In a recession, companies often cut back on sales expenditures. This is exactly the wrong thing to do.
Mr. von Strasser, LimoLive24′s CEO, comments:
“In difficult economic times, the urge to cut expenses often spills over to include the sales department. Your sales pipeline is dwindling. The low hanging fruit has all been picked. You might erroneously conclude that sales are insufficient to justify current sales expense levels.”
“Cutting expenditures in the sales area reminds me of the days when physicians put leaches on sick patients to heal them. Sucking the life blood out of sales’ budget can kill or cripple your company as surely as leaches did its patients.”
“Cutting the budget in sales is like taking a wrecking ball to your front line. You are counting on your sales team to generate enthusiasm among your customers and prospects at the very time you need that enthusiasm most. Let there be no budget wrecking ball in sales that kills momentum and enthusiasm.”
“Even in a recession, when your industry’s sales are down by 6%, 94% of sales are still being made. Even if your industry’s sales are down by 50%, the glass is still half full. And your sales ‘glass’ can be totally full if you have the proper mechanism in place to proactively go after sales, no matter what your industry level is.”
“A few years ago, one of my associates worked for a consulting firm that had a separate in-house sales lead generation department. This company grew from first year sales of $355K to $250M at an average rate of 48% each year from its inception in 1991 through 2006, a fifteen year record. From 2001 to 2002, during our last recession, the average growth rate for all products and services in the United States as measured by Gross Domestic Product fell by 46%. His company experienced a 4.4% growth in sales. He grew at a 50.4% rate compared to the average of all other companies during a recession (4.4% + 46%). The single most important factor driving our growth during the 2001-2002 recessions was their ability to increase sales lead generation activities to increase our pipeline.”
“Instead of cutting sales expenses, direct your resources to more productive methods of generating leads. Filling your pipeline will serve you far better than starving it. LimoLive24 is dedicated to helping you accomplish exactly that, at a price point that is manageable for smaller limousine companies with more limited resources. As you read through LimoLive24′s website and then speak with us, you will see how we can dramatically increase sales, no matter what the overall economy is like.”