The three ideas that managers may implement in their work are as follows. First, it is the efficient use of the elasticity of demand. For instance, it happens that a 10% change in price increases revenue by 100% – this should be used. For example, a company sells a product or service for $ 100 and lowers the price to $ 90; the conversion does not change. Then, the company raises the price to $ 110 – again, this conversion does not change. Consequently, the value can be anchored at a higher level. Experiments like this allow a manager to determine the maximum amount that a client is willing to pay.
Second, it is important to assess the sales volume per employee. It happens that the sales department expands, but the sales themselves do not. There comes a time when hiring a new specialist does not bring any results at all. In this situation, it is a good idea to study the work of competitors. If in a similar enterprise, two people provide the same sales volume as five employees demonstrate in a manager’s one – this is a reason to think about reconfiguring the sales department.
Third, it is essential to adhere to such a management approach, according to which there is no over-dependence on a particular employee. Independence from human resources implies that 2 to 4 of the most productive employees of the department can be removed from the system at the same time, while sales will not fall below the guaranteed level. Simply put, the most important people can go on vacation, get sick, go on a business trip, etc., without the risk of the sales force stopping.