One of my favorites!!!
A few good expenses is a great video that talks about how to be successful in sales you must spend some money! I love the spoof that this guy does!
Have fun with this and show it to your sales team A few good expenses puts cost of sales into perspective. Even better, show to your management~~
A great article that addresses sales expenses by Scott Beaver, Oracle-NetSuite
What Are Selling Expenses?
The S stands for selling expenses, which include the cost to promote, sell and deliver goods and services. Selling expenses are things like sales collateral, travel to customers or potential customers, advertising costs and the salaries and commissions of sales employees.
Key Takeaways
- Selling expenses are different from the expenses that make up the cost of goods sold (COGS) or cost of sales.
- Selling expenses are an area that should be monitored closely for growth opportunities and cost savings.
Selling Expenses Explained
COGS are all of the direct costs associated with producing or acquiring products for sale. For a manufacturer, this would include raw materials, the costs associated with getting the materials to the manufacturing site and the wages of the people making it.
Selling expenses, on the other hand, are indirect costs — the things needed to sell the finished product or service. Selling expenses include the costs associated with getting orders for the products or services as well as getting those things into the hands of the customer, as opposed to COGS, the explicit costs of producing the product or service. The salesperson’s salary, that person’s commission, the cost of any marketing materials they use in the sale, the cost of travel associated with customer visits and delivery costs are all selling expenses.
Selling Expenses vs. Administrative Expenses
Selling, general and administrative (SG&A) expenses include — in addition to the S from selling — general and administrative expenses. Often, general and administrative expenses are pushed under the moniker of “corporate.” They’re the costs associated with people and infrastructure that isn’t in the field selling things or performing the services, but provide support for all of those activities. These include human resources, IT, accounting, finance and billing functions, as well as the infrastructure for the business — rent, utilities, and more…
