“If I had to pick a round number, I would say that for B2B solution sales the cost is between $200 to $300 per meeting, and higher with air travel, hotel and other expenses.”
“Twenty years ago, I did precisely this exercise as National Sales Manager for a small B2B industrial computer manufacturer. Five sales managers covering the US, making $100K at quota, a year’s worth of data/reports. Result: about $230 per call. Late 90’s (complex control software) the result was over $400 per call.”
“I was asked this question and thought I’d post it here to see if anyone could help with the answer: Do you know what the average cost of a pharma sales call is? I heard a number at HCEA Summit this week of $1800 per call. I replied: I haven’t heard numbers that high, more in the $600-$800 range. Maybe if you add free lunch for the staff and/or AWP of samples dropped off, it could be that high.”
Now, search it and then average the average, and you will find that the range is about $350 to $450 per call in the last couple of years. One thing is certain; it will be a moving target. A few things will change that dynamic. First, the cost of gas and jet fuel is going through the roof to keep increasing pressure on the cost equation. Next, technology apps, video-conferencing and social networking are changing the game of initial introductions and early qualifications. Additionally, with the increasing cost of maintaining a sales force, more territory and selling calls will need to be covered with fewer sales reps. Not to mention the pressure/cost associated with compliance and product expertise of sales reps in specialty industries…to name a few.
Why is this timely?
The need will not go away: Hard economic decisioning about standardized systems, zero defect planning, buy-in of essential stakeholders, consummate focus, and efficiency (if that weren’t enough)…
ZDT Author’s Comment:
From similar data sources, these stats say it takes 4.08 personal sales calls to close the average sale. So, for averages sake, $400 per call X 4 calls per close equals $1600 to gain the deal. And, that’s breaking even. Now, what is the profit margin and how many deals in the selling year will it take to keep everyone happy?
The reward could be that fully embracing this challenge may make you fall back in love with this unique profession (because it will be difficult). Ignoring it will almost definitely spell doom…it’s all moving too fast.