Analyze sales dollars or sales units

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Reference no: EM132150531

Ingram et al. (2015) explain how a manager evaluating the sales organization's effectiveness might reach different conclusions depending on whether they analyze sales dollars or sales units:

Analysis of sales dollars or sales units provides different evaluative information. It is possible that by analyzing only sales dollars all districts in a region might show substantial sales growth. But, when sales units are introduced, the dollar sales growth for all districts could be attributed almost entirely to price increases if units sold increased only minimally during the evaluation period. Sales figures likewise could be distorted by selling more lower-priced products or by granting larger price concessions. (Chapter 9, p.4)

Combine this information with the passage above. Think about the following questions:

"Raising the bar" is a common saying in the corporate world. How does the way in which the bar is set (e.g., using concepts described above, such as dollar or units) affect salesperson perception and motivation?

What issues may arise in measuring individual sales performance in light of overall team sales performance in terms of dollars versus units?

Reference no: EM132150531

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