So Toast is one of the most iconic B2B leaders out there. We’ve all used Toast 10s or 100s of times by now.
But while the brand and market penetration is strong, the business model is challenging. It still loses money on the hardware, and the payments side is fairly low margin (28% or less). The software license is high margin, but it’s only 20% of the total revenue.
So Toast has had to not just get efficient like everyone else these days, but extra efficient.
So what did it do?
- It forced reps to close 13% more locations per sales rep. In essence, increasing quotas 13%.
- And it shrunk territories -27%.
A double whammy from an AE’s perspective. That makes their job 40%+ harder.
And what happened?
Well — it worked. And fast. At least for now:
Sales continues to grow at an epic 29% at $1.5 Billion, hitting records. And reps had to work that much harder.
Will this work for you? What’s the line here? And won’t reps complain to the high heavens when you shrink territories? And quit if you increase quotas?
Maybe. But Toast had no choice. It did what it had to with its sales team. It forced them to hit the numbers it took to go profitable.
And … it worked.
