A simple formula for higher sales speed and smarter manufacturing

Let me share a simple formula on sales velocity. It’s pretty straightforward but actually quite surprising. We get these amazing results by addressing four key issues in sales.


First out, we need to increase the number of quotations. This one is so obvious that I won’t even try to explain it any further.

Second, we need to increase the value of each quotation. You can call it upsell, solution sell or whatever – the main thing is to increase that bottom line.

Third, we need to close more of the quotations we send out. This is easier said than done, but since it’s part of the formula we really need to solve this issue too.

Fourth and last, we need to decrease the time of each sales cycle. The faster we can close that deal the better.


Before we proceed, let’s get one thing straight.

For the total amount of sales, the sales cycle doesn’t really matter.  But to meet your quota this year the length of the sales cycle is extremely important. The speedier the process the less difficult your life will be.


The formula for higher sales speed.

Let’s take the number of quotes (#), the value ($) and the hit rate (%). That’s our numerator.

This number is divided with the sales cycle (L).



So, let’s insert some numbers. Say that we can increase the three first factors by 2 % and decrease sales cycle by the same value.

This will increase your sales result by a little more than 8 %.

If we, in the same manner, aim for a five percent increase/decrease the result is an amazing 22 %.


So far, we’re just talking theory. But when it comes to CPQ this is not unreal.

# – By simplifying complex configuration each and every sales rep can produce more quotes.

$ – By better understanding the product offering each and every sales rep can increase the value and the price for the customer.

% – By better targeting the offering to customer needs each and every sales rep can increase the likelihood to seal the deal.

L – By automating many of the time-consuming hurdles of creating a complex quote the length of the sales cycle is slashed just by getting back quicker with your response.


By the way, the shortened sales cycle is inevitable with CPQ. It just happens.


Now it’s your time to do the math.

What can you do with your numerators once your salesforce has superior system support?

Where do you see the potential for your business?


Shoot me an email and let’s discuss it together.

Related Blogs