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   Variable Sales Cost  

ENCYCLOPEDIA→   Functional Management  →   -  Sales & Distribution  →   -  Sales cost and profitability management  → 

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.
 

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