He explained how much money he was spending to generate leads for one of his products.
He further complained about how much difficulty his salesman was having trying to sell that product. His prospects believed the price was too high. And they could get the same product far cheaper with no reduction in quality or features from a competitor.
To me the answer was simple. Drop the product. Stop paying for advertising. And stop spending your salesman's time, emotion and effort beating a dead horse. Let him focus his attention on the winning products so he can make you some real money.
The school is still out on whether he'll take my advice.
It doesn't bother me either way.
But the way I see it, dropping the dead product has at least 3 advantages:
- He can divert his advertising budget to more effective lead generation campaigns with a higher rate of conversion.
- He can keep his salesman's moral high, which can result in higher level of sales for his winning product choices (products that have higher margins and a faster sales cycle).
- He can bring a greater level of clarity to his core business by focusing on his strengths, making it easier to stand out from the glut of competitors in the market.
But does it really?
I mean, you've heard the 80/20 rule right? Which states 80% of your income comes from 20% of your clients. It also says 80% of your sales come from 20% of your products. And 80% of your product sales come from 20% of your lead sources.
All I'm suggesting is he drops the 20% of lead generation efforts that account for 80% of his salesman's headaches.
As simple as it sounds, this one action alone could increase his salesman's productivity and sales. How much by I don't yet know. I'll keep you posted.