Return on Investment (ROI) calculation example for the copier industry
*Assumptions for above ROI calculations:
• Lead prices will vary between $9 and $85, depending on machine type, and if purchased as a shared or exclusive lead. But the average is $25
based on current statistics.
• Leads will be for business laser printers, A4 MFP's (colour/mono), A3 MFD's (colour/mono) and Wide Format printers, but the mjority of leads
are for A3 multifunction copiers
• We assume each lead is for a single machine purchase, although some leads will be for multiple machine purchases. These are still charged at
the single machine price.
• We are assuming 15% GP or commission on each sale, but realise this varies per sale.
• We are assuming an average sale of $5,000 (medium speed current model B/W Multifunction) but again realise this varies.
Closing assumptions made for above ROI calculations for 20 leads per month:
• We assume 25% of leads may not result in a quote. Reasons for this could be several, but a big factor is how fast the lead (prospect) gets contacted.
• We assume 75% of all leads result in a quotation / proposal
• We assume 20% of quotations are closed (although this is something we cannot influence)
1. What would it cost you to generate sufficient leads to close 3 new sales per month?
2. How much time would it take to do this? What is this time worth?
3. Do you see how leads from leads2Sales can be an excellent, high ROI method to build or
supplement your sales pipeline?
Leads2Sales vs other lead generation methods
Because the majority of our leads are from clients with a genuine need, rather than from being approached via telemarketing or other methods to create a need, our lead conversion is very high. There is of course no guarantee that all leads will result in sales; however the ROI is superior on a 'cost per sale' basis. Let's calculate a possible scenario based on some conservative assumptions (see below)*:
Leads purchased per month:
Average lead price:
Total investment in leads:
Leads resulting in a quote:
Quotes resulting in a sale:
Average sale value:
Sales revenue from 20 leads:
Average GP/commission per sale:
Return on Investment (ROI):
Looking at this scenario, we believe there are not many marketing initiatives that can produce 450% ROI.
And that's assuming you only get 3 sales from 20 leads at $5,000 ave. per sale.
Although the number of leads that become available per month will vary, we believe the percentages used in our calculation to be average, even a little on the conservative side. If leads are purchased as exclusive leads (if available), the closing rate and ROI should be even higher.