It is Easier to Increase Sales than to Cut Costs


By Bill Truax


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 expenses.

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 http://www.BlitzCall.com and sign up for his Free Prospecting Tips.


More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Management Information:

Related Articles


Agendas Make Meetings Productive
Having an agenda template that works well for you, week in, week out, creates a consistency which gets your people bought into the process. Delivering an efficiency and effectiveness which makes the most of the valuable time you have together.
Behavioral Interview Questions You Can Use Monday Morning
If past behavior is the best way to determine future behavior then behavioral interviewing is a requirement for anyone serious about hiring top talent. This skill isn't something that should be taken lightly, but everyone's got to start somewhere.
One Thing You Cant Hide
One of the most important of all motivators at work is consideration. Employees report that the best managers they ever had were people who cared about them as people and as friends.
Delegation: When to Delegate, Who to Delegate to
There are some very simple guides for delegation.Most people delegate based on not wanting to do something.
One Crazy Cookie
In order to survive, you have to be happier than if you were in your right mind. Chinese Fortune Cookie When orienting someone new to the company, the last thing I tell them is to, "have fun.
How to Create a Trusting Manager-Employee Relationship
BUILDING TRUST AS A MANAGER: 1. Be reliable.
Tales from the Corporate Frontlines: Employee Ideas Achieve Work Life Balance
This article relates to the Work/Life Balance competency, which investigates how your staff feels with regard to the balance between work and personal life. It explores issues such as priority of family and hours on the job, also covered in this competency.
Creative People, Innovative People
The title implies that some people are and others not.This is a myth.
Using, Choosing, and Using an educational consultant
IntroductionThe aim of this document is to provide advice and guidance in choosing a consultant in the field of education. You may be the headteacher or principal of a school or college, an officer in a local education authority (LEA) or school district, or the director of a private company wishing to undertake work in the educational sector.
Loyalty, Motivation And Work-Life Balance
Managers who aren't loyal to their people can't expect loyalty in return. Companies that complain about employee loyalty have usually done nothing to earn loyalty, often routinely lying to employees, demanding sacrifices that are never rewarded, shunting them aside and casting them off in the name of good business.
Coaching Employees in the Workplace
After a full week of training, you are still a little nervous about your new job. All of the information you need to digest, the new environment you are adjusting to, and the new faces you will be getting acquainted with is just a bit overwhelming.
Humor in Business
With the advancement of computer simulators, anybody can repeat all the business routines before he goes to the field, and have the opportunity of relaxing from the tedious work with numbers. The businessman can concentrate more on the human factors: The Customer Service, the relationships among fellow workers, and self care.
Quick Tip - Effective Meetings Begin With Goals
Goals are critically important for the success of a meeting. You must know what you want so you can ask for it.
Top 10 Things Every Business Should Provide for Every Worker - Including the Boss!
Doing business and meeting the needs of workers is increasingly complex. Employees and managers often prefer a cafeteria-list of fringe benefits (a "flexible spending account") so they can choose increased health care, child care or more time off as their individual preferences dictate.
Gift Giving for Business a Major Headache
Corporate gifting is a big headache for most business owners; how much to spend, who to spend the money on, where to get the gifts, what to get and how to gauge the effect of that giving in terms of benefits for the company are all important questions. When a company decides to give gifts it needs to be planned out as part of doing business, not just a last minute impulse.
The "Better People" Fallacy
It's easy enough to convince your own staff that better people will prevail, even against the odds. It's what they want to hear.
Its All In The Systems
Have you ever noticed french fries taste the same at every McDonald's? The same can be said for Subway and its Italian BMT. How do these fast food icons replicate themselves at nearly 40,000 locations when some eateries struggle to get it right in a single restaurant? The answer is simple: it's all in the systems.
Give Yourself a Boss Day Gift, Part 2: Are You the Position or the Person?
Are you the position or the person?Bosses can lose their own identity sometimes. It's easy.
Never Punish Yourself or Others for Failures
If you want to find success in various ramifications, be it in business or personal relationship, don't punish yourself or others for mistakes, or blunders, or failures, instead encourage yourself.Kim Woo-Choong, founder and chairman of Daewoo, said, "One of my employee went to a casino and lost $10, 000 of the company's money which would certainly get him fired by a normal manager.
The Boss Didn't Understand Why His Staff Wasn't Reading His Mind
Many people believe that everyone sees the world exactly the same way as they do. This is never true and was the source of much turmoil in Dr.