Sales

What are the Hidden Costs of Sales Outsourcing?

Hidden costs of sales outsourcing

A sales outsourcing operation generates significant costs

Sales outsourcing is an efficient way to increase your company’s turnover. It is a classic approach for companies that wish to concentrate on their core business. Nevertheless, there are still companies that have not understood that sales outsourcing is not only a cost reduction lever, but also a growth lever.

Sales outsourcing is not only for small and medium-sized companies! Sometimes you must think outside the box and look for customers outside your usual market. But this strategy has hidden costs. What are they? And how to avoid them? In general, we consider that the hidden costs of a company are those that we cannot see, but that we can evaluate them. In the case of commercial outsourcing, we will see what these hidden costs are.

What is sales outsourcing?

Sales outsourcing consists in delegating part of your commercial activity to a specialized company. This strategy will allow you to call upon experienced professionals who will be able to increase your turnover, but also your notoriety. Commercial outsourcing allows you to free up time for the creation of innovative products or services, for the search of new markets, or for the improvement of the manufacturing process. In addition, you will save money that you can invest to develop your business.

Outsource your sales force to reduce costs

There are two types of costs: direct and indirect. Direct costs are those that are directly related to sales outsourcing. In general, they include the sales representative’s remuneration, travel expenses, time spent organizing customer events, etc. On the other hand, indirect costs are those that have an impact on the overall profitability of the company. These can be related to the increase in the price of the products, following the increase in salary costs or the overrun of the marketing budget.

To ensure a significant return on investment, it is important to choose a sales agency with extensive experience in your company’s industry. The experts will be able to apply effective and targeted sales methods to improve sales. It is also advisable to choose a company that will be able to provide long-term results.

Outsourcing business development to save time

Many competing companies have flourished since Covid19. We are not aware of any competing company that has been working on financial software topics for more than 20 years. Some of our customers have known us for 15 years and were already in contact with us even before the creation of the company in 2009. This is the strength of this 3-dimensional network: financial, technological, and commercial network that has been driving us for over 20 years. The 360° prospecting that we have been carrying out daily since 2009 has enabled us to develop an already important local network progressively and qualitatively in the 3 main languages: French, Spanish and English.

To learn more: I am interested in sales outsourcing services.

Benefits Sales outsourcing

The hidden costs of sales outsourcing

It is essential to keep in mind that setting up and managing a sales outsourcing operation also involves significant costs.

The introduction of new technologies

Many companies offering business outsourcing services have no significant experience in the client’s industry. The first question to ask is do they have one or many industries? The second question is to ask them about their track record and references and especially the size of the average deal they sign. Selling a SaaS solution at 100€ per month does not require the same strategy, nor the same type of sales organization as selling a solution at 10 000-15 000€ per month.

Training on the company’s products

It is necessary to think of devoting sufficient hours to train the provider’s teams. Although it may be difficult to estimate the time and cost accurately, it is necessary to include it in your initial budget. The lower the cost of the provider, the more importance you can place on the training part. This training has a human cost. Moreover, this cost is all the lower if the company you call upon already knows your sector and has already worked in some cases for other competitors.

Let’s take an example. If you want to buy a fishing rod at Decathlon, will you ask the salesman in the tennis department or the salesman in the nature and fishing department? A sales outsourcing company usually has one or two preferred sectors.

The evolution of the services over time

Our customers are in SaaS mode (Sales as a service). The services therefore evolve according to their needs. In fact, the cursor belongs to them. Then, Finelis does not know how to do everything but always informs before committing human and financial costs of the feasibility and non-feasibility.

Hidden costs outsourcing

Hiring a sales outsourcing provider

Outsourcing a part of your commercial activity will bring you a qualitative and quantitative added value for your activity. You will have a more global vision of your activity. The distribution of tasks between the service provider and the company is done based on detailed specifications. This approach allows the company to better focus on its business.

Why contact Finelis and entrust its sales force?

Outsourcing your sales force has many advantages. Today, Finelis has a cost/quality ratio among the most competitive in the European sales outsourcing market. Moreover, Finelis guarantees to the end customers experienced people (Sales Strategy and/or Sector Experience).

Finelis also allows you to test the service in different forms and for a low cost without changing your own internal organization.

Our team adapts to your existing internal organization. In addition, it helps on the subjects where it can have immediate added value. For Sales, CRM and Marketing, experience, competence, methodology and humility are not enough but are necessary. Without them, not only will you not finish the number 1 race, but you won’t even be ready to run (i.e. be in the starting blocks). Finelis prepares you at the start of this race (the beginning of the “sales funnel”) and helps you during the whole race (the “sales funnel”) by adapting its involvement progressively, following a proven, (re)evaluated business methodology.

To go further: Key steps to succeed in sales outsourcing.

What is the rate for sales outsourcing?

Our rates are visible on the website. In general, Finelis charges lower fixed costs than its competitors but higher variable commissions. Why do we do this? Because we want to be all or part of your Sales Management, to allow you to put the cursor of your commercial needs where you want and that this Sales Management is profitable on a reasonable time horizon. Otherwise, it is not worthwhile. What is important is your ROI to be calculated over 6-12 months considering your human costs and not only your fixed financial costs for this sales outsourcing company.

Indeed, beyond the financial rates, you must evaluate your service provider on his capacity to “challenge” you, to ask you the right questions, to “pitch” to your final customers.

Finally, the only real question to ask yourself beyond the financial results is: “do you want this company, that is to say the manager and his team, to represent you”? If the answer is “no” or “I don’t know”, it’s best to walk away… But if the answer is “maybe” or “I’m curious to see”, contact us now 😊.