070801 value chain and sales model

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070801 value chain and sales model

  1. 1. ValueValue ChainChainmark lesliemark lesliemleslie@leslieventures.commleslie@leslieventures.com650/561-1228650/561-1228Sales ModelSales Model
  2. 2. Value ChainValue Chain► What is a value chainWhat is a value chain All the independent entities required to bring the productAll the independent entities required to bring the productto the end userto the end user Each independent entity adds value and receivesEach independent entity adds value and receivescompensation for that valuecompensation for that value► End user price is the price that final end user paysEnd user price is the price that final end user paysfor the product or servicefor the product or service► Revenue to your company is the amount ofRevenue to your company is the amount ofrevenue you receive ONLY for your segment ofrevenue you receive ONLY for your segment ofthe value chainthe value chain
  3. 3. Value ChainValue ChainDirect to End UserDirect to End UserCost of Goods(Supply Chain)Profit + SG&A + r&DEndConusmer$EUDiscountsNotice the littler and the bigD !RevenueList Price
  4. 4. Value ChainValue ChainResellersResellersCost of Goods(Supply Chain)Profit + SG&A + r&DEndConusmer$EUDiscountsResellerRevenueList Price
  5. 5. Value ChainValue ChainDistributors / ResellersDistributors / ResellersCost of Goods(Supply Chain)Profit + SG&A + r&DEndConusmer$EUDiscountsResellerDistributorRevenueList Price
  6. 6. Value ChainValue ChainInternational DistributorsInternational DistributorsCost of Goods(Supply Chain)Profit + SG&A +r&DEndConusmer$EUDiscountsResellerDistributorMasterDistiRevenueList Price
  7. 7. Your ProductBecomes yourCustomer’s COGsValue ChainValue ChainOEM or IP LicensingOEM or IP LicensingCost ofGoods(SupplyChain)Profit + SG&A +r&DEndConusmer$EUDiscountsResellerDistributorMasterDistiCost of Goods(Supply Chain)Profit + SG&A + r&DResellerList PriceRevenue
  8. 8. Value ChainValue ChainYour Acquired OEM Product or Licensed IPYour Acquired OEM Product or Licensed IPCost of Goods(SupplyChain)Profit + SG&A +r&DEndConusmer$EUDiscountsResellerDistributorMasterDistiCost of Goods(Supply Chain)Profit + SG&A + r&DResellerCost ofGoods(SupplyChain)Profit + SG&A + r&DResellerList PriceRevenue
  9. 9. Sales ModelSales Model►WhoWho►WhatWhat►WhenWhen►WhereWhere►HowHow►How Much $How Much $
  10. 10. Who BuysWho Buys► Who is the business / economic buyerWho is the business / economic buyer Looking for ROILooking for ROI► Who are the actual end users in the organizationWho are the actual end users in the organization► Who is the technical buyerWho is the technical buyer ImplementerImplementer Will compare competitive alternativesWill compare competitive alternatives► Who is the recommenderWho is the recommender Who actually does the evaluationWho actually does the evaluation► Who actually signsWho actually signs What are the typical signature levels required for this productWhat are the typical signature levels required for this product► Department headDepartment head► Department VPDepartment VP► CFOCFO► CEOCEO► Board of DirectorsBoard of Directors
  11. 11. What are the StepsWhat are the Steps► LeadLead► ProspectProspect► Introductory presentationIntroductory presentation► Demonstration (proof of concept)Demonstration (proof of concept)► Technical presentationTechnical presentation► PilotPilot► Final presentationFinal presentation► Best and Final OfferBest and Final Offer► Negotiate contractNegotiate contract► Receive POReceive PO
  12. 12. WhenWhen►How long, on average from lead to dealHow long, on average from lead to deal►What is the range of timeWhat is the range of time►Does the range of time vary by deal sizeDoes the range of time vary by deal size
  13. 13. WhereWhere►Where are the customers?Where are the customers?►Domestic vs. InternationalDomestic vs. International Feet on the ground required?Feet on the ground required?►VerticalVertical►Major Accounts / National Accounts / GlobalMajor Accounts / National Accounts / GlobalAccountsAccounts
  14. 14. HowHow► Direct SellingDirect Selling Technical support to sellingTechnical support to selling Inside salesInside sales TelemarketingTelemarketing Lead generationLead generation► Channel SellingChannel Selling All of the aboveAll of the above Channel reps and channel managementChannel reps and channel management► Manufacturers RepsManufacturers Reps► RetailRetail DistributionDistribution Shelf space and stockingShelf space and stocking► OEMOEM► IP LicensingIP Licensing► Multi-tier DistributionMulti-tier Distribution► Etc.Etc.
  15. 15. How Much $How Much $►How much does this model cost?How much does this model cost?►Is it consistent with product price andIs it consistent with product price andtransaction size?transaction size?
  16. 16. Value ChainValue Chainmark lesliemark lesliemleslie@leslieventures.commleslie@leslieventures.com650/561-1228650/561-1228Sales ModelSales Model
  17. 17. Copyright Mark LeslieCopyright Mark LeslieOne Final Thought…One Final Thought…
  18. 18. Copyright Mark LeslieCopyright Mark Leslieit is regret for the things we didit is regret for the things we didnot do that is inconsolablenot do that is inconsolable..Sidney J. Harris (1917–86)Sidney J. Harris (1917–86)Regret for the things we did canbe tempered by time;

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