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Dealing With Returns? Here’s Your Guide to Mastering Sales Returns and Increasing Return on Sales 👉🏽 https://lnkd.in/g4jAxHQV

What Drives Your Revenue? → Three Things: 1. Sales Volume: the number of units sold 2. Sales Price: the selling price for the units sold 3. Sales Mix: the combination of 1 & 2 (sold product volumes and sales prices) 🎯 Here's how you can impact each of these factors to increase Revenues. ⏬⏬⏬ 💎Get this infographic and many other strategic finance gems in my free bi-weekly newsletter. Sign up for The Finance Gem 💎 and get a bonus cheat sheet pack as a welcome gift here: https://bit.ly/3T3CtPm ⏬⏬⏬ ⚫ How to impact Sales Volume: ✓ Increase demand to increase New Client Acquisition: implement targeted marketing efforts to increase brand awareness and attract new customers ✓ Improve and expand products/services: enhance existing offerings to stimulate customer contract renewals. ✓ Expand markets: expand offerings to capture new market, industry or geography segments ✓ Optimize inventory management: implement efficient inventory control systems and avoid stockouts or overstocking ✓ Inbound referrals: encourage customers and strategic partners to refer new clients through referral programs or word-of-mouth ✓ Net Promoter Score: track and improve customer satisfaction and loyalty to increase repeat business, referrals, and sales volumes ➡️ Use Volume to calculate Sales Volume Variances = (Actual Units Sold - Budgeted Units Sold) x Budgeted Price per Unit ⚫ How to impact Sales Price: ✓ Increase Pricing: review and increase prices to reflect changes in production costs, market conditions, and customer preferences ✓ Bundle Pricing: offer product or service bundles at a discounted rate, encouraging customers to purchase multiple items and thereby increasing overall revenue ✓ Value Pricing: set prices based on perceived customer value rather than solely based on production costs ✓ Premium pricing: position premium products or services with higher price points for customers willing to pay more for luxury offerings ✓ Cost management: monitor production costs and improve operational efficiency to maintain competitive pricing without sacrificing profit margins ➡️ Use Price to to calculate Sales Price Variances = (Actual Price - Budgeted Price) x Actual Units Sold ➡️➡️ Use Price and Volume to calculate Sales Mix Variances = (Actual Units Sold – Budgeted Units Sold) × Budgeted Contribution Margin 🎯 Remember that Revenue growth is one of the 3 main drivers of Operating Cash Flow growth. OCF = Revenue -Expenses -Depreciation and Amortization +/-Other non-cash items (e.g. gains/losses on assets sales) +/ Changes in Working Capital 🎯 And Operating Cash Flow drives your sustainable business growth.

Not hitting sales targets? Review your #IncentiveCompensation to ensure #MultiChannelSales are credited properly. Details from analyst Stephen Hurrell in this perspective: https://bit.ly/3HZ3oXv #CompensationPlanning 

Winning new accounts is great—no argument there. But it’s not just about offering a great product; it’s about unseating an existing provider; that demands serious strategy. With high repurchase rates (>80% for distributors), most buyers are comfortable where they are. To break through, we have to show undeniable value they can’t get elsewhere, and that's costly. Here’s the wrench: repeat orders aren’t sold; they’re bought. If we’re not tracking customer behavior and responding to their changing needs (yes they change...), we’re just another face in the crowd, and now easy to replace as most products are competitive in their value. We need insights that anticipate needs before customers even ask. That's going beyond basic retention. Standing out in a crowded field means loyalty built on more than a “good” price. Serve with the right tools, keep your customers and bring them more value with tailored offers ! Here is a list you need to question yourself with: -Date of last purchase to see how recently they’ve engaged with your product or service. -Number of transactions in the past year or quarter to gauge loyalty and buying patterns. -Total spend over the review period to understand their impact on revenue. -Historical Purchase Data: Year-over-year monthly or quarterly purchase data to highlight any cyclical patterns. -High and Low Periods: Identify peak and low purchase periods to predict future needs and tailor support. -Product Diversity: Number of unique products purchased to assess their engagement with the full product range. -Sales Growth Rate: Comparison of the current period’s sales against previous ones to track performance shifts. -Customer Segment Classification: Group or segment within customer base (like high-value, growth potential) to target tailored offers. What other products customer in the same category are buying? If you’ve made it this far and can’t easily answer these questions—or it sounds like too much work for your team—let’s talk. We’re here to make it easy!

The first step to increase sales? Track sales-specific KPIs Here are 5 KPIs every SMB owner needs to track to improve sales performance: 1/ 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗿𝗲𝘁𝗲𝗻𝘁𝗶𝗼𝗻 𝗿𝗮𝘁𝗲 Measures the percentage of existing customers who keep buying your products/services Formula: (Customers at the End of the Period - New Customers Acquired) / Number of Customers at the Start of the Period 2/ 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗔𝗰𝗾𝘂𝗶𝘀𝗶𝘁𝗶𝗼𝗻 𝗖𝗼𝘀𝘁 (𝗖𝗔𝗖) Measures the cost of acquiring a new customer Formula: Sales and Marketing Costs / Number of New Customers 3/ 𝗖𝘂𝘀𝘁𝗼𝗺𝗲𝗿 𝗟𝗶𝗳𝗲𝘁𝗶𝗺𝗲 𝗩𝗮𝗹𝘂𝗲 (𝗖𝗟𝗩) Measures the expected revenue generated from a customer over their lifetime Formula: Average Purchase Value × Number of Repeat Purchases × Average Customer Lifespan - CAC 4/ 𝗦𝗮𝗹𝗲𝘀 𝗣𝗶𝗽𝗲𝗹𝗶𝗻𝗲 𝗖𝗼𝘃𝗲𝗿𝗮𝗴𝗲 Measures the ratio between the value of potential sales in the pipeline and the sales target Formula: Value of Sales Pipeline / Sales Target × 100 5/ 𝗦𝗮𝗹𝗲𝘀 𝗖𝗼𝗻𝘃𝗲𝗿𝘀𝗶𝗼𝗻 𝗥𝗮𝘁𝗲 Measures the percentage of leads or prospects that turn into paying customers Formula: Number of Customers / Number of Leads × 100 What gets measured gets improved Pick 3-5 main KPIs → Track rigorously → Work to improve them That's how you grow sales — If you need help with your finances or want to ask some questions, my DMs are open. Always happy to help. #Accountant #Bookkeeper #Business #CPA #CA #Receivable #Cashflow #Paymentterm #Cashreserve #Expenses #Credit #Cashflow #KPI #SmallBusiness #SME's #IRS #IT #Material #InformationTechnology #NPO #SAAS #BusinessAdvice #HolidayHustle #Contracts #SmallBiz #Finance101 #YearEndPlanning #MoneyMatters

Forecasting revenue is the BIGGEST area of focus in your financial model and for good reason. It’ll help you make good decisions for your business ➡️ Revenue Sources Framework → E•P•N Your revenue can come from one 3 sources: 1️⃣ E→ Existing Customers Here you analyze your current customer contracts Ask yourself the following questions When will these contracts come up for renewal? What is the likelihood of renewal? Will they expand / contract before the contract is up? 2️⃣ P→ Pipeline customers Here you analyze the customers who are warm in your pipeline Ask yourself the following questions: What is the close likelihood of each contract? When will the contracts close? You then take the contract value * the close likelihood... and forecast the sale on the projected close date 3️⃣ N→ New Customers These are customers you’ve never interacted with… but can expect to in the future Here, you move onto the 2nd Framework, the Revenue Growth Framework ➡️ Revenue Growth Framework → A•R•S•R This is all about how you use your business model to close new customers, resulting in new sales 1️⃣ A→ Acquire Here you measure the channels that you use to acquire customers Common ones can be: Sales reps Digital Marketing Organic Partnerships 2️⃣ R→ Retain Now you measure how long this customer will be with you Are they monthly? Annually? Month to month? Once you have this info, you can understand how much you can generate in sales from them 3️⃣ S→ Sell Now that you know how long your customers are with you, you can analyze how often you’ll generate sales from them This can be sales from your New Customers or sales from your Active Customers 4️⃣ R→ Record Now is when you record all the activity that will hit financial statements Common ones include Revenue Deferred Revenue Cost of Goods Sold Inventory Accounts Receivable Commissions

7 Concrete Actions To Take Control Now Pricing - What You Actually Do… 1. Perform a detailed review of your current pricing. Analyse your historical sales data, identify trends, Assess your competitive position - be honest. Identify underperforming products and opportunities for price increases. 2. Create a tiered pricing model that reflects customer segments. Start by looking at product features, quality, or service levels. Increase revenue by looking at customer willingness to pay, perform small experiments to test. 3. Monitor competitor prices and adjust accordingly. Set up a schedule to review competitor prices, Use this data to inform (not set) your strategy. Adding extra features or bundling products is always better than dropping price. 4. Develop a structured discount strategy to stop ad-hoc discounting. Set clear rules for discount eligibility, such as: Volume purchases, loyalty status, And seasonal promotions. These rules directly affect your business’s survival, they are not “advisory”. 5. Educate your sales team on price negotiation tactics. Set up training sessions focused on value selling And handling price objections. Equip them to defend pricing and improve deal closure rates instead of criticising them for not doing it. DM me, I can help with this. 6. Use margin analysis to ensure profitability across your product range. Analyse cost structures and set minimum margin thresholds. Cut loss making products, (and customers)... They are killing your business. 7. Analyse customer feedback on pricing regularly. Use surveys, focus groups, and customer interviews. Pricing must reflect customer expectations, Be logically defensible and feel emotionally fair. Get proactive about your pricing Stop whinging about price objections If you want to succeed then this is WYAD (What You Actually Do) - Set the meeting now… ————————————— House of Sales Learn.Sell.Grow. ————————————— P.S. Anything you want to add?

Monitoring Sales and Posted invoices over an ever-growing customer base can become overwhelming as volumes increase through your company life cycle. The first step in beginning to keep track of recurring sales is to build up a foundation that allows for summary sales data output for various time increments.

how does one bad review can impact your Amazon sales ? A single bad review on Amazon can significantly impact sales due to several key factors: Customer Perception: Trust and Credibility: A negative review can damage the trust potential buyers have in your product. Customers often rely heavily on reviews to gauge the quality and reliability of a product. First Impressions: If a negative review is one of the most recent or prominently displayed, it can create a poor first impression, dissuading potential buyers from making a purchase. Overall Rating: Rating Drop: A bad review can lower the overall star rating of your product. Even a slight drop in the star rating can impact sales, as many customers filter products based on high ratings. Visibility and Ranking: Amazon’s algorithm factors in product ratings for search rankings. A lower rating can push your product down in search results, making it less visible to potential buyers. Impact on Conversion Rates: Purchase Hesitation: Prospective buyers might hesitate or abandon their purchase if they see a negative review, especially if it highlights significant issues. Comparison Shopping: Customers may choose to buy a competing product with better reviews and ratings. Detailed Feedback: Specific Issues Highlighted: Negative reviews often detail specific problems, which can be more influential than a general low rating. If a review mentions defects, poor customer service, or other significant issues, it can deter potential buyers more effectively. Product Returns and Refunds: A bad review might also lead to an increase in product returns or refund requests, as it might highlight issues that other buyers begin to notice as well. Seller Reputation: Overall Brand Impact: Multiple bad reviews can harm the reputation of not just a single product, but your overall brand, leading to long-term sales decline across multiple products. Customer Service and Resolution: Response to Reviews: How you handle and respond to negative reviews can also impact sales. Prompt, professional, and effective responses can mitigate some of the damage, showing potential buyers that you are committed to customer satisfaction. To minimize the impact of a bad review, it's crucial to maintain a high level of product quality and customer service, encourage satisfied customers to leave positive reviews, and address any negative feedback promptly and effectively.

Building an effective pricing page to convert prospects into customers is complicated. How you show prices can make a big difference. Do you show the full price upfront, including all taxes and fees, or do you start with a lower price, show discounts and add the extras at checkout?