How AI and predictive sales software can help you sell more products and adjust your prices faster than your competitors.
Congratulations! As a sales manager or managing director of a specialised wholesaler in Germany, you have made it this far – a year of intense competition, increasing customer demands and a market that is turning faster than ever before.
The last year has not only made you older, but also wiser about the challenges and opportunities in wholesale.
Perhaps you are one of the few who have sold more in 2023? But at what price? And what fixed costs do you have to bear for the growth of recent years?
For this reason, return on sales is one of the key issues you face. How can you calculate and optimise these and ensure that your company not only survives but also thrives in the stormy seas of wholesale?
In this article, we explore not only the formula for calculating return on sales, but also innovative ways to improve it, including the revolutionary use of artificial intelligence (AI).
Calculate return on sales: The formula for success
Before we dive into the depths of increasing sales, let’s take a look at the foundation – calculating return on sales.
Financial metrics are important in any industry. In the world of wholesale, with thousands of customers and tens of thousands of items, return on sales is perhaps the only KPI you need to understand the financial success of your business.
The formula for return on sales is:
Return on sales = net profit / total sales × 100
This simple formula gives you a percentage overview of the profitability of your sales. How much do you earn with every euro you sell? Are all costs correctly recognised in net profit?
To monitor the health of your business, you should regularly monitor and analyse this key figure. How has it developed in recent years? How is it distributed among your customers and products? How can you improve it?
Improve profitability: sell faster, act smarter
The world of wholesale is fast-paced and time is your most precious commodity. To increase your return on sales, you not only need to sell more products, but also do so more efficiently. And especially in times of a shortage of skilled labour, it is essential to optimise the use of your field and office staff’s time.
This is where the power of AI comes into play.
Product recommendations: In the age of Amazon and personalised recommendations, it is time to transfer this strategy to wholesale. AI-based systems analyse the purchasing behaviour of your customers and make intelligent product recommendations. This not only increases the average basket value, but also the satisfaction of your customers.
Price adjustments: Historical ERP sales data is valuable and very often more than sufficient. It is often a secret weapon, because everyone wants to know the market price in B2B, but often there is none. However, there is a huge amount of dormant information that can be awakened by AI. Modern sales AI software can use your ERP data to react to market changes in real time and adjust your prices faster than the competition.
AI solution out-of-the-box: revolutionary ways to greater success
The use of AI in B2B sales is no longer a dream of the future – it is a reality and can drive your company forward. Here are some concrete use cases in which AI can play a transformative role:
Cross-selling: AI not only analyses current buying behaviour, but also predicts which products might be in demand in the future – for each individual customer! Intelligent cross-selling software can not only increase sales, but also strengthen customer loyalty. Forget old and time-consuming rule-based suggestions. Utilise the omniscient eye of AI.
Pricing: The right price at the right time is crucial. AI can not only recommend prices dynamically, but also predict trends and make strategic price recommendations in order to survive in a highly competitive market. These dynamic adjustments are particularly appreciated by loyal customers.
Customer churn: Recognising customers at risk of churning at an early stage enables targeted customer retention measures. AI-based churn software analyses behavioural patterns and historical data to predict churn trends and take preventative action. You never forget your A customers. When was the last time you contacted your B and C customers?
CALCULATE NOW THE ROI OF QYMATIX PREDICTIVE SALES SOFTWARE
Improving sales profitability in wholesale – Conclusion
It has been a long year, but you have overcome the challenges and are now facing the future of wholesale. Have you grown, but your return on sales has fallen? You are exposed to a particular risk – think today!
Return on sales is not a static goal, but a journey that can be mastered with the right tools and proven partners. The combination of intelligent product recommendations and dynamic price adjustment through a ready-to-use AI solution can take your business to the next level.
AI in sales will not disappear, it will get better. The use of AI in B2B is not just a trend, but a necessity. Those who adapt and implement these technologies will come out on top. Remember that your success in wholesale depends not only on the size of your catalogue, but also on the intelligence with which you manage it.
If you would like to learn more about how you can increase the profitability of your wholesale business, contact us today. The future won’t wait – shape it with smart decisions and innovative technologies!