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.
Recommended !
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
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