Rule of Ratios


If my last post hit a nerve because you are already behind your sales goal for 2008, this post could end your struggle once and for all….One way or another. Either you’ll get help or you’ll resign yourself that this is the way it is and the way it always will be.

First, the lesson. Dave Kurlan talks about his Rule of Ratios in Baseline Selling. Simply stated, ‘the cost of the consequences of doing nothing must be at least twice the cost of your solution’. (I apologize for the original typo and thank Rob Jewett for bringing it to my attention.)

OK, back to you, your missed goals, your struggle and your future.

If I asked you to pay me $1,000 every month for the rest of 2008 and as a result you earned $100,000 more than you did last year, would you do it?

What if you only earned an additional $50,000?

What if you paid me that same $11,000 and only earned $25,000 more than you did in 2007?

Would you do it?

Would you change?

Would you do what it takes?

Call me or email me if you want to talk about what’s involved. We’ll talk for 20-30 minutes. At the end of the call you’ll say, “Thanks.” and go away or you’ll give me your credit card number to get started.

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4 thoughts on “Rule of Ratios

  1. OK, the last one hit a bit of a nerve for me. Not so much on the sales side, but on the general manager side! I’m behind on some of those targets I’d assigned. I’ve started looking just to the next curve . . . On the other hand, I want to point out a small error in your interpretation of the rule of ratios. I believe you meant to say that “the cost of doing nothing must be at least twice the cost of doing nothing.” This is a very powerful rule, and greatly clarifies the starting point for establishing the value of the solutions we provide!

  2. Perhaps this quote is destined to be published correctly only by Dave Kurlan himself. Did I REALLY type it the way it appears above? I’m going to try again: “The cost of doing nothing must be at least twice the cost of your solution.”

  3. OK, so what’s the lesson here?Could it be….”Two wrongs really do make a right.”?Could it be….”Don’t worry if it doesn’t come out exactly right, the prospect might understand anyway.”?Could it be….”Everybody needs a proofreader.”?

  4. Excellent post with some good info, think i’ll share this on my twitter if you don’t mind and maybe even blogroll it depending on the feedback, thanks for sharing.

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