Friday, September 29, 2006

Don't Just Sell More

It is far too common to find businesses that focus so much on selling more of whatever it is they sell that they lose sight of doing it in a profitable manner. The employees of these businesses talk a lot about growth in sales. That's appropriate as long as there is equal focus on profits. Many times businesses that get hung up on selling more tend to decrease prices to stimulate faster growth rather than doing it in a manner that calls for enhancing relationships, customer service and product/service quality. There is so much short-term focus that these businesses often make bad decisions in order to meet sales growth goals. When looking at sales growth, consider how that growth will be accomplished. Will slashing prices do it? Or will it be done with hard work, better promotional efforts, better customer service and stronger relationships? Remember that price-cutting is a short-term solution that can sometimes set unreasonable customer expectations about future pricing.

Good Luck & Good Selling!
Russ

Sunday, September 17, 2006

Track Sales By Customer

It is important to understand the degree to which your customers continue to buy from your business. Customer retention is a critical factor in profitability. When a customer leaves to buy from a competitor, there is usually a reason or set of reasons why they left. In many cases the customer goes elsewhere without a hint there might have been a problem. It is important to track sales by customer so that trends in buying can be spotted. When a customer begins to buy less, it is important to find out why. Sales reps should have first hand access to data that provides these trends. When a customer begins to show signs of buying elsewhere, the rep or someone else should be in contact with them immediately. Obviously, in some cases, the rep is the problem and management will need to deal with that issue.

Good Luck & Good Selling!
Russ

Monday, September 04, 2006

Deliver Value

Customers are increasingly interested in value when buying products or services. Value has more to do with the level of service and quality of the product or service than it does price, although price is certainly important. Value can be defined as the usefulness of the product or service relative to the price paid. In the customer's mind, the business that understands how to deliver the highest level of usefulness at a price that is perceived as being fair or appropriate will have an edge when they make their decision about which business to buy from. We stress the importance of delivering outstanding service because customer service is directly related to perceived value. Businesses that truly deliver outstanding service are perceived as adding value to the product or service in some way. Value is also added by the quality of the product or service involved. Products and services that are perceived as being of high quality and reliable are usually thought of as providing value. Many businesses fight the value/price gap that is defined as the perceived difference between price paid and value received. If the gap is too wide, sales will suffer. It is important to focus on ways to enhance value for your customers. How does your business currently add value?

Good Luck & Good Selling!
Russ