Skip to main content

Increase Your Sales by 61% with 10% Effort

In the next 30 days, I want you to climb your own mountain (read here).  In planning for sales for my own and my consulting clients’ businesses, I typically use the “5-Way Sales Leverage Chart”. (The figures here refer to annualized figures, i.e. for one year)
Target Market
X
Marketing Conversion
=
NO. OF PROSPECTS
X
Selling Conversion
=
NO. OF CUSTOMERS
X
No. of Transactions
X
Average Dollar Sale Price
=
SALES

So from here that you can see there are only 3 things that you work in your sales planning – Your Prospects, Your Customers and Sales.  Notice that these are all the things above that follow the equal signs in the formula above.  They are all the result of something else in the formula, i.e., a result of something. Thus they cannot be changed.  The things that we want to plan to change are the things that are variable, i.e. things that can be changed.  From the above formula you see that there are only 5 variable things – the target market, marketing conversion, selling conversion, no. of transactions and average dollar sale. 

So how to change the 5 things so as to build your business?  Let’s look at an example. I have inserted some simple figures into our formula:
Target Market
4,000
X
Marketing Conversion Rate
10%
=
PROSPECTS
400
X
Selling Conversion Rate
20%
=
CUSTOMERS
80
X
No. of Transactions
2
X
Average Dollar Sale 
$5,000
=
SALES
$800,000

 As a business consultant and business coach, I know there are at least (not exhaustive) 372 ways to increase your sales. There are at least 91 ways to expand your target market, 45 ways to increase your marketing conversion, 85 ways to boost your sales conversion, 50 strategies to boost your no. of transactions, 49 ways to boost your average dollar sale.  Contact me at andy@asiacoachingtraining.com or whatsapp to me at 65-8201-4347 if you want to the list of 372 strategies. 

So let’s rework the formula to build our business.  How about just a 10% increase in each of the variables?  10% increase is dead easy, isn't it? Let’s see, with just a 10% increase in each of the ways, what will our numbers look like?
Target Market
4,000 + 10% = 4,400
X
Marketing Conversion Rate
10% + 10% = 11%
=
PROSPECTS
484 (from the above multiplication)
X
Selling Conversion Rate
20% + 10% = 22%
=
CUSTOMERS
106.48 (from the above multiplication)
X
No. of Transactions
2 +10% = 2.2
X
Average Dollar Sale Price
$5,000 + 10% = 5,500
=
SALES
$1,288,408

I want you to notice something here; for just a 10% increase in each of the 5 ways, we get a whopping 61.05% increase in our sales!  There is huge multiplier or leverage effect.  If you were to increase each of the 5-ways by more than 10%, you’ll get much even doubling or trebling of your sales!  And people told me you can only increase sales by 10% or at most 20% a year!  What nonsense!  Anyone whose business isn't  growing massively obviously does not realize they are missing on so many things. 

The beauty is that the above business formula works in whatever business you’re in.  You can even use the formula for just a department or a division of your business.  I have a coaching client who used this for his team of salespeople.  He simply consolidates all the 5-ways charts of the entire sales team to arrive at the total company’s sale budget. 

What Else Do I have to look at?
Other than the above sales building numbers, you need to look at the systems and people issues in your business.  Systems are what makes your sales work.  For example, if you don’t have good delivery system, how are you going to handle the surge in orders?  Systems are classified in just 4 areas – people and education, delivery and distribution, finance & testing/measuring and systems and technology.  

One more thing: you need to look at your sales management and leadership – how are you going to be a real effective SALES MANAGER AND SALES LEADER?  Are you going to work just as a salesperson or are you a true sales manager or entrepreneur?

The above are some of the pointers that every business should know.  I have made the above simple, and it really is simple, but not easy to do.  If you need help, just contact me at email andy@asiacoachingtrainng.com or whatsapp me at 8201-4347.  Happy sales planning for all!

Andy Ng CA, MBA
Business Coach and Trainer
Asia Coaching Training (Singapore)
Tel: 6225-1784, Email: andy@asiacoachingtraining.com HP: 8201-4347
Visit www.asiatrainers.com for details!

Based in Singapore, Andy Ng has, since 1996, been an international Business Coach and Trainer.  He is the founder cum Master Coach and Trainer of Asia Coaching Training.  To-date, he has coached over 141 business enterprises on a one-to-one basis and trained over 81,131 people in 14 countries including China, Tanzania ,Sri Lanka, Japan, Australia and Mexico. Andy’s training topics include sales, management and executive skills.  Andy has appeared on MediaCorp’s 938Live! “Living Room” program, “Lunch Break at noon”, The Sunday Times, Lianhe Wan Bao, Executive Inc., and other magazines.  Visit www.asiatrainers.com  or call email him at andy@asiacoachingtraining.com now.    
Labels:

Comments

Post a Comment

Popular posts from this blog

What an Executive Coach and Business Coach Does

Post a Comment
Read more

The Secret Under the Mattress: Why would a 79-year Man Bet So Big on 4D?

It was 2007 when we discovered his secret. While moving my father’s mattress, we found them: heaps and heaps of Singapore Pools 4D tickets. They were stacked in layers, a paper trail of lost hopes. What shocked us most wasn’t just the volume, but the stakes. He wasn’t betting a few dollars for fun. He was punting hundreds of dollars per draw—nearly ten times a month. At the time, my siblings and I were furious. Our father was a 79-year-old retiree. We wondered, with a mix of anger and confusion, why a man at his stage of life would need to win such "big money." What was he going to do with the money? We saw it as a reckless habit, a sign of poor judgment in his final years.  Some of us would say, "If I were to give him money to buy 4D, why don't I use the money and buy 4D myself?  At least I have better discipline".  It has taken me two decades, and the experience of raising my own three grown-up children, to finally see the truth that was hidden under that matt...
Post a Comment
Read more

Head Bleeding when the Chair Falls

The Weight of Silence: What Were We Really Arguing About? My earliest memories are punctuated by the sound of shouting. In 1970, when I was barely 6 years old, I stood as a small witness to the fierce quarrels between my father and my late eldest brother Kah Yang (he passed away in 1971 at the age of 17). As I grew up, these contradictions became the soundtrack of our lives, usually centered around our family's shoe shop and clothing stalls in Chinatown. In the court of family opinion, the verdict was almost always the same: my father was "wrong." He was judged as a man who didn't fulfill his role, who wasn't "burdening" enough for the family’s success. But as I look back from the vantage point of 2026, I have to ask: Was that actually true? Let me finally put to rest what my father did right: the truths that were buried under decades of criticism: Unseen Labor: He worked grueling, long hours. I remember him hauling boxes of goods and equipment to set u...
Post a Comment
Read more