By Kevin Cundiff – VP Warranty Retail, Fortegra
When it comes to sales, measurement of a successful salesperson or team can be determined by answering two questions:
1. How much is the final sale?
2. How efficient are my representatives?
Sales account reps and managers are focused on numbers and tactics that will work toward the ultimate goal of selling more with less. So, there’s no room for wasted efforts that don’t produce returns. Whether you’re on the floor working with new and old customers each day, or overseeing an entire sales team, there’s always room for improvement and adopting new methods that may boost your final figures.
Here are a few simple tips you can share with your sales team for getting more dollars out of each sale.
Sell Add-Ons As A Need Rather Than A Want
When it comes to boosting the final sale price, one of the most straightforward methods is, of course, adding more to the initial purchase. For sales team managers, it’s important to communicate that add-ons shouldn’t be treated as such; otherwise your team’s customers will have the same outlook and your add-ons will remain on the shelf. Instead, position add-ons as necessities, not as extras.
Offer extended service plans, not just manufacturer's warranties, as added peace of mind for customers with pets, children, or messy hobbies. Standard manufacturer’s warranties won’t cover accidental damage outside of part malfunction; so communicate with your team the importance of buying in to a service plan that will save money long term. It’s important your team is properly trained on what service plan is offered, and how to properly sell those plans as an extension of a big-ticket purchase. Service plans will boost your team’s final sales figures, and can open the door for extra commission opportunities.
The same goes for delivery services and specialty items like mechanical beds or expensive upholstery. Rather than offering extras at closing, train account reps to talk through add-ons during the selling process, providing situational examples for added validity.
Determine Your Moneymaking Merchandise
Though dependent on specific portfolios, figure out which merchandise is driving the most profit and capitalize on it. Under the assumption it will lead to higher sales volume, salespeople often get pigeonholed into bringing in or engaging with as many new customers as possible. While true to some degree, your team can see higher success (and numbers) from selling more of the merchandise that really moves.
Try targeted promotions and pricing best-selling merchandise at a lower price to create the sense of buying at a discount. Work with your entire team to determine what items are the moneymakers, and put your expertise together for ways you can sell even more. Share margin data with your teams and drive behavior by incentivizing them with compensation plans constructed to focus on profit, not price. This is different for all retailers, but it can be as simple as offering free same-day delivery or in-store credit with the purchase for added customer loyalty and spending.
Put An End To Unmotivated Selling
Putting an end to unmotivated selling actually has a lot to do with properly educating your sales team, and less to do with your actual customers. You know the age-old saying ‘You can lead a horse to water, but you can’t make it drink?’ Cliché? Perhaps. But it’s applicable to getting the most out of your sale. The moment your sales rep realizes a potential customer has no interest in buying, or doesn’t understand what they want, it’s time to withdraw from the opportunity. This should (obviously) be done politely and professionally, so as to not deter the customer from returning in the future, but the conversation has to stop there.
Train your sales team to recognize body language cues that will allow them to know when to not spend any more time (read: money) on unmotivated customers who are just browsing or price shopping. Ending these opportunities early allows your team to better engage with other customers, or spend extra time on already warm leads.
The sales landscape, specifically furniture, will always come down to numbers. Make these practices a part of your daily selling strategy and get more dollars out of your sales.
For more information, visit fortegra.com.
About Fortegra: Fortegra, a subsidiary of Tiptree Financial Inc., is a single source insurance services company that, through a network of preferred partners, offers a range of specialty program underwriting, credit protection, and warranty solutions. Delivering multi-faceted coverage with an unmatched service experience for both resellers and their customers, Fortegra solves immediate, everyday needs, empowering consumers to worry less and Experience More.