I have been thinking about this for awhile. I believe I might have uncovered an enormous truth of selling that is contrary to popular belief. The truth is sales is a margins game. Although the popular belief is, the more volume you produce the more you make. Most of us spend our time and energy investing in growing sales volume. The increase of sales volume is necessary, however the primary growth should be found in your margins. It’s the margin between what you spent to what you earned. It’s the margin between the time you’ve invested versus the return you’ll receive minus the expenses that you’ve incurred. When it’s all counted out at the end of the year, it is the size of your sales margin that makes the difference between a good year and a bad year.
There is a speaker in the real estate industry that has said, “You can’t go broke making money”. He could not be more wrong. Every company that has ever gone bankrupt was making money. They were all “making money”, or in other words, making sales. The problems for them stemmed from their slim margins or lack thereof. Their sales margins were not great enough for them to continue to operate. Which proves that, contrary to popular belief, you can easily go broke making money.
The average American consumer goes broke making money. We have people in the richest country in the world doing this daily. The reason their “money margin” is not great enough. The difference between what they earn and what they spend is not great enough.
As I spoke about at our sales meeting; Your “Money (Profit) Margin” is not in only what you charge…which is extremely important, because your profit margin is typically in the .5% – 1.5% above what your normally charging. It is in this “money margin” where you can actually have some control over your life, lower stress, feel empowered and actually… Work for More!…Work Less!…Avoid Stress!
We are constantly trading in life. We are trading our time and knowledge for the income that we generate. We are trading time, love, and knowledge so we can create a legacy in our children. Are you investing enough for an incredible margin of return for both you and for your children? I truly believe we need to trade well so the margin is always increasing. Life is not a dress rehearsal; make sure you are giving it your best shot because you won’t get another one.
Check your margins in your business and life. If your “sales margin” is off, you will have to work harder to achieve the results you desire. This will affect your “money margin” and ultimately your “life margin”. Don’t play the game of life with an attitude of, “you can’t go broke in life by waking up every day”.