Tom's sales Pitch

Topics: Sales, Customer service, Sales management Pages: 4 (1823 words) Published: November 6, 2014

1.2(in million)
Integrated:50 Acc. * 100 = 5,000
Clustered:500 Acc. * 20 = 10,000
SMB:5,000 Acc. * 5 = 25,000
TOTAL Revenue = $ 40,000
B) Sales Budget
Integrated: 4% x 5,000 = 200
Clustered: 3% x 10,000 = 300
SMB: 2 % x 25,000 = 500
How many Salespersons ?:
Integrated: 50 Accounts x 1/ 1Acc. = 50 Managers
Clustered: 500 Accounts x 1/ 5 Acc. = 100 Managers
SMB: 5,000 Accounts x 1/ 20 Acc. = 250 Managers
TOTAL = 50 + 100 + 250 = 400 Managers reporting
Tom’s organization is customer orientated. The teams of his company are divided in three teams, the ones mentioned above. The company needs employees that are responsible, realizing the importance of communication and capable to get done with the workload. In order to have people like this in his company, the employees should fulfill these requirements and have experience in similar companies. C) The determining factor of how much money a sales person can make is, if they bring revenue (and profits) to the company or not. In addition, it is important to work very efficient, to use the little time left to sell products. A sales manager of integrated accounts can almost double his or her salary with the bonus. D) He could assign his salespersons to specific regions, so that, a sales manager has only one region he has to care for. So the manager only travels from the HQ to one destination. Another possibility would be to open a regional office so international travelling for the normal sales managers would stop. E) The biggest bottleneck and cost is the time lost while travelling. The 50 integrated accounts produce the highest revenue and are the most important, so they need high attention by their managers. Because of their importance every account needs its own manager, who knows the people and everything about the customer. The SMB Accounts have a low average revenue. Every sales manager takes care of 20 clients, but at the same time, the travelling time is as high as for integrated...
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