It is Easier to Increase Sales than to Cut Costs
We are constantly hearing about the importance of cutting costs to get a business back on track. I certainly believe that we should spend wisely, but serious cost cutting is killing some companies who could direct their efforts in a more productive manner that would benefit their company, their investors, and their employees a lot more. That is increasing sales.
Logically, you can only cut costs to a point after which you are basically out of business. Sales, however, have an unlimited potential. Why do folks not focus on sales as much as costs? I have asked business owners that question many times and here is what I conclude from their answers.
First, cost cutting is usually immediate and gets people’s attention. So there is a quick return. Second, it is something that generally every department can do, so there is a dramatic impact on expenses. These of course are all short term answers to bottom line problems.
The intermediate and long term answer is increasing the top line sales. That does take longer, but it sure has a lot more benefits. You can keep your employees, pay bills, and grow the business to name just a few.
The key for increasing sales is to start before disaster is knocking at the door. If your sales team has stalled in their growth, give them a boost. Get them Prospecting for new business. Get them some sales training. Get them out of their doldrums.
I don’t mean to focus on Rah Rah stuff, I mean that they have to start doing something new. Remember, if you keep doing the same thing, you will keep getting the same results!!! You want different results, so get them doing different things.
Being a sales trainer with a specialization in Prospecting, I feel this is the way to really get a sales force pumped up and producing. Sales Management has to lead the way in this regard. No sense in crying over spilled milk. Simply get on with changing the daily activities of the sales team.
If you don’t have a formal Prospecting System get one. Have the sales people start Prospecting within their customers. Most of the people I work with are not selling all they can within their existing customer base because they only call on one or two of their Prospects. Call on everyone within a customer who can use your products or services.
Follow up on old customers and Prospects on whom you have given up.
Then start Prospecting on new people. Prospect every week, not just certain times of the year. Sales Managers should be keeping track of new Prospects and the follow up made on them.
Pretty soon you will see that the top line is growing and for some reason everyone in the company will start feeling better. This all happens when leaders learn that it is easier to increase sales than to cut costs.
Sell Well and Often.
