Tom Demerly. - 2012-11-06 4:16 PM
Dave's Bike and Triathlon is sponsoring four athletes in 2013. His store in the Midwest is near a steady schedule of local and regional triathlons in the summer.
What Dave wants to know is pretty straightforward:
Last year Dave sold 150 triathlon bikes, 200 pairs of triathlon shorts, 100 pairs of triathlon bike shoes and 30 aero helmets. He also sold 100 wetsuits.
This year his goal is ambitious. Dave wants to increase his unit sales in triathlon, at full retail to maintain his net profit margin, in each category by 15%, a huge leap given the maturity of the local market, competition from discount mail order, etc.
He has one question for his prosepctive new sponsored athletes:
"How will you bring me a 15% increase at full margin, no discounts, in gross sales across all my triathlon categories if I sponsor you?"
I doubt a sponsorship alone is going to do it. If he wants those kinds of numbers, then he probably wants the sponsored athletes to be salesmen.