When a Fortune 1000 Manufacturer found itself being let down by its distributors and channel partners through substitution and price concessions, resulting in falling margins and failing to meet their sales targets for two years running, they needed to stop the bleeding, fast.
Discover how LeadGen.com solved the problem while giving the manufacturer control over its channel and its sales force again!
The client was a Fortune 1000 manufacturer and marketer of specialty wire, cable and cord products for the electronics and electrical markets. These high-tech systems provide the critical backbone and distribution infrastructure for Local Area Networks, security systems, video networks and a wide variety telecommunications and data systems.
While owning a highly recognizable brand and excellent technology, the company had failed to achieve its revenue targets for more than two years. With a sales force that sold primarily through independent distributors and channel partners, the company had little control of the product that the end users ultimately selected. As a result, they were frequently substituted - when they weren’t forced into making substantial price concessions. Worse, though, was that their market share and, therefore, margins were falling, with no sign of recovery.
What They Tried
The company fielded more than 40 sales reps to call on their distributors, as well as contractors, engineers, designers and end users to get specced in. But with large territories and little market intelligence, coverage was too thin to have an impact. But adding more sales reps cost too much, especially considering their already-thin margins, so the downward trend continued.
Bringing in LeadGen.com’s professional B2B telemarketing solution quickly turned things around. Keying off of McGraw Hill’s Dodge Reports, LeadGen.com was able to identify active funded projects worth over $700 million, and got the client’s sales reps in the door with more than 2,500 decision makers who had a specific need, and wanted to talk to them about how they could help.
Near-term incremental sales was over $60 million on an investment of less than $500,000. The company now has far greater control over its channel, and its sales force has a backlog of hundreds of qualified leads – enough to last an additional full year.