Sales Management Self-Assessment
Instructions: Write the letter of the answer that best fits in the box at right.	Answer
1. Because of the importance of the sales function, the small business owner must ensure that: a. All sales activities are handled by himself or herself only b. Sales are handled by sales specialists trained outside the company c. Multiple vendors are always involved such as Yellow Pages and web providers d. The sales function is defined by the owner, and then taught and delegated by him or her to qualified employees, as soon as possible
2. For someone just learning about being a salesperson, the best activities for this person’s manager to monitor are: a. Initial and follow-up calls and demonstrations to prospects b. Proposals and quotations to prospects c. Lunch meetings with well-established customers d. Total sales dollars e. a and b
3. Price discounts must be: a. Decided by the owner only, on a case-by-case basis b. Given uniformly to all customers, to keep them motivated to come back c. Decided ahead of time as one of the steps in setting prices and planning profits d. Mostly avoided, unless forced by a difficult customer e. a and d
4. Baseline product pricing is best established when it is based on: a. Direct costs, an allocation for overhead, and a formula for determining percentage profit b. Direct costs marked up by a percentage c. Manufacturers’ list pricing, to keep from angering customers and prospects d. Competitor’s pricing e. b and d
5. Pricing the time of technicians should be based on: a. The burdened labor rate of each technician, since the rates vary with skills b. A relevant industry standard, such as $80 or $90 per hour c. The same method as used in #4 above
6. When it comes to the time of technicians that is sold: a. Technicians should have a hand in selling their own time, giving them a pay incentive for success b. The sold time of technicians should never be more than about 60% of total time since existing customers have to be taken care of c. Technician pay should be kept relatively low, since a business’ best chance for profit comes from service d. Technicians should not be aware of billing of their time, since that causes them to rush to the next customer without giving adequate service
7. Motivating a salesperson is best done by: a. Quotas b. A commission system simple to administer, such as a percentage of sales dollars c. A commission system that provides unlimited earnings, since if done right the business earns more and more gross profit as the salesperson earns more and more d. A decent salary, plus a bonus based on meeting higher and higher sales dollar targets