“It” all starts with sales but what starts badly is going to end badly. Sales professionals, understandably, are typically top line driven. While there is nothing wrong with focusing on volume sales, most of an organization’s resources are planned around sales forecasts. However, herein lies the problem.

Case Study: How Sales Forecasting Costs Your Business

Sales professionals who do not have a financial background “don’t know what they don’t know”. The result is the creation of forecasts that are not achievable while often “throwing away profits” without even knowing it. Here is an example of a question that is rarely addressed:

Q: My selling price of a product/service is $100 and it cost me $70. If I am asked to discount the selling price by 10%, by what percentage must I increase my unit sales to offset the cost of the discount?

A: 50%. (there is a simple formula to calculate this number)

What about asking questions such as:

  • Can I sell the additional volume?
  • Do I have sufficient resources to supply the additional volume?
  • How much volume must I sell to offset stepping up costs to accommodate the volume increase?
  • What other alternatives do I have other than discounting to increase sales and profits?

This is just one out of hundreds of questions and topics that are addressed during our intense hands on and interactive corporate workshops. Sales professionals are taught to use various sales levers to make strategically better sales decisions that create a win-win solution for both their client and their own organization. This is not just about trade math.

Our programs teach people how to think strategically through the “eyes” of financial statements always with ROI and cash flow in mind.