Is Sales Training really £WORTH£ the Value?

The value of sales training becomes clear if we look at, as an example, a customer with 20 salespeople whose average order value is a conservative £15,000, with an average margin of £3,000.

There are five key sales opportunities for increasing revenue in the“selling with rentals” model:

• Margin increase on pro-active leased versus cash sales
• Winning deals from ‘no decision’ customers – preventing poor cost justification
• New business deals that would never have happened with ‘cash prices’
• Winning more competitive deals through better cost justification
• Increasing average order values

Assuming, very realistically, that each sales person can ‘win’ four more deals per year - a well-trained team should easily exceed this - from the opportunities above, and that we can increase margin, and/or average order value, through the use of rental selling techniques by five per cent overall:

20 x 4 = 80 extra orders

80 orders x £15,000 = £1.2m

= £240,000 more margin + conservative additional five per cent (i.e. £12,000) through ‘rental sales’

= Total margin increase of c. £250,000

Of course, the effect is also a large increase in lease penetration but more importantly for the vendor there is real growth in sales and profit, share prices, and company worth. Once a pilot programme is established with manageable numbers, a results comparison is typically available within three to four months.

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