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What Do Outsourced Sales Services Cost?
Suppliers of outsourced sales services charge buyers an estimated 30.8% of the total value of each sale made. However, this fee varies moderately, ranging from 20.0% to 50.0% of the total value of each sale. Key pricing factors include the demand for the buyer’s product or service, the supplier’s reputation, the scope of services required and the number of staff members that are assigned to the buyer’s job.
The most significant contributing factor to service prices is the demand for the buyer’s product or service. Products that are in low demand are often more difficult to sell. In turn, suppliers can expect the time and labor required to sell the buyer’s product will be greater and they will charge higher fees.
Another factor influencing service prices is the reputation of the supplier. Reputable suppliers have generally developed a moderate amount of visibility and brand loyalty within the market. Thus, these suppliers are in higher demand, experience less pressure to lower their prices and typically charge higher fees. However, the market is highly fragmented, making developing strong brand appeal difficult. As such, the majority of vendors do not charge premium prices, giving buyers a wide range of vendor option.
Furthermore, suppliers will often raise their prices in concert with the scope of services. The sales process involves several stages, including lead generation, initial contact, product or service presentation and, once a sale is made, client management. Buyers may require outsourced sales services for all of these stages or for a select few. Because each of these stages increases time and labor requirements, the overall costs associated with the service rises in line with the number of stages that are required of the service provider.
Buyers typically obtain better-quality customer service and faster sales from a larger sales force. As such, suppliers able to provide a larger staff to buyers are generally in higher demand. However, assigning a larger sales force to the buyer’s project will raise the costs associated with each sale and therefore apply upward pressure on services prices. High demand for larger teams provides suppliers even more upward price flexibility.
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