Do you know what your lost sales cost you each month? Every year? Let me give you two quick examples. It is what we call – The paradox of lost sales.

Example One: Your average sales are $1,000 per order. He has five salespeople on his team, and his average closing rate is one in three sales presentations. They see approximately thirty potential prospects each month. So – the results; Your average salesperson closes ten sales a month for $10,000 in total revenue each month. So your organization is closing 50 sales a month for $50,000 in revenue. But you’re also losing 100 sales a month (2 out of 3 don’t close) totaling $100,000, or about a million dollars a year in total lost sales.

Example Two: Your average sales are $5,000 per order. He has twenty salespeople, and his average closing rate is one in three lead presentations. They each see forty potential prospects each month. So the results: Your average salesperson is closing 13 sales per month for $65,000 in revenue times twenty salespeople, so the organization’s total monthly revenue is just under a million and a half or about $60,000,000 per year. but – you are also losing almost three million in monthly income or $36,000,000 per year.

To sum up:

Example One – Annual sales revenue $600,000 – Lost sales revenue for the year – $1,000,000.
Example Two – Annual sales revenue – $18,000,000 – Lost sales revenue for the year – $30,000,000.

Regardless of your organization’s products or services, number of sales employees, your lead generation model, your competition, or your market share, the above paradox generally applies and why?

First, very few salespeople or organizations have a 100 percent new customer close rate.

Second: All organizations sooner or later lose clients or customers for various reasons.

Third – Every day the world becomes more competitive.

And fourth: If you’re not reinventing yourself, staying ahead of trends, and staying in touch with reality, it’s only a matter of time before you become a statistic.

So let me ask you: if I asked you the following question, what would your answer be? “If you could invest, say, $25,000 in any of the above situations to cut your ‘lost income’ losses by, say, twenty-five percent or even half, would you?”

Well, teaching contemporary and proven sales techniques to hundreds of organizations around the world for over thirty-five years. Guess what is the most frequent response I’ve gotten to this question when I’ve asked it?

No. So, you would be willing to give up more than +/- 50% of your potential income if you don’t invest a few thousand dollars in training your sales team, customer service employees, or other employees who interact with your customers the essentials. and/or creative communication, sales and negotiation skills to ensure that you do not lose this income year after year because they lack these skills or attitudes necessary to perform with consistent, effective and creative excellence?

I get it, unless you can guarantee that you won’t stop losing this income, why take the risk? There are other important things you can invest or spend your money on: more technology, better offices, or employee compensation. Yes, but if you add up the losses over the years, imagine what you could have done with that extra income month after month!

Yes, the sales process has evolved over the years thanks to technology. Yes, the world is becoming a global village. And yes, with social media, online shopping patterns, and economic uncertainty, things are changing. But there are three things that are not changing. One: people buy from organizations and people they trust. Two: Technology will never fully replace the human touch when it comes to important, critical, or meaningful purchases. Three: Success will always involve a “blending” process: blending the best strategies, approaches, and techniques from the past, present, and future.

If your organization is losing more sales revenue than it’s making (and you’d be surprised how many organizations don’t know these statistics when it comes to lost sales percentages or ratios) and you’re ready to get ahead of the curve when necessary. it gets to the sales and marketing philosophy and performance based approaches do something about it.

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