I / $S= #S
#S X #P/S = #P
#P X #C /P = #C
#C X #A /C= #A
#A / WORKING DAYS = #A/DAY
I / #A = VALUE OF EACH A
The next step is calculating the $S in order to determine the #S. You must know your average commission or earnings per sale ($S). If this is a varying number, in other words you are paid a commission and the amount of the sale is different from customer to customer then you need to do at least a 90 day look back and come up with your average earnings per sale. The best way to do this is to take your total earnings over the last 90 days. Include commission, bonuses, renewal income and any other income generated by selling your product. Divide this total income number by the total number of sales made during this 90 day period. This gives you your true average earnings per sale. If you are paid a flat amount for every new sale then this calculation is easy. If you are new to the profession of selling or you are new to your current position, ask management to give you a average earnings per sale for the entire sales staff for the last 90 days. I'm fact, this is a good number to have even if you are not new to the profession or have been in your position for awhile. It would allow you to compare and gauge how you are doing against "average". Do you need to step it up? Are you under achieving?
Your average earnings per sale or $S then allows you to determine in your formula how many sales you need to make in order to achieve your income goal. Take your income goal and divide it by the $S and that will give you the number of sales you need in order to reach your income goal (#S).
Once you have the #S (number of sales needed to reach your income goal) you can move on to the next step.
Expect to win!
--Jim
No comments:
Post a Comment