Budget for sales as a percentage of revenue

This measure calculates the total annual budget for sales as a percentage of revenue. The budget for sales is the amount an organization predicts it will expend to operate its sales function. The sales budget includes, among other things: IT costs required to operate the sales organization (e.g., for CRM systems, system costs for order processing, etc.), travel costs incurred by sales organization, personnel cost of sales people excluding any promotional fees paid to them but including any other benefits, and overhead costs allocated to the sales function. The sales budget EXCLUDES items traditionally considered marketing expenses including costs paid to retailers, logistics costs for delivery of finished products to customers, costs for promotional employees, etc. The sales budget excludes the revenue prediction for the business entity. It is a Cost Effectiveness measure that helps companies understand all cost expenditures related to the process "develop sales strategy."

Benchmark Data

Lock

Sorry! Not all users have access to all of our resources.

Want to unlock access to all of our resources?

Learn about Membership icon--arrow--right

Measure Category:
Cost Effectiveness
Measure Id:
100027
Total Sample Size:
1,355 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are percent.

Back to Top

(Budget for sales / Total business entity revenue) * 100

Key Terms

Back to Top

Total Annual Revenue/Net Revenue

Total annual revenue is net proceeds generated from the sale of products or services. This should reflect the selling price less any allowances such as quantity, discounts, rebates and returns. If your business entity is a support unit and therefore does not directly generate revenue, then provide the revenue amount for the units you support. For government/non-profit organizations, please use your non-pass-through budget. For insurance companies the total annual revenue is the total amount of direct written premiums, excluding net investment income. Note: Business entity revenue needs to only include inter-company business segment revenue when the transactions between those business segments are intended to reflect an arm's length transfer price and would therefore meet the regulatory requirements for external revenue reporting.

Cost Effectiveness

Cost effectiveness measures are those in which two related variables, one of which is the cost and one of which is the related outcome related to the expenditure are used to determine a particular metric value.

Measure Scope

Back to Top

Cross Industry (7.3.0)

  • 3.4.1 - Develop sales forecast (10129)
    • 3.4.1.1 - Gather current and historic order information (10134)
    • 3.4.1.2 - Analyze sales trends and patterns (10135)
    • 3.4.1.3 - Generate sales forecast (10136)
    • 3.4.1.4 - Analyze historical and planned promotions and events (10137)
  • 3.4.2 - Develop sales partner/alliance relationships (10130)
    • 3.4.2.1 - Identify alliance opportunities (10138)
    • 3.4.2.2 - Design alliance programs and methods for selecting and managing relationships (10139)
    • 3.4.2.3 - Select alliances (10140)
    • 3.4.2.4 - Develop customer trade strategy and customer objectives/targets (11465)
    • 3.4.2.5 - Define trade programs and funding options (11521)
    • 3.4.2.6 - Conduct planning activities for major trade customers (11466)
    • 3.4.2.7 - Develop partner and alliance management strategies (10141)
    • 3.4.2.8 - Establish partner and alliance management goals (10142)
    • 3.4.2.9 - Establish partner and alliance agreements (18629)
    • 3.4.2.10 - Develop promotional and category management calendars (trade marketing calendars) (11522)
    • 3.4.2.11 - Create strategic and tactical sales plans by customer (11523)
    • 3.4.2.12 - Communicate planning information to customer teams (11468)
  • 3.4.3 - Establish overall sales budgets (10131)
    • 3.4.3.1 - Calculate product market share (17682)
    • 3.4.3.2 - Calculate product revenue (10143)
    • 3.4.3.3 - Determine variable costs (10144)
    • 3.4.3.4 - Determine overhead and fixed costs (10145)
    • 3.4.3.5 - Calculate net profit (10146)
    • 3.4.3.6 - Create budget (10147)
  • 3.4.4 - Establish sales goals and measures (10132)
  • 3.4.5 - Establish customer management measures (10133)