ColumnistsJan 04, 2023
The Smart Lab: These Will Be the Big Digital Marketing Trends in 2023 ColumnistsJan 10, 2023
Squirrel Spotting: A Blueprint for Building Sales Plans for the New Year
Columnist Peter Smith outlines the questions business owners need to ask themselves regardless of how aggressive their 2023 sales goals are.
Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com.
‘Tis the season when many leaders wrestle with the great unknown. Or, to put it another way, the sales plan for the new year.
That the task this year comes after two years of a COVID economy that began with all of us holding our collective breath in March/April 2020 before enjoying an 18-month ride like no other in the history of our industry makes this year’s version even more compelling.
Whether you are a large or small company, a retailer or supplier, the process of formulating a sales plan can be as complex as anything you will do throughout the year, or as simple as randomly throwing a dart and accepting whatever number comes up as long as it’s more than last year.
As absurd as the latter statement might seem, the construction of a sales plan is not always as considered and/or logical as you might think.
Some organizations spend the minimum amount of time preparing the plan. Others deliver seemingly elaborate presentations to key stakeholders that are nothing more than blind shots at the dartboard to quickly get through a process often seen as a necessary evil.
Other companies put the time and effort into really understanding their business.
They dissect the previous year and identify opportunities for improvement. They look at relationship-building, their people, their processes, their product offerings, their new customer acquisition initiatives, their key-account development opportunities, their technology and data capacity, their online and social media commerce, etc.
In short, they examine everything that might positively or negatively influence the sales results of the new year.
Any or all of the aforementioned elements can be factors as long as the plan for addressing them is both tangible and realistic. For instance, “do a better job on product development to improve sales” is neither strategic nor actionable.
If you want to look at product development as an opportunity for growth, you need to utilize data to understand.
Ask yourself the following.
• What works or does not work with your current offerings?
• What price points have holes that should be addressed?
• What gaps exist in your current inventory?
• How do your current products align with your aspiration as a business?
• Where are you not getting traction with current inventory?
• What is the plan to liquidate existing inventory to free up dollars?
• How will your changes affect existing relationships?
If you believe you need more new customers—who doesn’t?—which strategy will you employ to make that happen and drive sales growth?
Ask yourself the following.
• Have you identified your target customers?
• How will you communicate to those target customers?
• What is your message and why should prospective customers care?
• What resources will you deploy to make that goal realistic?
• Will you need to add people to that task?
• Are you budgeting accordingly?
By all accounts, real growth beyond a certain point cannot come if you are going back to the same base of customers again and again. Yet, seemingly smart people continue to talk about acquiring new customers without honestly addressing the costs and challenges of doing so.
Related stories will be right here …
That the task this year comes after two years of a COVID economy that began with all of us holding our collective breath in March/April 2020 before enjoying an 18-month ride like no other in the history of our industry makes this year’s version even more compelling.
Whether you are a large or small company, a retailer or supplier, the process of formulating a sales plan can be as complex as anything you will do throughout the year, or as simple as randomly throwing a dart and accepting whatever number comes up as long as it’s more than last year.
As absurd as the latter statement might seem, the construction of a sales plan is not always as considered and/or logical as you might think.
Some organizations spend the minimum amount of time preparing the plan. Others deliver seemingly elaborate presentations to key stakeholders that are nothing more than blind shots at the dartboard to quickly get through a process often seen as a necessary evil.
Other companies put the time and effort into really understanding their business.
They dissect the previous year and identify opportunities for improvement. They look at relationship-building, their people, their processes, their product offerings, their new customer acquisition initiatives, their key-account development opportunities, their technology and data capacity, their online and social media commerce, etc.
In short, they examine everything that might positively or negatively influence the sales results of the new year.
Any or all of the aforementioned elements can be factors as long as the plan for addressing them is both tangible and realistic. For instance, “do a better job on product development to improve sales” is neither strategic nor actionable.
If you want to look at product development as an opportunity for growth, you need to utilize data to understand.
Ask yourself the following.
• What works or does not work with your current offerings?
• What price points have holes that should be addressed?
• What gaps exist in your current inventory?
• How do your current products align with your aspiration as a business?
• Where are you not getting traction with current inventory?
• What is the plan to liquidate existing inventory to free up dollars?
• How will your changes affect existing relationships?
If you believe you need more new customers—who doesn’t?—which strategy will you employ to make that happen and drive sales growth?
Ask yourself the following.
• Have you identified your target customers?
• How will you communicate to those target customers?
• What is your message and why should prospective customers care?
• What resources will you deploy to make that goal realistic?
• Will you need to add people to that task?
• Are you budgeting accordingly?
By all accounts, real growth beyond a certain point cannot come if you are going back to the same base of customers again and again. Yet, seemingly smart people continue to talk about acquiring new customers without honestly addressing the costs and challenges of doing so.
There are myriad elements to building a sales plan and some will be more relevant for one business versus another.
However, no matter what areas you elect to focus on in building your plan, it is essential to examine all of the key ingredients that might have an impact and understand why and how they should unfold.
If, for example, you are looking at small, incremental increases over the previous year, a full review of your performance across key indicators might include the following.
• Business from current customers, minus aberrations that won’t happen again. In retail, that might include significant purchases from important one-off or major milestone occasions. On the supplier side, it could mean one-time inventory buildups for your biggest customers, or additional retail doors added from the previous year that won’t repeat.
• Look closely at notable personnel additions or subtractions and how they might impact your plan.
• Look at customers lost or added that might impact your plan.
• Review process innovations that could positively influence your ability to better service your clients.
• Look at any technology improvements that promise quicker replenishment of bestsellers, or faster turnaround of special and custom orders.
In effect, any reasonable and tangible change that might positively or negatively impact your business should be factored into building your plan.
As for the more aggressive, game-changing plan—where are you targeting significant growth?
In many respects, that bigger aspiration is almost less complex than the limited growth of the previous model. I confess to being personally drawn to the bigger plan for many reasons.
The scale alone often serves as a catalyst and helps galvanize attention in a way that smaller incremental increases just don’t do.
And the process of deconstructing the business down from the much bigger number to best understand what is needed by month, by customer, by product category, by new customer acquisition, by expansion and/or company acquisition, by personnel additions, etc., is a whole lot of fun.
Embracing the big plan is not for the faint of heart. It demands a clarion call to the whole organization and a real commitment to resource allocation.
It also demands real courage as the risks of failure are greater. Naturally, the upside is also considerable.
It is my view that you can lay down that bigger marker whether you are a $1 million business, a $5 million business, or a $50 million business. The principles of starting with the end and reverse-engineering the business remains the same, regardless of the size of the goal.
Whether you choose to build your plan off the previous year, with small percentage increases, or to establish a goal that really shakes the tree has much to do with the temperament of each business leader.
Either can work as long as you honestly and openly do the hard work, address the realities of the business from a micro and a macro perspective, and prepare to walk your talk.
Happy New Year!
More on Columnists
The Latest
Events & AwardsDec 20, 2024
Two Participants Complete Inaugural Ella Klein InternshipJamie Dunton and Gabriella Botelho are the first graduates of the program, created by the WJA Foundation and Julius Klein Diamonds.
CollectionsDec 20, 2024
Piece of the Week: Retrouvaí’s Ring for CharityIn the spirit of giving, Retrouvaí will donate $4,000 from the sale of this ring to the Los Angeles Regional Food Bank.
IndependentsDec 19, 2024
Michigan’s DeVries Jewelers Unveils New Location in Time for the HolidaysCo-owner Dan DeVries shared what it’s like moving into a space triple the size of its old store and how it feels to be a “real jeweler” now.
Brought to you by
De Beers Group Launches Holiday Campaign for Natural Diamonds‘Forever Present’ campaign revives the iconic A Diamond is Forever tagline and celebrates the diamond dream.
CollectionsDec 19, 2024
State Property Transforms Spain’s Generalife Gardens into JewelryAlong with the latest “Gardens” collection, the brand has released limited-edition designs offering more indulgent pieces.
Weekly QuizDec 19, 2024
This Week’s QuizTest your jewelry news knowledge by answering these questions.
CrimeDec 19, 2024
Alleged Jewelry Thieves Attempt Rowboat EscapeThe man and woman are accused of stealing jewelry from a shipping container then trying to flee by paddling a small boat out into a bay.
SourcingDec 19, 2024
The Second-Largest Diamond Ever Found Now Has a Name The 2,488-carat diamond recovered from a mine in Botswana has been dubbed “Motswedi” while its 1,094-carat sibling is “Seriti.”
Brought to you by
Advocacy and Excellence: How Jewelers of America Is Committed to Elevating Our Industry For over a century, Jewelers of America has been the voice of the industry and valuable resource to jewelers across the country.
SourcingDec 19, 2024
Gemfields Reports Record Ruby Auction Results Despite Challenges at SourceThe average price per carat hit a record high for the miner, which said it remains unaffected by the conflict in Mozambique.
AuctionsDec 18, 2024
Alexandrite Ring Sells for Record-Setting $1.9M at Sotheby’sThe nearly 17-carat stone made history for the color-change gem that, according to the auction house, is experiencing a “notable surge” in the market.
WatchesDec 18, 2024
Historic Titanic Pocket Watch Winds Its Way Back to Tiffany & Co. More than a century after survivors gifted a Tiffany timepiece to the captain of the ship that rescued them, the jeweler has reclaimed it.
TechnologyDec 18, 2024
Picchiotti Utilizes AI in ‘Spotlight’ Video CampaignThe videos highlight how pieces from the “Xpandable” and “Reversible Xpandable” collections put the wearer in the spotlight.
IndependentsDec 18, 2024
Industry Veteran Steve Feldman Set to RetireFeldman reflected on 45 years in the jewelry industry and clarified that it’s not a total retirement.
Events & AwardsDec 17, 2024
Chanel to Receive Gem Award for High Jewelry ExcellenceThe luxury brand is being honored for excellence in high jewelry design in its “Haute Joaillerie Sport” collection.
SourcingDec 17, 2024
Frank Circelli, Founder of Gem Shopping Network, Dies at 75Circelli was a pioneer in the world of TV shopping who is remembered for his passion for gemstones and his big personality.
AuctionsDec 17, 2024
Blue Diamond Fetches $8.8M at Christie’sThe nearly 6-carat stone headlined the recent jewelry auction, which also featured Mica Ertegun’s jewelry.
CrimeDec 17, 2024
‘Black Bin Crew’ Robbers Get 14-16 Years in Prison The three men, who got their nickname because they’d toss the jewelry they stole into black plastic bins, were arrested back in August.
TrendsDec 16, 2024
Marion Fasel’s New Book Delves Into the History of Engagement Rings“The History of Diamond Engagement Rings: A True Romance” is a 128-page small-format book containing more than 165 images.
WatchesDec 16, 2024
Take a Look Inside the New Rolex Boutique on Rodeo DriveGearys opened a 6,200-square-foot Rolex store with a design that pays homage to the brand’s connection to the ocean.
GradingDec 16, 2024
GCAL By Sarine Expands 8X to 2 More Fancy Shapes The diamond cut grade is now available for marquise- and pear-shaped diamonds.
SourcingDec 16, 2024
Diamonds Do Good Announces 2025 Award RecipientsDDG said the honorees’ business practices embody a commitment to positive social impact, industry innovation, and community empowerment.
TrendsDec 13, 2024
Selena Gomez Said ‘Forever Begins Now’ to Marquise Diamond Engagement RingEstimates on the size and value of the solitaire diamond, which is mounted on a diamond pavé-set yellow gold band, vary.
TrendsDec 13, 2024
Piece of the Week: Martin Katz’s Tanzanite Drops These half-moon tanzanite earrings totaling 25 carats are part of a special trunk show taking place this weekend in Dallas.
Recorded WebinarsDec 13, 2024
Watch: The Highs and Lows of 2024The National Jeweler editors recap the top news, the best jewels, and their favorite stories of the year.
AuctionsDec 12, 2024
Tom Brady’s Watches Top $4M at Sotheby’s AuctionThe highest-grossing lot of the sale was the retired QB’s Rolex Paul Newman Daytona “John Player Special.”
SourcingDec 12, 2024
Grizzly Emerald Auction Garners $22.4MRecent expansion initiatives at the Zambian emerald mine have shown strong production numbers, said Grizzly founder Abdoulaye Ndiaye.
MajorsDec 12, 2024
Mark Henry Appoints New Director of SalesCarrie Forman joins the brand to guide it into the next phase of growth with major and independent retailers in the U.S. and abroad.
