The ROI of heating with wood...and the math of Sales

I spend 30% of my 80-hour work weeks in Vermont, which I find is the perfect place for figuring out large projects, writing business plans and creating complex sales playbooks.  I enjoy the view out the office window and the ability to step outside and walk in my woodlot for 30 minutes when I get stuck. It's almost perfect...except for the heat problem.

Planning the Vermont Woodshed October 2024-2Built in the early 1980's when no one really thought much about the cost, the house is heated by electricity given the marketing ploy of "cleaner and safer"

Cleaner and safer: maybe, but four decades later electric has proven to be much more expensive and prone to power outages from ice-covered trees, which is the reason for my huge generator and two propane tanks.  

 
 
 
Vermont's electricity rates rank 5th highest in the U.S. and as a result only 1 in 10 households today use electricity to heat their homes.  Solar is impossible for me living in the woods, so I opted for a special rate reduction which powers down the heat and major appliances during the peak hours Monday through Friday reducing the cost by 50%. The offset to those savings is that if I were to override the system, the cost increases 2x, which all comes down to the math of heating with wood with my large Jotul woodstove.   
 
Option 1: Cut down a tree or two in my woodlot.
  • Cut that into luggable pieces of 18" and throw those into the ATV cart.
  • Drive down to the splitter, take out the pieces, split and restack back into the cart.
  • Drive to the woodshed, pull out each piece and stack.   
  • Cost: Minimal other than gasoline... not including the massage therapist on Saturdays.
  • Time:  6-8 hours over two days.
Option 2:  Have perfectly cut and dried wood dumped in front of the woodshed.
  • Cost: $450 a cord plus $50 to the son of one of my friends to stack it.
  • Time:  0 hours

Bottom line: Easy decision in terms of the ROI based on the metrics of my time along with the usual safety benefits of not wielding 22" chain saws in tight spaces while trying to figure out the physics of where the "widowmaker" tree (hung up in another tree after the initial cut was made) is actually going to land on the second cut.  Yes, has happened with me more than a couple of times.  


Now apply that same simple math to the science of sales:

  • Take your total annual compensation of base plus commission and divide that by 52.
  • At $200K for a lower producing SE, that equals around $3,800/week gross.
  • Assume 60 hours a week. ["A" level B2B salespeople work >64 and often 80 in 2025].
  • That should come out to around 3,100 hours at 60 hours/week.
  • Now cut that number by 50%, which all the math we've done for 20 years clearly shows as non-sales time taking out time for vacation, holidays, sick, worthless meetings and just non-productive time doing work that should be done by Marketing or Customer Success people, who actually will do a better job.
  • The actual number of truly productive actual selling time comes to between 1,100-1,300 hours/year.  
  • Now, let's assume that it takes the same amount of time, intelligence, and trained selling skills to close a $25K deal as it does to close a $50K deal [our math shows that the number if $75K-$100K] for an "A" level salesperson, and the math is clear as to where you want to spend your time in the balance of the 20 workdays left in this year.   

Give me a call anytime if you want to go through your own math, or if you want to work through the much more complex equations of CAC/LTV ratios.   

Success in Sales today is all about your formal sales processes, the steps in that process, the underlying math...and, of course, highly trained professionals...just like you!

Have a great day selling today!

Now is time to begin your business planning for what lies ahead in 2026!.

Planning 2023-2Think about taking a full day in the second week of January to polish your detailed business and sales planning process for 2026. Here's our free how-to ebooks for a few ideas:

"Writing the Winning Sales Plan"
"Writing the Winning Business Plan"
"Writing the Winning Marketing Plan"
"The Marketing of Me"

We outline ideas on structure, models, process funnels, productivity tools and how to recruit, hire and onboard the best people.  A few hands-on guides for sales, marketing and business managers written by heavily experienced line managers with your titles and responsibilities.   

Connect with me any time at jack@derbymanagement.com and let's discuss your own 2026 planning!     

 

 

 
 
 
 

Tags: Sales Management Best Practices, Derby Entrepreneurship Center, 2026 Sales Planning, 2026 Business Planning, 2026 Marketing Planning