I have led sales organizations and divisions in multiple companies. A common question from business owners and executives is, “Why do 80% of our sales come in the last days of the quarter or the half? The end of a fiscal year is its own animal. This is where company honors, awards, and trips are earned. If the previous quarters did not result in over achievement, without an extraordinary occurrence at the end of the fiscal year, the chance of annual recognition awards are unlikely.
This phenomenon create stress for company leaders. Note, The phenomenon has nothing to do with the position of the planets, nor is it weather related, nor is it related to the four seasons. It is completely because of the way compensation plans are designed, combined with corporate reporting due dates.
Companies without milestone achievement periods have other issues.
Companies that don’t suffer from this selling back-loaded scenario are many times suffering from lack of new sales. Their sales problems are every day. This does not have to be a terminal situation. They need a motivation-based sales program. They should contact me at BeenThere Consulting Services https://beentherecs.com/contact-us/.
The positive side
Although there is much anxiety for all involved, in many cases, motivated salespeople are successful and pull in the sales at the last minute. The companies reach their forecasts and sales budgets, and the salespeople make their bonuses.
Why do salespeople close so much business at the last minute?
Successful salespeople are hyper focused on making their quotas, scoring commissions, and bonuses. They can smell the money. They are focused completely on closing those opportunities that will push them over the top. Everything else is an obstacle preventing them from making money.
The never-ending cycle
The next business day begins the next measurement period and all sales achievement numbers reset to zero. It is not exhaustion that prevents the salespeople from closing sales like they did the previous days, it is that they cleared their sales funnel or pipeline of near-term opportunities. Yes, there are some opportunities that slipped or did not close last period. Some of those may close in the early days of the new period. Others may have larger issues.
Salespeople must push new opportunities and accelerate active opportunities to close them before or by the last day of this current fiscal measurement period. During the last two weeks, they will once again become bull dogs and do everything possible to close those sales. Except if they determine those sales will not carry them over the top. They will sandbag.
Sandbagging
If this were a TV show, after that last sentence in the last paragraph, there would have been a cliff-hanger commercial break.
When a salesperson intentionally does not close a sale because it will not push them into the bonus money, it is called sandbagging. The dollars recognized in that sale will add nothing accept normal commissions. The related compensation will be significantly less than that if they were “in the bonus.”
By allowing those dollars to flow into the next period, it provides them with an immediate foundation to give them a better chance of making a bonus in the next period. Hence, they are okay with delaying their commission, because the overall compensation will be significantly better.
Not all that is good for the salesperson is good for the company
Salespeople are focused on themselves. Sales managers and companies are dependent on the combined success of all salespeople. Not all salespeople perform all the time at 100%. Some are not even close. Companies need the top achievers to overachieve to offset the deficits created by the underachievers. When sandbagging occurs, it all but ensures the sales department and/or the company will miss their target. Conflict is created within the organization.
Management also sandbags
A senior manager’s compensation plan is not normally as dynamic as a salesperson’s. Their bonus program could be capped. An example is that when the department achieves 100% of the period’s quota, the executive could receive a 10% bonus. It is fixed.
That means to the department executive, every dollar sold over 100% is one less dollar available for them to achieve the next period’s quota. It does not make them one extra penny today.
I have had senior managers tell me to slow down my salespeople, and even try to stop sales because of that scenario. If I were to comply, it would have cost the individual salespeople significant commissions and bonuses. Anger would be the result and morale would plummet.
The ideal scenario
Sales quotas and bonus plans are unchanged from what we have been discussing. What is new is that significant sales are occurring at the individual salesperson level on a weekly basis, taking the pressure off the end of the measurement periods. Not only does this create a scenario where more salespeople achieve their quotas, it also increases efficiencies throughout the company. Especially taking pressure off supply chain, distribution, and accounting. Stress is significantly reduced, allowing for clearer thinking, higher morale, a better image for the customer base, all resulting in even more sales, and more opportunities.
Creating the ideal scenario
I have been managing salespeople for over 30 years. The solution is complex in design and simple in execution. It takes open-minded thinkers at the top of organizations to embrace this solution. I would not call it radical, for many it is unconventional. The end-results are undeniable. If you own a business or are responsible for a sales department and you want maximum results and regular revenue production, contact me for a discovery and consultation meeting.
Website: https://beentherecs.com/contact-us/
Email: Phil@BeenthereCS.com
Schedule a meeting: https://calendly.com/BeenThereCS
ABOUT PHIL WHITEBLOOM 
Phil has been in sales and sales leadership for over 40 years. He is a multiple award winner and has helped customers such as Fortune 500 companies, U.S. and local governments, institutions of higher education, houses of worship, television/radio companies, and more. Along with his sales teams they have solved thousands of problems, and generated billions of dollars in revenue. He is also known as a strong leader, boasting diversity and employee retention.
Send Phil an email Phil@BeenThereCS.com and let him know what sales topics you would like him to write about. How can he help you?
To learn more about BeenThere Consulting Services and how they can help you and your business go to BeenThereCS.com. To discuss specific needs or programs with Phil, Whitebloom go to at Beentherecs contact-us or schedule a meeting with Phil at Calendly BeenThereCS.
The BeenThere/SoldThat Podcast
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More from BeenThere SoldThat
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Achievant Business Coaching, Your GPS to Success
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You Must Write a Book
You Must Write a Book
Many of you have told me that you are thinking about writing a book. Some of you are in the process of writing. The questions I have for you are, “What do you want your book to do? How will you measure the success of your book?” If the answers to those questions are important to you, then you must learn from an expert, highly accomplished author, entrepreneur, and coach. My friend and mentor, Honorée Corder is that person. The first step is purchasing her series of books, and when you are ready, her courses. I have done this myself. I don’t know how I could have done it without them. Here are the links: YOU MUST WRITE A BOOK 
BeenThere Consulting Services, LLC
BeenThere Consulting Services is a sales coaching company. Coaching is more than training. We work with your specific sales needs in real-time. We address what is impacting your business now, while creating enhanced processes and developing skills for future success. Our promise is that you will have actionable take-a-ways after each meeting, which will increase your sales and benefit your business overall.
No one program fits every need. We offer a variety of options to meet the needs of those who want to improve their sales.
One-to-one coaching: Custom programs designed to meet client’s needs.
BeenThere Sales Coaching Hour: Group Coaching focused on specific topics and skills development.
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