winning in sales. stop and assess what is your current structure? what are your current goals? look...
TRANSCRIPT
Stop and Assess
• What is your current structure?• What are your current goals?
• Look at:• Pricing structure• Closing Ratios• Dig into the previous leads and customer base• Techniques• New volume discount program!
MODI – Price Adjustments
• MODI 2 will allow you to change the MSRP by a percentage amount
• Many things to consider before you act
What are your current pricing structures?
Consider each of the following components:● Sales Tax● Shipping● Measurement and Installation Fees● MSRP and margins● Discount Programs
Sales Tax
Use Tax Sales Tax
Indow = Tangible property that becomes part of real property
Indow = Separate product/purchase
Calculated on the wholesale price
Calculated as a line item
Often lower rate Often a higher rate than use tax
Shipping
● Typical cost is 8% for high volume, 13% for low
● Allows avoiding conversation around freighto Product holds weight of the valueo Not recommended for new dealers (need a
consistent order flow)
MSRP
● MSRP is publically listed on our site, so you will enter into risky territory if you cannot justify the cost.
● If you feel you have to adjust the MSRP, we suggest no more than 20%, and be prepared to negotiate and come down when appropriate.
MSRP
● Remember to strike a balance to effectively sell
● EX. Adjusting MSRP due to marketingo If only spending 7% towards
marketing, you are not making any sales
o If spending more but you mark the product up too high, you won’t make sales
MSRPThere is an easier way to increase your margins!● Concentrate on getting your sales
volume up in order to hit your sales target to bump margin.
● Encourage high volume sales (over $2500) to get another 10% off MSRP with our *NEW* Volume Discount program
New Volume Discount Program!
● We offer a 10% discount off your wholesale price for all orders over $2500 MSRPo Automatically added in (do not have
to put on estimate)o Great time to reach out to clients
who were offered old volume discount rate
o Contact us about very high volume jobs (commercial) for larger discounts
o Effective on October 6
Measurement and Installation Fees
• New self-install program great opportunity to readdress fees
• New admin controls in MODI will make fee controls easier than ever
Measurement and Installation Fees
How to calculate?o Usually 5 minutes/window to
measure but could be 10-15 minutes when starting out and learning
o Incorporate travel time, usually 1 hour
o Round down a bit on price because anything over that first hour will not have travel time built in
o Set a minimum of 1 hour worth of measurements
o Apply our formula…
Measurement and Installation Fees
● Average travel time + windows/hour x labor rate = measurement fee per windowo Ex. 1 hour travel + 1 hour
measurement (6 windows) x $50 = $100/6 windows = $16.60 but round down = $15 a window with a $90 minimum
● If offering installation services, same formula but it will often be 10-15 minutes a window
Looking at your closing ratios
● Average closing time = 50 dayso Can sometimes range up to 100-200 dayso Aug 2014 = 42.38 days
● We are not a 1 call close company! 1 call close companies have…o Low repeat businesso High employee turnovero Pay a lot for bad leadso Every day they start over
Looking at your closing ratios
● We are a product that builds relationshipso You become their window and comfort advisoro Huge cross selling possibilities
● 33% of estimates become saleso If you run 3 calls and do not follow up, you lose a saleo You have also increased lead cost 30%
Effectively communicate and sell
● Organize your lead communicationo Have a CRM in place to log leadso Every lead should have a task and a reminder
and do not stop until you get an answero Utilize MODI’s new features for lead tracking
Effectively communicate and sell
● Phoneo 6-7 phone calls to follow upo 1 minute call to leave a
message = $5 investment vs. $30-$40 for a new lead
● Emailo If you have a number, CALLo Use thoughtful templates that
you optimizeo 6-7 emails to follow up
Going back to your lead base
● Newsletters to your business’ customer baseo Use the
templates on the Dealer Resources Pageo Specials and discountso Fear of losing out (seasonal switches)o Helpful hints (reseating for the winter)
● Email and call outstanding Indow leads in storageo Fear of losing outo Indow company news or new case studieso 6-7 emails to follow up
Expand your lead base
• If you want to hit a sales goal you have to generate new business. Our organic traffic alone is not enough to hit your targets
• Packages that make it easy• Networking resources to help guide
you
How much should I spend?• $60,000 annual sales goal
($15000/quarter) = $1500 average sales size = 40 sales = x3 (33% closing ratio) = 120 leads
• Lead cost ranges from $20-$50 and decreases the more you do
• $40/lead cost = $4800 spend = GOLD Marketing package of $1200/quarter
• 8-10% of sales goal should be marketing budget
What are your techniques?
● Have an internal process for lead flowo Utlize lead qualification
sheet and sales guideo Know how
email templates incorporate