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Sales Volume Templates

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					Territory Management
   TERRITORY
 A territory
  geographically defined  area
  assigned to a sales person
  present customers
  potential customers
    SALES FORCE
    PRODUCTIVITY
 A crisis--
  In the  last ten years, selling costs
    have risen almost twice as fast as
    average sales volume per
    salesperson
   HOW SALESPEOPLE
   SPEND THEIR TIME
 Face-to-Face Selling  = 30%
 Telephone Selling = 21%
 Waiting / Travelling = 20%
 Administrative Duties = 17%
 Service Activities = 12%
   SALES FORCE
   PRODUCTIVITY
 How can we improve productivity?
  Focus on high volume accounts
  Focus on selling time
   MINIMUM ACCOUNT
   SIZE
 Don’t pursue accounts   that are
 unprofitable!!
     COST PER CALL
 Cost per  call is a function of
    number of calls per day
    number of days available to make
     calls
    direct selling expenses
         Direct Selling Expenses
     # Calls per day X # Days to Sell
   COST PER CALL
 Example (see Table 5.1; page 230)
 Total Direct Expenses =   $90,250
 205 days to sell; average 3 calls per day
 Cost per call = $90,250 / 205 x 3 =
  $146.75
   BREAK EVEN SALES
   VOLUME
 The sales  volume necessary to cover
  direct selling expenses
 Breakeven Volume is a function of:
   Cost per call
   Number of calls to close
   Sales costs as a percentage of sales
  BREAK EVEN SALES
      VOLUME
Cost Per call X # of Calls to Close
   Sales costs as a % of Sales
 BREAK EVEN SALES
 VOLUME
See Table 5-2; page 231
Electronics Industry
--Cost per call = $133.30
--Number of calls to close = 3.9
--Sales Costs as a % of sales = 12.0
Breakeven volume = $133.30 x 3.9 /
.12
             = $4,332.25
   TERRITORY
   IMPLICATIONS
 Perform a   customer by customer
  analysis!
 Assess selling strategy
   ALLOCATION OF
   SELLING EFFORT
 Consider the   time we spend with
  customers!
 Single Factor Models
 Portfolio Models
 Decision Models
   SINGLE FACTOR
   MODELS
 Easy to develop and use
 Classify accounts into categories based
  on one factor, such as market potential
 Assign all accounts in the same
  category the same number of sales
  calls
 Decisions are made on the basis of one
  factor. Differences among accounts
  are not taken into consideration
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posted:7/28/2011
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Description: Sales Volume Templates document sample