Perhaps one of the most daunting but essential part of a sales job can be the set quota. As sales companies need to rely on steady numbers of sales among other things, quotas can be one of the most important part of day-to-day professional sales.
Some people think that quota’s are set randomly, others believe that a firm may systematically set quotas for growth and profit week to week. As sales climates can change in some industries throughout the season/ time of year, quotas typically won’t stay the same.
How does a salesperson hit a quota reliably week to week? As all salespeople are made differently, there are different ways to accomplish hitting a quota, but proper planning is essential no matter what type of salesperson you are. If a salesperson needs to sell 10,000 units of a product in a week, and they know based off of their personal statistics that they close 1 in 3 times and their average close yields an average of 1,000 unit sold, then the salesperson can proceed to plan a minimum of 30 sales appointments in a week. This can differ from person to person and from industry to industry. From there, the salesperson can budget doing 6 sales appointments a day (minimum) for 5 work days to hit his quota.
The calculation of a salesperson’s time spent working a lot of times simply comes down to the quota, as a goal for salespeople to hit week in and week out.
BoweryJE22
Quotas are important in the world of sales because it allows for sales people to have a set goal in place. Whether it be weekly, monthly, or yearly, salespeople can always be working to obtain a set goal by the company they are working for. Certain quotas might even have bonuses attached to them, this will enable more motivation to be sought after by the sales people.
Good post.