3 Signs if Revenue is Impacted by Your Quoting Process

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The ultimate goal of any business is to generate a profit, and the best way to do this is to maximize the revenue generated in the business. Your sales team is responsible for driving the sales that impact your revenue, and having a streamlined sales process is necessary to get the most return on your investment.

There are many ways in which the sales process can break down and be inefficient, and identifying the cause of this can help you fix the problem and improve on sales numbers and ultimately generate more revenue. One of the major bottlenecks in the sales process is the quote system, and there are a couple of warning signs that will indicate that your quoting process needs to be improved.


1 Sales reps spend more time quoting than selling.

In order to push sales, your sales people need to be spending time talking and meeting with new and existing clients. Quote generation can be quite a tedious process, especially if you’re still using spreadsheets and even more so if you have a wide variety of products. This means that if your quoting process is inefficient, sales reps will spend more time generating quotes that need to be approved by managers instead of working with clients. The more time your sales reps spend stuck in the weeds, the less revenue they can generate for your business.


2 Quotes are often incorrect or the items ordered aren’t in stock.

If your sales rep gives the client a quote, it’s vital that the items or services ordered are available immediately when the client pays. Having a client accept a quote only to find out that the items aren’t in stock and having to wait leaves a very bad impression and can even lead to the loss of existing clients. Streamlining your quotes process and linking it to your inventory is essential and it’s important that these numbers are kept up to date to prevent mix-ups and delays. Mix-ups can also negatively affect revenue, and if your managers are spending most of their time double-checking quotes generated by the reps you should know that something is wrong. Quotes that require corrections are quotes that take longer to issue and by then the client may have lost interest in purchasing your product.


3 Quotes take hours to generate.

If your rep has to manually generate each quote instead of having an automated system available, it’s likely that the quoting process will take much longer than it really should. This means that your business looks unprofessional and clients dislike waiting on quotes that take days to reach them. The more quotes your sales reps can generate in the day, the more potential sales will be made. Streamlining the quoting processes means that your reps can generate double or triple the amount of quotes that they can send out, increasing sales and driving an increase in revenue as well. It also gives them the opportunity to cross-sell more efficiently and helps them reach new clients much faster and more efficiently than if they were using spreadsheets.


Conclusion

The quoting process is an essential step to generate sales and revenue in a business. If this process is slow and laborious, it’s likely that you won’t see as much revenue as you possibly could if the process was run well. The more time your sales people spend working on quotes, the less time they have to dedicate to other, potentially more important jobs that would result in increased revenue. A dedicated quoting solution can streamline the entire sales process by removing this bottleneck. 

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Photo credit: Tax Credits / Foter / CC BY

Tags: Quoting & Proposal Process

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