Be Your Own Sales Manager by Anthony Alessandra Jim Cathcart & John Monoky

Author:Anthony Alessandra, Jim Cathcart & John Monoky
Language: eng
Format: epub
Publisher: Simon & Schuster

What, then, is the ideal number of calls to invest in an account? Ideally the point marked on Figure 7-6 is the best allocation of sales calls to the accounts.

Although you still have additional sales to capture, the cost of obtaining them is too much. Your ROTI needs to be computed. ROTI is basically a ratio of the results of your efforts to the amount of effort you put in.

As with valuing your time, there are several ways of measuring sales results and effort. Sales results can be measured in gross margin, gross sales, or number of units sold. The best method is to use gross margin. Sales effort can be measured in the number of calls, amount of time spent on the account, or the direct cost of your time. Since we’ve been working with direct cost, we will continue to do so. The formula looks like this:

Figure 7-6

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