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> Living on the Top Line - The Book > Joe's Blog > Here's All You Need to Know About the Recovery For Furniture Retailers
Here's All You Need to Know About the Recovery For Furniture RetailersIts already here! In fact, its been here forever but you didn't need it when we were furnishing all those McMansions with five bedrooms, three living or family rooms including the master bedroom "suite" in Tarrytown New York that I grew up in. You didn't see it then and now, when you need it, you can't find it. Here's what I'd like you to do. This works no amtter how big or small your business is, but it REALLY will knock your socks off if you have a large sales staff.
Get three months data together for all your people showing their number of customer opportunities (UPs),their closing ratio, and their average sale.
Calculate the average for the group in both close ratio and average sale. Figure our how much more sales volume would have been generated over the time fram you selelcted if those people below average in each of the two factors (close ratio and average sale) had performed at just average levels.
Next calculate how much more sales revenue would have been generated if everyone performed at the highest level in each category.
Finally, eliminate the data for those below average in each of the two factors and calculate the average of the people above average. Calculate what your sales revenue would have been at those levels.
You will see that your "economic recovery" lies right there in the variance in the performance of your people. The Range-of-Performance is where your growth lies. Some people need to know new things about how to improve their close ratio to the level of other people in your company. Others need to know what to do to improve their average sale.
This is what training and coaching on the floor by sales managers is supposed to accomplish. You CAN improve the performance of individual players. You CAN get more out of the customers you already get without spending one more advertising dollar than you're now spending. You don't need any more customers. You need better performance.
Finally, if you have all the above data, divide each person's sales revenue by the number of customer opportunities they served over the same time period. Rank them by this number. This number, known as Performance Index or Revenue-per-UP, answers this question: How many dollars can I put in the bank every time this person (any person) takes an UP?
There's your recovery in a not-so-small nutshell.
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