{"id":86,"date":"2013-11-28T10:48:52","date_gmt":"2013-11-28T10:48:52","guid":{"rendered":"http:\/\/www.portatour.com\/blog\/?p=86"},"modified":"2021-11-04T12:42:35","modified_gmt":"2021-11-04T12:42:35","slug":"how-much-does-my-field-force-cost-and-can-good-route-planning-reduce-it","status":"publish","type":"post","link":"https:\/\/www.portatour.com\/blog\/en\/how-much-does-my-field-force-cost-and-can-good-route-planning-reduce-it\/","title":{"rendered":"How much does field force cost? Can route-planning reduce it?"},"content":{"rendered":"

Employees in the field are important for companies \u2013 and expensive. Field sales can account for costs of up to 30 percent of a company’s<\/strong> total sales<\/strong>, according to a study by Homburg & Partner.<\/strong><\/p>\n

It is admittedly difficult to calculate all accrued expenses for the sales force \u2013 indirect costs especially are often forgotten or underestimated. We have compiled a list of typical cost factors in the field. Wherever high costs are incurred, it makes sense to think about optimization. Just with good route-planning<\/strong><\/a> alone, you can increase your profit margin by 54%<\/strong> or more, according to a study bythe VTH.<\/p>\n

We have created a cost calculator for field forces<\/a><\/strong>, with which you can calculate the direct costs of your sales team and the possible potential savings with optimized route planning<\/a>.<\/p>\n

<\/p>\n

Taking into account all cost factors, expenditure for the field force is about 120,000 \u20ac per employee per year. Given 8 customer visits per day and 200 days a year with visits, a single visit generates costs of 75 \u20ac<\/strong>. Depending on the industry, this amount goes up to 200 \u20ac per visit. Where does this number come from?<\/p>\n

In addition to the salary costs<\/strong> and vehicle costs<\/strong>, more is needed to build a field force for sales, consulting, or service, and to maintain it. Here is an overview of all costs and time-wasters that affect the contribution margin in the field. You will certainly discover one item or another that has been attributed to the expenses of another department, but is actually related to the effort to sustain the field force:<\/p>\n\n\n\n
Vehicle<\/strong><\/p>\n
    \n
  • Decision-processes during car-purchase<\/li>\n
  • Logistics during car-purchase<\/li>\n
  • Financing\/depreciation<\/li>\n
  • Interest<\/li>\n
  • Insurance<\/li>\n
  • Taxes<\/li>\n
  • Fuel<\/li>\n
  • Maintenance<\/li>\n
  • Repairs<\/li>\n
  • Replacement vehicle<\/li>\n
  • Tires<\/li>\n
  • Minor expenses (washing, parking, …)<\/li>\n
  • Account for expenses<\/li>\n<\/ul>\n

    Employment<\/strong><\/p>\n

      \n
    • Salaries<\/li>\n
    • Commissions\/bonuses<\/li>\n
    • FICA\/FUTA, tax, insurance & 401k benefits, medicare, benefit maintenance, …<\/li>\n
    • Travel expenses (accommodation, …)<\/li>\n
    • Internal services (payroll, accounting, expense reports, …)<\/li>\n
    • Severance payments<\/li>\n
    • Legal expenses<\/li>\n
    • Recruitment and selection in HR (ads, interviewing, testing, …)<\/li>\n<\/ul>\n

      Facilities<\/strong><\/p>\n

        \n
      • Notebook<\/li>\n
      • Mobile phone<\/li>\n
      • Telephone bill<\/li>\n
      • Data plan<\/li>\n
      • ICT support & maintenance<\/li>\n
      • Consumables<\/li>\n
      • Insurance<\/li>\n<\/ul>\n<\/td>\n
Account & Sales investments<\/strong><\/p>\n