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Introduction
The overall financial performance of any organisation is an average of the various contributions that come from each customer and sale. What this average can hide is that some customers and some sales may provide excellent financial performance, whereas others provide poor or even negative contributions.
The opportunities for things to go wrong are considerable. A combination of discounts, extended terms, the cost of ‘specials’ or any variation to standard products or services, poor/late payers, additional workloads for ‘demanding’ customers, split-deliveries, special delivery or storage requirements, and many other issues can turn what was perceived as a worthwhile sale into a waste of time and effort.
This programme is designed to help sales professionals clarify the positive and negative impacts different sales actions will have on overall business success and guide their sales activities to generate optimum results for their organisations.
Learning Outcomes
On successful completion of this programme, participants will be able to:
- Read and understand the Profit & Loss Account from the sales ‘top-line’ to the profit ‘bottom-line’
- Describe the most important aspects of the Balance Sheet and Cashflow Statement from a sales person’s perspective
- Apply basic analysis to identify the effect of deals and variation / deviation from standard terms to the business
- Identify the potential and hidden costs of a proposed transaction to support effective commercial decision making
- Apply an understanding of Credit Control issues & describe how available financial information can be used to decide credit worthiness
- Describe how selling / sales people can personally make a positive difference to the financial success of the company
Programme Content
Participants will cover the fundamental accounting principals, focusing on the Profit & Loss account. They will consider how variations to standard sales terms will have impact on various factors, including costs, contribution, gross margin, interest costs and net profit. There will also be work on understanding the Balance Sheet and Cashflow Statements so that participants can follow the further impact of their sales activities on debtors, working capital and overall company value as it will appear to different stakeholders.
During the day alternative strategies can be explored for meeting customer needs and the demands of the sales processes so that the participants can create then best strategies for ‘making the sale’ whilst achieving a ‘win/win’ situation without it unnecessarily eroding the value of the sale to the company.
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