All language subtitles for 11 - Sales Bottom Up Example V1 (1) - lang_en

So, let's walk through the sales model using a bottom-up approach.

I've kept the overarching themes here on the top,

so you can see what is the motivation for each of these columns.

We start with this column with a row for each sales team member.

This is followed by the company,

which is the company name for which you are going to be selling products in bulk,

and then comes in column C,

the units per month.

So, this is the number of units this opportunity is likely to create a bookings for.

Contract terms shows the number of months each opportunity is for.

Price for all units in one month shows the number of

units times the sales price per unit,

which is $5 here,

and this is showing the sales price for their projected unit over a month.

For example, how much would Joe Smith,

working with company A,

bring in revenues from the sale of 4,000 units per month?

Then you multiply that with the number of months in

the contract term to arrive at the bookings forecast.

We can go one step further and multiply the bookings forecast with

the win probability to show a more realistic weighted forecast.

So, let's look at this example.

We're more likely to get the sales contract with Corey Jones, Company C,

because it has a wind probability of 0.9,

versus this opportunity with Joe Smith,

Company A, which has a lower probability.

So, the 290k is a weighted bookings forecast,

which shows this is a high probability that you'll win this compared to this one.

It takes into account the probability,

so you can get a realistic estimate of

how likely are we getting this amount versus the amount.

So, this is a bottoms-up sales forecast.

As you can see, here we're using

an opportunity level forecast to project out the bookings for the whole company.