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The Cost Of Inaction Within Sales

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In sales, the cost of inaction refers to the potential lost opportunities and revenue that can result from not taking action, such as not following up on leads, not closing deals, or not investing in sales and marketing efforts. This cost can have a significant impact on a business, particularly in a competitive market where every lost opportunity represents a missed chance to grow and succeed.

Too often companies do not accurately calculate the opportunity cost of inaction because they have a misaligned perception of their own business and the marketplace.

One of the most common mistakes is leaders only value their selling hours at salary+commission+direct expenses = Cost of selling/ # of hours selling

Ex. 50k Salary + 25k Commission + 10k Expenses (gas, etc)= 85k/2000 hours = $42.50 per hour

The real cost is as follows:

Cost of Selling + All Operational Costs + Overhead + Management Cost= True Cost of Selling/#selling hours

Ex. 4 salespeople total

85k * 4 + 2M + 1M + 500K = 3.84M/ 4*2000 Hours = $481.25 per selling hour

When you get this math correct then you realize spending that extra 100k on marketing or $12.50 per selling hour to maximize their efforts is a drop in the bucket. This is the everyday mistake 95% of leaders are making but not valuing this equation properly.

This is why spending on sales systems, processes, and sales channels (lead producers) can magnify exponential results in short order.

Just imagine with the right system & process your salespeople go from spending 33% of their time selling which is the average to 66% of their time selling which is not that hard to achieve. You have just 2x your potential for output.

Now consider you add an extra 100 leads to the mix a week @$50 per lead + $5,000 a week in spending on outbound email, texting, and LinkedIn.

You can convert @ 5% with an average sale of 10k = 50k in new weekly revenue. This is how just a few small tweaks can lead to a waterfall of business.

Most salespeople we find in legacy companies have talent but are under-nourished beyond belief because they are expected to go hunt, kill, and keep without support. 20 years ago this model worked but now the competition is utilizing the new tools and making the world go 10x the speed.

Inaction can cost you your place in the marketplace and even the business as a whole. As the great & wise Ricky Bobby once said- “if you ain’t first, your last”

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