Help with Sales

Author: Terry Thomas

Date: Tuesday 12th February 2008

OVERVIEW:

Business X was achieving substantial sales, but not generating profits. The problems were in essence twofold; firstly the company was unable to accurately identify its gross profit performance, making it almost impossible to budget. Secondly the market conditions had changed significantly and without realising it a previously successful product mix was now causing a drain on cash resources.

HOW DID PBI HELP?

With support from PBI the company overhauled its sales plan, dropping unproductive activity and concentrating their sales effort on the areas where they were likely to produce most profits. Armed with the knowledge of how their breakeven position could be achieved through a better mix of sales, the company began to manage their products more carefully and improve profitability.

Working with the business PBI helped to implement reward systems for sales staff, who could now target more productive and rewarding sales, reducing overall sales but increasing profitability.

OUTCOME:

The company was also able to better understand the efficiency of their workforce as the improved costing system highlighted areas of underperformance. The less profitable activity which was absorbing a high proportion of their cash was sold off, releasing cash to concentrate on making the remainder of the business more profitable.