Improving your gross margin
Order intake gross margin represents the current ability of your selling operation to sell added value by differentiating your product/service from the competition and successfully defending against price pressure.
Growing gross margin is the quickest route to significantly growing business profitability and should be the raison d’etre of any B2B solution based sales operation. How much money are you leaving on the table due to the inability of your sales people to sell value?
All too often business leaders are given a plethora of reasons why gross margin cannot be improved. When you hear words such as “we’re too expensive”. . . this should translate as “we haven’t sold the added value to justify the price”. . . the obvious question is why not and what are you going to do about it to improve business performance?
At Quantum we apply our hands on knowledge and proven practical experience to credibly challenge the status quo at every step of the sales process and apply methodologies that have significantly improved gross margin for organisations in the B2B sector. We’re good at it so give us a call.
The New Equipment Division of the Otis Group has annual sales approaching £100 million and is the undisputed industry leader, with a 45% share of the UK market.
Avoiding price pressure
Popular myth: People always buy on price. Reality: People never buy on price! They make a price versus value judgement and if no perceived value in the additional premium is demonstrated, the ‘cheaper’ option wins.
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