Whether you manufacture cutting tools, fasteners, accessories or something else altogether, one thing every manufacturer has in common is the simple goal of increasing revenue while lowering expenses.
Simple, yes. Straightforward? Not always. Increasing revenue by any notable amount typically requires some sort of investment – in marketing and advertising, for instance, or by recruiting, onboarding and training more sales reps.
But what if you could increase your manufacturing sales without significantly increasing your expenses?
You can. The key is to maximize your efforts in seven strategic areas. Here’s how you do it.
1. Maximize Market Penetration
Your first step is to examine the markets you are already selling into.
Total the number of potential buyers in each market, then total the number of accounts you have among this group. Then express that number as a percentage. This percentage represents your level of penetration in each market.
No manufacturer can hope to penetrate 100% of any market. But you don’t have to settle for 1% either. Somewhere between these two extremes is an achievable goal – one that can be chased after using your existing sales team, and a bit of work on your go-to-market strategy.
2. Enter New Markets
Are there any market segments that you haven’t considered? If you manufacture commercial fans, for example, you may sell into the industrial market and the electrical market, but what about the HVAC market? If you manufacture axles, you may sell into the truck and automotive market, but what about the commercial and agriculture markets?
If your products will sell into alternate markets that you are not currently selling into, assign one of those new markets to one or more of your sellers, and see what happens. Put your toe in the water for a few months of prospecting activity. See if there are any new markets for your products.
3. Partner with a Distributor
Some distributors specialize in market verticals. Look for distributors who sell a line of products that complement your products but don’t compete with them directly. These distributors already have relationships with buyers in markets and accounts you want to reach.
Partnering with them does not set you back anything in terms of investments or expenses. Find the distributors who are already calling on the accounts you want to penetrate. If you’re having trouble getting a response, consider leveraging the existing relationships that an Industrial Manufacturers’ Representatives (IMR) might have to help get your foot in the door.
4. Find the Perfect Fit IMR to Partner With
If you manufacture CNC tool holders, finding an IMR that has complimentary product lines in your desired market will ensure there are plenty of opportunities to pitch your products to end users and distributors.
A perfect-fit IMR might carry cutting fluids, plus carbide drills, plus accessories, giving them three times as many chances to bring up your products in sales conversations. They have multiple reasons to call on accounts, and multiple reasons to develop relationships with distributors. That works in your favor.
5. Work with an IMR that Has a Streamlined Sales Process
One way to boost sales without increasing revenue is to work with an IMR that has a proven, documented, streamlined sales process. Bonus points if they are ISA SalesWerks Certified.
What we’re talking about here is efficiency. Some salespeople take six weeks to close a deal that takes other reps half that time to close.
When your time and budget are finite, you need a documented sales process that moves opportunities through your pipeline as quickly as possible, and that your team actually follows. It can’t just be a document that sits in a filing cabinet somewhere.
With a documented sales process that your reps follow, and that you measure, you track each lost opportunity to see where and why you lost it. Then, the next time you come across another opportunity like the one you lost, you won’t make the same mistake.
6. Niche Your Catalog
Industrial manufacturers and distributors are famous for having product catalogs that are so thick they double as door stoppers. If you want to increase sales of a particular line, or if you want to sell to a particular market, carve out those pages from your catalog and present them on your website as stand-alone product collections or industry-focused solutions.
Busy buyers don’t have time to wade through inches of catalog pages anymore. So, make it easier for them to find exactly what they are looking for by rearranging your website to promote the products and market expertise you want to promote. For example, Pilot Precision Products clearly highlights the markets they serve right on their homepage, with easy to navigate tiles that link directly to specific product pages in their digital catalog.
7. Reduce Costs by Partnering with an IMR
You can increase your sales without spending a dime upfront by partnering with an IMR. When you hire a manufacturer’s rep firm, you gain immediate access to sales reps who already have established relationships with distributors and end users. You don’t have to hire anyone or increase your payroll.
The reps who call on accounts on your behalf are already well known and trusted by those accounts. You gain immediate access to that credibility and trust. And you gain all these benefits with no upfront costs, since IMRs work on commission.
Just make sure you partner with an IMR that is a good fit: You must share the same core values, the same expectations, and enjoy open and honest communication. You also have to be patient. IMRs bring relationships, marketplace knowledge, experience and expertise to your organization, but you must give them time to generate results.
Increasing your manufacturing sales without increasing your expenses is a balance of what you know and who you know. You can grow your sales by simply penetrating existing markets and concentrating on new markets. And you can also drive increased sales by partnering with distributors and IMRs. Strike the right balance, and your profit & loss statement will see a marked improvement soon enough.
If you need some more reasons to outsource sales, read our e-book.
