Territory Management 558

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Territory Management 558

• Account Management Issues

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Account Management

• Sales develop in an ongoing relationship
• High trust both sides
• Selling teams
• Multiple influencers on the purchase
• Strategic project work
• Dont start and end easily

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Account Managers

• Are these your best sellers?
• Details, details, details
• Coordination plus strategic planning
• Nurturing and likeable
• Polished Senior/Tenured
• Utmost integrity
• Patience
• Resource rallyers
• Focus on internal selling
• More time at corporate than in field

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Things they do

• Sell vertically
• Sell horizontally
• Create new business within the account
• Maintain relationships
• Problem solvers/arbitrators
• Facilitate high level interaction
• Monitor competition/problem signals

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Territory Managers

• Time management
• Personal motivation
• Hungry and Aggressive
• Better at saying no and yes
• Stronger first impression
• Better closers and openers
• Price and deal negotiation skills strong

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Territory Management

• How do you do it?
• Many ways

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Cost per call

• Account Management calls tend to be more
• 202 for industrial goods
• 242 for services
• 150 per call in distribution
• 500-2000 per call at MS

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Break even sales volumeIs it worth calling on
these guys?

• Cost per call X of calls to close business/
  Total sales costs as of sales
• Net selling days 200
• Avg calls per day 4
• Total calls 800
• Total direct expenses 140k
• Avg cost per call 175

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Other stuff to consider

• Account growing?
• Volume potential
• Competitions share
• Which competitor
• Likelihood of displacing them
• Financial well being
• Industry leadership
• Willingness to experiment
• Price sensitivity
• Gross or net margins vs revenues

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When are revenues more important than margins?

• Cash flow businesses
• Highly seasonal businesses
• Keeping your suppliers happy
• Establishing credibility
• During periods of growth

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ABC Territory Management

• Its very common
• Kinda the old 80/20 rule
• 15 produce 65 of sales
• Must maintain some effort on Cs
• On average 15-20 of As turnover each year
• Cs feed the Bs, Bs feed the As
• But tendency is to short sell the As or oversell
  the As

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How much price control to sellers?

• Price concession is needed in the field to
  compete and effectively close business
• Price vs volume
• Senior sellers vs rookies
• Amazing impact small price gains can have on
  profits