Wednesday, April 23, 2014

The Power Of Math In Selling

Obstacles are necessary for success because in selling as in all careers of importance, victory comes only after many struggles and countless defeats”   Og Mandino (12/12/23 – 09/03/96) author of The Greatest Salesmen in the World


Granted, when we sell we must expect that not everyone will say “Yes”.  In fact, it has been said that to ease the stress of the “No”s you could thank the prospect for actually saying “No”.  What?  Why would you thank the prospect for saying “No”? 
Well one, it will differentiate you from every other sales rep/business owner that pushes and pushes tying to find a new angle to get to the “Yes” .  Being different may extend the sales conversation because it is a natural response for the prospect to ask “why would you say thank you?”  Oh look you are back talking with the opportunity to rebuild rapport and fix whatever went wrong.
Secondly, selling is about math.  If you take the time to track your sales success you will come to recognize that your ability to close is as predictable as a batter’s hitting average in baseball.  As such, the script to the prospect when they ask why are you saying thank you is “because your “No” get’s me that much closer to my next “Yes”!”
I’ll come back to your batting average in selling in a moment.
In this article we’ll delve into the importance of understanding your mathematical statistics to focus your attention on selling more effectively.  Saying that, I know a bunch of you non-math people are ready to head off to another blog.  Wait!  Check out this video of Ma & Pa Kettle.  If you can handle  1/5 of 25% better than they can you’ll do just fine with the balance of this article.


With that fun, here is the #1-Secret of math to improve your selling:

Reduce your Annual Revenue Target to a Weekly Appointment Activity
    • That firstly requires that you set an Annual Revenue Target so do that first.
    • I’ll assume you decided on $1,300,000.
    • Determine your Average Revenue/Sale =Total Revenue/Total Invoices Issued over a reasonable time period (min 90-Days)
    • I’ll assume your Average Revenue/Sale = $10,000
    • With that I now know you need 130 closed sales this year to meet your Revenue target ($1,300,000/$10,000)
    • Now I also know you then need 11 closed sales/month (130/12) or 2,7 sales/week (130/48) allowing for 4-weeks vacation
    • In doing this exercise we have taken an Annual Revenue Target and made it an “in-your-face” activity target
    • Let’s go one step further determining your Close Rate.  Close Rate = # Closed Sales/# Appointments over a reasonable time period (min 90-days)
    • I’ll assume your Close Rate = 30% meaning in every 10 appointments you close 3.
    • With that I now know you need 9 appointments/week to achieve your $1,300,000 Annual Revenue Target.  Now you have a pure activity target that when you achieve it the desired outcome will be achieved.
That is why math is so powerful because it never lies.  When I meet the goal of 9 appointments/week, I will close 3 and at a $10,000 average I will achieve  $30,000 weekly and with 48 weeks at that level of activity I will generate my $1,300,000 (actually $1,440,000 with rounding.
Do this exercise and post on this article what you discover about your selling statistics.
Want to learn more about “Knowing Your Statistics” for your business and the power they hold for you? 

 Register for FREE from upcoming Radical Focus Workshop on May 10,2014 HERE

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