Find customer margin

Relationship_Analysis.jpgIn an ideal world, sales personnel are trusted advisors to their customers and support the sales decision process from the get-go. In the actual world, customers rather find out on their own which products are of interest and valuable to them. The sales representative will often only get involved once the customers have pretty much made up their minds, and at that point it is very difficult for the sales reps to make alternative proposals that might fit better to the customers’ needs. Sometimes this is due to the fact that the customer is simply not interested to consult an external resource. More often, though, it is likely that due to past experiences the customer did not feel supported well enough and because of that rather uses their own resources to come to a sales decision.

Additionally, on a more strategic level, any sales-driven enterprise needs to take decisions on a regular basis to invest in the right products and customer segments, to drive revenue and to stay competitive.

Real-time data about customer sales behavior compared against other customers or industries or a multitude of other parameters can help the sales reps to get the information they need to proactively start discussions with customers and drive the sales process to an optimal outcome for all parties involved. And with real-time data about revenue, margin, discounts, customer satisfaction and so on, analysts find the information they need to make informed and strategic recommendations to the enterprise. The solution that can help achieve these goals is SAP Customer Value Intelligence.

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Popular Q&A

What is the formula for profit margin?

Selling Price=Cost Price/((100-margin%)/100)
Cost = £100
Profit Margin needed is 40%
Sell price=100/0.60
Sell Price = £166.67
So you make £66.67 when you sell it at £166.67 so the profit margin is
66.67/166.67 = 40%

What is the formula for finding profit margin?

% P = P/BP *100
% - percentage
P - profit
P/BP - fraction
BP - buying price
* 100 - times one houndred
(you have to be given the buying price and the selling price to work out the percentage profit)
hope it helps

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