Sales Force Size

Once the company has set its strategy and structure, it is ready to consider salesforce size. Salespeople constitute one of the company's most productive — and most expensive — assets. Therefore, increasing their number will increase both sales and costs.

Many companies use some form of workload approach to set sales loree size. The company groups accounts according to size, account status or other factors related to the amount of effort required to maintain them. It then determines the number of salespeople needed to call on them the desired number of times. The logic is as follows. Suppose we have 1,000 Type-A accounts and 2,000 Type-B accounts. Type-A accounts require 36 calls a year and Type-B accounts require 12 calls a year. In this case, the sales force's workload, as defined by the number of calls it must make per year, is 60,000 calls [(1,000 x 36) + (2,000 x 12) = 36,000 + 24,000 = 60,000)]. Suppose our average salesperson can make 1,000 calls a year. The company thus needs 60 salespeople (60,000/1,000).

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