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Business acumen for sales persons is key to organization success
(Arabic translation will follow)
This is a set of tables by a website called http://research.financial-projections.com/IndustryStats-GrossMargin.shtml
It is free and you can download the whole report
The reason I am sharing this useful info is its importance to sales professionals and managers alike.
Many a time we find sales persons coming to their managers wanting to sell a product/service at low margin. The dsles
person’s intention is to close a deal and get the revenue. The sad thing is that sales persons act in good faith, they do
not know the impact of selling below margin on the company, and indeed themselves.
Lack of of proper business acumen in the front line troops of sales and business development is the reason companies
fail and go out of business.
Sales, General & Administration expenses, or SG&A is a major expense element that sales persons should be aware of,
and should also be aware that selling below it is a cardinal’s sin. Furtehrmore they should know that sales expenses
constitutes two thirds of SG&A, so selling at poor margins means doom and gloom to any organization.
The tables below show some financial figures for 35 industries, and as you see the 4.93% (wholesale) to 30’s% in sectors
like telecom, entertainment, and broadcasting. Another interesting observation is the gross profit of many sectors, and
how the net profit becomes a tiny fraction of the gross profit figures (Lega Services GP is 93%, net becomes 12%).
Ashraf Osman, Cairo 2016

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Business acumen for sales persons is key to organization success

  • 1. Business acumen for sales persons is key to organization success (Arabic translation will follow) This is a set of tables by a website called http://research.financial-projections.com/IndustryStats-GrossMargin.shtml It is free and you can download the whole report The reason I am sharing this useful info is its importance to sales professionals and managers alike. Many a time we find sales persons coming to their managers wanting to sell a product/service at low margin. The dsles person’s intention is to close a deal and get the revenue. The sad thing is that sales persons act in good faith, they do not know the impact of selling below margin on the company, and indeed themselves. Lack of of proper business acumen in the front line troops of sales and business development is the reason companies fail and go out of business. Sales, General & Administration expenses, or SG&A is a major expense element that sales persons should be aware of, and should also be aware that selling below it is a cardinal’s sin. Furtehrmore they should know that sales expenses constitutes two thirds of SG&A, so selling at poor margins means doom and gloom to any organization. The tables below show some financial figures for 35 industries, and as you see the 4.93% (wholesale) to 30’s% in sectors like telecom, entertainment, and broadcasting. Another interesting observation is the gross profit of many sectors, and how the net profit becomes a tiny fraction of the gross profit figures (Lega Services GP is 93%, net becomes 12%).
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