Use an Effective Sales Process to Increase Profits - Smart Business Thinking

 Use an Effective Sales Process to Increase Profits

A limo service was offering a special for trips from near-in DC suburbs to Dulles airport. I called to make a reservation.

The reservationist was cheerful, polite, and repeated my essential data to ensure she had everything, then wished me a pleasant trip and hung up. Now there is a sales process problem.

What happens on my return? Do they not pick up? What happened to the sales process that gives me the opportunity (or encourages me) to utilize the service on the return flight?

On the trip to the airport, I asked the driver “Do you meet customers upon their return.”

“We sure do. Here’s my card. Give us a call and we’ll be there when you arrive.”

What is the impact on profits since many fares are lost by not asking about the return flight?

A simple modification will increase profits in the business operation.

Increased profits are there if management takes the time to test the system to track such a key component of increased income?

Bottom Line?

As an advisor to, and working with  the CEO, I'd restructure the sales process to provide every opportunity to increase revenue through add-on sales through restructured tools and on site training.

Jim is an expert business coach and a respected advisor to management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.   

What Do You Do When You Hit a Bump in the Road? - Smart Business Thinking

 What Do You Do When You Hit a Bump in the Road? -  Smart Business Thinking

During a luncheon talk, I was presenting a concept that I found from my experience a powerful cornerstone of success  “We Become What We Think About Every Day". At the Q&A, a participant asked “What do you do when you hit a bump in the road?”

A strategic plan is based on a clearly-defined end objective - Vision. In my experience, the one element that is etched in stone is the vision. There have been times when I set a vision and during the journey uncovered a milestone I had overlooked.  

When I had a vision to be VP Treasurer I had identified a specific job as a milestone to my objective. Arriving at that point in time, I hit a bump in the road - the job had been eliminated. But the vision was still intact so I movedI on to the next milestone.  

Bottom Line?

The key is to establish a crystal clear vision. Secondly, set up a system that keeps you focused daily on the outcome. When running into an unexpected hiccup a bump in the road will be only that – a bump in the road.

Jim is an expert business coach and a respected advisor to management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.   

Utilizing an Expert; is Not an Expense, it’s an Investment - Smart Business Thinking

Utilizing an Expert; is Not an Expense, it’s an Investment - Smart Business Thinking

The company has been in business twenty years. It was starting to expand operations within the local scene.

I was asked to analyze the business plan for the expansion.  I explored the Cash Flow Assessment & Management and was confused. Something was not falling into place. The current cash flow was out of balance. 

The lease on the new space called for rent to begin on a specific date. When that date arrived, the space was still under construction.  The company's revenue and profitability were taking a hit by paying rent for space they were not using.

A solid management process would call for the company to consult a knowledgeable resource (such as a real estate attorney) to review the lease. That would have avoided the cash drain. 

Bottom Line?

I directed the CEO to try to negotiate the removal of that clause. Fortunately the landlord agreed to waive that provision. If the company considered using a resource in the area that was unfamiliar to them, the fee would be an investment, not an expense, and operating income would not have taken a hit.

Jim is an expert business coach and a respected advisor to management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.   

A Listening Sales Person Increases Revenue & Profits - Smart Business Thinking

A Listening Sales Person Increases Revenue & Profits - Smart Business Thinking

My washer is broken. The spinner doesn’t spin and the water doesn’t drain.

So naturally I research Consumers Reports (CR) for the Best Buy (BB) washer – It’s a perfect fit for me.

To the local appliance store for the BB.

Tell the salesman I want the washing machine listed as the BB. But he doesn’t listen. Shows a competing brand that has more buttons than a space ship. “No, don’t have a house full of teenagers, just want clean socks, towels etc.”

He wont let up - shows another model. By this time I am frustrated that he is wasting my time by following his sales track paying no attention to my expressed needs. 

He realizes I am becoming irritated and ready to walk. “We have your BB in the warehouse…but it will take two weeks to deliver.”

"Two weeks? They can build one in two weeks. I’ll take the BB".

Some time later the dryer quits. Back to CR for the BB. Back to same dealer. Different sales person – same routine – this time I walk and buy from a different store.

One sale, one commission, and a company profit opportunity lost. Hardly the smooth-working company management assumes it to be. Plus an inconvenienced customer who will spread the word.

Bottom Line?

As an advisor to the CEO, I would revamp the sales process so that it delivers buyer satisfaction in each phrase of the experience. The customer will often tell the sales person what they will buy. Listening to the buyer will lead to improved performance and a satisfied customer.

Jim is an expert business coach and a respected advisor to management and financial executives. He draws on his long-term business leadership background to help CEOs grow revenue, increase profits, improve performance.