070801 value chain and sales model
TRANSCRIPT
ValueValue Chain Chain
mark lesliemark [email protected]
650/561-1228650/561-1228
Sales ModelSales Model
Value ChainValue Chain
►What is a value chainWhat is a value chain All the independent entities required to bring the All the independent entities required to bring the
product to the end userproduct to the end user Each independent entity adds value and receives Each independent entity adds value and receives
compensation for that valuecompensation for that value
► End user price is the price that final end End user price is the price that final end user pays for the product or serviceuser pays for the product or service
► Revenue to your company is the amount of Revenue to your company is the amount of revenue you receive ONLY for your segment revenue you receive ONLY for your segment of the value chain of the value chain
Value ChainValue ChainDirect to End UserDirect to End User
Cost of Goods
(Supply Chain)Profit + SG&A + r&D
End
C
onusm
er
$
EU
Dis
cou
nts
Notice the little r and the big D !
RevenueList Price
Value ChainValue ChainResellersResellers
Cost of Goods
(Supply Chain)Profit + SG&A + r&D
End
C
onusm
er
$
EU
Dis
cou
nts
Rese
ller
Revenue
List Price
Value ChainValue ChainDistributors / ResellersDistributors / Resellers
Cost of Goods
(Supply Chain)Profit + SG&A + r&D
End
C
onusm
er
$
EU
Dis
cou
nts
Rese
ller
Dis
trib
uto
r
RevenueList Price
Value ChainValue ChainInternational DistributorsInternational Distributors
Cost of Goods
(Supply Chain)Profit + SG&A +
r&D
End
C
onusm
er
$
EU
Dis
cou
nts
Rese
ller
Dis
trib
uto
rMaste
r D
isti
Revenue
List Price
Your Product Becomes your Customer’s COGs
Value ChainValue ChainOEM or IP LicensingOEM or IP Licensing
Cost of Goods
(Supply Chain)
Profit + SG&A + r&D
End
C
onusm
er
$
EU
Dis
cou
nts
Rese
ller
Dis
trib
uto
rMaste
r D
isti
Cost of Goods
(Supply Chain)Profit + SG&A + r&D
Rese
ller
List Price
Revenue
Value ChainValue ChainYour Acquired OEM Product or Licensed Your Acquired OEM Product or Licensed
IPIP
Cost of Goods
(Supply Chain)
Profit + SG&A + r&D
End
C
onusm
er
$
EU
Dis
cou
nts
Rese
ller
Dis
trib
uto
rMaste
r D
isti
Cost of Goods
(Supply Chain)Profit + SG&A + r&D
Rese
ller
Cost of Goods
(Supply Chain)
Profit + SG&A + r&D
Rese
ller
List Price
Revenue
Sales ModelSales Model
►WhoWho►WhatWhat►WhenWhen►WhereWhere►HowHow►How Much $How Much $
Who BuysWho Buys► Who is the business / economic buyerWho is the business / economic buyer
Looking for ROILooking for ROI► Who are the actual end users in the organizationWho are the actual end users in the organization► Who is the technical buyerWho is the technical buyer
ImplementerImplementer Will compare competitive alternativesWill compare competitive alternatives
► Who is the recommenderWho is the recommender Who actually does the evaluationWho actually does the evaluation
► Who actually signsWho actually signs What are the typical signature levels required for this productWhat are the typical signature levels required for this product
► Department headDepartment head► Department VPDepartment VP► CFOCFO► CEOCEO► Board of DirectorsBoard of Directors
What are the StepsWhat are the Steps
► LeadLead► ProspectProspect► Introductory presentationIntroductory presentation►Demonstration (proof of concept)Demonstration (proof of concept)► Technical presentationTechnical presentation► PilotPilot► Final presentationFinal presentation► Best and Final OfferBest and Final Offer►Negotiate contractNegotiate contract► Receive POReceive PO
WhenWhen
►How long, on average from lead to How long, on average from lead to dealdeal
►What is the range of timeWhat is the range of time►Does the range of time vary by deal Does the range of time vary by deal
sizesize
WhereWhere
►Where are the customers?Where are the customers?►Domestic vs. InternationalDomestic vs. International
Feet on the ground required?Feet on the ground required?
►VerticalVertical►Major Accounts / National Accounts / Major Accounts / National Accounts /
Global AccountsGlobal Accounts
HowHow► Direct SellingDirect Selling
Technical support to sellingTechnical support to selling Inside salesInside sales TelemarketingTelemarketing Lead generationLead generation
► Channel SellingChannel Selling All of the aboveAll of the above Channel reps and channel managementChannel reps and channel management
► Manufacturers RepsManufacturers Reps► RetailRetail
DistributionDistribution Shelf space and stockingShelf space and stocking
► OEMOEM► IP LicensingIP Licensing► Multi-tier DistributionMulti-tier Distribution► Etc.Etc.
How Much $How Much $
►How much does this model cost?How much does this model cost?► Is it consistent with product price and Is it consistent with product price and
transaction size?transaction size?
Value ChainValue Chain
mark lesliemark [email protected]
650/561-1228650/561-1228
Sales ModelSales Model
Copyright Mark LeslieCopyright Mark Leslie
One Final Thought…One Final Thought…
Copyright Mark LeslieCopyright Mark Leslie
it is regret for the things we did it is regret for the things we did not do that is inconsolablenot do that is inconsolable..
Sidney J. Harris (1917–86)Sidney J. Harris (1917–86)
Regret for the things we did can be tempered by time;