Okay, gang, this one's killin' me, and I like it. So, I'm gonna' try to put my MBA to use here. I've just cracked the book(s) and will report more later, as I proceed, but, at the moment, I'd suggest taking a peek at "excess present-value index", or profitability index. If all the costs of sales as well as revenue streams/inflows can be identified, quantified, and dated, then the Net Present Value of the profit can be determined. This appears to be typically applied to project initiatives rather than the efforts of the individual members of the sales team.
However, if a salesperson's profit margin varies, their customers time-to-pay (a form of Days Sales Outstanding per Salesperson) varies, their Book-To-Bill numbers vary (here, inventory carrying costs would be factored in), as well as, potentially, a number of other factors that can have a measurable impact on "the bottom line", then the monetary worth to the firm of each salesperson's efforts will also vary. Anyway, I'm going to continue looking into this and will be back to the topic as soon as I have more to share. Later, Steve in Memphis ----- Original Message ----- From: "tellef" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Friday, November 08, 2002 9:55 AM Subject: Re: Statistics experts needed > > Ben: > > >The simplest thing I can think of is to use a multiplier that amplifies > >the % profit and still consider the $profit: > >SP1 = (10,000*.4)+(.4*1,500)) = 4600 > >SP2 = (10,000*.4)+(.4*150)) = 4060 > >SP3 = (10,000*.38)+(.38*2000)) = 4560 > > I see the profit% in there (the .4 and the .38), and I see the > profit$ in there (1500,150,2000). What does the '10,000' represent? > Just a constant number? Your formula seems to work! > > > Tom: > > >By that I mean to take the $sales and the percent of > >profit, drop the decimal from the percentage and multiply the two. While > the > >number has no real meaning, it would sort them such that your example > would > >rank them as 1-60000, 2-6000, 3-76000, 4-57000 > > Your way of calculating gives salesman3 the edge, while Ben's gives > salesman1 the edge. I think I'll take both solutions to the client > and ask them which person, in their opinion, they would want to see > 'on top'. Then maybe I'll use that formula! > > > Larry: > > >Assign each salesperson a rank from 1 to X (where X is the number of > >salespeople) according to total dollar profit. Assign them a separate > rank > >according to percentage profit. Add the two ranks together, and print > your > >list in ascending order of combined rank. < > > That might work. I'll have to run some numbers through on the > actual data and see if it represents that they would want to see. > > > >So, my friend, I would not worry too much. Go to sleep and know that > >whatever your solution, most likely they will not be happy. Because you > are > >trying to quantify the unquantifiable. > > That's pretty funny, Enrique. True, but funny. Loved reading your reply. > > Thanks everyone!!!! > > Karen > > > > > ================================================ > TO SEE MESSAGE POSTING GUIDELINES: > Send a plain text email to [EMAIL PROTECTED] > In the message body, put just two words: INTRO rbase-l > ================================================ > TO UNSUBSCRIBE: send a plain text email to [EMAIL PROTECTED] > In the message body, put just two words: UNSUBSCRIBE rbase-l > ================================================ > TO SEARCH ARCHIVES: > http://www.mail-archive.com/rbase-l%40sonetmail.com/ ================================================ TO SEE MESSAGE POSTING GUIDELINES: Send a plain text email to [EMAIL PROTECTED] In the message body, put just two words: INTRO rbase-l ================================================ TO UNSUBSCRIBE: send a plain text email to [EMAIL PROTECTED] In the message body, put just two words: UNSUBSCRIBE rbase-l ================================================ TO SEARCH ARCHIVES: http://www.mail-archive.com/rbase-l%40sonetmail.com/
