How many sellers are required to cover a cost effective manner in the market?How can the belly area between vendors?
1) Determining the number of sellers
Number of visits per year for all customers
= Number of sellers
Potential number of visits per vendor per year
Attention!
Too many vendors:• key personnel costs for the enterprise;• The revenue potential is insufficient to motivate all sellers (low commissions) so high staff turnover.
Too few vendors:• risk of loss of market share for the company;• workload too great for sellers.
consequences: insufficient or no follow-up visits to clients, which is harmful
for customer loyalty.
2) The potential number of visits per seller
Potential number of Number of Number of
visits = visits by vendor X days
year and a day visits per year
number of weeks worked per year X number of days of visits per week
How to get the number of weeks worked per year?
How to obtain the number of days of visits per week?
Days Hours
Potential number of visits of visits per day X
visits by seller =
Average time per year for a visit
A company has planned an average visit of 45 minutes (including travel and preparation). Salespeople receive 5 weeks paid holiday a year, 2 weeks of training and spend one week with shows. The manager estimates that 2 weeks sick leave per year on average one day per week is devoted to meetings of the sales team (Monday morning and Friday afternoon).An estimated 8 hours, time spent per day visits.
Calculate the optimal number of sellers know that customers require 26,105 visits per year?
3) The establishment of sales territories
A sales area (commercial) corresponds to the territory granted to the seller by his company to market its products. It should be clearly defined geographically in terms of sales potential, types and number of customers to visit, to market products (data recorded on the employment contract of exclusive sales representative or not. See Management during 1st year).
The sales area is the area in which several vendors operate under the supervision of a sales manager, district manager ... It includes several areas. It is managed by a regional manager, branch manager ...
Areas must be:• well-defined (no two vendors with the same client) except when you have a breakdown by product, ie that specializes in product and not by client).• equal potential (no sense of injustice among sellers)• a reasonable size (for regular visits to customers and reduce travel costs)• of sufficient size (to ensure income for motivating vendors).
4) The customer
Classification of customers according to sales or potential
• The method of 20 / 80 20% of customers generate 80% of sales (wholesale customers)
80% of customers generate 20% of sales (small customers)
• The ABC method A: 20% of customers generate 80% of sales (wholesale customers)
B: 30% of customers generate 15% of sales (customers
means)
C: 50% of customers generate 5% of sales (small customers)
To help customers especially in CA. They can run the production equipment, pay the fixed costs (costs independent of the level of business activity).They are not always the most profitable because, due to their volume of purchase, they agree on significant discounts and rebates. They reduce the margin of the company since discounts reduce the sales price so the margin (see Appendix 1 on page 12).They often get quite long payment periods that may weigh on the cash of the company.The risk of default is low because it is often important companies.The risk of dependence of the company is high when a single client to 10% of total revenue. Thus, the loss of these customers can be highly detrimental to the company.
Customers to visit regularly (face to face).B customers are particularly profitable because they can get discounts lower thanlarge customers.
Regular visits.Customers C contribute significantly to the margin as they are buying "high price". The risk of default is high.
AC low so less frequent visits, telephone contact.You study the turnover of K € 2,000 customers in your area selling "Puy de Dome."
Total turnover:
Number of clients:
1) Divide the customers according to the rule AB C.2) You think to do a year:
- 12 visits to large customers
- Means 8 customer visits
- 4 visits and two telephone reminders to small customers.
Think you also have time to about 300 visits per year.
How exploratory visits can you do?
5) The organization of visits
Types of visit of exploration: contact leads (direct mail,
telephone, fax, mail, visit ... ) Obtaining an appointment
you, and negotiating proposal.
Order taking.
But an order can be taken to save time by
telephone, fax, Minitel ...
Interventions after-sales service (S.A.V.)
Types of sales of capital goods for sale: important preparation,
demonstration, long negotiations, installation, training, service
after sales service rights.
Sale of Goods: presentation of new
products and promotions, help with resale and merchandizing.
Frequency of visits: it takes into account the number of visits that can perform the seller
during the year and the desirable number of visits to the
clients (number of visits per year per client).
Attention to the harassment and neglect!
Routes
The physical visits
Work on map: visualization on a map of the customers.
Schedule of visits: summary of the visits by frequency.
The plan tours: program his movements on one or two weeks. The vendor shall submit the plan to his tour manager. It may well be reached easily in an emergency or unexpected.The seller can improve productivity by reducing travel expenses by the organization of its tours.
The seller must:- Decide on the time slots they want and can spend on visits.- Take appointments (or raise if delegation) according to its schedule of visits.
How to increase the effectiveness of a plan tours?- The trading day with a visit that has a good chance of success of a sale is "good for morale."- Alternate visits to customers and prospects.- Meet its biological rhythms.- Plug the "holes" in the timetable for prospecting wild.
When should a rigid plan tours?- When the customer is identified and homogeneous- When prospecting requires little effort,- When the rate of product renewal is rapid and continuous stream of business.- When customers receive up to date and time fixed- When the purchasing process is short.Sales of consumer goods, medical sales ...
When to plan a tour little stiff?- When the customer is heterogeneous,- When the effort is supported prospecting,- When the geographic area is vast,- When the buying process is long (need for frequent visits, quotes, demos)- When the mall is expected to carry out interventions after sales service (SAV).Sales of goods production, technical sales.
Making appointments: usually by phone. It saves time to be more welcome and information to prepare for the visit.
The visit: it must be prepared to allow to better meet customer needs.
• Preparation of the visit: to know the client (customer record, account, customer file), prepare a sales target, bring all the documents necessary for the negotiation (samples, pricing, documentation ...).
Customer Data: telephone numbers, fax, Minitel or Internet address, names of responsible persons to contact, billing address and delivery, delivery schedules, payment methods (milking, check, cash ...), deferred payment, rebates, discounts ... And history of the relationship with the customer (orders, dates of previous visits, incidents, ...) Customer account (account number 411, PCG) for the balance of the client (amount of the claim on the client) and the status of its regulations (see Appendix 2 on page 12). Client Dossier: mail exchanged, quotes, summary orders, turnover with him, records (balance sheet, income statement ...)...Think of note all personal information that show interest in the client: sickness youngest, names of children, leisure customer ....
• The cost of an annual operating cost of the seller
Number of visits in the year
You are the director of the Diffusion Sté Faure whose organization is:
Vendors work from Monday to Friday on the ground. The company reimburses the nights on the basis of a flat rate of € 27 + € 9 per meal, or 45 € per day (one meal is paid on Friday). Each vendor is working 42 weeks a year.Vendors use their personal vehicles and are reimbursed € 0.23 per km. They carry an average of 1000 miles a week.Telephone charges and documentation represent an average of € 30 per week per seller.Average salaries (payroll taxes) of the members of the sales force are as follows:- Director of Sales: € 4,116 / month and his secretary: € 1,830 / month- Head of Sales: € 3,430 / month and secretaries business: 1 600 € / month- Seller: € 2,745 / month.Vendors realize an average of 8 visits per day. A visit lasts about 45 minutes. Each product is sold € 458, the margin achieved is 91 €.1) Calculate the cost of one visit.2) If a vendor spends three hours visiting a client, what is the minimum order to achieve profitability for the time spent?
Track sales: the seller must ensure:
• funding: it is often necessary to propose a solution to its customer (see under commercial management: The choice of investment and financing).• delivery: it must ensure it is done without delay and in accordance.• the regulations it must follow the rules of the invoice by the customer.• to update the customer file.6) The methods of animation industry
They are:- Telemarketing campaigns- Direct mail campaigns- The insertion of advertisements in regional newspapers and local- Invitations to customers at trade shows- The telephone reminders- Sales prospecting face to face.
What is (are) mode (s) of animation's most profitable for the industry?
The Probureau SA specializes in the sale of office equipment and computer management. It distributes typewriters, personal computers professional and personal copiers of different brands.
Aware of new methods of direct marketing, the director asks you to compare costs:- The telemarketing- Direct mail,- Visits of representatives.
Required: you must calculate:- The average cost per contact,- The average cost per useful contacteach of these three ways of prospecting.
Schedule
1) Cost of a Representative (€ / day)
2) Direct Mail
A mailing affecting 10 000 people equivalent to € 11 434 (design-shipment).
The yield was 2% (number of coupons returned answers).
3) Contact by telephone
• Team is composed of three telemarketers (Deus) and an administrative superior to half-time in this service.• 60% of the time telemarketers (Deus) is spent on calls, the remaining administrative work related to exploration.• The average length of a call is 6 minutes.• Telemarketers (Deus) receive a salary of 762 € / month, the higher administrative-€ 915 / month payroll taxes are 60%.• Other expenses: rent and maintenance of premises: 381 € / month; depreciation and supplies: € 76 / month.• The Monthly hours of work is 169 hours.• The average cost of a phone call is € 0.14 per minute.• The number of interested prospects is 1 in 3.
SCHEDULE 1 (Recall)
1) Calculation of the selling price from the mark-
Gross MarginBrand = rate x 100
Sales price excluding VAT
Gross Profit = Price HT - HT purchase cost
or HT Price - Purchase Price HT
2) Calculation of the selling price from the margin
Gross MarginMargin = x 100
Cost of purchase net of tax
3) Calculation of the sale price from a multiplier
Selling price = Cost of purchasing X factor
multiplier
Multiplier = 1 + rate
Sale price TTC
=
Cost of purchasing
SCHEDULE 2 (Recall)
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