Sometimes it seems safer not to make a decision.
Few business leaders realize that there is risk and, in fact cost associated with NOT making a decision.
International Sales Acceleration Specialist Peter Strohkorb outlines the dangers and proposes solutions.
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The cost of not making a decision
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息 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved
with Peter Strohkorb
CEO, Speaker, Author
The Cost of No Decision
2. www.peterstrohkorbconsulting.com
15+ years in senior B2B Sales and Marketing roles
CEO , offices in Australia and USA
Business Coach & Executive Mentor
Creator of the OneTEAM Method for closer Collaboration of Marketing & Sales
International Business Speaker (invite me to speak at your event)
Executive MBA Guest Lecturer at the Sydney Business School. Australia
Board Director x 2 NFPs and Industry Representative Organizations
Family, soccer, tennis, cooking, fine wine, entertaining
Peter
STROHKORB
3. www.peterstrohkorbconsulting.com 3
息 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved
Named Global Top 5
Sales & Marketing Collaboration
Expert
By Selling Power Magazine (USA)
4. www.peterstrohkorbconsulting.com 4
67% of sales
professionals do not
achieve their personal
sales quota.
The TAS Group
息 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved
6. www.peterstrohkorbconsulting.com
~17% of a Sales
Reps selling time is
lost by looking for, or
modifying, Marketing
Content.
Peter Strohkorb
息 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved
7. www.peterstrohkorbconsulting.com 7
Only 25% of
sales leads and
collateral that
Marketing
creates is ever
used by Sales
teams."
IDC
息 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved
9. www.peterstrohkorbconsulting.com
P&L Performance Impact
Base Case
P&L
Reduce
Direct
Selling
Expenses
by 5%
Increase
Sales
Volume by
5%
Raise Price
by 5%
Sales Revenue $100.00 $100.00 $105.00 $105.00
Cost of Goods Sold (COGS) $60.00 $60.00 $63.00 $60.00
Gross Profit $40.00 $40.00 $42.00 $45.00
Fixed Costs $13.00 $13.00 $13.00 $13.00
General Admin Costs $11.00 $11.00 $11.00 $11.00
Direct Selling Expenses $6.00 $5.70 $6.00 $6.00
Profit Before Tax (PBT) in $ $10.00 $10.30 $12.00 $15.00
Profit Before Tax (PBT) Increase from Base Case in $ $0.00 $0.30 $2.00 $5.00
Profit Before Tax (PBT) Increase from Base Case in % 0.0% 3.0% 20.0% 50.0%
* Managing Top-Line Computer Applications"; Stephen P. Hindman & John J. Sviokla;
Harvard Business School Publication # 9-192-098, rev 7/9/92
What are the Financial Benefits ?
9
@pstrohkorb
10. www.peterstrohkorbconsulting.com
P&L Performance Impact
Base Case
P&L
Reduce
Direct
Selling
Expenses
by 5%
Increase
Sales
Volume by
5%
Raise Price
by 5%
Sales Revenue $100.00 $100.00 $105.00 $105.00
Cost of Goods Sold (COGS) $60.00 $60.00 $63.00 $60.00
Gross Profit $40.00 $40.00 $42.00 $45.00
Fixed Costs $13.00 $13.00 $13.00 $13.00
General Admin Costs $11.00 $11.00 $11.00 $11.00
Direct Selling Expenses $6.00 $5.70 $6.00 $6.00
Profit Before Tax (PBT) in $ $10.00 $10.30 $12.00 $15.00
Profit Before Tax (PBT) Increase from Base Case in $ $0.00 $0.30 $2.00 $5.00
Profit Before Tax (PBT) Increase from Base Case in % 0.0% 3.0% 20.0% 50.0%
* Managing Top-Line Computer Applications"; Stephen P. Hindman & John J. Sviokla;
Harvard Business School Publication # 9-192-098, rev 7/9/92
What are the Financial Benefits ?
10
@pstrohkorb
11. www.peterstrohkorbconsulting.com
P&L Performance Impact
Base Case
P&L
Reduce
Direct
Selling
Expenses
by 5%
Increase
Sales
Volume by
5%
Raise Price
by 5%
Sales Revenue $100.00 $100.00 $105.00 $105.00
Cost of Goods Sold (COGS) $60.00 $60.00 $63.00 $60.00
Gross Profit $40.00 $40.00 $42.00 $45.00
Fixed Costs $13.00 $13.00 $13.00 $13.00
General Admin Costs $11.00 $11.00 $11.00 $11.00
Direct Selling Expenses $6.00 $5.70 $6.00 $6.00
Profit Before Tax (PBT) in $ $10.00 $10.30 $12.00 $15.00
Profit Before Tax (PBT) Increase from Base Case in $ $0.00 $0.30 $2.00 $5.00
Profit Before Tax (PBT) Increase from Base Case in % 0.0% 3.0% 20.0% 50.0%
* Managing Top-Line Computer Applications"; Stephen P. Hindman & John J. Sviokla;
Harvard Business School Publication # 9-192-098, rev 7/9/92
What are the Financial Benefits ?
11
@pstrohkorb
12. www.peterstrohkorbconsulting.com
P&L Performance Impact
Base Case
P&L
Reduce
Direct
Selling
Expenses
by 5%
Increase
Sales
Volume by
5%
Raise Price
by 5%
Sales Revenue $100.00 $100.00 $105.00 $105.00
Cost of Goods Sold (COGS) $60.00 $60.00 $63.00 $60.00
Gross Profit $40.00 $40.00 $42.00 $45.00
Fixed Costs $13.00 $13.00 $13.00 $13.00
General Admin Costs $11.00 $11.00 $11.00 $11.00
Direct Selling Expenses $6.00 $5.70 $6.00 $6.00
Profit Before Tax (PBT) in $ $10.00 $10.30 $12.00 $15.00
Profit Before Tax (PBT) Increase from Base Case in $ $0.00 $0.30 $2.00 $5.00
Profit Before Tax (PBT) Increase from Base Case in % 0.0% 3.0% 20.0% 50.0%
* Managing Top-Line Computer Applications"; Stephen P. Hindman & John J. Sviokla;
Harvard Business School Publication # 9-192-098, rev 7/9/92
What are the Financial Benefits ?
12
@pstrohkorb
13. www.peterstrohkorbconsulting.com
In any moment of decision, the best thing you can do is
the right thing. The next best thing is the wrong thing.
And the worst thing you can do is nothing.
Theodore Roosevelt
13
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息 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved
Formula: Total # of Reps x TRC $ per Rep p.a. x 17%
The Cost of Doing Nothing:
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息 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved
The Revenue Cost of Doing Nothing
The Cost of Forgone Sales:
Formula: # of Reps x Sales target each x 17%
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息 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved
The OneTEAM Method is our
5-Step, People-First
Collaboration Methodology
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The Benefits of Sales Enablement
23
More Sales, Profit
Better CX
Higher Calibre Talent
Higher Productivity/Less Waste
Technology ROI
息 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved
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息 2016 Peter Strohkorb Consulting International Pty Ltd, all rights reserved
26
More Sales, Profit
Enterprize Example
1. Assessment
2. Consulting
3. Change ManagementWe absolutely
got value from
Peter.