Employer of Choice: Increasing Revenues to Close the Wage Gap

Some regions offer compensation packages that are lower than surrounding areas.  This encourages many members of the local labor pool to commute to surrounding areas for employement opportunities.  Offering lower compensation packages also makes the area less attractive to job seekers from other parts or the state, region or nation.  These conditions make it harder for local businesses to attract and retain employees, which reduces their efficiencies, increases costs, and reduces profitability.  In other words, offering less competitve compensation packages is contrary to becoming an employer of choice.  

Increasing compensation packages is a long-term committment.  Asking businesses to increase compensation packages that cut into bottom line profits is likely to meet strong resistance.   For businesses to increase their compensation packages, they must first increase revenues, and then sustain those increased revenues over time.

Research shows that between 40% to 60% of sales are lost because of ineffective or outdates sales processes.  If those lost opportunities were cut in half, revenues would increase from 20% to 30% and without increasing the number of sales prospects or increasing the work load.  The means to achieving these results is to have an effective sales training process, with follow-up and accountability processes, that maintain the increased revenues over time.
The Importance of Effective Selling
The ONLY business process that produces PROFIT is the SALES PROCESS.  Everything else the                company does is an expense.  How important is it then, that your sales people perform at the top of their ability?     How important is it that they take their ability to a higher level?                                                                    
Sales Improvement Worksheet
One finacial opportunity for your business lies in getting people that are buying from your competition to buy from your business instead.  Other ways are to get existing customers to buy more from you and to buy more often.  
These outcomes are best accomplished through more effective marketing and selling processes rather than price discounting. 
The basic question business people want answered is, “How much will my company benefit by improving the attitudes, skills, and behaviors involved in the sales process?”  Using your own numbers, the worksheet below will help you to answer that question. 
The Sample Company (see below) determined that its sales representatives had an average closing rate of 15% and $300,000 average annual revenue per person.  By improving the average closing rate by only five percentage points to 20%, Sample Company increased revenues by 33% to $400,000 each.  {Notice that, after the improvement process, the 5 sales reps are now bringing in the equivalent of what 2 additional reps would have been required to accomplish this growth before the improvement process, and without the added overhead for the 2 additional sales reps.!}
On a separate sheet of paper or spreadsheet, complete the right side of the worksheet using the percentages and dollar figures that you feel would be appropriate for your situation.
                                       Sample Company                                     Your Company
                                                    Closing Rates  Revenue                                                   Closing Rates   Revenue
Current Averages                           15%          $300,000                                                    _________%         $__________________
                                                                   Per Person
Improve By                                5% points     $100,000                                                     _______% Pts      $__________________
Improved To                                      20%         $400,000                                                    _________%         $__________________
% Improvement                               33%             33%                                                          _________%           _____________%
-                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             -
$ Improvement                         $100,000 Improvement                                            $__________________________Improvement
# of Sales Reps.                                x 5 Sales Reps.                                                              x   # _______________ Sales Reps.
Sales Team                                $500,000 MORE  Per Year                                           $_________________________ MORE  Per Year
Increase/Year                            with the same number
                                                     of reps. and no additional
                                                   effort - just better PROCESS!
Ave Num. of Yrs                                  x 8 Years                                                                       x  #_____________________Years
Sales Rep. Stays                              
Increase from                                      $4,000,000                                                            $_____________________________________
Sales Development                   MORE  Than Before                                                                   MORE  Than Before
-                                                                                                                                      -
Using your own numbers and estimates, you have just answered your own question.  You probably found that improving the attitudes, methods, skills, and behaviors of your sales team by even a small percentage, can produce profound increases in sales and profits!  It should be noted again that the first year's increase in sales would be more than enough to cover the cost of the development process, and that the positive effects will continue for many years to come.
Contact me for more information.
Effective Selling is a multi-session coaching process. Spacing between sessions provides focused practice time for each key behavior and to avoid information overload.  Workshops are offered in ‘private group’ or ‘mixed group’ settings.  Customized processes are available.
The Strategic Selling Process
  • Getting the 1st–Time Appointment
  • The READ Sales Process
  • The SPIN Discovery Process
  • Good Selling Habits
  • Bad Selling Habits
  • Preventing Objections
  • Selling to Multiple Buying Influencers and Committees
  • Preparing Your Prospect to Sell for You in Your Absence
  • Avoiding the “I have to think about it” Stalling Tactic
  • Leveraging the “I have to talk to so-and-so” Stalling Tactic
Deep Relationship Selling
  • Becoming the Client’s Business Development Partner
  • DISC Personality Style Assessment with Selling Applications
  • Communication Style Assessment with Selling Applications
  • Selling to Introverts and Extroverts
Strategic Marketing & Prospecting
  • Establishing Strategic Relationships
  • Establishing and Leveraging Strategic Alliances
  • Establishing and Leveraging Referral Sources
  • 110 Marketing Ideas
  • Simple but Effective Marketing Plan