Glossary entry

English term or phrase:

sales leverage on fixed costs

Russian translation:

рост оборота/продаж по отношению к постоянным издержкам

Added to glossary by Viktor Yatsenko
Apr 4, 2012 13:18
12 yrs ago
English term

sales leverage on fixed costs

English to Russian Bus/Financial Finance (general) Annual Financial Report
Из речи директора о результатах деятельности компании за прошедший год.
Let’s start with gross margin which at 60.4% in the fourth quarter was a half point lower than the prior year. The downward pressure in the quarter came from higher product costs, a continued shift in sales mix toward higher priced products that earn a lower gross margin and a lack of ***sales leverage on fixed costs***. For the full year, gross margin of 59% was one-tenth of a point lower than the prior year. Higher product acquisition costs and shifts in product sales mix were mostly offset by ***sales leverage on fixed costs.***

Proposed translations

3 hrs
Selected

рост оборота/продаж по отношению к постоянным издержкам

fixed costs - здесь это постоянные издержки (fixed costs + variable costs = total costs)
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6 mins

рекламные продажи с фиксированной ценой

Sales Leverage is accomplished by selling a product and using any or all “multipliers” like the buyer himself, his reputation, his influence in the market, his reference, publicity or message to sell the next product in that same market a little bit easier.

Sell a product into two different silos of customers and the two sales can’t help one another. Sell a product to two people in the same market with the same problem and you can leverage those sales to help you find the third. The recognition from the first two sales, used correctly, can act as a small multiplier for the third sale in the same group, solving a similar problem.

Simple Example of Leverage: Say you are selling paint. You sell a can of paint to a local portrait artist and a second artist, seeing the beautiful work of the artist that bought the paint, comes to you to buy a can of his own. You have established some leverage.

Example of a Sale with No Leverage: You sell a can of paint to a local portrait artist. Later you sell a can of paint to a house painter. You get no leverage because the reputations and opinions of the respective customers do not matter to one another.

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http://saleslaundry.com/tag/sales-leverage/
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