Tweet

It is Easier to Increase Sales than to Cut Costs©

Written by: Bill Truax

Article Overview: Cutting costs seems to be managements' immediate response to tough times. Instead, increasing sales makes a lot more sense and is much more valuable to the company in both the near and far term. However, it requires a change in both management and sales team actions which is difficult. But remember, it is always easier to increase the top line than cut cost!

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,

Bill Truax

© Copyright 2006 WJ Truax

Bill Truax is a sales trainer and consultant living in Cleveland, OH. He has written 3 books and recorded 2 CD's regarding Prospecting in the commercial/industrial marketplace. He offers Prospecting Kits and other materials for sales professionals. Visit his website www.BlitzCall.com and sign up for his Free Prospecting Tips.

Related Articles
  Increase Sales Coaching Tip: Understand How the Nos Get You Closer to the Yesses
  CRM: Who are your most profitable customers?
  How The Cost of New Business Sales Leads Can Improve Profits While You Continue To Increase Sales
  How to Raise Prices
  Staffing in Tough Times

Article Tags:



Related Forum Posts
Online Sales and Marketing vs Traditional - Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Re: Online Sales and Marketing vs Traditional - [quote="ltrahan":31w9r2iz]Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz] I second the request...
Re: Specific Strategies To Raise PR Levels? - Actually PR (Page Rank) is not very important at all these days. The only real exception is if you are trying to sell links. But it definitely doesn't hurt to have it. If all other things are equal then the higher PR site will rank higher. However, it's not very important for the most part. But if you do want to increase it then all you have to do is get more backlinks from sites with higher PR. Easier said than done but that's how you do it.
2007 Goals - My yearly goals for December 2007: 1. Add 10-15 new "ideal" clients to our client roster 2. Increase revenues by $500,000 3. Average at least 1 paid speaking engagement per month.
Increase Productivity and Profits on the Web - A Web site is a great way to better service and market to current customers, but often a difficult way to attract new ones." Increase Productivity and Profits on the Web New! Don’t let the savings and productivity enhancements described in the following pages make you rush out and spend thousands of dollars overnight to have someone set you up with your own Web server, hosted Web site, or intranet.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Why We MUST Reinvent The Wheel

Five Ways to Show Honest Appreciation

When the Going Gets Tough, the Tough Log On

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.