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Sample Method of Sales Statement

Adapted from content excerpted from the American Express® OPEN Small Business Network


Use this guideline for preparing your method of sales statement.

Big City Business Travel Guides

The Big City Business Travel Guide is a twice-monthly newsletter designed specifically for business travelers. Each issue contains articles and money-saving tips for frequent business travelers. The target audience for this publication includes: corporate travel departments; corporate travel agents; executives and other business people who spend significant amounts of time on the road. The subscription price is R495/year. The company also will publish a series of guide books for the same target audience.

In its business plan, Big City used the following statement to describe its sales tactics:

Sales Tactics

The company will use three selling methods to bolster our list of subscribers:

Direct mail:

Big City has purchased targeted lists of high potential prospective subscribers, and plans to send out 25,000 direct mail pieces during the first year. We anticipate a response rate of approximately 3%, the industry average according to the Travel Publishing Association. At a cost of R1 per piece, our cost per new subscription will be approximately R33.

The company recently signed a contract with ZB Direct to develop and oversee our promotional direct mail. ZB is a new company formed by two former executives of JJP Direct, one of the nation's top direct response ad agencies. Zena Brown, President of ZB, will create all our materials. As Creative Director of JJP, she produced award-winning direct mail campaigns for XYZ Monthly, Zig Software, and The Blankman Company, to name a few. A sample direct mail package is attached in the exhibits section of this plan.

Telephone sales:
Big City has contracted with BGI Telesales to handle both outbound and inbound telemarketing. Using the same targeted lists as in our direct mail campaign, BGI's telesales force will use a detailed telephone script to identify people in each firm that will use or purchase Big City Business Guides. The goal of this call will be to send the prospect more information about the Guide, or to get a commitment to try the Guide on a trial basis. In a follow-up call, the operator will review the material sent and ask for an order.

Through the inbound telemarketing department, the company will have operators available to take orders (in response to any of our direct mail or telesales campaigns). These operators also will be trained to answer specific questions about Big City Business Guides.

Sales reps:
The company plans to sign on six regional sales reps who specialize in selling to the travel industry - one each in the New England, Atlantic, Southeast, Southwest, Midwest, and Western regions. Big City will compensate sales reps on a commission basis. While the industry typically offers 18-20% commissions to reps, we will give them 25% of the price of each new subscription sold in order to encourage them to push Big City Business Guides.

While the company does not have any firms currently under contract, detailed discussions have been held with HiTrav Sales in Atlanta, Traveling Band Associates in Dallas, and Grand Street Sales in San Francisco. Formal agreements with each of these firms are anticipated for the third quarter.

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