|Return on Investment (ROI)
|ISC is confident that it can put you into and assure your success of a vertical market development for business products. Here is an example of how your sales and margin dollars can ramp up utilizing ISC’s proven approach to the vertical market development for business consumables.
How? Consider this very conservative calculation (view the ROI Calculator to see how it was derived):
The model generates positive net margin dollars in the 4th month. Your first year sales will be around $500K. Your annual %ROI will be a negative number based on generated net profit. However, you will have a positive ROI% based on total sales revenues and gross margin dollars
- $528,000/$89,880 = 487% ROI based on total sales revenue dollars.
- Or, $137,674/$89,880 = 53% ROI based on total gross margin dollars.
- Or, $47,796/$89,880 = -47% ROI based on total net profit dollars.
Second year %ROI increases substantially as sales exceed $1M and the largest line costs are freight and sales expense:
- $1,000,000 *.28 (gross profit percent) = $280,000 *.29 (sales and freight costs combined) = $81,200 or $198,800 net profit or,
- $198,800/$100,000 (approximate total program costs in 2nd year)= 98% ROI
These assumptions are used when calculating the ROI:
- Use a wholesaler’s stockless model
- Already have purchased and installed category-friendly software
- Reseller strictly adheres to PPM model for market development
- 66 accounts are presented to over the year with a 66% close rate or 44 gained accounts
- Account retention is 100%
- Average account size is $2,000/month
- 9% freight costs
- Sales expense 20% of GP dollars
- Adapt email marketing model
This ROI is based on the following action, on your part, that is paramount to achieving this return as a sales revenue increase.
If you invest in the total “Getting you Into the Business” and “Securing your Success” consultative packages or just the “Securing Your Success” PPM training package, you will achieve this ROI. It means that your business will be totally committed and focused, over a 90-180 day period, to implementing and executing the steps necessary for execution of the ISC developmental plan. The key is presenting and closing just 85% of 5 presentations per month! We are very confident that with this commitment of time and focus, you will be successful.
So, what are you waiting for? Let’s get started!
Contact us for more information about our services.