Beruflich Dokumente
Kultur Dokumente
Size
Link between
Sales Force Size
and Results
Order Size
Customer Relationships
Business Cycle
Market Opportunities
Small Orders
No Sales contracts
New Product
Mature Product
Sales Force
Size and
Profitability
>Rs. 5,00,00,000
15
18
36
38
54
149
50
100
150
200
Customer
Competitor
Environment
Internal
Corporate Strategy
Productivity Enhancement
Sales Force
Too Small
Market Expands
Industry Deregulation
Industry Consolidation
Increasing Sales
Sales Force
Too Large
Market Contracts
Customer Consolidation
Commodisation
Pressure on Margins
Mergers/ Acquisitions
Fewer Products
Reducing Costs
Mistakes in
Sales Force
Sizing
Common Mistakes in
Sales Force Sizing
Common Mistakes in
Sales Force Sizing
Common Mistakes in
Sales Force Sizing
Common Mistakes in
Sales Force Sizing
Common Mistakes in
Sales Force Sizing
Common Mistakes in
Sales Force Sizing
Determining
Sales Force
Size
Pipeline Method
Activity Based
Method
Paper
Segments
Textiles
Sales Pipeline
Method
Pipeline Method
Pipeline Method
Pipeline Method
Sales Volume Targeted Rs.
1,000,000,000
30,000,000
33
20
167
15
1,111
Hours Per
Prospect
Estimated
Hours
40
6,667
10
11,111
17,778
1,500
12
Pipeline Method
Pipeline Method
Sales Volume Targeted Rs.
1,000,000,000
30,000,000
33
20
167
15
1,111
Hours Per
Prospect
Estimated
Hours
40
6,667
10
11,111
1,500
RFP=167
Orders=
33
Pipeline Method
Target Return
Method
Contribution
Hours Reqd
Cost of
Coverage
ROI %
20,00,000
1000
500000
400
15,00,000
600
300000
500
1000000
1200
600000
167
600000
900
450000
133
1200000
400
200000
600
1300000
1400
700000
186
1700000
1700
850000
200
1600000
600
300000
533
2500000
1450
725000
345
10
3000000
1500
750000
400
11
1600000
1800
900000
178
Contribution
Hours Reqd
Cost of Coverage
ROI %
1200000
400
200000
600
1600000
600
300000
533
15,00,000
600
300000
500
20,00,000
1000
500000
400
10
3000000
1500
750000
400
2500000
1450
725000
345
1700000
1700
850000
200
1300000
1400
700000
186
11
1600000
1800
900000
178
1000000
1200
600000
167
600000
900
450000
133
Contribution
Hours Reqd
Cost of Coverage
ROI %
1200000
400
200000
600
1600000
600
300000
533
15,00,000
600
300000
500
20,00,000
1000
500000
400
10
3000000
1500
750000
400
2500000
1450
725000
345
1700000
1700
850000
200
Hours Required
7250
Contribution
Hours
Reqd
Cost of Coverage
ROI %
Existing
20,00,000
1000
500000
400
Existing
15,00,000
600
300000
500
Existing
1000000
1200
600000
167
Existing
600000
900
450000
133
Existing
1200000
400
200000
600
Prospect
1300000
1400
700000
186
Prospect
1700000
1700
850000
200
Prospect
1600000
600
300000
533
Prospect
2500000
1450
725000
345
Prospect
3000000
1500
750000
400
Prospect
1600000
1800
900000
178
Contribution
Hours
Reqd
Cost of
Coverage
ROI %
Decision
Existing
1,200,000
400
200,000
600
Cover
Prospect
1,600,000
600
300,000
533
Cover
Existing
1,500,000
600
300,000
500
Cover
Existing
2,000,000
1,000
500,000
400
Cover
Prospect
3,000,000
1,500
750,000
400
Cover
Prospect
2,500,000
1,450
725,000
345
Cover
Prospect
1,700,000
1,700
850,000
200
Cover
Prospect
1,300,000
1,400
700,000
186
Do Not Cover
Prospect
1,600,000
1,800
900,000
178
Do Not Cover
Existing
1,000,000
1,200
600,000
167
Do Not Cover
Existing
600,000
900
450,000
133
Do Not Cover
Contribution
Hours
Reqd
Cost of
Coverage
ROI %
Decision
Existing
1,200,000
400
200,000
600
Cover
Prospect
1,600,000
600
300,000
533
Cover
Existing
1,500,000
600
300,000
500
Cover
Existing
2,000,000
1,000
500,000
400
Cover
Prospect
3,000,000
1,500
750,000
400
Cover
Prospect
2,500,000
1,450
725,000
345
Cover
Prospect
1,700,000
1,700
850,000
200
Cover
Hours Required
7250
Contribution
Hours Reqd
Cost of
Coverage
ROI %
Existing
2000000
800
320000
625
Existing
2000000
500
200000
1000
Existing
1000000
1100
440000
227
Existing
600000
800
320000
188
Existing
1200000
300
120000
1000
Prospect
1300000
1200
480000
271
Prospect
1700000
1700
680000
250
Prospect
1600000
500
200000
800
Prospect
2500000
1300
520000
481
Prospect
3000000
1400
560000
536
Prospect
1600000
1700
680000
235
Contribution
Hours Reqd
Cost of
Coverage
ROI %
Existing
2000000
500
200000
1000
Existing
1200000
300
120000
1000
Prospect
1600000
500
200000
800
Existing
2000000
800
320000
625
Prospect
3000000
1400
560000
536
Prospect
2500000
1300
520000
481
Prospect
1300000
1200
480000
271
Prospect
1700000
1700
680000
250
Prospect
1600000
1700
680000
235
Existing
1000000
1100
440000
227
Existing
600000
800
320000
188
Contribution
Hours Reqd
Cost of
Coverage
ROI %
Existing
2000000
500
200000
1000
Existing
1200000
300
120000
1000
Prospect
1600000
500
200000
800
Existing
2000000
800
320000
625
Prospect
3000000
1400
560000
536
Prospect
2500000
1300
520000
481
Prospect
1300000
1200
480000
271
Prospect
1700000
1700
680000
250
Total Hours
7700
Contribution
Hours Reqd
Cost of
Coverage
ROI %
Existing
2000000
800
320000
625
Existing
2000000
500
200000
1000
Existing
1000000
1100
440000
227
Existing
600000
800
320000
188
Prospect
1300000
1200
480000
271
Prospect
1600000
500
200000
800
Prospect
3000000
1400
560000
536
Prospect
1600000
1700
680000
235
Contribution
Hours Reqd
Cost of
Coverage
ROI %
Existing
2000000
500
200000
1000
Prospect
1600000
500
200000
800
Existing
2000000
800
320000
625
Prospect
3000000
1400
560000
536
Prospect
1300000
1200
480000
271
Prospect
1600000
1700
680000
235
Existing
1000000
1100
440000
227
Existing
600000
800
320000
188
Contribution
Hours Reqd
Cost of
Coverage
ROI %
Existing
2000000
500
200000
1000
Prospect
1600000
500
200000
800
Existing
2000000
800
320000
625
Prospect
3000000
1400
560000
536
Prospect
1300000
1200
480000
271
Hours Reqd
4400
Sales
Response
Method
1,200
1,000
1,000
800
600
700
500
400
200
200
235
250
Moderate Call
Frequency
0
Low Call Frequency
Contribution
Maximisation
Method
50
4,000,000
10,000,000
6,000,000
60
4,800,000
11,000,000
6,200,000
70
5,600,000
12,000,000
6,400,000
80
6,400,000
13,000,000
6,600,000
90
7,200,000
14,000,000
6,800,000
100
8,000,000
14,500,000
6,500,000
110
8,800,000
15,000,000
6,200,000
120
9,600,000
15,500,000
5,900,000
130
10,400,000
16,000,000
5,600,000
140
11,200,000
16,500,000
5,300,000
150
12,000,000
17,000,000
5,000,000
120,00,000
112,00,000
104,00,000
96,00,000
100,00,000
88,00,000
80,00,000
80,00,000
72,00,000
64,00,000
56,00,000
60,00,000
40,00,000
48,00,000
40,00,000
20,00,000
0
50
60
70
80
90
100
110
120
130
140
150
10
11
Sales Financials
140,00,000
120,00,000
100,00,000
80,00,000
60,00,000
40,00,000
170,00,000
165,00,000
160,00,000
155,00,000
150,00,000
145,00,000
140,00,000
130,00,000
120,00,000
120,00,000
112,00,000
110,00,000
104,00,000
100,00,000
96,00,000
88,00,000
80,00,000
72,00,000
64,00,000
56,00,000
48,00,000
40,00,000
20,00,000
0
50
60
70
80
90
100
110
120
130
140
150
10
11
160,00,000
140,00,000
Sales less
Variable
Production Cost
Sales Force
Cost
120,00,000
100,00,000
80,00,000
Contribution
60,00,000
40,00,000
Sales Force
Size
20,00,000
0
10
11
Revenues Less
Variable
Production Cost
50
60
70
80
90
100
110
120
130
140
150
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000
7,000,000
7,500,000
10,000,000
11,000,000
12,000,000
13,000,000
14,000,000
14,400,000
14,800,000
15,000,000
15,400,000
15,600,000
15,800,000
Contribution
7,500,000
8,000,000
8,500,000
9,000,000
9,500,000
9,400,000
9,300,000
9,000,000
8,900,000
8,600,000
8,300,000
Workload
Method
Workload Method- 1
No. of
Customers
Frequency
/week
Weeks
Workload
(a)
(b)
(c)
(d= a*b*c)
390
52
40560
650
52
33800
260
.5
52
6760
Workload Method- 2
No. of
Customers
Frequency
/week
Weeks
Workload
(a)
(b)
(c)
(d= a*b*c)
500
52
78000
700
52
72800
300
52
15600
Geographical
Concentration
Method
Geographic
Concentration Method
Sales Potential
Method
Addition to
Sales Force
Method
Additions to Salesforce
Estimated Requirement = 30
Additions to Salesforce
Estimated Requirement = 30
End of Section