|The costs associated with sales operations are in some ways unavoidable and simply the cost of doing business. While there are always times to trim cost out of a business’ operations, when trying to trim cost out of the area of sales operations we can increase the risk decreasing sales revenue. Although, by using a sales strategy that includes sales outsourcing, costs can be decreased while either maintaining or increasing sales results.
Outsourcing sales refers to transferring some portion of the sales cycle over to an external organization. An example of this is where a company outsources the early portions of the sales cycles by hiring outside companies to perform cold calling and lead generation. By transferring this tactical activity, a business can then shift its experienced sales resources to more strategic activities. Not only can this change drive better sales results, it can also decrease a company’s cost structure.
Below is a summary of how outsourcing sales responsibilities can decrease costs:
- Headcount avoidance: Headcount avoidance is being able to avoid adding headcount to support or drive growth. A company may either have already experienced growth or may want to trigger growth, and with sales outsourcing they can support either of those activities without adding any additional full-time headcount.
- Decreased headcount: Sales resources can be very expensive on the bottom line when factoring in base salaries and benefits packages. By outsourcing sales, a business could decrease their headcount in the sales department by transferring certain responsibilities over to an outsourcer.
- Recruiting: Finding and interviewing sales resources can be very time consuming. When outsourcing sales responsibilities, the responsibility of recruiting and hiring is typically transferred over to the outsourcer driving a decrease in time and cost in the area of recruiting.
- Training and coaching: Every sales resource will need to be trained and coached. In some cases the cost in those areas will be built into the contract for sales outsourcing, but even if they are, there is a likely a tremendous amount of training and coaching that has already been delivered that a business can leverage to drive a decrease in training and coaching cost.
- Management: Every sales resource will need to be managed at some level. Whether it is assigning tasks, managing productivity, or monitoring effectiveness, there is management time required and that is a cost. By outsourcing, a business will be relived of this time and cost for management.
- Infrastructure: Each sales resource is going to have some amount of infrastructure cost. This could include a computer, phone, software, office space, IT support, electricity, etc. With outsourcing, a business can operate without needing to take on all of these different costs.
- Fractional sales resources: Many businesses might not need a full sales resource in terms of one that would work full-time at 40 hours per week. For example, a business may have two full-time sales resources and they want to grow but either can’t afford or don’t need to add another full-time resource. In this case, a sales outsourcer could offer a sales resource on a fractional basis by providing someone to perform cold calling on a part-time basis.
Launch Pad Solutions provides sales outsourcing services helping businesses to decrease cost while driving positive sales results.
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