Myers Barnes Blog

Leak #22: “Bad Month” Myopia – Leaking Profits: Article 25

Categories: New Home Sales | Posted: June 24, 2014

One more leak in the profit funnel is buying into the mythology of having a bad month. Having a bad month? Change your calendar!

Most people tend to think in “the now”—focused on the next big sale, and not the one that can happen five months down the road.

This shortsightedness doesn’t lead to sustained success. A businessperson—whether the owner or manager—needs a broader view, taking in both the short- and long-term perspectives.

Take, for instance, this all-too-common sales phrase: “You’ve had a bad month.” There is no such thing as a “bad month”. They come in pairs. You have the beginning of the build cycle, when you pen the deal, and the closing that happens after the construction is completed. One bad month during the build cycle leads to another one when there are no closings because of that slow period.

This problem is compounded even more when you fall behind. Let’s say you set a goal of 48 new home sales in a year, or four per month. January comes and goes without a sale, leaving you four sales behind. To catch up, you need to make eight sales in February, but only get two. Now, you’re going into March with a six-sale deficit. And what is the likelihood that you are going to sell ten homes in March when you’ve only sold a total of two in the previous two months?

Then we have the sales manager who feels bad for the salesperson who is missing the mark. “I’ll give him another 90 days,” says the kindly manager.

You’re really going to give him three more months to catch up? Think about it. What this extension does is sacrifice six months—half a year—of sales.

Multiply every “bad month”, “bad quarter”, or any “bad time” by two.

It’s easier to keep up than to catch up.

Casualness causes casualties.

Remember the 3 S’s: Sales, Starts, and Settlements.

Fiscal year versus calendar year

BOTTOM LINE: If you want to stay in business, don’t take a cavalier attitude toward a “bad month”. It’s the harbinger of a “bad year”.

MyersBarnes

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