The hard part isn’t knowing what to do to grow your distributorship’s revenue. You’ve already got most of that figured out. The hard part is knowing how to do it. That’s the part that bothers you most. If you don’t know how to do it, then how can you be sure that we do? That’s the real dilemma.
There are 3 sales activities that directly affect the growth of your distributorship. They are:
- Increasing your average deal size,
- Delivering more qualified leads to your salespeople,
- Improving your win rate
Below are some examples of how these 3 sales activities interact.
- How would last year’s sales revenue have been affected if your salespeople had received 50% more sales leads then they did? Assuming that the other two sales activities didn’t change, then your sales revenue would have increased by 50%–possibly even more than that if all the sales leads had been ‘qualified’ leads.
- If you hold the number of leads, and the average deal or invoice amount constant, and increase your reps average win rate by 10% then as in the example above, the number of closings would have increased by 10%, which means that total revenue would have increased again by 10%.
- What if only the amount of your distributorship’s average deal size had increased by 10%? Answer? A 10% increase in revenue growth.
Another thing to consider. There are only 2 sources of revenue: Sell more to your existing customers or take customers away from your competition.
With the right approach, you can sell 10% to 15% more to your existing customers over the next 12 months. It’s an ugly truth, but during the next 12 months not more than about 15% of your and your competition’s customers are going to buy new equipment. Six times that amount are going to maintain the equipment they already own.
If you had the means and opportunity is there any reason you couldn’t sell aftermarket products and services to your competition’s customers? Because that’s the second source of revenue available to you. Plus, by gaining your competition’s customers aftermarket business it’s likely that you will know about it in advance when they do decide to buy new equipment.
Statistically, without interfering in anyway with our customers new equipment sales, we generate a minimum of 10 aftermarket sales opportunities for each new/used equipment lead.
We are Growing Marketshare 365 and we are the largest provider of Unlimited Exclusive Leads to equipment dealers throughout North America. If you are ready to have a conversation with us about boosting your revenue, please click here.
