How to determine relative growth. Formulas for the total increase in sales revenue. Increasing revenue from product sales through business expansion

What is he talking about?

How to increase?

Pace

concept

Differences between revenue and profit

Formula for calculation

Marginal profit

Internal factors

External factors

Examples

Where to find in reporting

Calculation according to accounting data

Conclusion

Definition of revenue

General formula for sales revenue

Types of revenue

Excel model for revenue analysis

Calculation methods

Sales revenue calculation

Revenue recognition criteria

Average monthly revenue

Average annual revenue

Revenue Growth Rate

What is revenue and what is it

What factors influence the increase in the company's revenue

The main ways to increase the company's revenue

Increasing revenue by creating competition in the sales team

5 proven methods to increase revenue

Increasing revenue from product sales through business expansion

10 more unusual ways to increase company revenue

Measures to increase revenue on the example of a company

Definition formula

Procedure and calculation example

Example

Example

Example

Calculation example

Find a sales manager

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home Social media How to determine relative growth. Formulas for the total increase in sales revenue. Increasing revenue from product sales through business expansion

Revenue growth is a very important indicator that characterizes the efficiency of the enterprise.

Revenue growth is economic indicator, reflecting the change in the amount of income of the enterprise for a certain period of time. In other words, this indicator allows you to see by how many percent the company's revenue increased (decreased) in the reporting period compared to the base period.

The value of the growth rate is determined using the following formula:

Tpr \u003d ((Wo-Wb) / Wb) * 100, where:

Tpr – revenue growth rate;
In - revenue in the reporting period;
Wb - revenue in the base period.

This indicator should be constantly monitored by the management of the organization, since its value allows us to draw a conclusion about the effectiveness of the implementation of the strategic and operational goals of the enterprise.

Investors show particular interest in the level of profitability of the organization. A stable rate of revenue growth has a very favorable effect on the investment climate of an economic entity.

First of all, it should be noted that revenue refers to the funds that come to the enterprise as a result of the sale of goods and services. It is this indicator that is the main source of income for an economic entity.

Increasing revenue of the enterprise indicates an increase in sales volumes which in turn depend on the following factors:

Sales volume is a very significant indicator, without the growth of which the company will not be able to secure a sufficient amount of revenue. Wherein sales revenue is the main source of cost coverage incurred by the enterprise in the course of creating a new product (raw materials, materials, maintenance of equipment, remuneration of workers, etc.).

Thus, a systematic increase in income indicates efficient system management in the organization, the ability of management to competently establish production and marketing activities, as well as a positive trend for the enterprise as a whole.

In order to understand in detail the main ways and ways to increase revenue, we will present detailed instructions.

The growth rate is a very common indicator that is actively used not only in statistics, but also in economics, law, production, etc.

The revenue growth rate is an indicator that reflects the percentage growth in the company's income. in the current period compared to the previous one. In other words, using the growth rate, you can determine how much the organization's income in the current year was as a percentage compared to the previous year.

In the calculation of this indicator, you can use a variety of reporting periods. It can be a month, a quarter, a year, or several years.

So, the formula for calculating the growth rate is as follows:

Tr \u003d In / Wb * 100%, where:

Тр is the revenue growth rate;
In - revenue in the reporting period;
Wb - revenue in the base period.

In order to more clearly see the procedure for calculating this indicator, we will give a few examples.

Example #1.

The revenue of Zarya LLC in 2016 amounted to 50,000 rubles. In 2015, its size was equal to 38,000 rubles. So let's calculate the growth rate using the above formula.

Tr \u003d 50000 / 38000 * 100 \u003d 131%

From this we can conclude that in 2016 the sales revenue of Zarya LLC amounted to 131% compared to the same indicator for 2015.

Example #2.

In 2016, Eurostyle CJSC sales revenue amounted to 45,000 rubles. At the same time, in 2015 this figure amounted to 68,000 rubles. Let's calculate the growth rate.

Tr = 45000 / 68000 * 100 = 66%

Thus, based on the data obtained, it can be noted that in 2016 there was a decrease in sales revenue from CJSC Eurostyle. Thus, the company received only 66% of revenue compared to 2015.

Summarizing the above, it can be noted that revenue is of key importance for the activities of any enterprise. The management of each company is interested in its stable growth. At the same time, the growth rate and the rate of income growth are of great importance, and therefore, these indicators should be regularly calculated.

The profit of the company is the main source of cash receipts of the company as a result of its activities. It is the main source of income for the company. The options for the receipt of profits in the assets of the company are as follows:

sale of goods, products;
provision of various services.

It should be noted that all the costs of the company, which are associated with the receipt of the above sources of income, are not included in the concept of profit. The main goal of the company is to maximize profits.

The main indicator of the effectiveness of any business is the profit from sales. Profitability and efficiency, direction of movement may depend on its size. Money and asset turnover.

Profit from sales is understood as an indicator that is able to assess the company's activities and the level of its effectiveness. The amount of profit should be sufficient to cover expenses and carry out normal activities.

To analyze the effectiveness of the company, they take the values of profit from sales for the previous period and compare them with the reporting data. On the dynamics draw conclusions. If the indicator has grown during the reporting period, then the company's efficiency is evident.

In general, the indicator under study is the difference between gross income and the cost of selling products (goods).

It is possible to associate the indicator of profit from sales with the value of operating profit in international practice, that is, with the profit that the company produces in the market during its operation.

The concept of "sales" in this case implies not only profit from operations in the direction of trade, but also any other types of sales with the conclusion of transactions and sales agreements with partners.

The indicator of profit from sales allows you to estimate the amount of profit received by the company for the period of operation in its core business, enshrined in the charter.

The table below shows the main differences between the company's revenue and the concept of its profit.

Compare sales revenue and sales revenue.

The relationship here is as follows: we remove expenses and expenses from the proceeds, we get a profit. We multiply the price of the goods by the natural volume of sales, we get the proceeds.

For on sales and the formula for its calculation, imagine the following dependence:

Where VP is an indicator of gross profit, t.

B - total revenue, t.

WITH - total costs companies, t.

In a more visual form, the formula looks like this:

Pr \u003d B - UR - KR,

where B is the sum of the company's gross profit, tr.

Pr - the amount of profit from the sale, t.

SD - the amount of administrative expenses, t.

KR - the amount of commercial expenses, t.

In turn, gross profit is the difference between the revenue received by the company and the costs incurred:

B \u003d Vyr - Seb,

where Vyr - the amount of revenue received, t.

Seb - the amount of expenses incurred (cost), t.

Thus, in order to correctly calculate the profit from sales, it is necessary to obtain accurate information about all amounts of income and all amounts of expenses of the company during the study period.

Further calculations when using the indicator under study relate to the concept of net profit, which can be determined:

PE \u003d PR + PD - Pras - N,

where is the state of emergency net profit, t.r.

PR - profit from sales, t.

PD - other income, t.

Pras - other expenses, t.

H - tax on profit from the sale, t.

The concept of profit from the sale of goods is closely related to the definition of marginal profit:

Pmarzh \u003d B - PZ,

where Pmarzh - the amount of marginal profit received, i.e.

B is the company's revenue, t.

PZ - amount variable costs firms, i.e.

Variable costs may include the following items:

wages of workers associated with the manufacture of products (its sale), that is, the main ones;
production costs for raw materials for the manufacture of products;
payment of costs for electricity, gas, etc.

Marginal profit is directly related to the volume of production of the company, so, with their growth, the amount of profit will also increase. This type of profit provides opportunities to cover costs in terms of fixed costs.

Since profit is the main source of income for the company, it is necessary to carefully examine all the factors that can increase (or decrease) it. Among all factors, both external and internal can be distinguished.

Among the internal factors, we highlight:

The volume of sales of goods, which is associated with the profitability of sales. At high profitability sales and sales growth sales profit is also growing. Otherwise, if the profitability is low, then the growth in sales will, on the contrary, lead to a drop in profits.
Structure assortment list.
Costs of goods (there is an inverse relationship: with an increase in costs, profit falls).
The cost of the goods (if it grows, so does the profit).
Amount of business expenses.

External factors include:

depreciation and accrual policy;
government bodies and their influence;
natural features;
general market sentiment (demand, supply level, etc.)

The growth of sales volumes in natural units always contributes to the growth of profit from the sale of the company, and hence financial growth. In the case of sales of unprofitable goods, the profit is directed downward. Profit growth can also be ensured by an increase in the volume of sales of cost-effective goods in the structure of the product range, which leads to an improvement financial condition companies. If the share of low-margin products (or unprofitable) in the sales structure is higher, then the profit also falls.

A fall in the level of prime cost and costs contributes to an increase in the level of profit from sales, an increase in costs contributes to a decrease in profit. Profit from sales and cost are inversely related to each other. Such expenses, in particular, include commercial and administrative expenses.

The dynamics of prices for sold products has a significant impact on the level of profit. An increase in prices leads to an increase in sales volumes, and hence an increase in profits from sales. In the reverse situation, a decrease in prices leads to a decrease in the firm's revenue, as well as a drop in profits.

The company's management is able to influence all the above factors in the direction of reducing the impact of negative ones. As a result of their impact, a profit or loss from sales is formed.

The use of factor analysis techniques makes it possible to show the reserves for increasing sales efficiency and determine the optimal management decisions. For this purpose, use the data from the "Report on financial results".

It is very difficult for an enterprise to influence external factors, since they are determined by the state of the firm's sales market. Directly, these factors are not able to influence the profit of the company, their action is indirect.

We analyze the profit from sales using specific examples.

Example 1. Astra LLC received the following performance indicators for 2017:

revenue amounted to 100,000 tons;
the cost was 85,000 tons.

The formula for the calculation is as follows:

Gross profit \u003d Revenue - Cost,

Gross profit \u003d 100,000 - 85,000 \u003d 15,000 tons

Gross profit amounted to 15,000 tons.

Example 2. In 2017, Klima LLC sold 1000 units of goods at a price of 500 rubles. The cost of one unit of goods was 350 rubles. The total cost of selling products amounted to 15,000 rubles. It is necessary to determine the profit from the sale.

To solve, we find the total revenue from the sale of goods:

1000 * 500 = 500,000 rubles.

Let's define the total costs (cost):

1000 * 350 = 350,000 rubles.

Let's calculate the value:

Sales profit \u003d Revenue - cost - sales expenses \u003d 500,000 - 350,000 -15,000 \u003d 135,000 rubles.

Thus, the amount of the desired indicator was 135,000 rubles.

In the company's reporting forms, the profit indicator is reflected as follows:

there is no profit from the sale in the balance sheet;
profit in the "Statement of financial results" is reflected in line 2200.

The fact that there is no line in the balance sheet to indicate this profit is due to the fact that the basis of the balance sheet is the grouping of assets and liabilities of the company according to the degree of urgency. The balance sheet is a document that characterizes financial position for a specific date.

A "statement of financial results" involves the accumulation of the financial results of the company for a certain period of time. It classifies income and expenses by direction.

The calculation of profit from sales according to the reporting is as follows:

Line 2200 = Line 2100 - line 2210 - line 2220

The amount of the studied indicator can be determined according to the accounting data of the company:

Profit from sales \u003d Credit turnover of subaccount 90-1 "Revenue" - Debit turnover of subaccount 90-2 "Cost of sales"

Sub-account 90-2 reflects the cost of production, as well as commercial and administrative expenses.

Analytical accounting for this sub-account provides a division of costs into separate accounts in order to be able to identify the amount of commercial expenses, management costs.

AT modern conditions functioning of the market there is its high degree of segmentation. The company needs to choose the area of activity in which it can get a decent share of the local market, outperform competitors and increase its profits and profitability.

At the same time, the indicator of profit from sales is the main indicator of the effectiveness of the use of the available capital of the company, its assets, managerial methods and marketing tools progress in the selected segment. Therefore, this indicator is defined as the main indicator of the effectiveness of the enterprise in a particular area of activity.

Correct calculation, analysis and accounting of revenue is important for any business. The article contains revenue formulas and examples of calculation and analysis of the indicator.

Broadly speaking, revenue is the increase in economic benefits in the ordinary course of business. In other words, it is the valuation of all sales of goods and services recognized by the organization for a certain period of time. The valuation, possibility and period of revenue recognition are the most important and integral components of determining the income of an enterprise. The result of the calculation of revenue is significantly determined by how much and in what period can be recognized as revenue of the enterprise.

It is necessary to distinguish between the concepts of revenue and income in general. Revenue is generated as a result of the ordinary activities of the organization and depending on the industry in which it operates.

Income is a broader concept that includes all types of increase in economic benefits, including the result of other transactions that do not bring an increase in sales of the main product, but are auxiliary to the main activity. .

General formula is the following expression:

where P- the average price of a product or service;

Q- the number of units sold or the number of customers;

S- revenue.

It is advisable to distinguish between net revenue and gross revenue. Net revenue, unlike gross revenue, is tax-deductible. Both indicators are important for making managerial decisions. On the one hand, net revenue shows the real potential of the enterprise after mandatory and inevitable payments, on the other hand, gross revenue takes into account the time factor during which mandatory tax payments are made. As part of the forecast of cash gaps, receipts from the buyer, including taxes, should be taken into account.

Download the finished model in Excel, it will calculate how revenue has changed in the reporting period compared to the previous period or plan. The model will help to assess how the sales volume, price and sales structure affected the revenue.

There are two main methods for calculating revenue. In the cash method, it is defined as the cash received by the seller of goods from their sale. Advances received are included in revenue, however, shipment delays are not recognized until payment is received.

According to the accrual method, the results of business transactions are recognized as they occur, regardless of the actual time of receipt and payment of funds associated with them. In other words, sales revenue is recognized when it meets the recognition criteria, regardless of fees.

A more correct formula for calculating sales revenue is the following expression:

where P iy is the price of products y in shipment i, without VAT;

Q iy- number of products y in shipment i;

i - number of shipment of products that meet the recognition criteria;

n - the number of shipments of products for the accounting period.

Let's take an example. Enterprise "A" in the 1st quarter of 2019 shipped three batches of products of types "M" and "N" (see table 1).

Table 1. Shipments of enterprise "A"

Let us determine the volume of sales to be recognized in the 1st quarter.

Sales for the 1st quarter = 10 × 6 + 15 × 4 + 11 × 5 + 14 × 10 + 10 × 5 + 16 × 5 = 445 c.u.

The general approach to correctly recording revenue is to account for the transfer of goods and services to a customer for the amount expected to be paid by the customer in exchange for goods shipped or services rendered. However, depending on financial reporting standards income recognition criteria may differ. In other words, the same transaction can be reflected in financial reporting prepared under different standards, in radically different amounts.

The general criteria for revenue recognition are:

high probability of receipt of economic benefits associated with the transaction to the company;
the ability to reliably estimate remuneration;
the ability to reliably estimate the costs incurred and/or expected to complete the transaction.

Let's look at the previous example, adding that as part of the shipment in March, company "A" assumed warranty service obligations, including mandatory inspection and repair services for malfunctions that occur during operation. Warranty period: 2Q 2019. These commitments are included in the shipping cost, with a market value of $10 for similar value-added services. Let's try to determine the revenue for the 1st quarter.

In this case, the repair liability will be treated as a separate service and will be included in 2Q 2019 revenue.

Thus, the implementation for the 1st quarter will be:

Revenue for the 1st quarter = 10 × 6 + 15 × 4 + 11 × 5 + 14 × 10 + 10 × 5 + 16 × 5 - 10 = $435

As part of financial analysis activities of the enterprise, third-party and internal analysts calculate various types of revenue. The goals of such analysis and classification may differ depending on the activities of the enterprise or the preferences of the management of the enterprise. One example of an analytical calculation is the calculation of the average monthly revenue.

where S ave is the average monthly sales,

S n - revenue for the n-th number of months,

n is the number of months.

Consider the calculation on the previous conditions.

Company A's average monthly sales in the first quarter of 2019 were:

Revenue = 435 / 3 = $145

The average annual revenue is determined in a similar way. A period of 2 or more years is taken as the calculation base, depending on the goals of financial analysis. As a rule, a period of 2-4 years is considered the most representative for making managerial decisions.

Let's look at an example.

Enterprise “B” reflected the sales in the following amounts for the period 2016–2018 (table 2).

Table 2. Sales of products of enterprise "B"

Type of product / year of accounting


Total for the period, c.u. without VAT

The average annual revenue for 3 years will be:

Average annual revenue \u003d (300 + 350 + 440) / 3 \u003d 363 c.u.

The general formula for calculating sales growth rates is defined as follows:

where p is the growth rate,

S i - revenue for period i,

S i-1 - revenue for the previous comparable period.

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From this article you will learn:

What is a company's revenue
What affects the company's revenue
How to increase company revenue
How to increase the company's revenue by expanding the business and properly organizing the work of the sales department

Every company that manufactures products is interested in effective marketing strategies. Practice shows that only real professionals can organize effective sales. Lack of experience in these matters often leads to ruin. The increase in the company's revenue must be maintained in a constant positive trend in order to overcome breakeven as quickly as possible and move into growth.

Revenue is the amount of money received by the company in a particular period of its work. Of course, this refers to commercial structures that are engaged in the sale of goods or the provision of paid services.

Revenue is the source of funds from which the firm reimburses the cost of manufacturing its product. These include raw materials and everything related to production: the purchase and maintenance of equipment, advertising, packaging, transportation, etc. The remuneration of workers is usually charged from the proceeds and is often determined by its size.

In the absence of revenue or its long-term stagnation, disruptions in the company's work, reduction in profits and other negative phenomena may occur.

In order to have a clear idea of the financial possibilities, an organization should always forecast its revenue. This will help you try to avoid situations where you don't have enough money for important needs, or at least prepare for them.

The total revenue of the company is the sum of all types of receipts, namely:

from the main activity (sale of goods, provision of services, etc.);
from financial activity;
from investments (sale of non-current assets and securities).

Very often, the concepts of revenue are confused with income or profit, without understanding their differences. Let's clarify the wording.

Revenue- this is the money received by the enterprise from its commercial activity, that is, payment received directly from consumers. A decrease or increase in a company's revenue, as a rule, leads to significant changes in its work. Therefore, much attention is paid to at least the constancy of this quantity.

Thus, revenue is the funds received and fixed cash register. Thus, advances, prepayments, and loans to partners are hypothetical revenues, while from an economic standpoint, only the amounts indicated on the checks need to be taken into account.

Gross(total) revenue without any deductions - this is the total amount of money paid for the product (service). Usually taxes, duties and other payments are withheld from it, so this indicator is rarely used in calculations. However, when it comes to increasing revenue, first of all, they mean the growth of the gross value, and the rest is a consequence.

Net revenue- the total amount of payment for goods (services) minus taxes, excises and duties. Most often, it is it that is used in subsequent calculations.

Income- total financial receipts of the organization. In this case, capital growth occurs not only from the sale of goods (services), but also from other incoming funds. So, the money received as a result of lawsuits, or interest from the shares that the company has, are considered income. It does not include taxes or duties.

Gross profit- the sum of any income (even non-commercial) minus all related expenses. Not everything is clear here. Gross profit in trade is calculated as the difference between the price and the cost of goods.

In industry, its calculation is much more complicated, since it takes into account a lot of additional characteristics. This indicator is used to compare enterprises in terms of their productivity.

Net profit- the total of any income for a particular period of time minus related expenses, taxes, duties and excises. The result is a free amount, which is reflected in the financial statements.

First of all, the increase in the company's revenue depends on the following factors:

The activity of the enterprise related to the production processes: the rate of output, the management of its volume, the quality of goods, the reduction (growth) of the cost, etc.
Market activity of the company: pricing policy, use of cashless payments, flexibility in relation to customers, simplified clearance, correct deliveries, etc.

The amount of revenue is closely related to the pricing policy of the organization. An experienced manager knows that the prices set should cover the costs of production, including other accompanying procedures (for example, delivery).

If prices are low, it is impossible not only to increase revenue, but even to ensure the viability of production. The loss of capital caused by the cheapening of the goods will initially lead to increased sales, but ultimately will ruin the company.

In some cases, to increase revenue, you need to predict the situation in advance. Sometimes it is necessary to cut prices at a loss to the organization in order to increase demand and sales efficiency. This approach will help you get ahead of your competitors and create a small but steady income for yourself. Therefore, it is very important when management is able to anticipate the situation and think strategically.

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It happens that you need to increase the company's revenue for the selected product. It could be new products yet unknown to the consumer. At the same time, its cost is deliberately underestimated in order to quickly ensure popularity among the population.

Today, the issues of increasing or decreasing commodity prices are at the mercy of the enterprises themselves, so they act at their own discretion, in accordance with the dynamics of demand.

But still, free regulation of the cost is not applicable for every group of goods. There are a number of products whose price is set and controlled by the state. This usually applies to transport, energy and other areas of the economy. In this way, the government gives people social guarantees, protecting their budget from unnecessary expenses for basic necessities.

For this reason, always consider whether your products are subject to government pricing. If we talk about "free" products, the increase in their market value is due to the scale of sales per consumer. The lower this figure, the more expensive the price will be to cover the meager revenue.

The increase in the company's revenue largely depends on the number of products sold, since this is the most traditional look income generation and often their most significant item. Sales volumes are adjusted by two factors:

improving the performance of the organization;
the presence (absence) of warehouse balances of goods.

It is obvious that with warehouses clogged with product residues, an increase in revenue is out of the question. As for increasing the scale of implementation, this is the main factor for its increase.

Moreover, mention should be made of the increase in the share of high-value goods in total mass range of the enterprise. Of course, this also raises revenue, although we should not forget: prices must remain competitive.

Also, the increase in the company's revenue is due to special conditions of sale. Often, consumers prefer the most comfortable and profitable methods for themselves, rejecting the rest.

From the foregoing, we can conclude: in order to increase sales revenue, you need to sell quality goods on terms convenient for the client. But this must be done on an advance payment in order to avoid the formation of warehouse deposits of unclaimed products.

What do you need to focus on to increase sales revenue?

Reducing the cost of goods. Obviously, the difference between the old and new cost will be included in the higher revenue. How to achieve this? Just correctly distribute the potential and capacity of production.
Raising the technical level of production. At first, it is worth forking out for new equipment. In the future, this will increase your income due to the quality and pace of production.
Elimination of losses and leaks. It is even more profitable not to eliminate them, but to take preventive measures.
Analysis of points of receipt of revenue. It is much more difficult to achieve an increase in the company's revenue when certain production processes are unprofitable or costly. It is necessary to identify weak links and find an alternative way out for them.
Motivation and stimulation of personnel. At first glance, it is not clear how personnel costs further increase revenue. In fact, this is quite real. It is only necessary to rationally stimulate the work capacity of subordinates. A sound and relevant compensation policy will keep employees enthusiastic high level which will increase their productivity and product quality. The main thing is to motivate employees to do everything better and faster. On the one hand, interest and premiums will require some expenses, but in general they will quickly and greatly increase the income from the sale.

Increase in output. It's not just about scale. Perhaps the company should expand the range of products that will help improve demand from a new audience of consumers.
Training. Not everyone is technically savvy. Therefore, new machines are likely to require additional skills. Don't underestimate this. Better to train staff productive work than to leave him alone with incomprehensible equipment. This will in no way ensure an increase in the company's revenue, but the timing of the release of products will completely delay.

This is how, in general terms, you can increase revenue in production. However, not all companies are manufacturers. What about other organizations? They also have a number of recommendations.

What should a regular company do to increase revenue?

Improve product quality. Suppose a company does not produce, but buys a product. It makes sense to take the highest quality (not to be confused with the word "expensive"). At the same time, you need to remember about competent advertising of your products, that is, to show the client that your products are the best.
Capture new markets. To increase the income of the enterprise, this is the main and important step. A wider range of offers always has higher demand. Obviously, the number of customers is growing and, accordingly, revenue and income. There are many approaches to solving this issue. First of all, advertising. Further - mutually beneficial partnership with successful and promising suppliers. The best option- combine both methods to achieve the greatest efficiency. This will increase your revenue very quickly.

Despite the fact that all this is presented in the form of equivalent ways to increase the company's revenue, it must be admitted that advertising has always been considered the most effective technique. No matter how large the scale of production, the unsurpassed quality of goods and the unique offer of the company, its income will not change until the audience knows about the benefits and advantages of the products sold. All this must be well presented.

PR, of course, will generate interest in the product, but if it turns out to be imperfect, consumers will quickly understand this. It will not be easy to restore the reputation, so the increase in the company's revenue will be very fleeting.

Since not all businesses produce something, for many merchants, resellers and affiliates, advertising will always be the only possible method of increasing sales.

The increase in sales revenue is seriously affected by rivalry between employees commercial department. To start working in this direction, you need the following:

assess the degree of competition;
find out the results of weak competition or lack thereof;
do everything necessary for its occurrence and increase in revenue.

If there is no competition among sellers, the result may be a decrease in the inflow of funds. The urgency of this problem is easy to check on your organization. A lack of competition in the sales department is indicated by several signs:

your staff has a maximum of two trade managers and a manager;
there are three managers in your staff, and there is no head;
there are three trade managers on your staff who perform different functions;
the company has one sales department with six (or more) employees and a manager;
subordinates earn more than you;
in the current economy, trade managers receive more than 120 thousand rubles, and the head of a department - from 200 thousand rubles;
you do not have information about how the company's sales department executes its plan (actions, channels, resources);
no more than two employees have practical sales experience.

Those who are not in a hurry to correct the mistakes made in the organization of the sales department will soon have to deal with their consequences.

Employees blackmail you, scaring you with dismissal or a strike if their financial claims are not met (salary increase, bonus payment, travel compensation, etc.).
you overpay trade managers, thereby reducing revenue. You are sure that when the client is problematic, the seller will immediately do something. In fact, everything will be different. The employee will not keep the buyer. You personally demotivate him, rewarding him for nothing.
If salespeople have no one to compete with, they don't need to work better, faster, and harder. So, no increase in sales revenue should be expected.
Your business does not comply with the main principle - making a profit by increasing trading revenue. You simply feed your staff, while they should feed you and themselves.

Therefore, rather, create competition in the sales department and use the push function (push employees). It will stir up your managers, they will become more active, more enterprising and more original. This will not be slow to reflect on the increase in revenue.

If you have even one of the signs of a lack of rivalry, use helpful tips.

As an owner, it is difficult for you to keep track of what is being done in the sales department, since you have a lot of other tasks. The whole complexity lies in the operational and daily control that each commercial structure requires.

This is what the head of the sales department should do - conduct daily planning, organization and control, support motivation. If this is not done, sellers will quickly feel weak and begin to work worse or even somehow somehow.

In the very initial phase of the formation of the sales department, assemble a team of three managers (this is the minimum). To increase the company's revenue, their tasks must be identical.

Two people are definitely not enough for you, one is even more so. If one of them gets sick, takes a vacation or quits, the sales plan will be on the verge of failure. A staff of three employees will help to correct the load in an emergency in a timely manner.

The essence of the method is expressed as follows: 2 by 4 > 1 by 8. That is: two teams of four managers each are more effective than one consisting of eight salespeople.

If the department is staffed by eight employees, divide them into two groups and assign a leader to each. In this way, you will increase your revenue faster.

The optimal distribution will be as follows: I sales department (head and 3 managers); II department - (head and 3 managers). At the same time, you can increase the flow of proceeds by 15-20%.

As a rule, in large firms, the head of the commercial department can manage 6-15 subordinates, depending on the type of activity.

However, in order to increase the company's revenue, it is desirable to adhere to the standard of manageability. According to this norm, the department with no more than five specialists is considered the most productive management scheme.

It will help you reach your revenue growth goals faster. Subordinates should earn less than you, value their place and take into account your central role in the business. You need to be able to fire every employee at any time.

Use financial incentives to increase revenue. This motivation is based on three principles: a difficult salary, quick money, high thresholds.

Complex salary.

This means that the salary of managers consists of three parts.

The first is a fixed salary of an employee, not exceeding 30% of his total income in the organization. This amount provides a person with accommodation: food, travel, satisfaction of current needs.

The second component is a flexible salary (no more than 20% of income). It is paid based on the achievement of performance indicators that are important for increasing the company's revenue. These include: the number of calls, the number of meetings, the average check, etc.

The third part is bonuses, which account for 50% of the money earned by the seller. They are paid to those who monthly fulfill the sales plan.

Big thresholds.

This system regulates the amount of bonuses accrued to an employee. As a rule, it is formed something like this: failure to fulfill the plan by 70% - 0% of bonuses, by 70-90% - 1% of sales, by 90-110% - 2% of the money received, more than 110% - 3% of the amount of revenue .

Fast money.

This stimulus can change the situation in a few days. Its algorithm is simple: you give subordinates a specific daily task. Upon its implementation in the evening, each of them receives a small amount, approximately 1,000–1,500 rubles. At the same time, the goal should be achievable, but go beyond the usual scope of the seller.

You must have a standard, chosen by you, model of work of a manager, head of the sales department, and of the unit itself as a whole. Documenting all work processes will allow you to understand how the plan is being carried out. In addition, this will help newcomers adapt and, of course, increase the company's revenue.

Do not try to save on promotion.

Contrary to the desire to save money, first of all allocate funds to promotion. Take money out of the "piggy bank" and invest in the business. If income falls, the first desire is to stop all expenses and, figuratively speaking, tighten your belts.

At such moments, knowing that flowing financial flow affects the incoming, place funds only in promotion and advertising. Evaluate all expenses, eliminate unnecessary ones and invest in promotion. See it works!

Promote smartly.

Make a detailed list of your firm's sources of income. Mark the most profitable channels for you. Take a look at how you would have promoted before. Now think about how you can activate the promotion now.

No new step should supplant successful actions. The only thing you need is to strengthen them. To do this, again and again, promote exactly what gives the result, and do not experiment with innovations.

Let's say you own a beauty salon, where manicures are the most profitable and popular. Order advertising only for its promotion. If you trade in wholesale and retail, and the main percentage of income comes from wholesale, activate advertising for it. In general, move what provides profit.

Another important rule is promotion against all odds. After all gross income company is determined not by the quality, but by the volume of the outgoing stream. There is no possibility to launch advertising in the media or on the radio? Hand out regular printed flyers! The main thing here is quantity!

Train your salespeople.

To increase the productivity of staff and, accordingly, increase the company's revenue, daily training and training courses are needed. Imagine yourself taking an exam. When you don’t know how to answer a question, you think: “If only he didn’t!”

The situation is similar with sellers. When they don’t know something and can’t answer questions, if it’s problematic for them to talk about something, they thereby show their unwillingness to sell! To prevent this, constantly teach your staff the answers to tricky questions.

Organize employee meetings.

To some, this idea will seem empty, since it is better to devote this time to sales. But the meeting is a great opportunity to motivate staff and evaluate their current work.

Benefits of weekly meetings:

employees are always aware of the state of affairs in the company. All staff are focused on new successes next week;
the management of the company takes on increased obligations to control their field of activity and work more actively;
employees share their experience in the process of solving current problems. They understand that there are no hopeless situations and they can overcome any difficulties.

Thus, every week your employees will be energized to achieve results, increase personal efficiency and increase company revenue.

Assess the condition of the premises and appearance their employees.

The next thing that should grab the manager's attention is what your staff and facilities look like. The fastest way to reduce sales and customer loyalty is to invite them to unkempt stores with unkempt salespeople. Attractive premises and tidy skilled employees give you the chance to increase your revenue by five times.

Undoubtedly, in order to achieve significant growth in revenue, you need to go global. You need to have some idea how to do it.

Let's clarify right away that the tips below are suitable not only for enterprises oriented to the external market. This approach can be applied to increase the company's revenue by expanding the business to adjacent regions within the country.

To get started, ask yourself some simple questions:

When? To increase the company's revenues, you need to understand when it will enter the market. Will it then be one of many or will it become the best in its own niche.
How? There are many such strategies. Someone raises revenue through a massive attack in all directions. Others advance quietly, occupying small segments of the market. Here you need to evaluate your potential resources.
Where? The choice of the market is of great importance. Exist different countries, types of activities and forms of economic relations. Not all of these factors are capable of increasing revenue, so choose only the most promising areas for your business.

By answering these questions, you form a general mechanism for increasing the company's revenue. But that is not all. Based on the resulting model, you should choose the best approach for yourself. The three most commonly used are:

export of products;
mediation;
investment expansion (hierarchical alignment) of business.

Export activity of the company consists in the supply of domestic goods (services) to foreign customers. In this case, the increase in revenue is predetermined by several reasons:

the high cost of your products (services) abroad;
lack of competitors in foreign markets;
opportunity to expand trade around the world.

It should be borne in mind that even with a predicted increase in the company's revenue, additional expense items are inevitable. For example, you need to find intermediaries who organize your sales abroad.

Their services, of course, require payment. And it is much more difficult to control everything that happens abroad. In general, dishonest performers can keep some of the money for themselves, bypassing the reporting documentation, which will reduce the expected revenue results.

Mediation- an alternative option for those who plan to increase income by moving to foreign markets. By entrusting the business to a conscientious contractor, in fact, you can achieve excellent results. However, use this form cooperation needs to be done carefully.

Under favorable circumstances, the intermediary as a representative of the company abroad will provide an increase in the company's revenue. For his part, he receives specific skills, a stable income from interest, as well as unique products that are in constant demand.

Hierarchical business structure- the process is quite laborious, but very promising in relation to the growth of income from the sale. Its main meaning is to gain full control over a company that sells products or services in a selected country.

Various forms of activity are applicable here, for example, the representation of the main company in the form of a branch or an independent structure that operates on the territory of a certain state.

State the buyer's name.

Try to address the client by their first name. Using this simple technique, you will prepare the buyer for cooperation by 50%.

Get rid of your competitor.

An effective way in the competitive struggle is to eliminate an opponent by taking over his company or forcing him to leave this segment.

Small wholesale sale.

To increase the company's revenue, you can sell more than one copy of the product, but several at once with a good discount. For example, whole packs of bottles mineral water, batteries, etc.

Come up with a legend.

Strengthen the interest of potential buyers in your products with some legend, that is, the history of its creation. This is a great way, the results of which have long been appreciated by those who sell "star" things.

Trading 24/7.

Round-the-clock sales at any time of the year are very effective method. If it is impossible to sell in a certain period of time, you can simply take orders. To do this, set up an answering machine that registers applications.

The principle of seven touches.

This technology consists in the fact that the maximum sales are observed on the seventh or eighth touch of the buyer with your offer. He should be constantly reminded of the product, because with 2-3 calls the result will be much lower.

Add 5% for a smile.

Do not skimp on bonuses for your smiling sellers. Practice has shown that in stores where sellers are friendly to customers, the number of sales is 20-30% higher.

Gather like-minded people for charity.

Firms often use productive psychological method informing consumers that part of the proceeds will go to charity.

Return the buyer four times.

Another effective technique that is undeservedly forgotten is to bring a person to the store four more times. If by any means you manage to force a visitor to buy goods (order services) four times, you get a loyal and regular customer.

Offer a product for free.

Front-end products are a very effective lead generation strategy that can provide a big lead over the competition. This product is inexpensive or even free and is used by you not to increase the company's revenue, but to expand target audience, which will then buy your main assortment.

Shipment dates

Product type

Price per one. without VAT

Volume pcs.

Price per one. without VAT

Volume pcs.

Price per one. without VAT

Volume pcs.

Sapsan LLC plans to increase profits by taking the following measures:

more effective use retail space by freeing up additional space for the showroom, which will allow more goods to be presented;
reduction of distribution costs.

Let's discuss in more detail the first proposal for the organization of the exhibition hall and show in tabular form the economic effect of the company from the implementation of such a proposal.

Calculation of the economic result that is expected when adding a new department:

Types of indicators	Forecast for 2018
Planned annual turnover (thousand rubles)
Expected gross income (thousand rubles)
Annual salary for six managers, (thousand rubles)
Insurance premiums(thousand roubles.)
Total amount of planned expenses (thousand rubles)
Expected profit from the sale of goods

Statistics show that the growth of the company's turnover from the opening of an additional department is about 7%.

Reducing the distribution costs of a trading enterprise can be achieved by improving the overall management system and, in particular, reducing its costs.

Using the example of the dynamics of the cost structure of Sapsan LLC for bringing products to the consumer within two years, we will find out which of the items caused overspending.

During the evaluation short term time, regular expenses (on rent and depreciation of fixed assets) are equalized in amount, while variable costs(salary, turnover taxes, etc.) are correlated by level.

The table shows that the overspending in distribution costs is observed in the position "labor costs".

Cost items					Deviation (+/-)
Cost items	Amount, thousand rubles	% to turnover	Amount, thousand rubles	% to turnover
Trade without taxes
Distribution costs - total
Fare
Labor costs
Payroll deductions
Depreciation of fixed assets
Repair of fixed assets
Rental expenses
Purchase of overalls
Household expenses
Information service
Cash management expenses, collection
Storage costs

MTS services, telephone, mail
other expenses

Note that the growth rate of average earnings is the highest. It is recommended to revise the organizational and staffing structure of the organization, to turn to the services of third-party auditors for the accounting of an LLC in order to reduce labor costs. Now the staff provides for two accountants with a salary of 29,000 rubles per month each. Maintenance of accounting by auditors will cost only 9,000 rubles per month. At the same time, annual savings in the amount of 240,000 rubles are obvious.

According to the results of the performed analysis, the following is recommended to increase the company's revenue:

Taking measures to restructure the company, which will save 240,000 rubles.
The opening of an additional exhibition space of the Sapsan company should give 10,231,340 rubles of total profit from the sale of goods.

So, the economic effect of the events is to increase the profit of the organization to 10,471,340 rubles. least.

As a percentage growth rate and its corresponding growth rate. At the same time, everything is usually clear with the first one, but the second one often raises various questions regarding both the interpretation of the obtained value and the calculation formula itself. It's time to figure out how these values differ from each other and how they need to be correctly determined.

Growth rate

This indicator is calculated in order to find out how many percent one value of the series is from another. In the role of the latter, the previous value or the base value, that is, the one at the beginning of the series under study, is most often used. If the result is more than 100%, this means that there is an increase in the studied indicator, and vice versa. It is very easy to calculate: it is enough to find the ratio of the value for to the value of the previous or basic period of time.

Rate of increase

Unlike the previous one, this indicator allows you to find out not by how much, but by how much the studied value has changed. A positive value of the calculation results means that there is a negative value - the rate of decrease in the studied value in comparison with the previous or base period. How to calculate the growth rate? First, the ratio of the indicator under study to the base or previous one is found, and then one is subtracted from the result obtained, after which, as a rule, the total is multiplied by 100 to get it as a percentage. This method is used most often, but it happens that instead of the actual value of the analyzed indicator, only the value of absolute growth is known. How to calculate the growth rate in this case? Here you already need to use an alternative formula. The second calculation option is to find the percentage of the level in comparison with which it was calculated.

Practice

Let us assume that we learn that in 2010 joint-stock company"Svetlyi Put" made a profit of 120,000 rubles, in 2011 - 110,400 rubles, and in 2012 the amount of income increased by 25,000 rubles compared to 2011. Let's see how to calculate the growth rate and growth rate based on the available data, and what conclusion can be drawn from this.

1. Calculation of indicators for 2011.

Growth rate = 110,400 / 120,000 = 0.92 or 92%.

Conclusion: In 2011, the company's profit compared to the previous year was 92%.

Growth rate = 110,400 / 120,000 - 1 = -0.08, or -8%.

This means that in comparison with 2010, the income of JSC "Svetly Put" decreased by 8%.

2. Calculation of indicators for 2012.

Growth rate = (120,000 + 25,000) / 120,000 ≈ 1.2083 or 120.83%.

This means that the profit of our company in 2012 compared to the previous year, 2011, was 120.83%.

Growth rate = 25,000 / 120,000 - 1 ≈ 0.2083 or 20.83%.

Conclusion: the financial results of the analyzed enterprise in 2012 were more than the corresponding indicator in 2011 by 20.83%.

Conclusion

After we figured out how to calculate the growth rate and growth rate, we note that on the basis of just one indicator it is impossible to give an unambiguously correct assessment of the phenomenon under study. For example, it may well turn out that the magnitude of the absolute increase in profits increases, and the development of the enterprise slows down. Therefore, any signs of dynamics must be analyzed jointly, that is, comprehensively.