Susan Jones was thinking about the future as she drove home from an important day at her company, Satin Organic Products. In a little over nine years, she had taken a small organic milk company and become a major supplier to large health food grocery chains like Whole Foods and Trader Joe’s. During that time, Susan and her vice president of marketing, Sal Clermont, had handled all the sales responsibilities. Working directly with the buyers, Susan and Sal had built an outstanding reputation as people who cared about the quality of their products and their relationship with customers.

Now Susan was faced with a challenge. Susan and Sal would no longer be able to handle the sales responsibilities by themselves. The company had grown too big and needed sales representation in the field. At present, an analysis of the company’s current and near-term future plans had determined a need for seven individuals. Four people were required to handle the company’s key accounts (Whole Foods and Trader Joe’s) and three were needed to call on potential new customers in areas close to the company’s expanding operations in the Midwest.

In talking with Sal and others in the food business, Susan realized there were two basic choices and unlimited combinations of those two choices. First, she could hire seven salespeople as employees of the Satin Organic Products. This had certain advantages but was also the most expensive. The second alternative was to hire outside sales agents who knew the food business and the customers. This alternative also had advantages and disadvantages.

Susan knew that she and Sal would have to make a decision soon. Their large customers were demanding more service, and there were a number of new business opportunities that they had not been able to go after because of other responsibilities.

Questions

1. Using the information in this chapter, discuss the advantages and disadvantages of having your own sales force versus hiring outside sales agents.

2. How should Susan set up the sales force for Satin Organic Products and why?