 | |
| |
Sales and Selling Information
| |
|
|
|
10 Mistakes That Reduce Profitability
In my professional experience as a sales and marketing coach/consultant, I've had the opportunity to work with a number of small business owners on various issues related to sales and marketing. The owners who are struggling to keep their businesses afloat tend to engage in some, or all, of the following mistakes that reduce profitability. Mistake #1: They fail to market or market inconsistently. Once you have committed to owning and running a business you must be equally committed to marketing and selling the products and services of that business. It is difficult, if not impossible, to stay and remain profitable without a commitment to ongoing concerted marketing. Solution: Market all the time, every time. Mistake #2: They hesitate to "ask for the sale". Rather than seeming pushy or obnoxious they let profit-producing opportunities pass them by. They worry more about what someone thinks of them than they do about bringing more money into their business. If you find it difficult to "ask for the sale", you can be sure that you're not bringing in as much money as you could be. Solution: Practice asking for the sale. Mistake #3: They don't ask for help or assistance in the aspects of the business where they most need it. Most business owners possess strengths in a particular area but whether by necessity or ignorance they often end up working in areas that aren't part of their strengths. When business is not going as it should they delay or procrastinate in asking for help. Each day that goes by with your business running at less than maximum efficiency means dollars lost from your pocket. Solution: Get expert advice from an attorney, accountant, or other service professional before you really need it. Mistake #4: They don't follow up with past customers. It is usually much easier to reactivate a former customer than it is to attract a new one. If you are not following up with past customers on a regular basis you are reducing your profitability potential. Solution: Develop and implement a regular method for customer follow up. Mistake #5: They don't take regular stock of their expenses. Savvy business owners regularly appraise their business expenses and find ways to reduce costs without sacrificing quality. If you haven't completed a cost analysis lately, you might be paying more than you need to be, which will reduce your profitability. Solution: At least once per quarter review expenses and negotiate for adjustments as appropriate. Mistake #6: They spend large amounts on glossy, slick marketing materials and expect business to pour in without any additional effort. Glossy brochures and slick marketing materials are a nice addition to more active forms of marketing such as meeting people, calling people and speaking to people. Brochures and business cards, no matter how beautiful, do not replace direct contact. If you are spending money on flashy marketing materials rather than marketing directly you will be less profitable than you could be. Solution: Take those glossy brochures and hand them out directly to people at the next possible opportunity. Mistake #7: They spend a significant amount of time in low-return activities (as measured by dollars and personal satisfaction). If you are spending the majority of your day completing tasks which are administrative in nature and/or which can be easily completed by other people you are reducing your profitability. Solution: Track your time and figure out how much you're making per hour. Hire an assistant if you are spending the bulk of your time in administrative work. Mistake #8: They charge less than they desire. This challenge seems to arise especially for consultants, coaches and solo entrepreneurs who sell services. It is often tempting to accept less money than you need - so you get "some money" rather than "no money". After time, working for too little can leave you exhausted and resentful and it takes a deep cut out of your profitability. Solution: Commit that, at the next opportunity, you will ask for full fee. And then do it. Mistake #9: They make infrequent or no use of technology which could save them time and effort. As a business owner, you have a fixed amount of time and energy within which you must maximize your profits. Technology can help you do this in the form of autoresponders, voicemail, wireless internet connections, speech recognition software and the like. All of these tools are designed to save you time and effort. If you are not making consistent use of technology in your business you are likely not as profitable as you could be. Solution: Look for ways that you can make your business processes more efficient by using inexpensive technology. Mistake #10: They adhere to outdated business models or plans. If you do not stay up with the trends in your business you will notice a steady decline in your profitability. Solution: Attend meetings and conferences that will keep you on target with your market. Implement new means of doing business and update your business plan at least every couple of years. If you are serious about improving your business' profitability, start by implementing the suggested solutions to these ten common mistakes. Together, these solutions will help you make more money and have more fun in your business. Try them and see. (c) 2004 Dr. Rachna D. Jain. All rights in all media reserved. About The Author Dr. Rachna D. Jain is a sales and marketing coach, author, consultant and speaker. Sign up for her free email newsletter, "Sales & Marketing Secrets" sams-subscribe@salesandmarketingcoach.com. To learn more or to contact Dr. Jain directly, please visit http://www.SalesandMarketingCoach.com. coach@salesandmarketingcoach.com
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
Breaking Through The Comfort Zone Barrier After completing a workshop on personal productivity or time management, we usually find participants react to the instruction on goal-setting in one of three ways:1. Some workshop attendees really don't want their lives to change nor does a greater level of achievement appeal that much to them. Sell More: How to Get Motivated Buyers To Call You First How many sales opportunities have you lost to competitors who seemed to have the insidetrack? It's likely your prospect purchased from their emotional favorite.Selling goes beyond communicating the value of your products and services. The "Write" Way to More Sales The sales letter you can't put down?the advertising copy that makes you want the product?the resume that prompts you to call the job candidate this second?all these are examples of exceptional business writing. While you certainly know good writing when you see it, can you write with the same pizzazz the professionals use to hold your attention for pages on end?In today's selling arena, writing skills have taken a backseat to other seemingly more important professional development activities. Is Sales Profession an Oxymoron? If you are in Sales, you have probably heard these before:Q: "How can you tell a sales person is lying?"A: "His lips are moving."Q: "Why do lawyers like sales people?"A: "They give them someone to look down on. Business is Great; I'm Just Not Selling Anything! Awhile back you had a great idea. An idea that you thought could make you a decent income, with very little effort. Looong and Boooring Sales Letters You have all seen them,the sales letters that never ends.They go on and on about how this product can do this and that. The Answers (1 - 5) Are Here !!! - Challenge Yourself - Evaluate Your Selling Skills "THE ANSWERS (1 - 5) ARE HERE!!!"Question 1) List the top five most important steps in the selling process?Answer: 1. Rapport. Building Relationships A conversation: The Salesperson: "I don't cold call-I want to build relationships." Wendy: "Huh?" Recently I've had a number of conversations with sales professionals and entrepreneurs who tell me they do not cold call because they want to build relationships with prospects. Dr. Seuss's 3-Step Selling Process Hello Everyone: Here's a unique look at learning how tosell: "I am Sam. Sam I am. Making the Sale When the Customer Wont Buy Ever had a party online or offline, and had guests say "I love that item, but I can't afford it right now", or "It's so hard to decide, I want all of this!". This is a perfect time to sell all those items to your customer without them having to pay a dime. Six Steps to Creating Online Presentations for Telephone Selling How much extra money could you make by closing just one or two additional sales a day? You can double, or even triple, the effectiveness of your telephone selling by showing prospects why they should buy from you, instead of just telling them.Clients and prospects are visually oriented. Do You Know When You Are Being Sold To? Britney Spears has recently caused controversy with suggestions that the ad campaign for her new fragrance range uses subliminal or hidden messages in its efforts to convince potential buyers. Advertisers have long been aware of the power of appealing to our subsoncious minds, so what methods exactly do they employ, and how widespread is the practise?Broadly speaking, there are three methods in common use - Product Endorsement, Product Placement, and Hidden (Subliminal) Imagery. Turn Your Wisdom Into a Workshop The Technical Revolution has done a lot for us -- we merely have to pick up a phone or send an email to conduct business. Yet, there still is no substitute for live, personal appearances when you want your teaching to count, and that's why I love workshops. Are You Selling What They Want To Buy? Is It An Appropriate Solution? Let me tell you about my friend Peter who has four children. With a family of six, he finds buying cars rather trying. Packaging Maketh the Person The multi million pound cosmetics industry is acutely awareof the value of packaging. You'll know this if you've everbought anything from those glamorous ladies whose countersare always just inside the front door of Department stores. Handling Objections HANDLING OBJECTIONSSales presentation is not always going to be plain sailing. You must expect objections. Five Keys to Make Your Cold Calls Sizzle Do you clam up on the telephone? An advertising rep called the other day to sell some ad space in a local news magazine. After I said, "Hello," there was nothing but monotone dialog until I interrupted him a minute later. Model Dell: The Art of the Affiliate Coupon Along with having an innovative supply chain, there's another reason Dell is the largest computer company in the world. They always offer great coupon codes to online affiliates that let the buyer "in" on deals that they otherwise wouldn't get. Lead Companies, Eight Features To Consider So now the time has come to invest in Lead companies, but how do you know which one is the right one for you?When I was a new loan officer, finding a lead company was not easy, I can remember logging onto Yahoo, typing in the key word "mortgage leads" and being bombarded with links leading me in the direction of lead companies all claiming to have the best leads and the best deal for me!But what was the best deal for me? That all depended on what I was looking for, so taking my time, I began to right down exactly what it was I was looking for, did I want refi's, purchases, or both. Did I want leads from several states or just one, how much could I afford? Etc. 10 Incredible Ways To Sell Your Products Now 1. Make your reader visualize they have already bought your product in your ad.
|
| home | site map | Group Privacy Policy |
| © Sales Information 2009 |