Sales is meaningless, if it brings in lower than expected margins and is done mostly on credit. The crux of any sales function is to increase sales margins and profitability. A high-margin enterprise sets itself for a growth path and higher valuation, whereas lower margin businesses become commoditized and face existential risks.
Getting higher sales margins in itself is a large subject. It spans product development, selling skills, branding, customer segmentation and much more. Unlike some other sales excellence dimensions, building higher-margin sales needs time, creativity, strategic clarity and persistence. We work on many methods to make profits happen for you.
Shifting to higher-margin sales model could range from small adjustment to total change in the model. For example- Selling Premium Products
- Through a different brand vs. Same brand with different designs
- Through separate set of channels or separate displays in same channels
- Through different sales force vs. same sales force
- In same vs. different geographies
- Through channels vs. having own sales team
- Through same segments with up-sell vs. new customer segments
These is never a simple answer to these choices, but with our extensive experience, we will be able to largely recommend what will work for your context. Apart from that, we will work with you to build possible strategic options, test them out, pilot them and launch, till you settle into what works for you.
We work on a plan to gradually (over a period of 12-24 months) your product-mix availability is changed. This means that the production-mix, shelf-availability, distribution-mix, marketing focus and other parameters are changed so that all stakeholders including your employees, customers and channels get used to the new mix. This is the most powerful and low-noise ways for higher margin sales.
This is a logical step taken by many companies. Money is the key motivator and it can drive behaviours and focus. At the same time, there needs to be a caution that compensation plans are also aligned to the saleability of high-margin products, and it should not have negative impact on the absolute sales and bottom-line. We use multi-scenario approach with infusion of 'add-ons' and 'alternative sales' methods to craft most optimum pay-out plans both for employees and channel partners.
Finally your product needs to sell, and customers should be ready to pay higher price for it. You need to develop world-class product development or adaptation capabilities to make it happen. Apart from core product, we work with you to develop quality certifications, better packing & presentation, customer experience, post-sales servicing and other aspects of your proposition. We also help you identify high-margin add-ons and plug-ins, while keeping the base product at relatively lower cost.
We re-orient your employees to sell premium products at a premium price. It’s difficult to make someone who has been selling FIAT all his life, to sell a BMW. Slowly and gradually through better hiring and developing high-potential employees, we help you create ‘Premium-Sales’ DNA in your Sales employees.
We redefine your hiring processes including target companies & sectors, search, Shortlisting, Interviewing, profiling and on-boarding.
We also reorganize the whole training and sales support approach to help build a solid premium selling DNA. This includes:
Just like employees, we will work with you to create a high-margin sales ecosystem with your sales partners. This includes:
- Recruitment of Better Work-Force
- Sales Collateral to help them sell better
- Training and co-working to ensure hands-on training
- Local promotion for higher-margin products