"The most important factor when discussing dealer
Post# of 15187
Posted On: 10/01/2016 2:14:05 PM
Re: Steven1973 #9725
"The most important factor when discussing dealer count is Pareto's 80/20 Rule. If anyone here has taken a business class, you know that 80% of sales will come from 20% of your sales staff"
Pareto's rule doesnt necessarily apply due to these being businesses/deslerships that are purchased. The 80/20 applies more to traditonal sales roles in which it definitely applies (i have some data after spending the last 20+ years in high level sales). When one is putting their own money up - they tend to do more DD, have more motivation, and will work thru adversity longer than a traditonal sales person.
There will be duds but i would think they would be well under 50% as $HJOE and SMS both have vested interests in doing their own DD on the dealers. Bad dealers dont produce revenues, can give company a bad name, and potentially be a civil liability for bad apples.
If itnis 50 new ones this year - that is 50*$24K in revenues (minimum) from dealerships alone. That revenue stream will eventually flatten out as dealers/territories mature but by then - product sales will have far surpassed them.
Pareto's rule doesnt necessarily apply due to these being businesses/deslerships that are purchased. The 80/20 applies more to traditonal sales roles in which it definitely applies (i have some data after spending the last 20+ years in high level sales). When one is putting their own money up - they tend to do more DD, have more motivation, and will work thru adversity longer than a traditonal sales person.
There will be duds but i would think they would be well under 50% as $HJOE and SMS both have vested interests in doing their own DD on the dealers. Bad dealers dont produce revenues, can give company a bad name, and potentially be a civil liability for bad apples.
If itnis 50 new ones this year - that is 50*$24K in revenues (minimum) from dealerships alone. That revenue stream will eventually flatten out as dealers/territories mature but by then - product sales will have far surpassed them.
(5)
(0)