If each sales rep earns a salary of $60,000 per year, what sales are necessary to break even on the sales force costs if the company has a contribution margin of 40 percent? What effect will adding each additional sales representative have on the break-even sales?
B-to-B marketing relies heavily on sales reps. Salespeople do more than just sell products and services; they manage relationships with customers to deliver value to both the customer and their companies. Thus, for many companies, sales reps visit customers several times per year—often for hours at a time. Sales managers must ensure that their companies have enough salespeople to adequately deliver value to customers.