Sales facility Infrastructure  

Sales cost and profitability management

Sales cost to revenue ratio is one assumptions behind profitability projections. Minimizing the cost of sales while staying within assumptions boundaries is must.


Sales facility Infrastructure


Sales facilities and infrastructure form a significant component of sales related costs.

Sales facilities and infrastructure form a big component of sales related costs. Some examples of the components are:

  • Sales infratstructure for Offices
  • Networking and IT Infrastructure cost in terms of connectivity, telecom and sales systems.
  • Sales training facilities.

Following are the ways one may manage the cost around the sales facilities and sales infrastructure:

  • Keeping only the front-end and walk-in customer-contact facilities in the premier location to maintain a good brand presence. For back-end sales related work, and sales order processing work, have your facilities at lower-end locations.
  • Sales people are expected to be on road, so you may have shared desks OR 'hot-desks'. Many companies allow sales people to operate from home and come to the office on given days.
  • For IT infrastructure, keeping variable cost for network usage.
  • If you have outsourced your sales order management, OR you have any 3rd party distributor, you may have your sales employees using those facilities.