Bain uses cookies to improve functionality and performance of this site. More information can be found in our Privacy Policy. By continuing to browse this site, you consent to the use of cookies.

We have limited Spanish content available. View Spanish content.

Snap Chart

Let's Make a (Larger) Deal

How an IT services firm used sales data to reject any deal below a certain size threshold.

Snap Chart

Let's Make a (Larger) Deal
en

Sales representatives may pursue deals of all sizes, including many small ones, because their companies cannot tell them what a "good deal" looks like. However, the true value usually lies in larger deals, given the time required to close any single deal and the cost to serve. When one IT services company analyzed its recent deals—not just at a gross margin level, but for their fully loaded marketing and sales costs—it realized that small deals were usually unprofitable, as shown in the chart. That led the company to reject any deal below a certain size threshold, helping focus valuable sales time and resulting in a quick improvement in sales productivity.

Matthew Crupi is a partner and Lucas Martin is a principal with Bain & Company. They are based in Dallas.

Tags

Want to continue the conversation

We help global leaders with their organization's most critical issues and opportunities. Together, we create enduring change and results