I’m guessing that you make around 15 stops per day and that you see around 45 technicians. Some days more, some days less, but for this example we will use these numbers.
Fifteen stops. Do you sell something on every stop? Probably not. If you sell something to 20 of the 45 people you interact with that would be a 44 percent closing ratio. I’m guessing this would be a pretty good day?
Now let’s get deeper into this numbers topic and make your numbers pay off with additional revenue and profit.
Let’s first define a presentation. A presentation is a serious features, advantages, and benefits product demonstration/discussion to a prospect who has shown interest in buying. This presentation is planned and conducted with a demo, catalogs, and pricing. Simply asking a technician if they are interested in seeing what is new in tool storage is not a presentation.
You might be wise to analyze your presentations on three or four levels. You can change these levels as your see fit, but here are my recommendations:
1. Presentations for sales of $500 or less
2. Presentation for sales of $2,000 or less
3. Presentations for sales over $2,000
Now do your best to figure out your closing ratio for each presentation level.
Logic tells me that you are usually presenting something valued at $500 or less on just about every call, and something over $2,000 or more every other day or so. If you are selling something to 20 of your 45 daily contacts as mentioned above that is a 44 percent closing ratio, which is good.
Your closing results quickly become more financially important when you analyze your higher valued presentations.
If you are giving three high value presentations per week or 156 per year at only the $2,000 level, that adds up to a $312,000 annual potential. This potential is probably much higher since a nice tool storage order is $5,000+.
A successful closing ratio of 20 percent of one out of five presentations would produce (at $2,000 per sale) a revenue of $62,400. A minor 15 percent closing rate improvement to 23 percent would bring in sales of $71,760 or $9,360 more revenue. So what happens to your revenue and income if you set your goal and meet that goal of closing 33 percent of your major presentations? Just one deal per week. Even at just $2,000 per sale that is $102,960 in revenue and $40,560 over the previous 20 percent closing ratio.
