The fascinating things about sales are the constant changes, long-term customer relationships and technologies involved. On top of that, Forbes recognises three relevant skills to make sales more successful. These include sincerity, ethics, and asking. Sales reps must be honest about what they’re selling, avoid pressuring anyone into buying, and pay attention to the client’s needs.
These skills are sure to boost FOS sales and increase income flow. What’s important is attracting the customer’s attention, pitching and making sales, and ultimately bringing in revenue. However, it’s not easy since several factory outlet stores are available in different regions.
Thus, sales managers and reps must look for ways to boost sales and remain unique among competitors. Below are some of the best strategies and practices to ensure more sales.
Strategies and Practices to Maximise Sales
Businesses change marketing strategies, improve their websites, and hire more sales representatives to boost sales. However, all these are worthwhile after applying the following strategies:
1. Think About Customers’ Business Objectives
Generating fresh leads is impossible if companies don’t learn their customers’ pain points. When gathering customer data, enterprises learn what customers need. Afterwards, they shape marketing strategies around those needs, indicating their ability to solve those issues. Companies that consider customer objectives maintain their position in the market and grow significantly.
2. Introduce New Products
Introducing new products increases FOS sales. This move can be risky. However, using current customers to test these products is one way to learn if they will do well and what to improve. Customers love a wide range of products. Therefore, maintaining the same products over a long period keeps leads away and reduces revenue generation. Once the new products are in the market, companies must use all possible marketing techniques to attract the right attention.
3. Get into New Domestic Markets
Expanding into new markets is an investment, as it expands the customer base. That said, intense market research is necessary since it helps to learn about the new market. Proper research helps companies formulate the best sales strategies. In addition, improved marketing, distribution, and production improve sales in FOS.
4. Improving Customer Service
Sales representatives represent the company. As such, they must maintain professionalism and make customers feel valued. At the same time, responding to queries and concerns online and in person builds a great relationship with clients. Ultimately, these customers spread the word about the company, attracting new leads to the business and improving sales.
5. Studying the Competition
Businesses must check what competitors are doing. The information gathered helps understand the competitors’ behaviour, limitations and capabilities in the market. It makes it easy to defend the company’s position in the industry. Also, finding new markets and making changes is easier if a business owner knows what the competitor is up to.
6. Maintain Consistent Marketing Techniques
Being consistent with field sales marketing attracts the right target market to businesses. Unfortunately, sales cannot always be high. Therefore, companies must devise ways to stay afloat throughout low seasons. One way to maintain a customer’s attention is to develop marketing techniques that work despite the season. That means the business stays relevant, boosting sales even during the most unexpected periods.
Applying these strategies is a sure way to boost sales. Besides, companies cannot afford to put their guard down since the competition is high across all industries. It takes proper market research and marketing techniques to attract the right attention and boost sales.
Also Read: Is It Worth Buying Databases From Data Selling Companies In Malaysia?
Absorption Costing MCQs with Answers Explanation Engineering ECE
What Is Absorption Costing?
Absorption costing, also known as the all-encompassing, all-inclusive, or comprehensive costing method, is a sophisticated and perplexing managerial accounting framework that attempts to incorporate all expenses that are linked to the production of a particular product. This method is highly intricate and involves a copious amount of calculations and analyses to arrive at the total cost of production.
Every minuscule expense, whether direct or indirect, such as raw materials, labor, rent, utilities, depreciation, maintenance, insurance, and every other associated cost, is taken into account to determine the total cost of the product. The complexity of this method is staggering, and it requires extensive knowledge of accounting principles, an understanding of manufacturing processes, and advanced analytical skills to execute.
However, despite its complexity, absorption costing is still widely used in the industry due to its comprehensive approach to providing an accurate picture of the cost of production. Moreover, under the generally accepted accounting principles (GAAP) in the United States, absorption costing is an approved method for external reporting. In contrast, variable costing is prohibited, adding to the confusion and perplexity surrounding this topic.
Which of the following costs would NOT be included in the cost of goods sold calculation under absorption costing?
a) Direct materials
b) Direct labor
c) Variable manufacturing overhead
d) Fixed manufacturing overhead
Answer: c) Variable manufacturing overhead
Explanation: Under absorption costing, both fixed and variable manufacturing overhead costs are included in the cost of goods sold calculation. Direct materials and direct labor costs are also included.
When production exceeds sales, absorption costing will result in:
a) Higher net income than variable costing
b) Lower net income than variable costing
c) The same net income as variable costing
d) None of the above
Answer: a) Higher net income than variable costing
Explanation: When production exceeds sales, there will be more fixed manufacturing overhead costs that are absorbed into the cost of goods sold calculation under absorption costing. This results in a higher net income compared to variable costing, which only includes variable manufacturing costs in the cost of goods sold calculation.
Which of the following statements is true about absorption costing?
a) It is used for external reporting purposes
b) It is used for internal decision-making purposes
c) It is the same as variable costing
d) None of the above
Answer: a) It is used for external reporting purposes
Explanation: Absorption costing is required for external financial reporting purposes, such as on the income statement and in financial statements. Variable costing, on the other hand, is often used for internal decision-making purposes.
In a period of increasing production and sales, absorption costing will result in:
a) Higher net income than variable costing
b) Lower net income than variable costing
c) The same net income as variable costing
d) None of the above
Answer: c) The same net income as variable costing
Explanation: When production and sales increase, absorption costing and variable costing will result in the same net income. This is because there will be fewer fixed manufacturing overhead costs per unit under absorption costing, but there will also be more units sold.
