How much money to spend on Sales Consulting?
As you are reading these words you are probably either an executive or partner or investor of a company. These people tend to have the sense of ownership. And this ownership way of thinking is not based on costs but on returns.
An owner rather cares about the return of investment (ROI) than the price tag of anything. Buying sales consulting is an investment so let’s see the return of investing in B2B Sales Methodologies.
Usually there are four areas to check about an investment:
- Rate of return – How much more money can sales consulting get you?
- Period of return – How quickly will your investment become profitable?
- Size of investment – How much does it cost?
- Risk of investment – Can you start small? (to check the verfiability of the ROI)
How much money sales consulting can get you?
First of all nobody should take it for granted that sales consulting can get more money for his company!
This is why we always suggest starting with an one of our entry services. (Baby steps of sales consulting is also the lowest risk to experience the quality of service and the ROI)
A good sales assessment can tell you if we can or cannot help and how quick that help would show any results in your sales. (If it would take longer than 6 months to help – we will tell you so.)
But if we made sure that sales consulting could get you more revenue we propose the kind of sales consulting that would help you the most:
To picture a properly working Agile B2B Sales Methodology imagine a box (a sales machine) with monthly extra cash in it. After we put together your new Sales Methodology we say good-bye but your Agile Sales Methodology (the cash box) will stay at your company, and every month there is fresh money in that box. This is your Return of Investment.
How will your new sales machine make money?
Usually we make both hunting and farming more efficient with a better monitored and more active sales force.
we can establish roles with role descriptions to see who fits and who doesn’t within the sales force
we can introduce a monitoring system with time-sheet feature on the top of it to make sure that everybody is doing their jobs
we can put together a motivation system that honors achievements and punishes non-compliance
we can introduce a strict lead-qualification system followed by regulated sales process steps and account management procedures
And as a result more and better quality customers will start flowing in. (check some opinions about our work)
So there are three main sources of extra money in your sales machine box:
more and better quality new customers (hunting)
keeping existing customers and getting new add-on sales/up-selling (farming)
motivating and monitoring your sales force (parenting)
For an ROI (return of investment) example let’s suppose you have a smaller IT company in an emerging market:
- Your monthly sales volume is 50k USD
- Your monthly recurring revenue is 10k USD
- Your EBIDTA is 35%
a professional B2B Sales Methodology
can make your salespeople become more active by 25%
new sales can increase by 10%
= 5,000 USD extra revenue / month
= 1,750 USD extra profit / month
can boost the monthly add-on sales by ~20%
= 2,000 USD extra monthly add-on sales / recurring revenue
= 600 USD extra profit / month
TOTAL: 11.6% increase of monthly EBIDTA/profit (7,000 USD extra revenue = 2,350 USD extra profit)
So if you aim for a 6 month return period You can invest cc. 14k USD into an Agile Token Sales Methodology (with CRM implementation, training etc.)
Or here is a simpler ROI calculator:
How long does it take for ForceDavid to put together an Agile Token Sales Funnel Methodology?
It depends on the following:
we are a very small boutique consulting firm – and for us every project is craftwork
such project cannot be run by employees the highest stake-holders’ involvement is inevitable
Your company culture
how fast your colleagues can adapt to new things or how long it takes to find the right people
With all three conditions above it is usually between 10-40 consulting days to complete an Agile Sales Methodology Implementation depending on the complexity of your sales process, the market position of your company and size of your sales department.
(The average consulting frequency of a project is around 10 consulting days / calendar month – divided into smaller consulting blocks)
And finally here comes the ‘How much?’
We have package prices for Agile Sales Methodology Implementation projects in the 10 – 50k USD range but don’t forget to start small!
(click here for our service pricing)
(The above mentioned example calculations of return of investment and / or pricing are not subject of any official business proposal by ForceDavid. The sole purpose of any calculations above is to exhibit the way of the approach of ForceDavid towards any business co-operation. The above mentioned amounts, lengths and ratios are non-binding examples. The description above of any business and / or political environment is not a statement and / or opinion of ForceDavid. For any specific quote and / or pricing details please contact ForceDavid.)