Should you set up your own Sales Force or should you outsource it? Pitfalls in the standard analysis
AbstractShould you set up your own sales force or should you outsouce it? The standard analysis uses a cost basis to answer this question. It assumes that the direct sales force is largely a fixed cost and that the outsourced sales force is largely a cost that varies with sales. It then calculates the sales quantity at which the costs associated with the direct sales force are equal to the cost associated with the outsourced sales force. It suggests that for sales above that quantity, firms should have their own direct sales force. This analysis has two serious problems. First, it is too simplistic; this paper details other cost factors not considered in the standard analysis but that should be. Second, the standard analysis is based only on cost; it ignores differences in coverage efficiency and selling effectiveness between the two sales forces, two important factors that are developed in this paper.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoPaper provided by HEC Paris in its series Les Cahiers de Recherche with number 795.
Length: 31 pages
Date of creation: 19 Apr 2003
Date of revision:
sales force; standard analysis; outsourcing;
Find related papers by JEL classification:
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executive Compensation
- M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sandra Dupouy).
If references are entirely missing, you can add them using this form.