Thomas knew that an average salesperson could make eight sales calls in one day and
worked roughly 200 days per year. Thomas also knew that, on average, a salesperson’s fully
loaded costs were $175,000 per year. To hire and train a salesperson tended to be expensive and
Thomas estimated that training and recruiting cost often equaled $50,000 in the first year. From
all this information, Thomas thought he should be able to determine the size of the sales force
required to meet the company’s 150% return on investment threshold. He knew that he had to
factor in carryover, and approximated 70% of first-year sales to carry over to second year and
70% of second-year sales to carry over to third year. Future sales would also need to be
discounted to get their present value. Thomas thought it would be appropriate to use the
industry’s average cost of capital (12%) for discounting sales. He also knew that he should
conduct multiple analysis, each analysis assuming a different time-horizon of maintaining the
sales force, because the training and recruiting costs would be a one-time investment rather than
an ongoing expense; however, given his time constraints for the meeting, he thought he would
calculate assuming that the sales force would be hired for only one year.
This
Back to overview
12
Hi! I need tips and direction for solving salesforce sizing problems
3
2.5k
Be the first to answer!
Nobody has responded to this question yet.
Francesco
on Jul 04, 2020
Coach
#1 Coach for Sessions (4.500+) | 1.500+ 5-Star Reviews | Proven Success: ➡ interviewoffers.com | Ex BCG | 10Y+ Coaching
Hi Heba,
I think your question is missing the last part.
I would also encourage you to present your approach as well – this will help to provide better suggestions.
Best,
Francesco
0 comments
Ian
on Jul 06, 2020
Coach
Top US BCG / MBB Coach - 5,000 sessions |Tech, Platinion, Big 4 | 9/9 personal interviews passed | 95% candidate success
Hi Heba,
Could you either provide us the rest of the case or send a link to the material?
Thanks!
Clara
on Jul 06, 2020
Coach
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut
Hello Heba, can you share plz:
- Full case
- Approach, so we can give feedback
Cheers,
Clara
Similar Questions
Most Popular Posts
How do you realistically manage a full consulting job search while working full time?
9
on Mar 21, 2026
Global
6
100+
Top answer by
Komal
Coach
50% off 1st session. MBB Consultant. LBS MBA. 3+ years coaching experience. Practical coaching with in-depth feedback
6 Answers
100+ Views
+3
One coach or multiple?
8
on Mar 21, 2026
Global
7
100+
Top answer by
Franco
Coach
Ex BCG Principal & Global Interviewer (10+ Years) | 100+ MBB Offers | 95% Success Rate
7 Answers
100+ Views
+4
Preparing a switch between BCG to Bain
8
on Mar 22, 2026
Asia
6
100+
Top answer by
Franco
Coach
Ex BCG Principal & Global Interviewer (10+ Years) | 100+ MBB Offers | 95% Success Rate
6 Answers
100+ Views
+3
Can I use a personal story for the McKinsey PEI dimension "Drive"?
8
on Mar 22, 2026
Global
9
100+
Top answer by
Franco
Coach
Ex BCG Principal & Global Interviewer (10+ Years) | 100+ MBB Offers | 95% Success Rate
9 Answers
100+ Views
+6
MBB rejection reframing in interview
9
on Mar 28, 2026
Global
10
100+
Top answer by
Karim
Coach
BCG Project Leader and interviewer | First session 50% off | 200+ interviews conducted | INSEAD MBA
10 Answers
100+ Views
E
+7