in their business and individual success. The customer will build up trust and loyalty and will increase business.

If the above strategies are followed properly and implemented then the business will improve, the business will prosper and one will begin to see increased profit.

Sales Productivity

Not getting the bang for the buck from your sales efforts? Crank up the sales productivity the sales activity the energy and the pace. What you will need is first a commitment that this sales productivity program your about to introduce to your sales team is sustainable, a program or an idea de jour will not work.

What are the activities that you expect the sales group to perform on a daily weekly, monthly basis. List them.

What are the quantities of these activities they are currently doing, current sales productivity?

What tools do they have now, what tools do they need to increase sales productivity.

What information do they have now, what do they need.

Where is the low hanging fruit? Where is there room for improvement over current sales productivity?

Now that you have a benchmark you can now work on what you really need to improve your sales productivity.

Set activity targets and collect metrics on performance.

Consider sales productivity tools that will boost your efforts. CRM tools, data collection and reporting tools, most of these should be found in your CRM program, mine the information, re gig the territories consider vertical markets. What is all this information telling you and remember "You get what you inspect not what you expect."

What training do they need ,what are they good at ,what are they lacking in.

Caution: never take you eye off the ball the ultimate sales productivity activity is sales face time or if in a telemarketing group voice time. Time in a selling situation with prospects. See my note on my blog on Suspect, Prospect? That is the question.

Everything that you do from here on should be focused on face time or voice time and if successful with this the sales productivity numbers will sky rocket.

Since sales productivity translates to increased sales then what one must do is close off all active prospects in the sales pipeline and find a source of new leads to keep the pipeline fresh.

In a recent study on sales effectiveness conducted by Accenture, out of 178 senior Executives polled the most-often cited sales performance issues were related to leads.

According to Accenture,"Along with problems with qualifying and managing leads effectively, the lack of performance metrics, inadequate customer data, and lack of capabilities for analyzing customer data rounded out the list of top performance challenges."The study reported that a total of 55% of respondents found it difficult to asess which leads were qualified.

Now what is needed is an accurate sales forecast and this you must inspect with care. If the forecast is not accurate it will trigger certain behaviors and actions that will surely de rail some of your sales productivity activities. As a manager this will be your most challenging task, question everything, from every angle until you get it right. Once that has been accomplished you are well on your way to increased sales productivity.

Strengthen Your Bond With Your Community

In a world filled with massive corporations that span across the globe, their stores in every single country, there is something appealing about the idea of a local business.

Too often companies become so large there is no connection with them anymore. I feel like I am going into a store run by a faceless machine as opposed to real people. There is no sense of the hardships faced by the company and the people who run it.

This is why so many people are drawn to smaller companies, to those owned by people in the community. You can get to know them in a way you never will with the large companies. You know that when you give them business you are helping out the community as well, and that is a very nice thing to know.

I think it also gives people a taste of what can be accomplished. There is a reason why even the large companies make references to their smaller town roots. People like to see what they can accomplish, using these companies as an example.

But local businesses cannot just expect that people are going to come in because of that. You need to market just as much as the larger companies because fewer people know who you are, and you need to promote yourself as a locally owned business that is helping out the community.

Rather than just being a locally owned business, make yourself one with your community. Find events you can sponsor or join up with. Use poster printing to not only boost up your own business but increase public awareness about other local concerns.

If anything is going on in your community try to be apart of it. If there is trouble, lend a helping hand in anyway you can. Offer to donate whatever money you can to notable charities who help out the people in your area.

More on the business side of things find some great locations or local hangouts that you can help promote, and also put up your posters at as well. Poster printing is a good way to get your name all around town for an affordable price.

You need to use your small stature in the business world to your advantage. Sure you are not as big, but that just means you have a better understanding of what people are going through. You feel the pain of economic downturns along with the joy of booming sales.

Put a human face on the front of your marketing, the face of someone who is just as much a part of the community as those shopping at the stores. If you lend your helping hand to your community I think you will find your community being more than willing to give that support right back. Being small is not always such a bad thing.

Sales Volume - Truth Or Myth?

As brokers, managers, and Agents we become caught up in the myth of sales volume. This myth does some of the greatest damage in this industry. We glorify the Agents with high sales volume and promote and encourage other Agents to be more like them. We award Agents and offices based on the sales volume with little regard to the other factors that make up success in life. New Agents look on in reverence thinking the person who has the most production in sales volume is the example to follow. I would like to take an objective look at the true value of sales volume and point out some other factors to consider when evaluating your business and your Agents' business.

Is sales volume the most important number to determine success in sales?

1. Is the better sales person the one with the higher sales volume or the one with more sale units sold and closed?

2. Where does profitability enter the picture? Does it have any importance?

3. Should the amount of time actually worked be considered to compare an Agent's ability?

4. What is the true quality of life for the Agent, i.e. health, time worked vs. time off?

5. How does quality of service to clients factor in?

6. Are we taking the steps to achieve financial independence based on the individual definition?

Let's take a look at the value of these questions; I believe you will have a different perspective of sales volume when you look clearly at these questions.

Is the better sales person the one with the higher sales volume or the one with more sale units sold and closed?

My position is they both possess merit for what they do. The one with the highest sales volume has a tendency to be placed on a pedestal, and the one with the most units sold is about halfway up. In some cases, sales volume can reflect the value of the market, not the value of the Agent. For example, one Agent's average price range is $100,000, so his average commission check is $3,000. That Agent closes 65 deals a year and earns a gross commission of $195,000. Across town there is another Agent whose average price is $300,000, so the average commission check is $9,000. This Agent closes 25 transactions a year and earns a gross commission of $225,000. Who has more options in his business and may be a better salesperson? I think there are strengths to both. Agent A who does 65 deals only needs to raise his sales price because he already knows how to achieve 65 closed sales per year. He has the skills to close 65 transactions. He understands the process, and if he has set up his business properly, he only needs to apply his philosophy and business in a higher sales price range to earn more income. He also did almost three times as many transactions. Usually Agent B, with the higher commission earned, receives all the rewards from peers, brokers, owners, and the company. Agent B is held in high esteem and reverence because he was the high producer in the office. Agent B has a good business but only sold two homes per month. (By most sales standards this is not an earth shattering mark.) Agent B will also need to learn to do more transactions to increase his business, a far harder proposition. Which one really has a business that is posed to go to the next level?

Where does profitability enter the picture? Does it have any importance?

In my career of selling real estate, coaching, and speaking, I have known many Agents who make a tremendous gross income but have little net income. They spend it all back into their business through gimmicks, marketing, gifts, mailings, advertising, overpaying staff, etc. They make decisions based on the idea that, "If I get one more transactions per month, it will pay for this new gimmick." The unfortunate thing is that they evaluate many parts of their business that way. They have five to ten items they evaluate that way. Suddenly, they need about what they make monthly to cover those gimmicks. Every new idea must pay for itself plus generate a return or profit. I wanted at least ten times return for any investments, so if I spent $1,000 on a new idea, I wanted to receive $10,000 in return from it. Most Agents do not factor their time or the staff's time into the cost of this new idea. That is a legitimate cost that must be added to the cost. For example, the cost to mail something is not just the cost of the stamp, like most Agents would factor. It's the cost of the letterhead, envelope, stamp, label, and staff time to prepare it and your time to oversee the process. That's the overall cost. Then you want a ten times return on the whole cost. This is the only way to evaluate to ensure you make a profit. We all work too hard to only earn wages and not profits.

Many Agents have bought themselves a job and never make a profit. A wise man once said, "Profits are better than wages." Profits continue on; they are the extra you have after you pay your wages and all your bills. Profits, if invested, beget more profits, which create financial independence. Wages merely cover the monthly bills.

Agents need to view the whole picture, the gross and the net. If you want the true reality after all the hype and fluff of sales volume, gross commission earned, and all the other ego stroking we do, look at line 31 on your federal tax return. That is reality. That is what you truly made for your labor last year. Do not kid yourself! What you are taxed on is what you made.

Should the amount of time actually worked be considered to compare an Agents' ability?

I know many Agents who work six to seven days a week to produce their income. If they factored the actual time versus what they earned, they would be sick. Their actual per hour wage is nothing to get excited about. In fact, if you asked them if they would work and do what they do for that wage, they would say, "No." If you want real truth, divide your time by line 31 on your federal income tax form. That is what you truly make per hour. That is after all your expenses to run the business and your personal employee taxes. That is what you would earn if you worked for an actual company. For some people, this exercise is too scary to even imagine.

I think we all can do more in less time. As a personal example, I switched over four years ago to a four-day workweek, Monday through Thursday. My production increased over 30% each year compared to the previous year. I reduced my time working by at least one full day, and I was rewarded with a financial increase. My skills improved exponentially, and my focus and concentration intensified. I also re-claimed my life for my family and myself. I was able to spend three days a week with my family. I also increased my time investment in personal development, which leads me to my next question:

What is the true quality of life for the Agent, i.e. health, time worked vs. time off?

You cannot be a seven days a week wonder forever. At some point, you need to reclaim your life. You have to control your clients and the other Agents. My philosophy is that earning large sums of money is the easiest area of your life to improve. Working to improve your spiritual, mental, physical, family, and financial areas are far more difficult.

When you schedule your time off and place the same value on it as you do your work time, you will have the opportunity to reclaim your life. Once you do that, your productivity will increase dramatically during your work time. The value of my time with my family is worth more than my work time. If you have that philosophy, you will focus on your family when away from work and focus on work when at work. It is clearly a philosophy you need to implant in your mind. While many Agents are at work, they think they should be at home. When they are at home, they are mentally reviewing their work rather than focusing on their spouse and children. Wherever you are, be there!

How does quality of service to clients factor in?

To create a sustainable business, you need to take care of your clients. The Agent who continually works with new clients and rarely gets referral or repeat business is lacking in service. We all need to spend some of our day finding new clients. Long-term success comes from repeat and referral business from clients who are already sold on our service. Are you doing the job you were hired to do? Do you provide the best service you can utilize in the market place?

Part of providing better customer service is improving your product. The product you are selling is you. If you are not spending significant amounts of time improving yourself, your competitors will eventually pass you. Jim Rohn says that you need to work as hard on yourself as you do on your job. I believe that doing so will lead you to greatness, both personally and professionally. If you are not investing at least half an hour daily in personal development, you will be left behind.

Are we taking the steps to achieve financial independence based on the individual definition?

Everyone has his own definition of what constitutes financial independence. Spend the time to clearly define yours. Invest the time to plan out how you are going to get from where you are today to where you want to be. Too many people fail to plan their future. It has occurred to me that, often, the Agents with the highest gross commission save and invest little or no money. They believe there is always tomorrow, and if they could earn more, they could save more. Develop the discipline to save right now, today. Saving does not get easier when the numbers or amounts get bigger. Instead, the want list gets longer because you think you deserve and can afford it. That is what your mind is telling you. Only you control the destiny of your money. You must create a savings plan today.

When other areas in our lives are out of balance, we spend to reward ourselves. We spend to make up for shortcomings in our unbalanced lives. We must create a savings and balance plan, so we can achieve financial independence. Our goal in life should be to be financially independent. We should all have the desire to amass enough assets to retire comfortably by living off the income or interest they generate. When we get the financial issue out of the way, we can really begin to live life to the fullest.

These are the true measures of success in the real estate business. These are the measures of success in any business. Why should we as REALTORS® be any different? Do not be fooled by the sales volume myth. More Agents have gone down in flames chasing their sales volume tail than from any other myth in real estate.