Everybody desires to produce a lot more sales and in turn, boost their money flow and make a profit. But how do you manage your sales folks together with the delicate balance among sales and profit and money flow? How can you avert them from producing a toxic sale? Several companies each substantial and tiny, focus just on sales because it is simple to focus on just a single thing for their salespeople today. Having said that if the sale is just not lucrative or includes a damaging influence on your cash flow, then the sale could the truth is toxic for your company.
Imagine this scenario. Sales are down so far this month as well as your sales individuals know it. Among your salespeople, let us get in touch with him Harry, has been speaking to a new customer about getting your solutions nevertheless price has been a problem. Harry wants to produce his sales target for the month and gives the client a discount if he buys these days. The consumer continues to be not specific and hesitates. So Harry closes in and offers extended terms i.e. spend us in 60 days instead of 30 days! The deal is performed. Special value and additional time for you to spend.
Around the surface, this looks OK, a pat on the back for Harry! He has produced his sales target. Or is it truly OK? In some circumstances based on the level of discount Harry supplied, the sale perhaps lucrative. So tick the box for profit.
Can the organization wait 60 days with no finding the cash within the bank? For some enterprises, this might have little impact. So tick the box for money flow. For other organizations waiting that an additional 30 days may well put severe stress on …