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Too Much Business?
By Tom Reilly, author of Value-Added Selling (McGraw-Hill)

How many accounts should a salesperson handle: 50, 100, 200, more, or less? How much business is too much business? Is the answer quantitative or qualitative?

Some people would argue that there is no such thing as too much business. As appealing as too much business sounds, salespeople who have sold during excessive demand will tell you that allocating product to a customer is no fun. Most customers get frustrated with the lack of supply.
 
If you think too much business is really attractive, sit in a doctor's office who has overscheduled his patient load or visit the airport and watch travelers who have been bumped from a flight that was oversold.

The fundamental question you must ask is: Can we handle the additional business without it having a negative impact on our other customers? Can we maintain our service levels at the higher numbers? Will the additional business overburden our resources?

I was recently talking to a business owner that told me he planned for a 15% growth rate every year and did not want more than that because it would exceed his system's ability to service customers. He wants to grow his business at a pace that allows him to leverage his brand and the good will he has built in the market. Out-pacing his infrastructure is a sure-fire way to reducing his customer service. He clearly knows the slice of the market he wants; he wants to sell to customers that buy his service first.

So, how many accounts can a salesperson handle? How many can the salesperson serve fully as a value-added resource? How deep do you want to penetrate the account? How broadly across your product lines do you want to sell into your accounts? Sheer numbers are enticing. Along with your quantitative metrics, include qualitative standards of excellence. What level of service have you promised your customers? What level of service can you realistically deliver? Maybe it's time to add another sales rep.

 

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