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Can someone explain to me why sales can be a lucrative profession?
Posted on 7/25/18 at 7:20 pm
Posted on 7/25/18 at 7:20 pm
I'm genuinely asking. I get 30, 40, 50 years ago why sales guys would earn there money. However, in today's information age why are we still paying sales reps potentially such hight salaries? It seems to me they are glorified order takers for the most part. Anyone can get online and find any product they want.
What made me think of this is one of my clients is a hospital and I've had to research medical devices. I can find the exact specs of products online so if I were the device company why would I pay such a high commission for someone to go sell it?
Ideal compensation to me would be mostly salary with a capped commission. That still incentivizes growth for the salesman, but I'm not paying a guy to go take the same orders over and over again.
What made me think of this is one of my clients is a hospital and I've had to research medical devices. I can find the exact specs of products online so if I were the device company why would I pay such a high commission for someone to go sell it?
Ideal compensation to me would be mostly salary with a capped commission. That still incentivizes growth for the salesman, but I'm not paying a guy to go take the same orders over and over again.
Posted on 7/25/18 at 7:21 pm to Mingo Was His NameO
It’s quickly becoming a dying profession.
Posted on 7/25/18 at 7:22 pm to CoachChappy
quote:
It’s quickly becoming a dying profession.
I'd think so, but every salesman I've ever met tells you about how much money he makes
Posted on 7/25/18 at 7:23 pm to Mingo Was His NameO
you're jealous of the incredibly stupid yet incredibly attractive sales rep with big tits and how much money she makes aren't you?
i know i am.

i know i am.
Posted on 7/25/18 at 7:23 pm to Mingo Was His NameO
quote:
I'd think so, but every salesman I've ever met tells you about how much money he makes
Salesmen sell. Most of the time, it means they sell themselves.
Posted on 7/25/18 at 7:24 pm to CoachChappy
Not in petrochemical and refining
Posted on 7/25/18 at 7:25 pm to Mingo Was His NameO
Sales is an awful lifestyle unless your managing UHNWIs, clients interested in acquisitions, or institutional investors.
Posted on 7/25/18 at 7:25 pm to Mingo Was His NameO
quote:You've observed the wrong "sales" people.
It seems to me they are glorified order takers for the most part. Anyone can get online and find any product they want.
There are still a lot of businesses out there that have high competition in their markets. True sales is finding those opportunities and inserting themselves to sell the product and grab more market share.
Posted on 7/25/18 at 7:25 pm to Mingo Was His NameO
Eat what you kill
Pricing is still heavily guarded on expensive stuff.
For instance, go Google yourself the price of a new locomotive. You cant. Gotta talk to the sales guy.
Pricing is still heavily guarded on expensive stuff.
For instance, go Google yourself the price of a new locomotive. You cant. Gotta talk to the sales guy.
Posted on 7/25/18 at 7:26 pm to Mingo Was His NameO
You still have to wine and dine customers and convince them to buy your stuff over your competitor's stuff.
Posted on 7/25/18 at 7:27 pm to Mingo Was His NameO
quote:
I can find the exact specs of products online so if I were the device company why would I pay such a high commission for someone to go sell it?
You pay to have reps target certain products. Sure, you can look up details from your desk, but people in industries that buy from these companies usually don’t have the time and don’t know what they should buy.
If someone is an order taker, he’s a shitty salesman, even in my line where shelf orders are a huge part of it.
Most sales rely on finding new clients, something a manager at a desk doesn’t have time to do. Or explaining different products to a client, something a buyer doesn’t have time to learn or explain.
It heavily depends on the type of sales, but you seem very misguided.
Although I will admit, I’m in sales and clients have already started phasing out our services. Walmart started 2 years ago.
This post was edited on 7/25/18 at 7:29 pm
Posted on 7/25/18 at 7:28 pm to FearTheFish
Business relationships that are formed by sales people will never go away. It’s about the service and trust with your guy knowing he will get it done and deliver for you.
Posted on 7/25/18 at 7:28 pm to Mingo Was His NameO
Them urinal screens won’t sell themselves.
Posted on 7/25/18 at 7:28 pm to Mingo Was His NameO
Simple order takers probably don't make that much money.
But sales for complex products with high profit margins are a different matter altogether. My company is a major IT services provider and lots of our business is with governments across the world. Lots of deals are in the 8-9 figure USD range and we have teams of salespeople who have spent their careers building the right relationships and understand enough about a complex product to pitch what the customer stakeholders might want. Not only that, but they know the details of the regulations involving government contracts in multiple jurisdictions.
This kind of sales work is every bit as highly technical as a STEM job, they earn their money.
Another example is selling fighter jets. You can bet Lockheed and Boeing (and their Russian counterparts) have people who have spent the past 20 years of their professional lives meeting young Middle Eastern crown princes at major international airshows. Then when said princes become kings you'll want access to that relationship.
But sales for complex products with high profit margins are a different matter altogether. My company is a major IT services provider and lots of our business is with governments across the world. Lots of deals are in the 8-9 figure USD range and we have teams of salespeople who have spent their careers building the right relationships and understand enough about a complex product to pitch what the customer stakeholders might want. Not only that, but they know the details of the regulations involving government contracts in multiple jurisdictions.
This kind of sales work is every bit as highly technical as a STEM job, they earn their money.
Another example is selling fighter jets. You can bet Lockheed and Boeing (and their Russian counterparts) have people who have spent the past 20 years of their professional lives meeting young Middle Eastern crown princes at major international airshows. Then when said princes become kings you'll want access to that relationship.
Posted on 7/25/18 at 7:28 pm to Mingo Was His NameO
I know a regional sales manager for Cisco that lives in a 1.5 million dollar house around here. The ones that have moved up and get a percentage of the sales in their region can make a lot. I wouldn't want to do it though.
Posted on 7/25/18 at 7:29 pm to Mingo Was His NameO
quote:
Anyone can get online and find any product they want.
Do you realize how lazy and stupid most people are? Anyway most of the engineers I work with are dumb as a rock in the field I specialize in. It’s a very lucrative field, you just gotta be good.
This post was edited on 7/25/18 at 7:30 pm
Posted on 7/25/18 at 7:29 pm to Mingo Was His NameO
In the it world, you dont just have a salesman, you have a sales team that sell to you. If you're making multimillion dollar decisions, you usually want someone holding your hand showing you why you need this product. Just my .02
Posted on 7/25/18 at 7:30 pm to Mingo Was His NameO
Depends what your selling, if your selling to high end buyers you can make great money. Most sales jobs are cyclical, I'm in the institutional fixed income investment business...right now it sucks, but when it's good it is great. Top guys make really big money.
Posted on 7/25/18 at 7:30 pm to FearTheFish
quote:
There are still a lot of businesses out there that have high competition in their markets
I don't disagree, but it seems product differentiation or pricing is the biggest factor now. 25 years ago the salesman could get in early and create that relationship. Now as soon as that guy leaves I can just get on Google for 95% of things.
quote:
True sales is finding those opportunities and inserting themselves to sell the product and grab more market share.
Again, I agree, but this seems to be less and less about relationships and more about the product they peddle
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