Jul 8, 2016

TIPS! SALESPEOPLE MUST KNOW


Basic tips required by Salespeople

One of the most important duties of a salesperson is not only to acquire sales activity skills, but also acquire knowledge about other departments of an organization. For instance manufacturing process, production and planning, quality control and testing, purchase and stores, and finance and account skills.

He should possess at least basic ideas about these fields to attain perfection. This leads to the progress of a salesperson and allows him to attain high levels in the organization.Industrial sales man usually deals in limited lines of products. He has full knowledge of the products which he sells.

He deals directly with customers, distributors, dealers and collects orders from them and sends them to the management for further course of action. Industrial salesman must possess deep knowledge about technology, vast experience about the product dealt with. Also, he is required to study about his product for various applications. There should be exchange of application case histories by him among his colleagues.

He should also possess enough knowledge about his customer’s product and technology. A good sales man should have qualities like: forecasting skills, communication skills, coordination skills, and territory knowledge, computer skills, presentation skills etc... These skills enable him to track down his customers quickly and efficiently. If he’s found to lack any of the above skills, the sales man must adopt training as Training enhances one’s qualities.

Moreover he must be engaged in creating a market for the new products of the company. Therefore, he’s concerned with creating and cultivating outlets for the new products so far unknown to the distributor. He must possess expert knowledge of the products and he’s main concern must be to create an interest in the minds of the distributor about the new products. So, the sales man must be, therefore, aggressive and imaginative.

Such a sales man must sell the product of the company to distributor and dealers. He must sell the product which is already in the market. Therefore, he’s main concern must be retain and expand the market already existing. Due to this he always manages to serve a large number of distributors. For the purpose he must have a well planned sales call on the distributor regularly. He must help the dealers, salesmen in coaching the effective selling methods.

He is the sales person who is concerned with the carrying on of the sales promotional activities rather than collecting or directly securing orders. He’s mainly concerned with the collection of information and giving of advice on various problems relating to the sales of his products. For this purpose, he must visit the distributor, discuss with them on the selling methods, advice them as to how best they should sell and guide them in their selling activities.

Such a sales person helps the manufacturers in creating and enhancing the market for his products. He should generally posses high qualifications and expert knowledge of the product his company sells. He should also posses extraordinary characteristics, pleasing manners, commanding confidence, deep experience etc.

Below are few simple and brief details about Finance and accounts, marketing functions, purchase processes,Production, Planning & Control, etc apart from Sales Management described in this blog. Salesperson must have knowledge and skills on Engineering and the technical features of the products .

FINANCE AND ACCOUNTS

EQUITY

Equity comprises the amount originally contributed by the owners together with profits from previous years not distributed by way of dividend.

LONG TERM DEBT

Two popular forms of long term debt are:

Debenture or Loan stock

Debenture or loan stock tends to be issued by well established companies seeking additional capital.

A debenture is a loan secured on specific fixed assets. If the business gets in to difficulties, the proceeds of certain assets are used to repay the debentures.

Loan stock is often issued with a convertible option attached to it, at the end of a attached period, the lender may convert it in to ordinary shares.

SALE AND LEASEBACK

A business can sell a valuable assets, usually a building or piece of land to finance house for a capital sum and then lease back the assets for an annual rental.

WORKING CAPITAL MANAGEMENT

A business will collapse without funds generated from within. Sooner rather than later, a company must generate sufficient funds for normal trading operations to maintain the existing level of business and to provide the backbone of the future expansion.

Profits must be the starting point for internally generated funds. Profit is the surplus left when the cost of producing and selling have been deducted from the revenue derived from sales. But a company does not keep all of its profits. Taxation takes a percentage and share holders wants a return on their investment.

But please remember profit is not cash. Managers tends to be more concerned with cash or liquidity than with profits, Wages, dividends, taxes, are all cash leakages, not profits. Managers should be able to understand how cash is pumped around the business and where surplus cash can be drained off.

THE PROFIT AND LOSS ACCOUNT

Companies are obliged by law to prepare a set of financial statements each year. The law spells out what items must be included and how they must be presented.

Many parties are interested in these statements, investors, employees, creditors, banks, tax authorities and consumer groups. It is essential for managers to know how they are prepared and hat they disclose. Profit and loss account and balance sheet are the two principal amount financial statements.

The profit and loss account is a major of the operating performance of a business over a given period of time.

The profit and loss account measures the normal operating activities of the business; especially, it compares revenue for the year against the cost of goods sold and other expenses.

After provision has been made for the tax due, the profit and loss account discloses how the profit will be used; as dividends to the shareholders and the balance to expand the company’s future operations.

THE BALANCE SHEET

The balance sheet of a company is a statement of what it owns (assets) and what it owes (liabilities) at a particular time, usually the last day of the company’s financial year. It is composed of three major classes of items; assets, liabilities and owners equity.

ASSETS

Assets are the resources of the company that have the potential for providing it with future economic services or benefits. An asset is a future benefit which has been invested in the past.

Monetary assets such as cash and debtors are shown in the balance sheet at their cash equivalent values. Non –monetary assets (stocks of raw materials, land, buildings and equipment) are stated at an acquisition cost.

Assets are usually split into fixed assets (such as land, building, plant, vehicles and intangible such as goodwill) and current assets (such as stocks of raw materials, work in progress and finished goods, debtors, short term investments, prepaid expenses and cash).

LIABILITIES

Liabilities represent obligations of a company to make payments in the foreseeable future for goods or services already received. Other liabilities include long term debt, company loans and obligations under long term leases, deferred taxes etc.


























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