Posted by: JC Gatlin | April 25, 2010

Sales isn’t a Numbers Game; It’s a PDCA

 

Most New Home Sales Professionals cringe when they hear the old cliche: “Sales is a numbers game.” The old adage that says, “Contact 100 people, get 10 appointments, write 1 sale” is a formula that may represent some sales person’s “numbers” somewhere, but those aren’t necessarily everyone’s numbers. Sales is an art, I’m told again and again. Sales is about knowing what your customer needs, and then fulfilling that need. New Home Sales is about providing a pleasurable home buying experience. It’s about building trust and forging relationships. It’s about guiding people through one of the most important investments of their life. To reduce sales to a “numbers game” is to strip the personality and expertise from the New Home Sales Profession.

Well, they’re right — in part.

Selling is an art, but it’s first and foremost a science. And like all sciences, the personality, expertise and profession securely fits onto a frame of mathematic consistencies. X number of contacts = Y number of appointments = Z number of sales. The formula may vary from Sales Professional to Sales Professional, and the numeric requirements for X may grow and shrink depending on market conditions, location, competition and other external factors. Still, when all is said and done, sales is about numbers. It’s the numbers that breathe life into the sales process, that allow the art of selling and make achieving targeted sales budgets a reality.

So where do the numbers come from?

They come from Planning-Doing-Checking-Adjusting (PDCA). That means, design your activities with the expectation in mind. Then measure the results against the expectations. Good numbers are based on real world sales activities. A Sales Professional tracks all sales activity, at every step of the sales process, from web leads to responses to ads to phone calls to model home visits to writing the contract. By checking and measuring the results of each step of the selling process through PDCA, a Sales Professional will refine his or her selling skills along with the sales tools. The result is steady, continuous improvement.

© April 2010 Homebuilding Partners, Inc.   twitter-logo

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Responses

  1. What a great explanation of PDCA for Sales and how this scientific methodology of PLANNING –DOING — CHECKING & ADJUSTING is a tool to reach a goal.

    If I plan to sell 2 houses and I do certain things to achieve this goal, but when I check the reports (or my bank account 🙂 ) that I did make it – I need to adjust what I am doing.

    For an occupation that is commission based, this scientific methodology can really help and offer support in a Sales environment.

    Fantastic article JC!

  2. […] need to set to sell one home? 10? 15? 20? 40? This is critical to answer. If you don’t know your sales formula (X appointments = 1 sale), then it’s pretty clear why you’re not doing as well as you could be […]


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