Prioritizing clients based on products
Measuring your profitability by product means taking into account the revenue from your product and the amount it costs to make a sale. In this case, it is crucial for yor sales strategies to compare all or various products in your portfolio considering aspects like the quantity sold, unit cost, price and marketing costs.
We know a lot of companies that keep selling products or services that are not actually bringing enough money to the business, this is because they don’t have a record of which products and services are making more gross margins. And, let’s not forget this information is incredibly important for sales strategies; let’s analyze that.
Having detailed information of each product contribution to your business will assist you on determining whether a specific product is making you lose or earn money, and if it’s worth spending more time and effort.
Examine individual and combined product sets to determine whether they make or lose money and how much. I’m sure you don’t want to keep a product in your lineup longer than is warranted; therefore, clear documentation, effective sales strategies, measurable targets and timely review can save your sales lifecycle. This is also helpful when taking important decisions like promoting a particular product, applying discounts, stop producing certain products or offering certain services, and the list can go on and on.
Remember that businesses should always plan sales strategies for the future
At the end of the day that’s the overall point for planning. As a sales director you have to focus on long-term planning goals at the macro level that may influence future profitability.
Once you think it through and prepare a strong framework for analyzing product profitability, you can start distributing information to your sales reps. You will know who in your team can contribute to maintaining and improving profitability. And, keeping track of your sales reps performance will also be really important. But, using a commission tracking software like Blitz will make everything easier with automated processes. Prioritize your products and obtain more sales and closed deals.