As discussed in an earlier post (click here), adding more bids to your pipeline does not directly translate to more wins and revenue. In fact, usually the opposite occurs as the quality of your pipeline gets diluted, your win rate drops and revenue follows. Instead, it's critical to focus on the two key inputs: Bid Volume and Win Rate. I will address the first input in this post and the next one in a follow-up one.
Growing your team's bid volume can be accomplished through increased individual productivity or adding new sales/estimators to your team. The latter is challenging as foodservice is a highly specialized industry. Training/developing a new sales representative or estimator can take years.
Luckily, there are ample opportunities to increase the productivity of your sales and estimation teams through the adoption of better technology. As a former Director at TriMark, I saw firsthand how much time sales people and estimators spend on manual, repetitive tasks.
Thanks to major advances in personal computing and software, most rule-based processes can be efficiently automated through technology. That automation frees up your team's time to sell and bid more. It will also lead to a much happier team.🙂
Below is some quick math to highlight these benefits for a hypothetical sales rep or estimator. It assumes you leverage technology to eliminate 4 hours/week of their manual tasks (10%), they bid $10 million per year at a win rate of 35% and a Gross Margin of 18%.
The top table shows the impact based off an individual estimator ($70K increase in Gross Profits) and the bottom table shows the impact to your entire team. Importantly, this is just a mathematical exercise and not all technology is good technology. Some new processes can actually reduce your team's productivity. But it highlights that even a small reduction in your team's manual tasks can translate to significant improvements in revenue and profits.
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