Retail Math for fashion industry May 20, 2012 at 12:48 am

Therefore, there was a 12% decrease.

Planned Stock = planned monthly sales x stock sales ratio

Sell through %= units sold / (units sold + on hand inventory)

Sell-through is a percentage of units sold during a period (for example1 month).

Having a 1300 numbers can provide the edge of your competition.

It is calculated by dividing the number of units sold by the beginning on-hand inventory (for that same time period).

Example:

During the month ofAugust you sell 100shirts. You received 300shirts in receipts. You endAugust with 900 unitsshirts of stock (End of MonthStock). What was your Beginning On-Hand unitsof shirts and what was your Sell-through?

Beginning of Month stock (BOM) = EOM 900 units – Receipts 300 units + Sales 100 units = 700 units

Sell-through = Sales 100 units / Beginning Inventory (BOM) 700 = 14.3% Sell-through inAugust.

BOM means Beginning of Month

EOM means End of Month

Stock Sales Ratio = B.O.M. $ Stock / Sales for period

Note: B.O.M = beginning of month

Shrinkage = Difference between book and physical inventory

“inventory turnover.” Turnover is the number of times you sell your average investment in inventory each year.

Turnover = net sales for period / average stock for period

Here is another way of stating the same formula:

Cost of Goods Sold from Stock Sales during the Past 12 Months

Average Inventory Investment during the Past 12 Months

Inventory turns : The retail sales for a period divided by the average inventory value for that period. Most retailers are in the range of two to four turns a year.

Average Stock = sum of each periods Beginning of Period stock + the last End of Period stock / # of periods

Breakeven = Fixed Costs / (Revenue

Variable Costs)

Breakeven Analysis: Simply stated, this formula indicates how much sales volume must be accomplished in order to cover all costs (fixed and variable), and begin generating a profit. In other words, it is the point in sales volume at which you have no profit and no loss. This is most commonly applied to a business that sells product.

Weeks of Stock

Inventory divided by average weekly sales for a given period of time.

If you have $10,000. worth of inventory in sweaters, and your total sales of sweaters for the past 5 weeks is $20,000. the calculation would look as below :

$20,000 divided by 5 = average weekly sales of $4,000.

$10,000. divided by $4,000.00 = 2.5

This means that if you did not replenish your sweater inventory and sales continued at the same rate, you would deplete your inventory of sweaters to zero within 2 1/2 weeks.

By the way, what are the odds that the your inventory would sell at the “same rate” week after week. Maybe this is why clothing stores are always out of my size …

Please utilize these formulas at your own risk. The Apparel Search Company is “not” comprised of mathematicians. We have simply listed formulas that we have collected over the years. In addition, we have supplemented the listing with information that we have received from our viewers. If you have additional formulas or you think any of the above formulas are incorrect, please contact us .

Search for additional information about Apparel, Fashion or Clothing …

If you are a clothing retailer and you have retail math formulas that are not listed on this page, PLEASE let us know them so we can make this section more complete.


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Grant Cardone: Increase Sales with Simple Math May 19, 2012 at 3:32 am

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You can increase your sales right now if you just understand basic math and take actions that compound return on your efforts (ROE). It’s simple, so keep it simple and it will work in any economy! If you just know basic math you will ensure your success no matter what is happening around you. What I say is, “I ain’t scared of no recession, I know math!”

Having a 1300 numbers can provide the edge of your competitors.

The answer to increased sales is 3 things:

1) increased levels of action that can directly impact a sale,

2) improve your selling skills regarding the opportunity specified,

3) compound the results with simple math.

First focus on those actions that will get you a sale! Most sales people and organizations are doing lots of things that have nothing to do with activities that can result in a sale being made! Focus only those activities that can generate a sale. Let’s say, for example, you could find just one thing had the best chance of producing a sale, focus on that one thing.

Second step is to do everything you can to improve your skills and results around that specific opportunity. This would mean daily training and skill improvement focused again on this one selling opportunity and any challenges it may pose. Focus skill enhancement only on this focused opportunity so as to improve your chances at a real sales result.

Now that you have your focus look to increase your results by just 2% per month. If you sold 100 units last month do whatever is necessary to increase that to 102 the next month. This small improvement each month would prove huge over time. Let’s say you were going to get customers that love you to give you referrals. By increasing that 2% per month you would get amazing results. Get everyone in your organization compounding their successful efforts and you will gain market share. These are not huge additions to your workday and over time, like anything your actions will start to earn compound interest.

Do the math: A 2 percent increase in performance and productivity each month yields an increase of some 27 percent in the first 12 months. That’s 61 percent in two years by just doing one or two simple things that can increase your production by only 2% per month and then adding to that each month. This is how you grow your business. This is exactly what we do with our virtual sales training platform. By identifying areas that will increase sales we then demonstrate (virtually) exact actions that will improve the sales organizations chances of making a sale.

Of course, adopting any such program takes desire, discipline and determination. This concept of a little bit each day holds even more importance in times of adversity. But adversity, challenges and obstacles is what separates those who make it and those that do not.

Add just a little bit each day, whether you are working out, trying to improve your marriage or growing your business, operate in terms of compounding efforts and actions. The same with sales, add a few actions each day that you KNOW will make a difference and keep adding little amounts each day and watch your business grow!


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Buy book Using Maths by Wendy Clemson | 9781860075452 … May 18, 2012 at 12:24 am

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The Toyota Way May 17, 2012 at 8:16 am

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improving response Articles – Page 1 – ArticleSnatch.com May 16, 2012 at 1:24 am

The Fundamentals Of Direct Response Internet Advertising

By: Dee Ahlstedt | – Direct response Internet advertising, at its core, works in the same way regardless of what type of business you are in. Whether you own a direct-to-consumer model business, a retail business, a web business, or some combination thereof, direct response radio advertising can help you grow. And grow profitably. The fundamentals of direct response radio, then, must start with a discussion of how radio advertising works within the context of a basic business model. The purpose of this article is to …

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Senior Medical Alarms “” Growing Benefits And Sophisticated Features

By: Keith-Akins1 | – Senior medical alarms have been in the market for some time and are now being used by a multitude of security-conscious homeowners. With the aid of technology, the traditional gadget has evolved to become a reliable tool for elderly folks as well as individuals with special medical conditions. Ask any kin or close friends of senior citizens and definitely, you will get a positive comment about the unparalleled development of these modern-day devices.

Thanks to the power of publicity …

Reflecting Back To Improve Outbound Sales

By: Michael Halper | – One of the many reasons that outbound sales can be challenging is that each person we call and each conversation we have is unique and unpredictable. There are some things we can do to better prepare for the calls that we make, but at the end of the day we never know how the call is going to go. With that being the case, one way to continue to grow and improve results is to embrace a concept of reflection after each call we make.

After a cold call ends, it can be very productive t …

Counterintuitive Sales Tactics – Disqualify Sales Prospects

By: Michael Halper | – The interesting thing about counterintuitive sales tactics is that you do the exact opposite of what you think you should do and in many cases see a very positive result. This article outlines the sales tactic of disqualifying a sales prospect by questioning whether they are the right fit at the right time. This tactic can help as it can create six powerful results:

1. Increase in Rapport

When we disqualify a prospect, at that very moment we are likely doing the ex …

Classroom Technology Lets Children Be Themselves

By: Jeremy Mond | – There is no doubt that the pace of modern life is becoming quicker and this is putting more and more pressure on people. Whether it is a boss at work demanding the sales figures from yesterday or having to look out for family members, many adults are finding life becoming more difficult. However, life is just as tough for children and there are many different pressures on pupils to get the most from life, which includes school. There are many troubles for the modern school pupil but thankfully t …

Enhancing Email Service By Managing The Email Flow Effectively

By: brianwarren | – With the volumes of emails are growing tremendously, it has become important to have an email system that is capable of to handling exponential increases in customer inquiries, avoiding backlogs of unanswered requests and unhappy customers. To manage email volume efficiently managing email volume it is essential to define a set of queues, rules and workflow so as to meet SLAs for contact resolution. Using a classification engine to streamline message handling and planning for email volume growth …

Boost Sales And Client Base With The Help Of A Business Marketing Consultant!

By: SophyMavridis | – Do you own a business and are weary and tired of not making sufficient sales to send you to the bank with a great big grin on your face? Maybe you have been employing every marketing technique you know and are still not getting any noteworthy outcomes. This simply implies that you are not using the most excellent marketing resources available for you. Making use of the services of a good business marketing consultant is precisely what you need for improving your sales and client or customer base …

Are Saskatchewan Province’s Job Numbers Improving – The Cold Truth

By: Canadaupdates | – The epicenter of Canada’s grain production is their agricultural province called Saskatchewan. Data released by Statistics Canada, seems to assign this prairie province as the one with the least unemployment figures of 4.9% in the country. This figure falls far short of the national average of 7.2%.Moreover, ever since 2010, the full-time employment has shown a healthy growth of 2.3% per year.

However, in response to reports on the province’s Job numbers improving in Saskatchewan …

Incident Handling – Preparing For The Worst Cases

By: eccuni | – It is very possible that you have only the best firewall protecting your computer. It is also possible that the firewall that you continually boast about is maintained, taken care of and updated consistently by a trusted and professional group. This antivirus system that can protects you from any internet germ from latching on to your computer very well be protecting your workstations, servers and email with little effort.

Your web proxies are definitely in good shape and having bee …

Eight Steps To Help Improve Outbound Sales

By: Michael Halper | – Most sales professionals and sales organizations rely on some form of outbound sales activities to generate leads. With this being such a critical area, it is can be advantageous to invest time, energy, and money in improving this area and below are some very practical ways to drive improvements.

1. Invest in Cold Call Training

There are a tremendous number of techniques and tactics that can be used when making cold calls and performing outbound sales activities. Just simply …

Enhancing Customer Experience With Knowledge Management

By: brianwarren | – Knowledge Management plays a key role in improving the customer experience. With the right knowledge management technologies, customer service representatives have access to the required information at the right time, thereby enabling more knowledgeable, efficient, and effective customer service interactions. It provides the answers to their questions and provides guidance on resolving issues at their fingertips. This facilitates the customer service representatives to be empowered with the nece …

Incorporate A Bidirectional Lead Gen Strategy

By: Michael Halper | – It is not uncommon for a business to only have one main process in place at a time for lead gen. For example, we may be focused primarily on cold calling, or on direct mail, or on search engine optimization. And while it is good to just be doing at least something for lead generation, it can be advantageous to incorporate a bidirectional strategy when focused on improving results.

A bidirectional lead generation strategy is one that focuses on using methods to produce leads from b …

Useful Cold Calling Tips

By: Michael Halper | – When making cold calls, working hard and making a high volume of calls does not necessarily lead to success. With that being the case, there are clear things that we can do to improve results and those are outlined below in the following cold call tips.

Use a Cold Call Script

While it is easy for us to think that we don’t need a script when cold calling, using some sort of cold call script can greatly improve results. This does not necessarily need to be a detailed script t …

Use Reflection When Cold Calling For Sales

By: Michael Halper | – Cold calling can be challenging due to the fact that each person we call and each conversation we have is unique. There are some things we can do to better prepare for the calls that we make, but at the end of the day we never know how the call is going to go. With that being the case, one way to improve results when cold calling for sales is to use reflection after each call to identify what could have been done better.

Looking Back

After a cold call ends, it can be very p …

Life Alert News: Celebrating Freedom And Independence This Memorial Day.

By: Heidi Nestor | – This Memorial Day remember all venerable loved ones, especially the seniors who are still with us, by getting them Life Alert Protection.

In a home emergency, such as a fall, seizure, heart attack, stroke or other serious illness, a senior may not be able to reach the telephone, and can lie on the floor for hours or days disconnected from any help. But with one push of the help button on the lightweight pendant activates Life Alert’s patented 2-way communication monitor allowing em …

Practical Cold Calling Tips

By: Michael Halper | – When making cold calls, hard work does not necessarily equal success. Just because we make a high number of calls and try real hard, we are not guaranteed success for the goals we have set. Hard work and high activity levels are important and part of a winning approach, but there a tremendous number of tactics and techniques that we can use while cold calling and these can greatly increase our level of success.

Smile While You Dial

When cold calling, the only thing that we …

Email Response Solution For Automated Message Handling

By: brianwarren | – Email Response solutions fully automates the process of capturing, documenting, interpreting, routing and prescribing answers and help increase the productivity of your agents by up to 75%. They protect you from backlogs of unanswered requests, missed service levels and unhappy customers.

Opt for an email response solution that can

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IndustryWeek : Market-Driven Demand Management May 15, 2012 at 5:56 am

More News

Demand forecasting and planning (also referred to as demand management) is a critical function thatdrives out inefficiencies in the supply chain and affects all facets of a company across the enterprise.

We have examined the significant improvement in short-term tactical demand forecast accuracy using demand-sensing. Demand sensing is the translation of downstream data with minimal latency to understand what is being sold, who is buying the product (attributes), and how it is affecting demand. Companies like P&G and Kimberly-Clark are able to further improve forecast accuracy when using downstream data as part of their short-term statistical forecast. The business benefits have been compelling.

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In addition to improving operational efficiency,companies havefound downstream data useful to flag operational issues that would otherwise affect revenue and service levels. For example, downstream data alerted one company to an unusually high bias toward a large customer at a high-volume distribution center. As it turned out, there was a problem with the ordering system, and orders had not been placed for several days. The advance warning by downstream data gave the company the visibility to resolve the issues before out-of-stocks became a problem.

Critical Success Factors

Companies like P&G and Kimberly-Clark work hard to build a joint value equation with their customers. Because of this approach, customers can share their downstream data because they can articulate how the data can be used and, how it will drive business results and build value for both the CPG manufacturer and the retailer.

Customer support is critical to CPG companies. Customers will share downstream data if CPG companies can demonstrate their maturity in using downstream data and articulate how the data will be used to create value. Having a clear supply chain vision also is critical. Knowing where demand sensing fits within your supply chain processes is important, and believing in the short-term statistical forecast is essential.

P&G and Kimberly-Clark continue to add customers to improve demand-sensing capabilities, and both companies continue to expand their downstream data capabilities to more business units. These CPG companies will improve their transportation planning and enhance customer collaboration using downstream data. Integrating their suppliers to a demand signal brings interesting challenges and opportunities for future success.

Key Learnings

Knowing what products to make when needed is a competitive advantage for CPG companies. Leaders in the CPG industry use demand-sensing capabilities to delight customers, improve supply chain performance and create value with trading partners. P&G and Kimberly-Clark”s sense demand work helps them make what they hoped would sell. In an age where demand volatility remains high and companies struggle to predict demand during economic uncertainty, the larger risk may be the inability to sense an upturn. Companies with the ability to sense and respond to demand using downstream data are best suited to meet the inevitable surge and capture upside revenue while maintaining high customer service levels and lowering inventories, waste, and working capital.

Demand shaping is the ability to increase or decrease the future volume and profits of goods sold by orchestrating a series of marketing, sales and product tactics and strategies in the marketplace. There are several key levers that can be used in the development of demand-shaping strategies.

These levers are:

New product launch (including the management of categories)

Price management (optimization)

Sales incentives, promotions, trade policies/deals

Product life cycle management strategies

True demand shaping involves using a “what if” analysis to influence unconstrained future demand and matching that demand with an efficient supply response. Based on recent industry research, demand shaping, just like demand sensing, includes three key elements:

1. Ability to increase or decrease volume and profit of goods sold by changing sales, product and marketing tactics and strategies: This can be achieved by enabling companies to perform Swhat if analysis so they can understand the impact of changing price, sales promotions, marketing events, advertising and product mix on demand lift and profitability to make optimal future demand shaping decisions. This usually refers to the shaping of unconstrained demand (i.e. demand shaping independent of supply constraints).

2. Supply plan/supply supportability analysis: This refers to how much can be made based on existing capacity, where, when and how fast can it be delivered.

3. Demand shifting (steering): This refers to the ability to promote another product as a substitute if the product originally demanded was not available, and/or move a sales and marketing tactic from one period to another to accommodate supply constraints. It is especially useful if demand patterns or supply capacity changes suddenly to steer customers from product A to product B, or shift demand to a later time period.

There are two types of demand shifting.

Demand shifting at the point of sale occurs when a company influences a customer to purchase an alternative product using sales and marketing incentives when a product is out-of-stock, or back-logged.

Demand shifting at the point of supply is when the operations planning and manufacturing teams negotiate with the sales and marketing teams during the sales & operations planning (S&OP) process to shift unconstrained demand into the future due to supply capacity constraints.

Many executives said their companies are beginning to invest in demand sensing and shaping processes along with enabling technology. However, in almost every case they described demand shifting rather than true demand shaping.

Dell is a good example of a company that leverages the concept of demand shifting. Dell packages to order and uses a demand forecast to determine the quantity of the components that make up a wide variety of laptop configurations to allow them to accept customer orders through their website and assemble the laptop within three to five working days. By using demand shifting at the point of sale, Dell can shift demand away from laptop A to laptop B due to a shortage of components that make-up laptop A.

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Beware of the Hidden Risks in Foreign Currency Trading May 14, 2012 at 8:32 am

Beware of the Hidden Risks in Foreign Currency Trading

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Alberta Securities Commission

Home For Investors Investor Watch Beware of the Hidden Risks in Foreign Currency Trading

Beware of the Hidden Risks in Foreign Currency Trading

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The Alberta Securities Commission (ASC) is warning Albertans about potential hidden costs and the high degree of risk related to seminars or computer programs promoting foreign currency exchange trading, known as FOREX or FX Trading. While advertisements claim one can learn to trade quickly and easily on the foreign exchange market, the fine-print disclaimer invariably states otherwise.

Through newspaper, radio, television and Internet advertisements, Albertans may be solicited to purchase software or sign up for trading courses to learn to invest in the foreign currency exchange market. Advertisements often promise large profits on currency trading; however, consumers should be aware that foreign exchange contracts are extremely risky ventures. In addition, companies may promote foreign currency trading software packages that cost thousands of dollars. Free demonstrations of the software are often accompanied by high-pressure sales tactics.

What the Ads May Promise:

You won”t find an easier, more tested and flexible way to put dollars in your portfolio.

You can make profits with as little as $300.

You trade without commissions and trading is available 24 hours a day, six days a week.

The FOREX market is the largest financial market in the world and provides more opportunities than you”d ever get in the stock market.

The seminars will prove how easy it is to make money from currency trading.

What They Don”t Tell You:

The software being promoted looks at past performance to identify trends in currency trading. It uses these trends to predict the currency”s value in the future. As helpful as the software seems, it cannot accurately predict market fluctuations, nor can profits be guaranteed

While there may be no commissions, the promoters make money from the sale of the software and on the Sspread between the buy and sell quotes made on each purchase and sale.

Individuals who attend free demonstrations may experience high-pressure sales tactics and be asked to purchase software programs for thousands of dollars.

The Fine Print

The ASC advises consumers to be aware of the fine print on any offer making extravagant claims about investment returns as the ad may not be telling the whole story. However, the fine print provides a wealth of knowledge about what the software actually delivers:

Trading in foreign currencies involves substantial risk.

Investors should have the appropriate financial and business experience before investing in the FOREX market.

Software is a tool that tracks past performance. It does not replace research or licensed investment advice.

Past performance does not ensure future results.

No system that analyzes trends in foreign currency is free of risk. The system cannot factor all the variables capable of influencing market fluctuations.

In general, foreign currency can be traded legally; however, investors should be aware of the potential risk involved in FOREX trading. Should you decide that FOREX trading is suitable for you, the following seven steps are useful in safeguarding yourself in the foreign exchange market:

1. Be wary of opportunities that sound Stoo good to be true

Be cautious about any opportunity promoting exaggerated returns on investments. Be especially careful if you have recently acquired a large sum of cash either through a retirement fund or other means. These funds are attractive targets for fraud.

2. Stay away from offers that promise little or no financial risk

Be sceptical of any company that downplays the risks or asks you to sign a risk-disclosure statement, secrecy, or confidentiality agreement. Trading in foreign currency is volatile and poses high risk for consumers. You should not invest money you cannot afford to lose.

3. Avoid margin trading (leveraging) unless you understandits consequences

This type of trading makes investors responsible for far more money than they have invested. If you trade on margin, be prepared to accept losses that exceed your investment. In some cases that amount may be 100 times the original investment.

4. Be suspicious of Sintrabank markets

Fraudulent firms will often tell customers that their funds will be traded in the Sintrabank market. Be suspicious of this offer as this market is normally reserved for banks, investment banks and large corporations.

5. Don”t send or transfer cash on the Internet

Be alert to the dangers of trading online. It”s easy to trade but often impossible to get a refund. Fraudulent companies can set up Internet websites easily to reach a large audience. Many of these companies will transfer your money overseas where it will be difficult, if not impossible, to trace or recover.

6. Get the company”s track record

Get all the information you can about the firm or individual”s performance record. Remember that it could be very difficult to verify the information you receive. Even a glossy brochure or a stylish presentation may contain false information. Ask presenters to be specific about what makes them experts in the subject matter. Just because they appear or claim to have made a lot of money investing in foreign currency doesn”t mean it”s true (a fraudster may have made hundreds of thousands of dollars off the backs of unsuspecting investors who never bothered to ask questions).

7. No background, no investment

Check any information you receive to make sure the company is and does what it says. Call the Alberta Securities Commission (and Better Business Bureau or Investment Dealers Association) to get as much information about the organization as you can. Ask for written information from the company. Be wary of confidentiality agreements as this often means the investment is a scheme. If they cannot satisfy these requests, it is best to avoid investing through this company.

Click here to learn more about how to conduct a background check.


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The Role of Sales Engineer in Technical Sales Pragmatic … May 13, 2012 at 3:16 am

Defines the process for getting the product to the market.

In no other industry do we see product (or brand) managers supporting individual sales efforts.

Yet… does this sound familiar? Sales people want you:

at initial customer meetings

Get the most from your marketting with a memorable 1300 phone number, improve your profit today.

to give the presentation and demo

to attend customer briefings at your corporate site

What is a Sales Engineer?

Sales engineers (SEs) are the technical glue of a technical sale. Sometimes called “systems engineers,” “pre-sales support,” or “field consultants,” SEs act as the sales team’s technical encyclopedia during the sale, representing the technical aspects of how the product solves specific customer problems. They perform technical presentations for the product. They own the demonstration script for the product. With adequate staffing of trained SEs, Product Management does NOT go on sales calls and customer demos.

Then why is it not working this way? We see three common problems with sales engineers in high-tech firms: SEs lack technical skills; there just aren’t enough SEs; and the SE is wasted early in the call so a sales person needs a “bigger gun” for later sales calls. Let’s examine each of these problems.

Problem: Sales people cannot get an SE.

Often, sales people ask for deal support from Product Management simply because there are not enough sales engineers to go around. Well-run sales channels typically have one SE for every two sales people; many have 1:1. Yet the companies that report product management providing excessive support of the sales channel usually have 5:1 or more. And guess what happens? In the absence of an adequate number of sales engineers, product management must step in (or gets dragged in!).

One expert in sales engineering observes that roughly 30% of SEs do all the work. These “best SEs” have won the respect of the sales people and are in constant demand. That leaves 70% that are on staff but are not being used. Imagine their frustration at seeing product managers on calls that rightfully should be theirs.

Solution: train the 70% to be effective. Companies normally train sales engineers in sales methodology by having them attend sales training classes with the sales reps. In other words, they are trained to be sales reps. But shouldn’t they be trained in how to be good sales engineers? New (or under-utilized) sales engineers should have a mentor, a senior SE, who can show them the ropes and teach them the skills to effective. How much more productive would the sales force be if there were three times as many engineers?

Problem: Sales people don’t like the SEs.

How often have you heard sales people requesting a specific SE or product manager because the others are “worthless”? In many cases, it’s because the SE role has changed over recent years from product specialists to technical generalists. Many sales people start using a particular SE and want to use them for all calls. They find that they work together well as a team, except the SE doesn’t know all the products. As a result, they encourage the SE to learn the rest of the products. What was once a product specialist quickly becomes a technical generalist, someone who can explain and demonstrate technical products but doesn’t have intimate knowledge of any specific products.

Solution: Sales Engineers need to return to their technical roots with specific product expertise. The best way is to divide your products into logical product families, and assign SEs to work in only one product family. The SE manager should define a training plan that maps product demands to existing skills sets to ensure that adequate skills exist across all product lines. Rather than acting in a generic technology role, these SE product experts can “go deep” on a product or line of products while having a general understand of all products.

Consider Microsoft. They have different families of products: Windows operating system, Office, Business Solutions, Servers, developer tools, Games and Xbox video game system, and MSN Internet Services. Can any one SE support all of these? Of course not! So they would logically create an SE role specific to, say, Microsoft Office who can really make it fly. They might even assign certain SEs to become expert specifically on Microsoft EXCEL.

Problem: Sales people want the best SE

Sometimes product managers are forced to support an individual sales rep even when qualified SEs are available. Why? The rep wants a better title on the call to impress the evaluator for one reason or another. “You’re so special I brought the product manager all the way out here.” (I have yet to find a customer who actually cares. They just want someone who can show how the product solves their problem.)The perception is that sales engineers are standard resources while product managers are special resources.

Solution: create a special SE role to accommodate this problem. Create a new title for “product expert” or (if HR freaks out) just appoint one of the SEs to the role without the title. The product expert is dedicated to the success of the product in a specific channel or territory. Bring them into the inner circle of product planning by participating in product teams as representatives of the channels. They will be in the planning loop and be exposed to the details that the channel often wants from the product managers.

* * *

Sales people are trying to sell what is on the price list today; Product Management should be defining what should be on the price list next year. Don’t get me wrong: sales calls are a necessary evil for many product managers. And you might accidentally get some good information from going on a sales call. Yet, the truly valuable information can only be obtained when Product Management is listening (and not talking).

Learn more about listening to the market from Barbara Nelson’s series of articles about market sensing featured in Volume 1, Issues 2 through 4 of productmarketing.com.

The company needs market information to make product decisions. Supporting the sales channel actually prevents many product managers from gathering relevant market information. We should create an environment that encourages sales engineering to support the sales tactics for today’s product while Product Management defines the business strategy of the future product.

Sales engineers are a critical role in technology companies. But good SEs can be made great by combining mentoring with specific product experience. Rather than general technologists, they should be expert in one product or line of products. Without this expertise, product management serves the role of “best SE” while the sales engineers sit on the sidelines.

Sidebar: SEs are integral part of the chain of information

Developers are often distracted from developing because they’re inundated with requests from the sales channel. Do your developers go on sales calls? (The correct answer is, “No.”) While customer calls without a sales person are often valuable for better understanding of the domain, potential customer calls with a sales person are just another waste of a strategic resource on a tactical event.

Create a chain of information flow, moving from least technical to most technical, and back. There are simply too many individuals who want some type of product support. This hierarchy creates a scalable flow of information through the organization into the channels. Sales engineers and the product experts are critical links in the hierarchy.

Steve Johnson is an expert in technology product management. He works for Pragmatic Marketing as an instructor for the top-rated courses Practical Product Management and Requirements That Work. Steve is also a frequent presenter for various technology marketing forums throughout the United States and Europe, author of many articles on technology product management.

Posted by ajitabh bhardwaj at 2011-06-13 04:09 PM

hi

is there is a difference in sales executive and sales engineer??/is they both have same task??plz tell and also there working function

Posted by Martins Nkanga at 2011-08-24 04:35 PM

Please kindly assist with the above topic, i appreciate.

Best Regards,

There’s a big difference

Posted by Steve Johnson at 2011-08-24 05:59 PM

A sales exec is a business person; a sales engineer who is a technical person. A sales exec focuses on negotiating while an SE focuses on the configuration. Both are in the sales organization and are typically paid a commission. Does that help?

Posted by Carlos Nzita at 2011-10-05 12:19 PM

How can I become a Sales Engineer?

Posted by mohammad at 2012-05-10 07:56 PM

We can differ vs between SE’s & SEng, Like: Distance between earth to SUN.

SE’s are field or root user’s to execute the channel, calculation’s and predictions or pre-projected action plan.

SEng are the Designer of channel, Presenter of business equations, finder or Helper to provide the solution to make SE’s Executable action time to minimize with effective output.

query

Posted by MOHAMMAD RIZVI KHAN at 2011-10-05 12:19 PM

sir,I’m persuing MCA but involve from my begning time t till now in markrting field so I’m going t complete mca please tell me I can make my carrier with the help of mca in marketing.

Masters degrees

Posted by Steve Johnson at 2011-10-06 11:15 AM

42% of product managers have a master’s degree, most in Business but some in Computer Science. Sales Engineers don’t need an advanced degree; they need experience with the product. Sales engineering is a great way of getting a first job with a vendor. Vendors frequently find strong candidates from their customer base. So consider working for a company that makes software that you use in your daily activities.

Advanced degrees tend to be less influential in the USA. Right or wrong, we usually favor experience over education.

See more in http://www.pragmaticmarketing.com/publications/survey/2005/does-a-masters-degree-make-a-difference

SE to Sales People Ratio

Posted by Erica at 2011-10-24 12:16 PM

Under “Problem: Sales people cannot get an SE.” where is says “Well-run sales channels typically have one SE for every two sales people; many have 1:1. Yet the companies that report product management providing excessive support of the sales channel usually have 5:1 or more. And guess what happens? In the absence of an adequate number of sales engineers, product management must step in (or gets dragged in!).” The ratio of 5:1 would imply 5 SE’s for every 1 sales person, but I believe the intention of the statement is the opposite because the next sentence states there is not an adequate number of sales engineers. Could you please clear up this discrepancy?

Thank you

Posted by Steve Johnson at 2011-10-24 12:37 PM

Yes, the average is 4 or 5 sales people share one sales engineer.

Sales engineer vs TC

Posted by Lauren Buchsbaum at 2011-12-23 12:44 PM

I’m curious…. is a sales engineer a similar role to a technical consultant? Fascinating article about the job and its challenges.

SE has many titles

Posted by Steve Johnson at 2012-01-12 06:59 PM

An SE is a technical resource in the field, a key member of a sales team. They focus on answering technical questions and configuring the right solution. They often do demos, perform proof of concept, present technical information, and lead technical discussions. In some cases, they participate in the hand-off of the client issues to an implementation team but rarely are involved in the detailed client implementation.

Is that what your “technical consultants” do?

Posted by Mike at 2012-02-14 02:41 PM

It’s a very subtle but important difference.

A Sales Engineer’s goal is to make a sale, not simply answer questions and consult. We are not impartial. If you’re an impartial SE, you’re not doing your job. Whatever you call it, System, Sales, Consultant, or whatever, we gain a high level of trust and are able to get much more information from a prospect then a sales person can. This allows us to share strategic information with the sales person, direct and demo the most valuable areas or uses of the product, provide workarounds for product problem areas, and build a higher level of confidence in what we’re selling to make the deal close easier and more valuable.

Sales people oversell but are often not trusted.

Engineers are trusted but often undersell because they lack persuasive ability.

A good SE can do both and finds the right balance for the situation.

A good Sales Engineer needs the mind of an engineer and the personality of a sales person. Tough to find and tough to train.

Posted by Supriya at 2012-01-20 06:00 PM

Hello…

I’m an Engineer. Now working as sales engineer. But i don’t have knowledge of key things of sales. How to become a successful sales engineer? Please guide me

Becoming a great SE

Posted by Steve Johnson at 2012-01-20 07:40 PM

Just be yourself. Your job as an SE is to supply your technical ability to answer the customers’ questions. Even if the sales guy knows the answer, the customer will prefer to hear from someone who knows the technology. It’s good to work on your presentation skills, learn to speak succinctly, and be the company’s technical advocate, both to clients and back to the product management team.

Check out more resources at http://www.salesengineerguy.com/

Engineer to Sales Engineer

Posted by Mike at 2012-02-14 02:41 PM

You’ll need to train yourself to be less blunt and factual. And this I mean as an exercise balance out that engineer side. Everything you do with a prospect needs to be strategic, so you’re not just accessing factual knowledge but always with an interpersonal persuasive intent.

Observe a good sales person and notice the driving forces and personality. You’ll need to be more like that person rather then the programmer in the basement.

Honestly it’s not a job any engineer can do, because so much of it depends on personality traits.


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