What is a Small, Medium or Large customer or project for you?


What would constitute a small, medium or large order of your products? For example if you are a product designer with 8-10 items in your range:
–    what would make up a typical small first order from a new shop? Should there be a minimum order below which it is not really worth your while?
–    If the client wants to take products on a sale or return basis (often true for design & craft shops) what is the largest order you would accept on this basis? Beyond what point would you insist that they bought some in order to share the risk of a large SoR order with you.
–    What would be a larger repeat order from a steady client?
–    At what point do order sizes make you think about producing in larger batches? What is the minimum order of a new product (from one or more clients) that you need in order to justify the risk of putting it into production?
The goal in starting to answer these questions is to build up a picture of how you will achieve your sales goals. If your turnover goal is say £100,000 in a year then the question is how many large, medium & small orders will it take to reach this? How about 5 orders of £10,000 each, 13 orders of £3,000 and 22 orders of £500? What would be a likely mix of products in a £10,000 order? How would this be different in a £3,000 order? What would it take for a client to move up a level in their ordering patterns?
Of all your existing and potential clients who might make these orders? Start putting clients into groups according to ordering habits and potential. What you are doing here is setting sales targets for individual clients and your next task is to work out what it would take for these clients to increase their ordering levels with you … do you need to spend more time with them looking at how your range meets their needs, are there any gaps in your range that need filling before clients increase their orders? What would help or hinder this growth? Make a long list, prioritise changes & improvements according to which would make the greatest difference in your sales levels and sense check this against what these changes would cost and your ability to make this investment in the business.

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