The saying is tried, trite, and totally
true: selling is a numbers game. In other words, the more prospective customers
you contact and the more presentations you make, the more sales you will
close.
The mathematics of a selling are easily calculated using this simple formula:
The number of sales presentations
you make
multiplied by
The average percentage of sales
you make per presentation (a.k.a. the "closing ratio")
equals
The number of sales you will make
For example, if you make ten presentations, and
your average percentage of sales per presentation is 50%, then each time you
make ten presentations, you will, on average, close five sales.
The implications of this simple formula are profound: if you seek to increase
the number of sales you make, you must either: 1. increase the number of
presentations you make or 2. increase your closing ratio, or 3. increase both.
Your income level is, of course, a function not
only of the number of sales that you make but also the commission that you earn
on each sale multiplied by the size of the sale. Your income is calculated using
the following simple formula:
The number of sales you make
multiplied by
The average commission you earn
per sale
equals
Your Income
Although the above formulas are almost too
simplistic to mention here, it is worth noting that far to many salespeople keep
sketchy records of their presentations and sales (and thus have only a very
general idea of their own closing ratios). Furthermore, many salespeople are
decidedly blasé about prospecting for new customers. And finally, too many
salespeople are all too willing to remain well within their own particular
comfort zones rather than aggressively seeking larger sales.
In conclusion, if you seek to increase the income that you derive from your
career in selling, you must:
1. Increase the number of qualified prospects to whom you make sales
presentations;
2. Improve your percentage of sales per presentation;
3. Make larger, more profitable sales.
And now, with no further ado, we conclude this discussion with a few profound
ideas about your career:
Successful Sales Professionals
Understand the Law of Averages
"As a salesman, you must keep reliable
records of time, costs, and results. Keep written results, then analyze
them."
Thomas J. Watson
"Do you want to make lots of sales? Then call on lots of customers and make
lots of sales presentations."
J. R. Freeman
"Skill is fine, and genius is splendid, but the right contacts are more
valuable than either."
Sir Archibald McIndoe
"You’re only really working when you’re face-to-face with a customer.
Everything else is only prelude."
Brain Tracy
If you want to increase your success rate, double you failure rate.
Thomas J. Watson
"Do noble things, do not dream them all day long."
Charles Kingsley
"My success just evolved from working
hard at the business at hand each day."
Johnny Carson
"When your company sets quotas, set yourself a still bigger
quota."
Thomas J. Watson
This page was written and
compiled by Criswell Freeman, Psy.D.
