Leak #10: Overlooking Cancellation Recovery Ratio – Leaking Profits: Article 13

We’ve already learned that there are many places where profits leak from your new home sales business. We’ve explored sales activities, proper staffing, recruiting, marketing, giveaways, and compensation. But do you measure the number of cancellations you have?

It’s important to know how many and why sales don’t come to fruition. More importantly, are your salespeople recovering any of those sales that are circling the drain?

Think about it. Maybe someone cancelled the sale due to health reasons. Three or six months later, the issue has passed and they’re ready to buy. Did your salesperson stay in touch?

Homebuyers cancel for a variety of reasons. But just because they cancel does not mean they’re permanently paralyzed! By staying on top of cancellations, you can potentially reel a sale back in, plugging up another profit leak.

BOTTOM LINE:
Contract cancellations aren’t necessarily a permanent loss. Salvage the investment of time by encouraging your salespeople to recover those sales by maintaining contact—and measure their results.

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