We’re back with more survey information on vendors Direct Capital works with every day. Today, the average size of a sale.
I really enjoy being able to break down our vendor surveys for everyone. I think if you’re a vendor yourself or just curious about the inner workings of the world of business, it’s valuable information.
So today we tackle the average size of a deal. It’s interesting because it tells a story of a vendor segment that’s extremely diverse in terms of its size and its revenues. Let’s take a look at the percentages of vendors who fall into each category we provided in the vendor survey:
- Under $2,000: 17%
- $2,001-5,000: 12%
- $5,001-10,000: 19%
- $10,001-25,000: 18%
- $25,001-50,000: 13%
- $50,001-100,000: 11%
- Over $100,000: 10%
You’ll notice quite a bit of diversity here, as I mentioned. Every single provided answer had at least a 10 percent share, which speaks to how businesses both big and small can survive in the vendor field. Still, the vast majority of these businesses—66 percent, to be exact—have an average deal size of $25,000 or less.
What does that mean? Likely it’s a number of things at once. Many vendors have smaller average deals and are probably smaller vendors themselves, while some may still be struggling with the economy. Others are probably taking a very rough stab at it.
What do you think of these stats?