After determining the kind of sales person that best fits the company’s needs, management now determines how many are required to meet the sales volume and profit objectives. If the company has too few sales persons, opportunity for sales and profit go unexploited. If the no. of sales persons are more it reduces the net profits.
Basically three approaches are used:
1. The workload method:
In this method the number of sales executives recruited are based on dividing the total actual workload in an organization by the average work performed by an average sales staff. However, this method is too quantitative and does not give due considerations to the qualitative activities performed by the sales executives.
For e.g. Telecalling, Prospecting, After Sales Support.
2. Sales potential Method:
This method is modified version of the workload approach. In this approach, the workload is calculated considering the sales expected to be achieved in any future period of time. This potential is divided by average contribution of the executive. The resultant is the sales executives required to perform the sales task of an organisation.
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