Sales Influence Moment #38: Reduce Cost or Increase Revenue

ROI – Defining Your Revenue Impact Areas

By Victor Antonio

 

Victor Antonio, Sales Consultant, Sales TrainerIf you’re in the ‘systems automation’ business, then one of the best ways to prepare for a sales presentation is being able to define the areas of impact your product or service will have on the clients direct costs or operating expenses.  A mistake many B2B salespeople make during the presentation and proposal phase of the sales process is to present their product/service/solution and slightly touch on a few possible impact areas.   Mistake!  Don’t make the client work at having to connect the dots between what you offer and their problem areas; that’s your job!

To be able to do this effectively requires some upfront thinking and preparation.  Start by listing out all the possible areas of impact your product or service addresses.  For example, let’s say you offer an automation product or software that will automate steps in the client’s manufacturing process or automate steps on the processing-side of a service-based business.  Here’s a short list of some the areas are you most likely to impact:

  • Reduce Rejection Rates
  • Reduced (Wo)Manhours
  • Reduce Headcount
  • Reduce Maintenance Cost and/or Fees
  • Reduce Number of Suppliers (in supply chain)
  • Reduce Material Expenses
  • Combines Processes to Reduce Cost
  • Reduce Human Error (reduce handling)
  • Reduce Utility Cost
  • Reduce Workstation-System Workspace (area)
  • Reduce Software Application Licenses

Can you think of a few more?

Once you’ve compiled a complete list of impact areas, the next step is to analyze and assign each impact area a value (e.g., estimated number of hours reduced, dollars saved, days reduced, area utilization, and so on).   Lastly, incorporate these reductions and savings into your presentation and proposal.

If done correctly, you’ve just moved up one step on the VCS Value Ladder.  What is the Value Ladder?  Well, that’s another posting altogether 🙂

 

 

Product versus Profit Presentation

by Victor Antonio

Victor Antonio, Sales Consultant, Sales TrainerIn any B2B sales situation, it is incumbent upon the salesperson to improve a client’s ability to circulate their capital quicker. This can be done through increasing sales, shortening account receivables or increasing inventory turns.

The ability to increase a client’s sales revenues or decrease their cost are the two main pistons that power any company. The engine that drives these pistons is the ability to turnover (or accelerate) capital in the most cost effective way. B2B buyers want to buy products or services that can help them achieve those goals.

So before you give your next sales presentation, here are some questions for you to consider:

  • Does my product (or service) help increase revenue or decrease cost?
  • Does my presentation describe how it does that?
  • Can I quantify those increases or decreases in terms of the client’s business?
  • If so, how soon can the B2B client expect to see a Return On Investment (ROI)?
  • Do I provide the B2B client with proof on how my products help increase revenue or decrease cost?

Whether you’re dealing with the CXO or a Product Line Manager, both want to know the same thing; how can you help me grow? Your ability to qualify and quantify your proposal in terms of the client’s business unit is the key differentiator in any sales scenario with your competitor. Selling in today’s environment has changed.