How do discounts affect sales speed?
With discounts, you can shorten the sales cycle, thereby increasing the speed of closing the deal. This is called incentivizing a quick close.
How discounts affect sales speed
Before announcing discounts, you need to vietnam number make sure that your sales representatives are well aware of how to use this tool to make profitable deals and not create difficulties for the further development of your company.
What is sales throughput velocity?
The main purpose of the through sales velocity is a short-term focus, where you want to see how much inventory is moving during a month. It is the length of the period that distinguishes this indicator from inventory turnover.
The sell-through ratio allows you to find out how effectively an organization sells its inventory during the month.
Why track inventory turnover?
If the indicator value expressed in days is too high (more than 30), this indicates a surplus of product in the warehouse, which indicates a decrease in the liquidity of the company's assets. The opposite situation, when the turnover is too low (2-3 days), can lead to a product shortage. The indicator should be analyzed at least once a month. Based on it, you can track the dynamics of turnover and draw conclusions about the situation with inventory.
The following point should be noted. Let's assume that the turnover value is 20 days, and the supplier has agreed to a payment deferment of two weeks. In this situation, the company pays for goods that have not yet been sold, as a result of which it has to stimulate sales or reduce inventory, negotiate with the supplier to increase the payment deferment period.
A large and well-coordinated sales team does not have a significant impact on the scaling of the organization. When measuring sales velocity, it is important to understand what the results say, based on which strategies for increasing it are developed.