Do You Have Enough Salespeople to Succeed?
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Over the years of owning and operating clubs and the following years having the privilege to consult with clubs and other businesses outside of the health and fitness industry, I have had the opportunity to see many models for sales success and sales failure. One of the simplest elements that is often absent is knowing how many salespeople to have to be able to hit the numbers you need. I see this largely in this industry compared to some of the other industries in which I provide consulting services.
No, more is not always better, and on the other end of the spectrum, why on earth would you choose NOT to have dedicated full-time sales staff when you have invested millions of dollars into your business? I know, I know; your club is "so beautiful and so unique that it will sell itself." If you are a high-volume, low-price (HV/LP) operator, this may be a strategy for you. If you are any model outside of HV/LP, I don't advise the "no sales staff" approach.
Here are a few reasons why you should consider investing in a dedicated full-time sales staff with the right number of salespeople to be successful:
If you knew how much a good salesperson is worth to your business, you would think differently about hiring and training the right number of sales people. Consider the following illustration that outlines a membership salesperson who sells 35 memberships per month with each member paying for 12 months and that salesperson does that production for every month of the year. There are three different dues price points, three different joining fee price points and three different scenarios for how much non-dues revenue (NDR) this salesperson would sell each month. The fourth box that says "Total" adds all revenue up and gives you a range of what this sales person is worth to your business based on the dues point, joining fee and NDR:
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