Sharing some of my notes on the topic of sales - this is just on the common lingo. If you are from hardcore tech background, chances are you are not going to know this (other than what's common sense and fly by the seat of your pants). Hope this helps whomever who is exploring revenue and income generation in your business plan. I'll share some of the books I've read below as well on this topic

Common Tips

1. Set sales targets - daily, weekly, monthly, quarterly, and annually

2. Sales plan: resources, budget, materials /demo kit

3. In a sales environment, you are the leader, the coach and the person who sets the standards and calls the shot (Less Democratic) - Brian Tracy

4. 20% of your activities account for 80% of your results (common Pareto principle uses in sales and everything else in life =) )

Types of sales

1. retail - goods and services to individual customers

2. outbound sales - looking for leads.

3. inbound sales – converting prospects.

4. Social Selling - social media

5. Direct selling - car booths, markets

6. Enterprise sales - sw solutions to companies

7. Channel sales - distributions

In retail finance: supply chain includes manufacturers, wholesalers, retailers, and consumers. Each player adds a profit margin to the product's cost.

Price is a key factor in the purchase of a product and plays a role in price image, market share, and customer loyalty.

Common Pricing Strategies

1. Cost-based pricing: cost + markup

2. Market-based pricing: competitive landscape

3. Value-based pricing: Perceived value.

4. Loss-leader pricing: Sell one product at a loss to boost sales, attract buyers (Also price penetration)

5. Price skimming: Start with a high price and lower it over time.

6. Dynamic pricing: Adjust prices based on market demand and other factors.

7. Premium pricing: Higher than competitors, superior

8. Freemium – free for basics + pay for premium.

9. Subscription based.

Elasticity in Pricing

1. Price Elasticity of Demand: Consumption reaction to price changes.

2. Cross Elasticity of Demand: Demand for one product changes with the price changes of another product

High-end items, cigarettes: inelastic

Milk and eggs: highly elastic.

Behaviors impact on pricing

1. Substitute products – cannibalizes other products.

2. Complementary products - encourages sales e.g., dipping sauce for chips.

3. Optimal pricing: maximize profit by taking all things into consideration: cost, competitive advantage, customer needs, operations etc.

4. Line pricing: similar or cluster prices within a product line (basic, standard, premier) for many different products

5. Markdown Pricing: gap between initial price and actual selling price

6. Size-based pricing

MSRP - Manufacturer’s Suggested Retail Price

MRP - Maximum Retail Price

Competitive price index = Our Price / Competitor’s Price (some countries have rules on this margin)

Sales funnel: Leads > Prospects > Sales

Inbound marketing: content Marketing, seo's, social media, emails, blogs, reviews, media, video (YouTube etc), podcasts

Outbound marketing: Cold calls/emails, mails, legacy media (TV, Radio), ads, trade-shows, events, billboards, networking, introductions

If you are hiring, some things to look into : base salary, commission, incentives, and benefits. If you are a super small startup, ESOS might be an option for incentives and benefits.

The line between sales and marketing has been blurring over time. These days, 70% users make their decisions even before sales efforts kicks in. That’s the power of marketing.

Some books I went through (it was ok – it wasn’t super exciting – but a lot of clarity on what to do, what not to do, common mistakes made, short cuts, the art and psychology of sales). There are a lot of sites that talks about this too.

1. They ask, you answer – A revolutionary approach to inbound sales, content marketing and today’s digital consumer by Marcus Sheridan

2. Win new customers with outbound sales by William “Skip” Miller

3. The expert guide to retail pricing by Kiran Gange

4. Secrets of closing the sale by Zig Ziglar

5. Selling 101: What Every Successful Sales Professional Needs to Know by Zig Ziglar

6. Advanced Selling Strategies by Brian Tracy

7. Sales Management by Brian Tracy

When you get your hands down and dirty, you are bound to make plenty of mistakes and that's ok. I wish someone told me that, so I am telling you that <3

If you are very familiar on the art of sales, I would love to know and learn more - whats your secret weapon, practices, do's and don'ts, books and sites etc