7. COST PER CALL
Cost per call is a function of
number of calls per day
number of days available to make
calls
direct selling expenses
Direct Selling Expenses
# Calls per day X # Days to Sell
8. COST PER CALL
Example (see Table 5.1; page 230)
Total Direct Expenses = $90,250
205 days to sell; average 3 calls per day
Cost per call = $90,250 / 205 x 3 =
$146.75
9. BREAK EVEN SALES
VOLUME
The sales volume necessary to cover
direct selling expenses
Breakeven Volume is a function of:
Cost per call
Number of calls to close
Sales costs as a percentage of sales
10. BREAK EVEN SALES
VOLUME
Cost Per call X # of Calls to Close
Sales costs as a % of Sales
11. BREAK EVEN SALES
VOLUME
See Table 5-2; page 231
Electronics Industry
--Cost per call = $133.30
--Number of calls to close = 3.9
--Sales Costs as a % of sales = 12.0
Breakeven volume = $133.30 x 3.9 / .
12
= $4,332.25
13. ALLOCATION OF
SELLING EFFORT
Consider the time we spend with
customers!
Single Factor Models
Portfolio Models
Decision Models
14. SINGLE FACTOR
MODELS
Easy to develop and use
Classify accounts into categories based
on one factor, such as market potential
Assign all accounts in the same
category the same number of sales
calls
Decisions are made on the basis of one
factor. Differences among accounts
are not taken into consideration