10. 15-10
Elements of Time and Territory
Management, cont...
Territory-time allocation
Basic factors to consider
Number of accounts in the territory
Number of sales calls made on customers
Time required for each sales call
Frequency of customer sales calls
Travel time around the territory
Nonselling time
Return on time invested
11. 15-11
Elements of Time and Territory
Management Cont…
Territory-time allocation
Sales response function
Invests sales time in direct proportion to the actual or
potential sales that the account represents
The most productive number of calls is reached at the
point at which additional calls do not increase sales
The relationship of sales volume to sales calls
13. 15-13
Return on Time Invested
Break-even analysis
Salesperson’s Fixed Costs/Gross Profit %
Direct Costs = Salary – (Transportation +
Expenses)
Gross Profit % = Gross Profit / Sales
Gross Profit = Sales – Cost of Goods Sold
If salesperson sells X amount of merchandise, it
covers the direct costs
Sales territory is a cost and revenue generating
profit center
14. 15-14
Return on Time Invested
Break-even analysis
Per Hour
Cost Per Hour/Gross Profit %
Cost Per Hour = Direct costs/Yearly Hours worked
Salesperson must sell $$ per hour in goods/services
to break even