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What is generally better for SALES performance evaluation: "based on revenues" OR "based on profits"?

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Question added by Khatim Abbas Seed , BUSINESS CONSULTANT , Google
Date Posted: 2014/05/03
Anas Bawaked
by Anas Bawaked , Central Stock Control Manager , Panda Retail Company - Saudi Arabia

It depends on what level of sales you are evaluation, in many companies the sales team at the floor is responsible for the value of revenue withount considering the margin where this is already set up by a higher level of sales. So in this matter you can only evaluate their saes performance based on revenue.

Who you can evaluate based on profits, is the sales or product manager or who is responsible about pricing. Where those people are aware that the company must generate this profit by the end of the Q or Y.

 

Actually all of the mentioned above should be working together where they all related to each other and they all affects each other. But at the same time, each level should focus in their responsibilities and targets where they all should meet at the end.

IRPHAN GHANI
by IRPHAN GHANI , Senior Management , A

Both are important.

Revenue drives increase in customers base, sales transactions and company's turnover.

Profitability drives surplus income for employees and more business opportunities for the employer.

 

Mohammad Tohamy Hussein Hussein
by Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

For profit company's should evaluate sales pefromance based on profits calculated based on standard product(s)/service(s) cost.

zafar abbas minhas
by zafar abbas minhas , Freelance Writer , DAILY MASHRAQ

BASED ON REVENUE

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