Why 'Hockey Stick' Sales Are Bad For Business

Does your sales forecast look like a hockey stick? That is, do the majority of sales come at the end of the quarter?

That?s not good, says an article on Successful Sales Management?s website, and it puts the sales team under an unnecessary amount of stress to close deals when the prospect doesn?t consider it to be the right time. Such forecasts are unrealistic ? low in the first few weeks with business expected to boom at the end in order to reach target levels. It sets your team up for failure.

This same failing approach occurs in software companies. People know prices will drop at the end of the year, so customers wait for the best deals. The challenge for companies is showing the value of not waiting to buy at discounted prices. Prove that the new software or product improves business performance, which yields better business results, and you?ve proved it costs money to wait.

The problem with putting 70 percent of sales in the final period is that the sales will never materialize. ?No sales professional worth the description delays closing deals,? according to the article. But if the prospect isn?t buying, cash will be short the following period.

So what?s the answer? ?Target a realistic market with a properly constructed value proposition and set sales, revenue and cash plans which turn that picture into viable business operations.?

Source: Successful Sales Management, April 2012

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