Thursday, June 9, 2016

Volume driven sales

If you are in the business of only air-conditioning as a small company, you should appreciate
the fact that volume driven sales will not take you anywhere!

Reduce margin and increase sales? May work only on paper. It is only for companies with a regional or national reach with delivery logistics who can try to do this. Some of the Indian on-line companies are able to complete tens of thousands of transactions every day. Their ad-spend is enormous. Have they as yet started to make any profits?

Don't fall into this trap.

If you have been in the business for some years, you would have observed that 75% to 80% of your
business comes from 20% to 25% of your customers. Concentrate on these customers. Nowadays executives are visiting customers only when there is a specific call or request whereas they should
be visiting these "A" customers at regular intervals. They fail to understand how much of business they are losing because of this.

Small companies cannot afford to reach out to distant places for delivery or service. If only they concentrate on the regions closer to their base, give good service and sell at a healthy price they
would be in safer grounds!

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