Question

Restaurant Supply Company

You have recently been hired as a Territory Sales person for NW Ohio. You have been working for two weeks and are just getting to learn about your new employer, customers, processes and products. The Territory Sales Manager has trained you. It was announced today that he would be leaving the company immediately. You have been advised by management that you are doing a good job and you are now on your own and responsible to maintain existing customers and grow your territory. You are responsible for all of NW Ohio. This territory stretches over 200 miles.

Your employer, ABC restaurant supply has been in business for over 30 years and enjoys a good reputation. The products offered are high quality and priced about in the middle of the market. Not high and not low.

Products offered:

Paper products including; cups, lids, plates, plastic ware, napkins, take out boxes, straws

Serving and display ware

Janitorial and cleaning supplies, Uniforms

Fine Linens including; table clothes, napkins, etc.

No consumable food items

You worked very hard to earn this position; interviewed several times and competed with many other experienced sales people. You were thrilled to get this new position. Your first 90 days is a probation period. The expectation is to step into the role as sales person, service existing clients and expand the customer base. It will be particularly important to service the existing customers during this probation period. The salary and benefit package is as follows:

*Health Insurance coverage at no cost

*401K savings plan with a 10% match

*Life Insurance coverage at no cost

*Short and Long Term Disability insurance at no cost

*Annual Salary of $35,000.00

*Commission bonus on annual sales above $250,000 at 10% of sales

*Monthly car allowance of $400.00. (A reimbursement not part of your income)

* Access to an inside sales and support person

Your have been given an Annual Sales Goal of $600,000. Your average order is approximately $5,000.

Based on your new position and the recent announcement of the departure of your training partner you have much to consider, plan and learn.

Where do you begin?

Consider the products you offer and your territory. What do you know?

Does your territory play a role in who you should target?   Weather? Summer? Winter? Year round? Location on the Water?, Highway, Retirement Communities, Vacation areas, Special events, Seminars, Holidays?

What types of customers would you target?

Why do or why should customers buy from you?

You are selling a commodity, is it just about price? A plastic spoon is a plastic spoon?

How can or should you add value?

How do you service existing customers? How often?   (Phone, visit, etc)

How are orders and needs determined?

If you could expand the types of products you sell, what would you add? Why?

What is the ideal customer?

How do you handle product order problems? Delivery problems

Do you have sales and product literature? What would you like to have?

You anticipate making around $90,000 your first year. How much do you need in sales to reach this income?

How much will you make if you reach your assigned sales goal?

What are your goals? Personal and business?

What does your weekly, monthly, annual schedule look like?

What tools and support do you need to be successful in this new sales position?

Answer 1

1. I will begi with analyzing the challenges infront of me and if I am ready for the responsibilities. Will I be able to meet the sales target and handle the customer base.

2. Considering the product and teritory it is pretty clear that we make our delivery to the food outlets based on the area. There are many working people in the area who eat outside due to their work schedule. So there are many restaurants and food joints. We provide the secondary items to these places which is used to serve food.

3. Yes territory plan an important role, some places are closed in winter hence the sales in those area is not even throughout the year. But we can expect even sales from the places which are open through out the year. There should be product available which suits every destination, along with little bit customization.

4. Generally our customer should be the people who are into food business. Restaurants, food joints, etc.

5. We offer good quality product with reasonable rates. And we have been in business for 30 years so there is trust and assurance associated with the name.

6. Yes price matters while selling a comodity as the price of spoon reflects in the final pricing of the product, hence we should be quoting our price such a way that it dosent hit the pocket of customer.

7. We can add value by lowering the cost, providing some sort of discount schemes. By adding value we can retain our existing customer and a good brand name in market will also attract potential new customer.

8. Existing customer delivery should be done on time at any cost, if there is a delay in delivery it should be addressed personally by visiting the customer and assuring it will not be repeated. Plus all the customer should be visited atleast once every six months so that the relationship is built up.

9. Orders and needs should be obtained from customer from the lead time. However we should have order history from 30 years by which we can draw a pattern of existing customer.

10. For expansion I would consider providing raw material for the food items like vegetables, or the grains. As it will be easier to acces the restaurants because we are already providing them mateiral.

11. Ideal customer is the one who gives the order in advance, ensures timely payment and gives feedback if there is any other expectation clearly. The issues hilighted should be resilved immediately.

12. I will ensure the delivery model is followed, the order is fulfilled accouring to the lead time mentioned. The order of same area could be combined in one container so that the delivery could be efficient. Also being with constant touch with the production team to ensure timely production.

13. I would like to have sales literature as it will be helpful for me in my future responsibility as handling the whole area.

14. For making $90,000 in first year i will have to make sales of $800,000.

   $90,000 = $35,000 as my fixed salary + $55,000 as commission.

for getting $55,000 commission I have to make sale of $550,000. And additional $250,000 after which I will get comission. Hence total $800,000.

15. If I reach my assigned sales goal of $600, 000 I will make $70,000. ($35,000 as fixed salary and $ 35,000 as comission)

16. My personal goal will be to be a better manager in handling the area in a better way. Managing the team properly and acting as a mentor to the new people joining. And my professional goal will be achieving the target allocated to me and acquiring new clients.

17. Weekly task should be ensuring the production is done on time and delivery is on time. Managing the logistics and delivery confirmation.

Monthly task will be interacting with the customer for new order and ensuring the previous ordery payment is released.

Annual schedule will be fixing the sales target, expansion of new customer, hiring new team members.

18. I will need a strong sales team who ensures the requirement of customer is fulfilled and their expetation is matched. Logistic support to ensure delivery on time.