Sale is the exchange of goods, property, or services for an agreed sum of money or credit. In short, to have a sale is the exchange of something for money. Sales are taking places almost everywhere in our everyday lives. Be it small-scale sales like in the shopping malls where shops sell its merchandises, to larger scale ones whereby two companies’ representatives meet to discuss the sales exchange between each other’s company The sales industry is a very important part of the world economy. Sales are what keeping the money of the countries all around the world circulating. One party provides the goods, the other gives money in exchange.
This will help the countries to develop economically and make revenue not just for the country, but also for the companies in the country. The sales industry is an ever-growing one. The growth rate of the industry has become exponential in the recent years due to the fact that most of the economies around the world are doing quite well. The US Census Buereau conducted a “Annual Retail Trade Report” of the retail sales industry of United States. According to the statistics provided by the Bureau, from 1992 to 2008 the retail sales of the United States grew from about 1,800 billion to about 4,400 billion dollars.
That is about a big increase of 218% in the retail sales industry in less than 20 years’ time. From this statistics provided, we can clearly see that the sales industry is doing really well in the recent decades. Even though the statistics proves only the retail power of the United States, we can expect similar results from other countries around the world. A company that mainly deals with sales, gains the biggest proportion of its revenue from the sales transactions the company does with its customers and clienteles.
Thus, it is important to keep the company’s sales up and going. The sales industry makes up a big proportion of the economy. Doing sales with customers is not a simple task. It is not just about an exchange of item for money. A sale’s success also depends on how the company’s salespeople persuade the customers to do sales with them. The main objective of the sales department of a company is to make sales for a company. The sales department is the frontline force which connects the consumers with the company. The sales of a company’s product can either make or break the company.
Thus, a company with a strong team of sales personnel is important. A company with a poor team creates little sales for the company. A good team creates more earnings for the company. The company has to set has to plan and devise objectives for the sales team to achieve. The sales manager, who is usually in charge of the sales department, has to come up with strategies that specify the sales approach. Organizing is also one part of a manager’s job scopes. He or she has to decide the sales team and train them into proper sales representatives.
Then the manager has to implement the objectives set and create the right sales culture. He or she has to monitor and keep in check sales and consumer satisfaction, and the training of the sales representatives. The sales manager then has to take corrective actions as and when needed. Alice Tan, being promoted to the position of a sales manager, has to take up the responsibilities of planning, organizing, implementing, and monitoring, and others like identifying business opportunities, achieving company’s sales targets, and creating and maintain clientele and consumer relationships.
A sales executive usually only has the responsibilities of getting and maintaining relationships with the clienteles and consumers. But a manager has added responsibilities of keeping the sales team together on top of holding onto the responsibilities of a salesperson. Turnover rate is the measure of the rate at which a company gains or loses its employees. It is a phenomenon that no companies would wish to have. A high turnover rate signifies that the company is having lesser employees as compared to other companies in the same industry.
Having high turnover rate has its advantages and disadvantages. The advantage is that with less manpower, the company will be able to handle its human resources more efficiently. But disadvantages are that they will have lesser employees to handle the company’s customers. Recently, the company has had a high turnover rate of salespersons. And with lesser salespeople, the company would not be able to make as much revenue as last time. Turnover rates can be classified into internal and external, voluntary and involuntary.
But whatever the classes, having high turnover rate is harmful to the company’s productivity. When the company’s skilled workers are the ones leaving, it would mean that the company would be left with a higher percentage of novice workers. Novice workers’ productivity, under normal circumstances, could not be compared to that of those skilled employees. When we say in terms of salespeople, the novice ones would not know how to better handle the customers, and productivity falls. The fall of the salespeople’s productivity often leads to worse consumer outcomes.