You want to reach a big sales goal, but is that number realistic?
How do you know what number should be your sales goal for the quarter or year?
There is a simple 3-step system you can go by to solidify your ideal sales goal that is realistic yet, challenging at the same time.
Whether you have a sales team or completely responsible for sales you must have your sales calculation derived from prospect to paying customers.
You need this number to understand how many sales conversations you must have with ideal customers to obtain your desired sales goal.
If you have 100 sales conversations with prospects in Quarter 1 and 50 become paying customers for a $5,000 service.
This means, your sales conversion rate is 50% and within 100 sales calls you will make $250,000.
If you wish to make $500,000 in sales next quarter you know that you must hold 200 sales conversations.
If you are unable to hold 200 sales conversations and still want to make $500,000 in sales next quarter you can do this instead…
If you are only able to hold 100 sales conversations and cannot increase the amount of sales calls but still look to scale your sales to $500,000 you must increase your product or service rates.
Many entrepreneurs have difficulty increasing their prices as it usually is directly related to personal limiting self-beliefs in how valuable you feel you are to your customers and at times, the world.
Take this into consideration if you are feeling a self-worth challenge or simply don’t see a reason to increase your package or product rates…
Currency inflation rates within the United States alone changes year to year but have a habit of staying within 1-3%.
This means that the $100 you have sitting in a bank account from last year was affected by the 1.9% inflation rate in 2018. This equates your $100 in 2019 is now worth $98.1 as it had decreased by 1.9% in value.
Your programs and products are also affected by inflation. They are no longer as valued as the year before. I always encourage my clients and entrepreneurs to increase their prices every year.
If your $5,000 service in 2018 should now increase at least with inflation rates – 1.9% which equates to $95 for a $5,000 purchase). I suggest you round up to stay ahead and make the $95 increase to $100 for a total of $5,100. – which equates to 2%.
After increasing your rates to keep up with inflation it will still not allow you to reach goals that are doubled. Additional to inflation rates compensation increase the amount of value you provide your customers without having to spend much time in deliverables.
Extra valued deliverables can include but are not limited to online recordings, free tickets to events, VIP access, or additional laser-focused sessions with the expert.
Quite simply, you cannot have more sales calls or conversions without having more leads entering your sales funnels. This also means that your calendar must be optimized for the lead generation activities you will need to dedicate time towards and all the sales conversations you will need to host.
If your calendar is currently optimized for 100 sales conversations and you want to reach 200 your calendar must be able to accommodate them.
This will also mean you must outsource tasks and duties to other people or hire more salespeople to accommodate your coming increased sales calls.
Scaling sales is simple to do but it comes with plenty of residual strategies.
How do accommodate the new sales? Where will you source the new leads? How will you deliver your service or products to these new clients?
Rarely, scaling business and sales is not simply to go and find more clients, convert them into paying clients, and then send their deliverables. It comes with knowing how to keep your systems and operations together during scaling as well.
Before you get into systems and operations alterations you must identify your current conversion rate, increase your prices accordingly, and prepare your sales calendar (and team, if applicable) to handle the influx in sales conversations and customer deliverables.