Sales Framework for Milford Industries-Capital District Region Essay Sample

The Capital District Region is a vivacious country which has rather a possible as per the information collected but due to some grounds the public presentation is dawdling behind the national norm.

The primary grounds for this underperformance are low employee morale. high turnover and hapless efficiency. Hence. we need to turn to these issues at the earliest and place the high and low performing artists among the gross revenues force in order turnaround the state of affairs.

We need to critically measure the public presentation of the single gross revenues agents so as to place the loopholes and stop up them consequently. Following are some of the prosodies on the footing of which we evaluate single gross revenues agents and consequently we need to do alterations with regard to allotment of countries. gross revenues marks etc.

Performance Prosodies

The public presentation prosodies of gross revenues agents has been developed on four parametric quantities viz. :

– Performance

– Efficiency

– Business Development

Finally these prosodies should be assigned Weightage and consequently the gross revenues agents are ranked and suited districts be allocated.


Gross saless H1 ( 83 ) to H1 ( 82 )

The ratio compares gross revenues in first half twelvemonth gross revenues in 1983 to that of 1982. This indicates the public presentation of the gross revenues agents. This would bespeak the potency of the agent and the ability to tackle gross revenues possible in an country.

Higher the ratio better it is.

Sales/Active History

This measures the gross revenues accomplishments of the agent. how far is the salesman able to force his merchandises to his clients.

Higher the ratio better it is.

Active/Potential Histories

This compares the activity of the salesman. besides measures whether the gross revenues agent is able to change over possible in to existent gross revenues.

Higher the ratio better it is.

Gross saless per unit country of District

This ratio measures the sum of gross revenues over per unit country of district. This would bespeak the range and potency of the salesman.

Higher the figure better it is.

Net parts

Net parts are calculated by subtracting entire compensation and disbursals incurred on an agent from the entire net incomes generated by that agent.

Higher the figure better it is.


Net income Margin

This ratio measures the border of net incomes generated on every rupee of gross revenues. This ratio indicates the focal point of the salesman on forcing those merchandises that have high net income borders.

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This ratio measures ability of the agent to maximise gross revenues while incurring minimal disbursal. This shows how efficient the agent is. Besides it denotes the gross earned per unit disbursal.

Higher the ratio better it is.


This ratio measures efficiency of the agents by ciphering net incomes generated per unit if costs incurred. Costss include entire compensation plus disbursals incurred.

Higher the ratio better it is.


This ratio measures entire disbursals incurred by the agent per unit of country under control.

Lower the ratio better it is.

New Business Development

Number of calls per possible client

This ratio measures the enterprise of the agent to develop new concern and tackling possible gross revenues.

Higher the ratio better it is.

New clients / Entire clients

New clients added to entire clients.

Higher the ratio better it is.

Individual Performance Evaluation & A ; Recommendations

( Refer Annexure 1 )

Doug Eaton

He is the most efficient salesman as his gross revenues to write off ratio is the highest. His experience and networking accomplishments has been responsible for this accomplishment. Over the old ages he has been an efficient performing artist. and has the recognition of the highest net income contributed and besides high profit/expense ratio. He can be assigned the occupation of mentoring new salesmen. New salesman under him could larn the occupation good.

Ernie Burke

Though a good performing artist. he refuses to follow certain company policies like trading plans. He brings the 3rd largest net income to the company but has a low profit/expense ratio. so should be made to cut down disbursals. Since sales/account ratio is low hence should be placed in residential and retail countries and non in industrial countries.

Jean Durfee

In malice of the low figure of possible histories. she has generated a gross figure which is 3rd highest. Besides the gross revenues generated per unit disbursal are really high. Jean has the best transition rate of the clients. and hence is a good performing artist. Jean has contributed high net income and low disbursals. and should be given greater duty.

Ed Harlow

The country he is managing is really little but the disbursal to country ratio is really high. The market purchasing power could be one of the major restraints which are taking to high disbursal to country ratio. This country besides includes high value histories. It is a low figure high volume concern. The gross revenues to write off ratio is comparable with that of the best performing artists. He could be called an mean performing artist who likes covering in large histories and hence should be concentrating on points for industrial usage.

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Tom Furness

Furness is one the strong pillars for the company we notice that in malice of traveling through some personal jobs. Furness has registered a growing in gross revenues by 25 % over the H1 of old twelvemonth. Besides. he has high disbursals which could be a cause of concern. Possibly we should anticipate better public presentation from him in following few months.

Zeke Gibson

The attempts which he is seting in the work are low which is apparent from the figure of calls. Besides his transition ratio ( Active Histories to Potential histories ) is one of the lowest among all. Though his gross revenues figures are comparable in the absolute footings. they are less as compared to the potency of the part. Another index of his worsening public presentation is his entire compensation. Though his wage is 3rd highest. the entire compensation he is acquiring is lower down the order. He should be given clear marks. and should be given a warning to better his public presentation.

Sonny Caplan

Though the purchasing power of the market is comparable to others. and market has big figure of possible histories. the gross revenues generated by him are really low. His transition ratio is hapless. Expenses are high chiefly because of really big country he needs to cover. So the part likely needs to be divided to tap the exact potency of the country and the employee. He is a hapless performing artist and his public presentation demands to be watched closely.

Bill Alderson

He should be provided proper preparation under some experient salesman. e. g. Eaton in the sphere of goods and gross revenues because he is from a different industry. He is an eager scholar. immature and difficult working hence should be groomed for the hereafter. He has been assigned to a really big geographic country which besides has really high figure of possible histories. This mismatch between is experience and assigned country could be one of the major hindrances in his public presentation.

Prosodies for Districts

The assorted districts within the Capital District Regions should besides be ranked/ classified on the footing nonsubjective prosodies. This manner the allotment of salesman to respective assorted districts can be consequently planned. Following are some of the prosodies:

– Area size

– Population

– Active histories

– Potential histories

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– Buying power index

– Potential accounts/area

– Number of

– Small shops ( gross revenues value footing )

– Medium shops ( gross revenues value footing )

– Large shops ( gross revenues value footing )

– Average growing per centum

– Percentage of entire national gross revenues

Above are some of the steps which should be kept in head while delegating gross revenues districts to single salesmen. this manner the salesman who is most suited to a peculiar part can be assigned to it.

For e. g. If a peculiar district is witnessing a immense spread in active histories and possible histories. so a salesman who scores high on new concern development should be assigned to that country.


Ed Harlow handles a really little country ; hence we suggest he should be transferred to Western Virginia where he can help Alderson. Since he Alderson is non able to manage such a large and high possible country good. Ed Harlow can be assigned to half portion of the district. Whereas Durfee can be assigned added duty of full District of Columbia. since Durfee has exhibited a really nice public presentation.

Gibson and Caplan need to be monitored carefully. Since they are demoing hapless public presentation. they must be warned one time.

Annexure 1

Salesperson Eaton Burke Durfee Harlow Furness Gibson Caplan Alderson

Potential Histories 504 525 185 139 358 427 883 933

Gross saless ( $ thousand ) 1840 1600 1500 1300 1220 1120 880 620

Active Histories 205 310 160 120 220 130 307 458

Compensation 76800 64000 52000 54000 50400 52400 36600 26400

Expenses 8200 13600 8600 7800 14800 7000 17800 14600

Buying index 0. 8891 0. 873 0. 6697 0. 2956 0. 8498 0. 499 0. 7694 0. 8513

Land country ( sq. stat mis ) 1806 9045 1301 61 4239 6524 24070 28738

Net income to company ( $ thousand ) 620. 86 515. 04 538. 08 450. 36 416. 5 381. 44 300. 54 205. 1

Profit/Expense 75. 71 37. 87 62. 57 57. 74 28. 14 54. 49 16. 88 14. 05

Sales/accounts 8. 98 5. 16 9. 38 10. 83 5. 55 8. 62 2. 87 1. 35

Active/Potential 0. 4067 0. 5905 0. 8649 0. 8633 0. 6145 0. 3044 0. 3477 0. 4909

Profit/Costs 0. 0073 0. 0066 0. 0089 0. 0073 0. 0064 0. 0064 0. 0055 0. 0050

Contribution 535860 437440 477480 388560 351300 322040 246140 164100

Gross saless Growth

( H1 ( 83 ) /H1 ( 82 ) ) 1. 11 1. 06 0. 96 1. 02 1. 25 1. 11 0. 92 0. 86