Cash Management Secrets

Proven cash management strategies that improve cash flow, collect past due money, and increases profits in tight credit markets.

Selling Measures Keep Cash Flowing

If you don't know these 4 selling measures, your cash flow may suddenly halt any second now. These measures help you generate cash flow by selling with positive margins. Check these measures weekly:

• Cost per Lead -- How much does a single lead cost to acquire including advertising, overhead, and processing? Take your total campaign cost and divide it by your total number of leads.
• Cost per Sale -- What does it cost to make a just one sale? This is based on your cost per lead and how many leads it takes to make a single purchase.
• Profit per Sale -- How much do you make per each sale? Based on the total revenue generated by a transaction, minus your cost per sale.
• Customer Lifetime Value -- What a customer is worth over a certain period of time? This is how much profit you have to gain from a series of transactions over time.

These selling measures directly influence your cash flow. When you know your customer lifetime value, you can pay more for new customers -- that's something I'll share later. Get these numbers now, even if you have to hold your accountant and sales manager at gun point!

Posted by Justin Hitt on November 12, 2006 11:46 PM | Permalink

TrackBack

TrackBack URL for this entry:
http://www.jwhco.com/mt3/mt-tb.cgi/563