1. Sales Calls1 an opportunity to explore sales calling strategy and the financial consequences

2. Sales Calls2 You are responsible for a sales area. This involves you deciding how often to call on the customers in that area. All customers are likely to respond in a similar way to your calls. (That is to say that the quality of your calling will be constant.) However,actual results will vary from customer to customer because of differing buying potential and differing degrees of relationship.

3. Sales Calls3 The Process Each period (a month) you can change the number of times that you intend to call on the customers. When you have entered all these changes into the computer you confirm them. Next, the impact of your calls are simulated and the computer will display and print your business results. Then, before making the next decision, you must analyse and discuss the results and decide how you should change your calling frequencies.

4. Sales Calls4 Decision-Making The first time you use the computer, you must enter a team name (consisting of up to six letters). Next a list of all current customers is displayed showing the calls made last period. To change these either use the arrow keys to highlight the cell to change or click on it with the mouse. When you have made all the changes necessary, you should click the Confirm button. When you do this the computer will screen your decisions (and advise you if any feel silly). Now, the results will be computed and results displayed and printed.

5. Sales Calls5 Example Decisions Already entered in red Current entry Still to enter in black In this example the number of calls are proportional to the customer’s potential sales. And, take no account of profitability or current share of the customer’s business

6. Sales Calls6 Business Results For each customer and in total you will receive these results: Sales Potential Sales Revenue Market Share Gross Profit Gross Profit % Selling Cost Net Profit Net Profit % Debtors Return % Calls Revenue/Call

7. Sales Calls7 Example Results After simulation, results are printed and displayed on screen.

8. Sales Calls8 Why these measures? Obviously, Sales Revenue is important. Market Share and Potential show you where you can build sales. But Business is concerned with the bottom line! So There are two measures of profits (Gross & Net) And, a measure of profitability (Return%) But, it is up to you to decide which are important and how you balance strengths in one area against weaknesses in others.

9. Sales Calls9 Business Information Your predecessors have made between 90 and 130 calls each period (month). Currently, you sell to fifteen customers. You are unlikely to obtain all a customer’s business. Gross Margin varies between customers (based on the mix of products they buy and the amount they buy). Selling Costs consist of: a Fixed Cost of 2,000 AUs each month plus 100 AUs per customer served. The last months results are shown in your brief.

10. Sales Calls10 Observations Before you make your first decision, you should spend some time –reading the brief –discuss the task facing you –consider strategies and objectives When making decisions you should: –balance the speed of decision making with adequate analysis and thought –refine and review your strategies and objectives At the end, when your results are contrasted with the other teams you must be ready to explain your strategies, objectives and results Have FUN!!