The Cost of Sales

Discussing costs is a part of every sales cycle, and many sellers bring in the cost of the status quo to help justify the price. Yet we rarely look at our own costs to pursue leads that may never close.

Think about all zombie accounts that hang out on your forecast for months or years that will never close. Pursuing them is a waste of time and money.

So why do they remain on the forecasts?

Because sales managers put pressure on salespeople to have an active pipeline and strong forecast. That forecast is rarely accurate.

When we require sales teams to meet quotas, they will do what they have to do to meet the numbers. Unfortunately, that does not mean sales will increase. In fact, you end up costing the company money as your sales team is focused on a high quantity of leads, rather than high quality leads.

Instead of pressuring a sales team to meet quotas, sales managers should focus on the activities that will yield the best results.

This is a shift in culture that may challenge you as a sales leader. If you need guidance on how to start the transition, consider reading my book, Developing Your Sales Team.