Jim, why are my sales numbers down?

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I get asked that a lot right now.

Have you noticed an unexpected drop in sales or new clients? If you have, you’re not alone. It’s a challenge, which small business owners are struggling with. Their sales numbers are down, but they haven’t changed anything. And they’re looking for answers.

If this is happening to you, or you want to stop it from happening to you, today’s post contains a few of the most common culprits, along with some ideas on what you should do next.

So, what gives? I’ll explain in a moment.

But first, let’s address…

The elephant in the room

The economy is highly-volatile and has been for some time now. However, it’s in bad shape for all your competitors, too. And as you probably know, there are businesses in every sector, doing really well right now. Many have turned the economy to their advantage.

Here’s what we know. When times are rough, people think a lot harder before they spend their money or their budgets. They spend it were they see the greatest value. This means that today more than ever the most compelling provider wins. And they win big.

Now, let’s look at some very common reasons for an unexpected drop in sales.

Advertising roulette

This is becoming a huge problem for small businesses.

Someone is out-bidding you for online ads (GoogleAds, Facebook Ads etc.). So, the prospective clients who would have clicked on your ads are now clicking your competitor’s ads. You can also experience the same drop, if a competitor has created a more compelling ad. Many who used to rely on writing their own ads, or simply kept using the same, very average ad copy (wording), now use AI. While AI has limitations, in 2026 it will write a better ad than an amateur copywriter.

In either case, they get your buyers or client enquiries. Right now and for the foreseeable future, advertising is a spectacularly risky way to grow a business. It requires constant monitoring, eats into an increasing percentage of your yearly profits and is extremely volatile.

It’s one reason why I haven’t paid for an ad in almost 30-years. It’s also why I guide my clients not to buy ads, either. There are massively better ways to attract your ideal prospects, which cost you nothing and work in every economy.

Better competition

A new, marketing savvy competitor has arrived, or an existing competitor has hired professional marketing help. In either case, your clients and prospects are now being expertly marketed to. So, their attention is being grabbed by a competitor, and converted into paying clients.

As a result, a number of the sales leads or client enquiries that would have been yours, are now theirs.

A well-funded competitor

A well-funded competitor is targeting your clients and prospects, offering very low prices. The new competitor usually commits to losing money, or operating on wafer-thin margins, for 6 to 24-months, to gain as much marketshare as possible. They bank on a number of their competitors going broke, and selling to them for peanuts or simply leaving the market. The well-funded competitor is left with a valuable chunk of the market. Then, they gently increase fees/prices. When handled correctly, this strategy is extremely effective. 

Well-funded businesses, ranging from independent coffee shops to international service providers, are increasingly using this ‘last one standing’ approach.

Value proposition jump

A competitor has found a way to significantly increase the value of their products or services. And it’s selling like crazy.

So, even though your quality or range of services is just as good as ever, it’s no longer as compelling, when compared to the newly-improved competitor.

What’s the answer?

The threats I’ve just shared with you are only a few of the more common ones. The key is to do some research. Identify what’s happening, then put a strategy in place to overcome it. 

The best advice here is this: be proactive.

For example.

• Massively reduce or eliminate your reliance on paid advertising. You don’t need it. It’s essential that you regain control over getting your sales message out there and acted on.
• Don’t wait for an marketing savvy competitor to turn up, before you seek to increase your value to the marketplace. Do it now. It’s easy. And you’ll win big. I usually find at least half a dozen ways in my first meeting with a new client.
• Adapt fully to whatever challenges the economy is throwing at you. When you do, you’ll not only grow your business, you’ll have a bigger slice of the marketplace. Why? Because your fearful competitors will be hiding from reality in their comfort zones. Scared into inaction.
• Get a marketing strategy for your business, which a well-funded competitor can’t penetrate. Then, build a wall of financial security around your business, which a well-funded competitor can’t penetrate. Grow your business. Get stronger financially. Repeat. 
• Become an engaged observer, so you know exactly what you’re competing against. It’s never been easier. Social media lets you see what your marketplace is saying about your competitors. Competitor websites and competitor social media accounts show you what you’re marketing against. In the past, business owners had to guess. You can just take a look and see what’s going on!

In business, everything happens for a reason. If your sales numbers are down, or your business isn’t growing like it was, once you identify why, you can adjust accordingly and turn things around.

This holds true in every economy, including this one . It also holds true for every small business owner, including you.

Jim, why are my sales numbers down? was written by Jim Connolly and originally published on Jim Connolly Marketing

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