The right sales channel mix leads to increased profits
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Selling direct + Diverse sales channels = Higher profitability Strategic Source & Sell Survey Insights from senior executives across the United States • Selling direct to customers: 15.7% profit margin • Selling to retailers/dealers: 12.1% profit margin • Selling to distributors: 7.5% profit margin of sales directly to customers of sales through distributors of businesses use all three channels * average percentage of sales; does not include 6% ‘Other' and does not sum to 100% due to rounding ** average profit before interest and taxes for companies with half or more of sales via each sales channel WHERE IS IT SOLD?* 54% 16% 30% of sales through retailers/dealers 25% The closer to the customer, the more profit you make** • Three sales channels: 16.9% profit margin • Two sales channels: 12.8% profit margin • One sales channel: 13.6% profit margin And sales diversity means more profit
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Selling directly to consumers is not only the preferred sales strategy, but also the most profitable, according to Grant Thornton's Strategic Source and Sell: Channel diversity survey. This infographic highlights top findings from the survey. - See more at: http://gt-us.co/1x3mBLU
Transcript of The right sales channel mix leads to increased profits
Selling direct + Diverse sales channels = Higher profitability
Strategic Source & Sell SurveyInsights from senior executives across the United States
• Selling direct to customers: 15.7% profit margin• Selling to retailers/dealers: 12.1% profit margin• Selling to distributors: 7.5% profit margin
of sales directly to customers
of sales throughdistributors
of businesses use all three channels
* average percentage of sales; does not include 6% ‘Other' and does not sum to 100% due to rounding
** average profit before interest and taxes for companies with half or more of sales via each sales channel
WHERE IS IT SOLD?*
54% 16%
30%
of sales throughretailers/dealers
25%
The closer to the customer, the more profit you make**
• Three sales channels: 16.9% profit margin• Two sales channels: 12.8% profit margin• One sales channel: 13.6% profit margin
And sales diversity means more profit
