SALES ESTIMATES- WHAT DOES THE MANAGEMENT BELIEVE?

Reasons why the sales estimate is important.

Facts are facts. Data is data. But when it comes to Sales Estimates, it is not always the case, unfortunately. It all depends on where you are standing.

• Estimated sales are the basis for many an organization’s plans for everything else. But sales estimates come from the sales force and if those sales estimates are going to be used as the rod to beat the backs of the salespeople at the end of the year, they will keep them as low as they reasonably can.
• On the other hand, if those selfsame sales estimates are going to be the basis for the allocation of new resources or the reorganization of the sales division, there will be some who will push them as high as they reasonably can.
• Measured against last year the sales may look good. Measured against a competitor they can look awful. Choosing the basis for comparison is crucial. Percentages always raise a crucial question ‘percentages of what?’ Too often the answer depends on what the author of the number wants to prove.
• Sales estimates for financial planning should, arguably, be pessimistic (‘if the worst happens’) but for facilities, planning should be optimistic (‘if we could sell this much…’).

This blog is dedicated to all the Sales Directors and CEOs who are engaging with my content by reading my blogs and also those with whom I have had a pleasure to work within the last 30 Years of my career, I am sure, they would like to ponder upon these insights while setting sales estimates for the coming financial year.

I would also like to know your unique mix of deriving Sales Estimates. Do share them with all here in the comments section or if you would like to keep it private drop me a mail at [email protected]