How Much Does a Crappy Sales Process Cost?

How much does a crappy sales process cost

I know you’re “covered up.” Most painters are.

For some reason, owners think this is a license to do a “pet the dog, email a PDF” sales process.

“I’ve got more work than I can do,” I hear ya.

But, that’s not the point. Here’s the point…

Your sales process controls a lot more than your “closing rate.”

And don’t think a high closing rate that has you booked out for months is a good thing.

Just the other day, I had a new member join who had a terrible sales process, but he was booked out until next year.

When we did the math, I discovered why. He had sold his services, in an upscale urban environment, for around $35 per hour!

He had an 80% closing rate because he was giving his work away at cost.

Even if you are “covered up,” you should care about your sales process because it controls…

– Your Average Charge Rate Per Hour – If you are trying to sell premium prices services, you cannot do it with a crappy sales process. Clients must see BIG differences in the process, proof and experience if you are to command the maximum ethical charge rate.

If your sales process looks and feels like your competitors, they’ll choose based on price.

– Your Average Transaction Size – Most painters want to get “bigger jobs.” Guess what? When your sales process is great, you’ll land them. If it’s “average,” you’ll lose them.

– Cost Per Transaction – It costs money to generate leads and run sales calls. When you fail to close sales at the rate and size you want, your make less money because the percentage of sales and marketing expense is larger than it should be.

– Money Made “Per Hour” Selling – When you can close the sales you want on your terms, it means you make more money per hour for your sales efforts. Instead of having to see three prospects to hit your sales goals, you can do it in three.

– Future Repeat & Referral Revenue – This is perhaps the most misunderstood consequence of having a crappy sales process. When you lose a good client, you not only lose that sale – but you lose all future repeat and referral revenue that client could bring your company (if you have a system for client reactivation & retention.)

Poor sales processes create a negative “ripple effect” on your income that lasts your whole career.

In closing, being lazy or indifferent about sales simply means you make less money and spend more time doing it.

Being “busy” does not relieve you of your financial responsibility to excel in the sales arena.

If you feel like you are less persuasive than you want to be, reply to this post and let me know.

I’ll see if I can help.

Have a GREAT weekend!

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