discuss the advantages and disadvantages of having your own sales force versus hiring outside agents
Advantages of having own sales force
1.company can know the customer taste and preferences .
2.To update the product as per customer requirements ie..Research
3.Lowering the cost of production by collobration of mutiple depaetments and customer , statistical reports and array of reports
4.To prepare the budget and financial allocations among different locations there should be a cordination with the sales department to utilise resources effectively
Dis-advatanges of hiring outside agents
1.Lack of cordination will hits the company profits.
2.There may be no faster resolutions of customer queries
3.They may be no relationship with the final customer . Sonetimes there may be chances that the customer is not aware of the actual producer .
4.The relationship maintainance of outside agent will directly effect the sales of the company.
5. Difficultly in allocating production budgets and stock availability for sudden demands .
discuss the advantages and disadvantages of having your own sales force versus hiring outside agents
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Klyne Corporation manufactures pharmaceutical products that are sold through a network of sales agents. The agents are paid a commission of 12% of sales. The income statement for the year ending December 31, 2017, is as follows: KLYNE CORPORATION Income Statement For the Year Ending December 31, 2017 Sales Cost of goods sold Variable $ 22,050,000 Fixed 2,635,000 $ 35,000,000 24,685,000 10,315,000 Gross margin Selling and marketing expenses Commissions Fixed costs 4,200,000 1,870,000 6,070,000 Operating income $ 4,245,000 Klyne is...
Klyne Corporation manufactures pharmaceutical products that are sold through a network of sales agents. The agents are paid a commission of 25% of sales. The income statement for the year ending December 31, 2017, is as follows: KLYNE CORPORATION Income Statement For the Year Ending December 31, 2017 Sales $ 29,500,000 Cost of goods sold Variable Fixed $ 15,340,000 2,877,000 18,217,000 11,283,000 Gross margin Selling and marketing expenses Commissions Fixed costs 7,375,000 3,220.000 10,595,000 Operating income $ 688,000 Klyne is...
Klyne Corporation manufactures pharmaceutical products that are sold through a network of sales agents. The agents are paid a commission of 16% of sales. The income statement for the year ending December 31, 2017, is as follows: KLYNE CORPORATION Income Statement For the Year Ending December 31, 2017 Sales Cost of goods sold Variable $ 20,740,000 Fixed 2,633,000 $ 34,000,000 23,373,000 10,627,000 Gross margin Selling and marketing expenses Commissions Fixed costs 5,440,000 1,920,000 7,360,000 Operating income $ 3,267,000 Klyne is...
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