10 Hidden Sales Costs
The specific terms found below are more than likely NOT listed as 'Headings' on a standard business P&L statement. However, the true dollar cost associated with these items are indeed hidden throughout most business P&L's.
1. Turnover: Can cost your company huge sums every year. Poor hires cost the average company at least 10 times their annual salary over an 18-month period.
2. Ill-Advised Bids & Proposals: Lottery Odds do not make for a strong bottom line. Premature proposals lose more business then they get. Many companies do not know their actual costs of doing bids and proposals.
3. Extended Sales Cycles: In many companies the normal sales cycle is 2 to 3 times longer than it should be. This represents another hidden cost you pay for sales people that can not control the sales cycle.
4. "Let's Pretend" Costs: The prospect knows it's over, however the salesperson does not. Result: wasted time, resources and money. One of the most 'expensive' of the hidden sales costs.
5. Bad Forecasts, Inflated Pipeline: Often times a company will 'staff up' and build inventory for what turns out to be wishful thinking. This situation rarely turns out 'positive'.
6. Marginal Customers: Squeaky wheels and very expensive grease. Upgrade them or send them to your competitors and celebrate! Many marginal customers are marginal because you trained them to be.
7. Unqualified Prospects: Chasing people who can not or will not do business with you, and missing those clients that will. Time management and prioritization are key issues in this case.
8. Unpaid Consulting: If you don't value your services, neither will the customer. These customers will 'like you', however are sales being made? This is one of the most expensive, profit draining problems that companies 'quietly' suffer with.
9. Unnecessary Price Concessions: If you had half of what the average salesperson leaves on the table every year, what would you do with the extra revenue?
10. Wasted Days: The latest information shows that on a day-to-day basis, the average salesperson is about 20-30% as effective as they could be. Your sales force could be the most underutilized resource you have.
If you recognize 2-3 ways that your business is losing revenue, we can help you 'find' it. Let us show you a proven way to remedy these 'Hidden Costs', and boost your bottom line!
Measurable Results For Your Business
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This past summer I was offered an opportunity to participate, along with my sales team, in an on site sales meeting with Chris McDonell of Sandler. Although I was initially apprehensive, working with Chris has been a real asset to our sales team...new and old members alike.
My best salesman came to me after our third team meeting and said "I am suddenly completely focused and comfortable during my sales calls and walk away knowing I have been successful". By the way, he has been very successful.
If you feel like your sales team needs a boost, I would highly recommend Chris McDonell. He is a consummate professional who will work for and achieve results.
Neil S. Van Malderghem President Chesapeake Business Forms & Ad Specialties, Inc.