A Sales Management Perspective

Whether you’re selling through employee salespeople or independent manufacturers’ reps, this is necessary sales management information.   An extension of this perspective is, “If you could clone yourself and cover every territory, what sales volume and profitability could you generate from each?”
On a territory basis, your answer should guide your actions.

1. If the territory is open, it should be filled with a high performance salesperson or rep agency – because both your company and the agency can generate good earnings from the territory.
2. If the territory is now covered, your best option is a reasonable attempt to upgrade the current agency’s performance.  If this doesn’t work, replacement with a high performance agency is justified.
3. A minimal dollar answer indicates the territory has limited potential, so you can’t expect high sales volume from it, and it probably isn’t worth searching for a better rep agency to cover it – although under certain conditions you may want to let the current agency go and leave the territory uncovered.
4. If you can’t answer the question with reasonable confidence, you need to get more information on sales potential.  This will enable you to either manage your current rep agency more effectively, or fill the territory with a high performance agency if justified.

To learn how you can determine territory potential, ask for KC-102

©  Copyright 1998 – 2009; Growth Development Partners, Ltd.; Auburn OH 44023