Do You Know What Sells?

An important measurement in a product-focused business is what sells and what doesn't. And what is likely to sell and what isn't. Sounds simple doesn't it? But it's surprising how many businesses simply don't or aren't able to track sales and gross profit for each specific product. Making decisions about what to promote, products that no longer warrant a place in the warehouse and abandoning plans for spin off or new products should be at least partially contingent upon historical sales and gross profit data and/or market research data. To what extent does your business track sales and gross profits as well as market trends and preferences? If the answer is anything short of "to a great extent" it is time to rethink how product decisions get made.

Good Luck & Good Selling!
Russ

Buy Sales Consulting Expertise When Needed

Even though there is a cost associated with bringing in outside consultants, there are times when it is necessary. Good consultants can help you take a step back and look at your company differently. There are times in any business when certain expertise does not exist internally. In these cases, going outside to hire a consultant makes sense. It is important, however, to find a consultant or consulting firm that has a strong hands-on background in running a sales organization. They have been through what you go through daily and have made mistakes and learned from them. They can then transfer that knowledge to you, your managers and your sales team. Be careful when hiring consultants. Cheaper is usually not better. There is usually a reason that some consultants fetch big hourly rates. Even with a high hourly rate, they will often have a much bigger impact in less time than someone less experienced charging a lower rate. Don't rely solely on consultants. Learn from them and assimilate what you learn into your day-to-day management activities.

Good Luck & Good Selling!
Russ

Strive To Gain More of Each Customer's Business

We must be almost evangelistic about the importance of developing and maintaining extraordinary relationships with customers. This is done in many ways. But the main point is that the degree to which customers buy more and more from you is largely dependent upon how well you manage that relationship. A primary objective of any business should be to achieve higher levels of penetration across its customer base. The extent to which a business focuses on selling more to each customer can go a long way towards determining the level of profitability. Theoretically, as a relationship grows and customers buy more from a particular business, price tends to become less of a factor in the buying decision. Therefore, the deeper the relationship with a particular customer, the more likely the customer is to buy more at higher gross profit levels. Obviously no business should take advantage of a customer relationship by charging unrealistically high prices. However, stronger customer relationships often allow the business to compete based on the strength of the relationship rather than price.

Good Luck & Good Selling!
Russ