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FOR ALLOWING ME TO SPEAK AT YOUR CONFERENCE FOR THE THIRD TIME! JAMES LARSEN. THANK YOU CANADIAN ASSOCIATION OF MOVERS. THE PROFITMOVERS™ GUIDE TO BUSINESS SUCCESS. BY: JAMES B. LARSEN JBL ENTERPRISES. COOK THE BOOKS. “INCREASE REVENUES”. CUT COSTS. OR. COOK THE BOOKS.
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FOR ALLOWING ME TO SPEAK AT YOUR CONFERENCE FOR THE THIRD TIME! JAMES LARSEN THANK YOU CANADIAN ASSOCIATION OF MOVERS JBL ENTERPRISES
THE PROFITMOVERS™ GUIDE TO BUSINESS SUCCESS BY: JAMES B. LARSEN JBL ENTERPRISES JBL ENTERPRISES
COOK THE BOOKS “INCREASE REVENUES” CUT COSTS OR COOK THE BOOKS JBL ENTERPRISES
AMERICA'S BEST PERFORMING COMPANIES INCREASE REVENUES BY 10 PERCENT OR MORE FOR 10 YEARS OR LONGER! JBL ENTERPRISES
6 MONTHS GREAT SO WHAT ARE YOU GOING TO DO ABOUT IT? 6 MONTHS BAD JBL ENTERPRISES
WHY HAVE WE FAILED IN ACHIEVING OUR GOALS? • WE WERE ALLOWED TO FAIL. NO NEGATIVE CONSEQUENCES. ONLY POSITIVE CONSEQUENCES. • INDIVIDUALLY WE WERE INTERESTED BUT NOT DEDICATED. • SOME OF US WERE ALLOWED TO OPERATE IN OUR COMFORT ZONE. • WE PROCESSED A PARADIGM TO FAIL. • NOT FOCUSED. WE HAD OUR TARGETS BUT DID NOT FOCUS ON ACHIEVING THEM. • WE WERE NOT HELD ACCOUNTABLE FOR ACHIEVING OUR GOALS. • WE DID NOT POSSESS THE INTERNAL FORTITUDE. INDIVIDUALLY WE WERE NOT PERSISTENT AND CONSISTENT. JBL ENTERPRISES (READ THIS PERIODICALLY, AT LEAST MONTHLY AND ADJUST YOUR THINKING ACCORDINGLY)
WHY HAVE WE FAILED IN ACHIEVING OUR GOALS? • THERE WAS NO FEELING OF URGENCY. • WE SHOULD START “FIRED UP” AND BE DEFUSED BY THE FIRST ONE-THIRD LOSSES. • OUR COMMUNICATIONS WERE NOT SUFFICIENT. • OUR TEAMWORK WAS WEAK. • OUR “COUNTER MANAGEMENT” WAS INSUFFIENT AND THEREFORE COSTLY. • NATIONAL ACCOUNT SALES WERE UNDEVELOPED. • AN ABSENCE OF FORMAL PROCESSES. • NOT COMMITTED TO CHANGING OUR BUSINESS MIX. JBL ENTERPRISES (READ THIS PERIODICALLY, AT LEAST MONTHLY AND ADJUST YOUR THINKING ACCORDINGLY)
SALES FORCE ANALYSIS SEE HANDOUT #1 JBL ENTERPRISES
SALES ANALYSIS SCORING • 0-33 POINTS - YOU FLUNKED THE TEST • 34-66 POINTS - YOUR SALES TEAM IS MEDIOCRE AT BEST • 66-102 POINTS – WHEN YOUR SALES TEAM FALLS IN THIS RANGE YOU ARE SUCCESSFUL IN INCREASING SALES JBL ENTERPRISES
HOW CAN I INCREASE SALES? JBL ENTERPRISES
WHO DO I KNOW? • WHO DO I KNOW FROM MY OLD JOB? • WHO DO I KNOW CONNECTED WITH A SCHOOL I ATTENDED? • WHO DO I KNOW BECAUSE OF A CERTAIN HOBBY? • WHO DO I KNOW BECAUSE OF MY CONTACTS THROUGH PUBLIC OR CHARITABLE INTERESTS? • WHO DO I KNOW BECAUSE I OWN MY HOME OR RENT? JBL ENTERPRISES
WHO DO I KNOW? • WHO DO I KNOW BECAUSE I LIVE OR HAVE LIVED IN A CERTAIN NEIGHBORHOOD? • WHO DO I KNOW BECAUSE I DRIVE A CAR? • WHO DO I KNOW BECAUSE OF MY EXPENDITURES? • WHO DO I KNOW BECAUSE OF MY CHILDREN? • WHO DO I KNOW BECAUSE OF MY CHURCH ACTIVITIES? JBL ENTERPRISES
WHO DO I KNOW? • WHO DO I KNOW BECAUSE OF MY WIFE’S ACTIVITIES? • WHO DO I KNOW BECAUSE OF MY CLUB ASSOCIATIONS? ASK WHO YOU KNOW WHO’S MOVING JBL ENTERPRISES
TO BE A PROFITMOVER™ WE MUST HAVE A SALES PLAN WITH GOALS THAT EMPHASIZE ADDED VALUE SELLING SO WE CAN PRICE OUR SERVICES AT A PROFIT JBL ENTERPRISES
GOALS • THE PURPOSE OF GOALS IS TO FOCUS OUR ATTENTION. THE MIND WILL NOT REACH TOWARD ACHIEVING GOALS UNTIL IT HAS CLEAR OBJECTIVES. • THE MAGIC BEGINS WHEN WE SET GOALS. IT IS THEN THAT THE SWITCH IS TURNED ON, THE CURRENT BEGINS TO FLOW, AND THE POWER TO ACCOMPLISH BECOMES A REALITY. JBL ENTERPRISES
DO YOU HAVE REALISTIC SALES GOALS? STRATEGIC PLANNING IS REQUIRED FOR SUCCESS! JBL ENTERPRISES
TO SELL FOR A PROFIT SALESPEOPLE MUST • BE RESPONSIBLE FOR PROFIT • UNDERSTAND THEIR COST OF SALES • WORK AT SELLING OTHER KINDS OF SERVICES • DEVELOP A SALES PLAN WITH GOALS THAT ARE MEASURABLE • UNDERSTAND THE PRICE/COST EQUATION • LEARN TO SELL ADDED VALUE • BE PERSISTENT AND CONSISTENT JBL ENTERPRISES
EXCELLENCE IN GOAL SETTING • YOUR GOALS MUST BE BELIEVABLE • YOUR GOALS MUST BE CLEARLY DEFINED • YOUR GOALS MUST BE ARDENTLY DESIRED • YOUR GOALS MUST BE VIVIDLY IMAGINED • YOUR GOALS MUST BE IN WRITING JBL ENTERPRISES
MONTHLY TERRITORY GOAL SHEET JBL ENTERPRISES
SALES STANDARDS AND GOALS • Sales • Cost of Sales • Closing Ratio • Discount % • Average Order Value • Average No. of Phone Calls Per Day • Average No. of Direct Calls Per Day • Percentage of Self Generated Leads $280,000 16.3% 50% 60% $1,000 4 2 50% JBL ENTERPRISES
WHO SETS PRICE IN OUR INDUSTRY? PRICE vs. VALUE THINK ABOUT IT. JBL ENTERPRISES
PRICE HAS NO MEANING WITHOUT A MEASURE OF QUALITY BEING PURCHASED --DR. W. EDWARDS DEMING JBL ENTERPRISES
HOW TO SELL VALUE JBL ENTERPRISES
PRICE OBJECTION • COMPETITION? • PERCEIVED VALUE? • YOU? IS IN RELATIONSHIP TO SOMETHING.....WHAT IS IT? JBL ENTERPRISES
SELLING ADDED VALUE SELF • 1._________________________________ • 2._________________________________ AGENCY • 1._________________________________ • 2._________________________________ VAN LINE • 1.__________________________________ • 2.__________________________________ SEE HANDOUT #2 SELLING ADDED VALUE JBL ENTERPRISES
THE MESSAGE A SUPERB SALESPERSON COMMUNICATES TO THEIR ORGANIZATION AND CUSTOMERS IS: WE ARE A GREAT COMPANY, AN INCREDIBLY EXCITING PLACE TO BE; WE ARE HERE TO MAKE PROFIT; WE HAVE SO MUCH MORE YET TO ACCOMPLISH, SO MUCH UNCAPTURED OPPORTUNITY; EVERY OUNCE, EVERY FIBER, EVERY DOLLAR, EVERY MINUTE OF OUR TIME AND EFFORT WILL FOCUS ON REALIZING OUR POTENTIAL AND MAKING A PROFIT. WE WILL RUTHLESSLY PURSUE ANYTHING THAT CONTRIBUTES TO THAT END. JBL ENTERPRISES
MANAGEMENT MUST • EDUCATE SALESPEOPLE ABOUT COST AND THEIR RELATIONSHIP TO PRICE • GET SALESPEOPLE TO UNDERSTAND THEY ARE RESPONSIBLE FOR PROFIT • TRAIN SALESPEOPLE TO SELL A DIFFERENT MIX OF BUSINESS • MAKE SALESPEOPLE BE ACCOUNTABLE FOR THEIR SALES PLAN • EDUCATE AND TRAIN SALESPEOPLE TO SELL ADDED VALUE. • BE PERSISTENT AND CONSISTENT JBL ENTERPRISES
DO YOU KNOW YOUR COSTS? • SALES COSTS • OVERHEAD COSTS • LABOR COSTS • MATERIAL COSTS • VEHICLE COSTS • CLAIMS COSTS • WAREHOUSE COSTS JBL ENTERPRISES
WHY COST OF SALES? JBL ENTERPRISES
COST OF SALES ANALYSIS JBL ENTERPRISES
WHAT ARE YOUR FIXED COSTS? ESTABISH ANNUALLY, A METHOD OF ACCUMULATING OVERHEAD COSTS JBL ENTERPRISES
GO HOME AND REDUCE YOUR FIXED COST BY 10% JACK WELCH JBL ENTERPRISES
DO YOU KNOW YOUR LABOR COSTS? • LABOR IS ONE OF THE BIGGEST COST AREAS IN MOST COMPANIES. THIS REQUIRES MANAGEMENT TO NOT ONLY UNDERSTAND THE TOTAL LOADED COST OF AN EMPLOYEE AT A CERTAIN POSITION, BUT ALSO UNDERSTAND WHAT THE PRODUCTIVITY SHOULD BE. 401k PENSIONS MEDICAL JBL ENTERPRISES
LABOR COST JBL ENTERPRISES
DO YOU KNOW YOUR MATERIALS COST? JBL ENTERPRISES
MATERIALS COST JBL ENTERPRISES
ABC MOVING DO YOU UNDERSTAND YOUR EQUIPMENT COST? • UNDERSTANDING AND CONTROLLING EQUIPMENT CAN HELP IMPROVE PROFITABLILITY JBL ENTERPRISES
EQUIPMENT COSTS JBL ENTERPRISES
DO YOU UNDERSTAND YOUR CLAIMS COST? (WE DON’T LIKE IT SO WE DON’T DEAL WITH IT!) • NEED A SYSTEM THAT TELLS YOU WHO OR WHAT IS CAUSING CLAIMS • NEED A TRAINING PROGRAM • NEED AN AWARENESS JBL ENTERPRISES
CLAIMS COSTS JBL ENTERPRISES
DO YOU UNDERSTAND YOUR WAREHOUSE COSTS? THE LARGEST SINGLE ASSET OR COST, RECEIVES THE SMALLEST AMOUNT OF ATTENTION JBL ENTERPRISES
WAREHOUSE SPACE ANALYSIS SEE HANDOUT #3 JBL ENTERPRISES
REVENUE/SQUARE FOOT ANALYSIS • YOUR MONTHLY REVENUE IS $50,000 AND YOUR SQUARE FOOTAGE IS 60,000 – YOUR REVENUE PER SQUARE FOOT IS______ • PERCENTAGE OF FULL VAULTS TO EMPTY VAULTS - YOU HAVE 500 FULL VAULTS AND YOUR TOTAL VAULT COUNT IS 1,000 THE PERCENTAGE OF FULL VAULTS IS_________ • PERCENTAGE OF HOURS PAID TO REVENUE BILLED FOR WAREHOUSE HANDLING. YOU PAID A LABOR COST OF $5,000 FOR WAREHOUSE HANDLING AND YOU BILLED $6,000 FOR WAREHOUSE HANDLING. YOUR PERCENTAGE OF REVENUE BILLED FOR LABOR COST IS______ JBL ENTERPRISES
WAREHOUSING & INVENTORY CONTROL • DEVELOP AND USE A SYSTEM (HOPEFULLY COMPUTER ASSISTED) JBL ENTERPRISES
TO BE A PROFITMOVER™ PRODUCTIVITY MUST BE MEASURED! JBL ENTERPRISES
STANDARDS OR BENCHMARKS • HAVE YOU ESTABLISHED STANDARDS OR BENCHMARKS FOR EVERYONE IN YOUR COMPANY? • WHY IS IT IMPORTANT? JBL ENTERPRISES
PACKING LOADING UNLOADING DENSITY 7 UNITS PER MAN HOUR 500# PER MAN HOUR 750# PER MAN HOUR 7# PER CUBIC FOOT INDUSTRIAL PRODUCTIVITY STANDARDS JBL ENTERPRISES
DO YOU HAVE COUNTER MANAGEMENT IN PLACE? • SET STANDARDS! • USE COUNTER MANAGEMENT! JBL ENTERPRISES
COUNTER MANAGEMENT JBL ENTERPRISES
COUNTER MANAGEMENTANALYSIS SEE HANDOUT #4 JBL ENTERPRISES