Master Hogan Copy 2012 Update Effective Sales Management Planning Forecasting Budgeting

Effective Sales
Management:
Short and Long-term
Planning, Forecasting, and
Expense Budgeting

Why are we here today?
Copyright 2012 All rights reserved
4/13/2012 Dr. John J. Hogan 1

John J. Hogan,
Ph.D., CHE, CHA, MHS

A career hotelier and educator, with 35 years experience

Industry certified; past recipient of the American Hotel & Lodging
Association’s Pearson Award for Excellence in Lodging Journalism, as
well as operational and marketing awards from international brands

Author of weekly columns for a number of global online services -
published more than 400 articles and columns
Co-authored LESSONS FROM THE FIELD – a COMMON SENSE
APPROACH TO EFFECTIVE HOTEL SALES


John J. Hogan, Ph.D., CHE, CHA, MHS
Clients are associations, international brands, management groups, convention
bureaus, academic institutions
Taught college level courses at three different universities over a 20-year period,
while managing with Sheraton, Hilton, Omni and independents

Created/developed a blended learning system as Director of Education & Cultural
Diversity for world’s largest hotel chain
Has conducted an estimated 3,200 workshops and classes in career

Expertise and Research Interest includes:
1. sales management and training
2. turn-around and revenue management
3. professional development
4. customer service
5. leadership and executive education


Agenda
1. Mapping out Your Sales Plan
2. Preparing and Revising Your Sales Forecast
3. Aligning Your Expense Budget With Your
Forecast and Sales Plan
4. Practical Approaches to Opportunities in the
Market


Mapping out Your Sales Plan
Acquire & use good selling knowledge
• Finding out who your customers are
• where they are coming from
• how they came to select your business/product
• why they use your business/product
• how often will they need you and how much
they spend


Plan A Good Market Mix
It is extremely hard to be all things to all people all
the time, which means knowing your proper customer
base.

While one does not want to turn away
potential, understanding the mix of business reflects
how much of what type of business you're doing.


Try New Things
• FACT: most successful entrepreneurs would not be
where they are today if they didn't take a chance and
try new things.

• Come up with new ideas to promote business and
don't be afraid to put them into action.

• Examples -


Preparing & Revising Your Sales Forecast
Know Your Competition –
specifically your direct competitors.

A thorough knowledge of the competition can help you
size up your strengths/weaknesses and determine
where you can compete the best:

is it location, price, size, product, service or amenities?

The idea, of course, is to sell your positives and to expand
your market share profitably.


Research & qualify your multiple price policy

Understanding/measuring selective discounting.
Do you know which special rates are generating business
for you?
Periodic reviews of all rates help establish the multiple-rate
policy that's right for you.
3rd party sites – evaluate if they help your profitability
and/or cash flow.


Sell Aggressively!
• Aggressive and assertive are not synonyms.

• One means hard hitting and the other confident – in
challenging economic times, those professionals in
sales must have some of both attributes to book the
business.

• One can be aggressive while still being
friendly, credible and sincere.
• Being tenacious, following up and ensuring customer
confidence all add up to success.

Aligning Your Expense Budget
With Your Forecast and Sales Plan
Re-examine all operating budgets
• Annual budgets usually prepared 6 months before the
beginning of any year in advance, which often means
projections could be as far out as 15-18 months.
• While most of us projected potential trouble in
2009, few of us anticipated the international financial
meltdown that unraveled in late summer/fall 2008.
• It is time to re-evaluate all operating budgets
immediately and determine planning for action steps
that need to be taken NOW.

Aligning Your Expense Budget With
Your Forecast and Sales Plan
Initiate aggressive, but realistic goals for
achieving specific expense savings
• Link to changes in the operating budgets you have just
re-forecasted.
• There will be revenue lines projected at lower levels
and the expenses associated with them should be
identified.
• Zero-based budgeting – positives and negatives


Aligning Your Expense Budget
With Your Forecast and Sales Plan
Competitively re-bid all significant vendor
and supplier contracts
• It is not being suggested to break contracts, but every
company in every industry is feeling strained resources
these days.
• Discussions on terms, pricing, quantities, payment
schedules and other factors are all items that should be
analyzed short term and ongoing.
• A wide range of services and products, including utility
purchasing options that might offer incentives or access
through energy cooperatives.


Practical Approaches to
Opportunities in the Market
Evaluate carefully product/guest amenities
• Straight forward decision if you are independent

• If part of a brand, there are agreed upon standards that
perhaps may be delivered in alternate ways.
• Chain management may be open to options if the guest
experience is not diminished.

• Consider approaches that are green in nature and a
service that is optional rather than wasted or unused
products that requires staff services


Practical Approaches to Opportunities in the Market

Examine every part of your credit policy

• Credit is an essential part of the business cycle
• The current global financial crisis is at least partially mired
due to credit snafus.
• Are you in fact are lending the use of money when
extending credit?
• What is your proper balance when considering the use of
credit as a potential feature?
• Care must be used when considering credit – even large
companies have been known to renege on credit yet it can
be an important point of difference.


Practical Approaches to Opportunities in the Market
Plan and monitor Monthly cash flow
(forecasted and actual)
• Too many entrepreneurs new to an industry disregard the
difference between cash flow and profits
• Even some veterans do not fully appreciate the value of
monitoring cash flow.
• While any business needs both to survive, cash flow is the more
indispensable of the two.
• Cash flow basically refers to the flow of cash into and out of a
business over a period of time - what is needed to keep the
doors open while trying to make a profit.
• Without adequate cash, one cannot pay suppliers, taxes, meet
payroll, market itself or operate professionally. If an adequate
cash flow is not maintained, there is the very real danger of
bankruptcy or going out of business.


Practical Approaches to Opportunities
in the Market
• Planning & monitoring inflows/outflows of cash = top priority
• Planning ahead for seasonal fluctuations and unexpected
emergencies allows for dealing with challenges and at least
partially reduces stress.
• Knowing where you are in cash positioning allows you to also
maintain more open and constructive relationships with
suppliers, banks, staff and business partners.
• By monitoring cash, you can better anticipate potential
problem spots & conceivably lessen or avoid a liquidity crisis.
• In this type of economy, the potential for shortfall in business
levels is real, which means cash flow will likely be diminished.
• Being able to deal with this underperformance in advance will
definitely help bridge the challenge.

Maximizing Involvement and Results
Recap

Acquiring and Using Good Selling Knowledge
Planning a Good Market Mix
Trying New Things


Recap
Preparing and Revising Your Sales Forecast

Knowing Your Competition and Specifically Your
Direct Competitors
Researching and Qualifying Your Multiple Price
Policy
Selling Aggressively

Recap
Aligning Your Expense Budget With Your
Forecast and Sales Plan

Re-Examining All Operating Budgets
Initiating Aggressive, but Realistic Goals for
Achieving Specific Expense Savings
Competitively Re-Bidding All Significant Vendor
and Supplier Contracts

Recap
Practical Approaches to Opportunities in the
Market
Carefully Evaluating All Amenities and Packages in
Your Offerings
Examining Every Part of Your Credit Policy and
Practice
Planning and Monitoring Monthly Cash Flow
(Forecasted and Actual)

Contact Information
Membership and Learning Resources
www.HospitalityEducators.com
John.Hogan@HospitalityEducators.com

Speaking Engagements, Hospitality
Consulting, Training, Expert Witness, Litigation Support
www.HoganHospitality.com
John@HoganHospitality.com

Sites Under Construction for Online Learning
www.HotelTrainingToYou.com;
www.HospitalityTrainingToYou.com

602-799-5375 Direct Line
Dr. John Hogan, CHA CHE CMHS

Copyright 2012 Dr. John Hogan, CHA CHE CMHS All Rights Reserved

Questions/Comments?

THANK YOU!

John J. Hogan, Ph.D., CHE, CHA, MHS

john.hogan@hospitalityeducators.com

602-799-5375


Master Hogan Copy 2012 Update Effective Sales Management Planning Forecasting Budgeting

Recommended

Recommended

More Related Content

What's hot

What's hot (19)

Viewers also liked

Viewers also liked (12)

Similar to Master Hogan Copy 2012 Update Effective Sales Management Planning Forecasting Budgeting

Similar to Master Hogan Copy 2012 Update Effective Sales Management Planning Forecasting Budgeting (20)

More from John Hogan, CHA CMHS CHE CHO

More from John Hogan, CHA CMHS CHE CHO (7)

Master Hogan Copy 2012 Update Effective Sales Management Planning Forecasting Budgeting