The share of sales
One of the goals of man is the share of sales selling a particular product or product line. The share serves as a reference point of sales and marketing policy of a company. His achievement is a function of several factors, among which we can mention the following:
- corporate image in the market
- product quality
- in service delivery and more
- price at least equal to the competition.
The term of share of sales also identifies the sales budgets, considered both in terms of quantity and value. The first data meets the production requirements (should be placed on the market that has been produced by the establishment) the second addresses the need for financial data (cash receipts).
A good agent not only looks at business budget is reached in terms of quantity, but also better achieved at the price, the so-called Gross Margin.
In order to determine what could be the share of sales due to a sales agent must be made through the analysis of the following three factors:
- Sales potential in that area
- Sales in the last 3 years (if any)
- Economic prospects in the future 3 years.
The focal point of the situation lies in the ‘analysis of future prospects.
It is almost pointless to think that: given a potential area of 100, as sales of the last three years have had a steady annual increase of 10%, it will consequently an increase in the fourth year of at least 10%. If economic prospects are not good or because the consumer propensity to buy is poor (because of the tax burden or other reasons) or because the factors mentioned at the beginning of this topic (corporate image, product quality, etc.. ) are not good, it almost goes without saying that the share of sales in ‘Year X must be Y.