Posts Tagged ‘Keith Barrot’

Keith Barrot

Effective Prospecting

Why do you operate where you do?  (Third in a series)

This is an interesting question and the answer will always give an indication if the salesperson responding is operating like a business, that is, with an eye on profit.

Do they have a vision, goals and a prospecting plan how to get there or are they just treading water, treating every day as it comes using the luck and hope theory for one of the most important aspects of their business life.

Too many salespeople today are unfortunately not getting the full enjoyment from a profession that can deliver so much due to the fact they are frustrated with the hours worked, costs involved and the feeling of being a POW (prisoner of work).

By taking the time to understand what is involved in prospecting a business area, with the goal of sales today and in the future, they will soon dispel negative feelings and build an attitude of confidence through taking control.

To answer the question of why you operate where you do needs to be seen in commercial terms as it is only from this stand point will you assess the financial viability of your reward for effort.

Where ever you operate or the model you work under the market you are in needs to have the potential to deliver an income you are satisfied with and meet your sales and income goals.

Do the annual sales of the area and the price of the properties deliver enough dollar value to give the opportunity, through effective prospecting, of increased market share and a growing income?

Are you prepared to give up those areas that after careful analysis don’t offer the return you need to justify the time, effort and cost of maintaining a presence?

Interest-Rates-1

In the area you operate can you build the relationships needed through the effective prospecting that is required for long term repeat business and future re-sales in five, ten, fifteen or twenty years?

Will the expense of marketing in your area be cost effective, fit your budget and deliver the results you desire?

What level of market share in your area do you need to generate the income required based on the average sale price and the level of commission you can charge in that price range?

The common mistake made is to focus purely on turnover and gross sales, but it is the costs of obtaining the business in the end that will determine if the profit margin is at or above the industry standard.

Activity for activities sake results in a feeling over time that is similar to the mouse on the running wheel, after great effort, the long hours, time away from family and the expense the result at the end seems to be just not worth it.

This will result with the salesperson, who, was once satisfied with all the activity and gross sales looking back and seeing that the money in the bank is less than expected, overheads have diluted the profits.

It can be seen time and again where an agent will dominate an area by being extremely active, but after a time they disappear, they failed to do the basics of prospecting and building their business for the future.

Burnout in selling is real and many good salespeople leave the industry but with some careful thought and planning in where and how they operated they could have stayed the course and reaped the rewards.

When answering the question “Why do you operate where you do” your response has to be one that can spell out a clear plan based on sound market analysis and show a satisfactory financial return from your prospecting activity.

“Your future is in you hands, prospecting is the lifeblood of the salesperson”.