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Hiring great salespeople is essential to the success of your business. These employees are dealing with the bulk of your business. The stats surrounding hiring salespeople are troubling. With 70% of hires in the sales field determined ineffective, and only last 18 months, it can be difficult to find great team members. Could your top salespeople be your worst salespeople? In this video, Matt Garrett describes how your worst salespeople may look the best on paper.
‘Good on paper’ salesperson may be actually costing your company money. If you give your salespeople the ability to control pricing, they may be going below the gross margin you need to be profitable. How can you combat this?
First, set a floor price for your salespeople. Set the limit above the gross margin you need to be profitable.
Next, set incentives for salespeople to price above the floor price. If salespeople receive benefits from pricing higher than the floor price, they will be more likely to upsell.
If you don’t allow your salespeople to set prices for your business, set prices at a level with an adequate gross margin for your business to be successful.
We understand that hiring the right people may be difficult. If you follow the steps above, you will likely weed through the bad salespeople in the interview. For more profitability tips check out our Video Content Library.
This post was reviewed by our team of accounting and financial experts. TGG’s mission is to make business owners’ lives better through excellent financial management. We strive to provide the most up-to-date and objective information on accounting-related topics so our readers can make informed decisions based on factual content. All posts undergo a review process with at least one member of our Leadership Team to ensure accuracy.
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Sarah Lamond is a Consulting CFO with TGG. She focuses on improving company’s operating performance through strategic analysis of financial and other operating data. As a CFO, Sarah is responsible for developing financial and operational strategies as well as relying on metrics to maintain or improve business performance along with building relationships with clients. Her goal is to drive revenue and profitability for her clients while still providing insight, guidance, financial foresight and industry experience.
