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90 seconds to $uccess Series: The Impact Of One More Sale Out Of 20.

Furniture World Magazine
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ASK FOR THE ORDER

Some suggest the major reason that shoppers do not become buyers is failure to ask for the order.
Of the many additional reasons we see customers leave our premises without making a commitment, three take precedence.

  • We give up too quickly.
  • We come back with the same sales pitch.
  • We rationalize, blame the economy, competition or decisions within our organization.

We’re told that when customers say, “I’ll think about it,” over 70% never return to purchase the product in which they indicated an interest.

One of the most frequent objections voiced is: “Your price is too high.” Yet we are persuaded that less than 10% of the potential customers fail to purchase the product for that reason.

THE VALUE OF INTEREST                                                             

Studies have shown the major reason that potential customers fail to make a purchase is failure on the part of the sales associate to indicate interest in the customer.

Showing the proper interest and allowing the customer freedom to feel comfortable is a fine line that is difficult to interpret because of individual differences in personalities and their needs vs. wants.

In many instances our sales personnel are extremely knowledgeable about the products available on the showroom floor. Unfortunately, in most instances, we lack information regarding competitive products. When we have little or no information regarding other lines and are unable to make a competitive analysis while the customer is in our store, potential buyers frequently leave to shop at a competitor to gain the necessary additional information to make a decision.

BEST SOURCES OF INFO

One of the best sources of information that we tap into to broaden our knowledge are the sales personnel representing the broad base of vendors that contact us on a regular basis.
With greater knowledge and added effort, what’s the result of one additional sale out of 20 if the dollar value of each sale was to be consistent?

Assuming revenue = $ 1,000,000, gross profits of 44% = $444,444 and net profits of 5% = $50,000, one additional sale out of 20 will result in a 5% increase of gross margin.

Albert Einstein said, “The eighth wonder of the world is compound interest.”
One of the wonders of business is the increase in profits resulting in the increase in revenues.

The average American spends 4½ hours each day watching television.

Spending 20 minutes each day or less than 2 hours or 5% of their time a week with your retail associates learning one new selling tip or reviewing sales successes can provide huge dividends and significant rewards for you, your sales personnel and the bottom line of your income statement.

One of the most profound speeches recorded in history was delivered by the man who saved Western Civilization during World War II.

After the conflict ended, Winston Churchill was requested to deliver a commencement address to the graduating class of Cambridge University.

With little fanfare he offered the succinct advice: “Never give up! Never give up!” and simply returned to his chair.

That sage’s advice is as applicable in the realm of business today as it was 65 years ago in the battle for good over evil.

THE RESULT: IMPROVE BOTTOM LINE BY 44%

Making perseverance and constant improvement our daily motto, achieving one more sale out of 20 can improve a bottom line as much as 44%. Few investments in your time, interest and energy will provide you a greater return.


Ray Morefield has been affiliated with leading corporations in the housewares, hardware and coatings industries. He has also served other industries in an advisory capacity through Common Goals, Inc. Questions or comments can be sent to him by emailing editor@furninfo.com.


Ray Morefield has been affiliated with leading corporations in the housewares, hardware and coatings industries. He has also served other industries in an advisory capacity through Common Goals, Inc. Questions or comments can be sent to him by emailing editor@furninfo.com.


Read other articles by Ray Morefield

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