Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: The Duke of URL© who wrote (2066)	10/29/2002 1:14:45 AM
From: Night Writer	Read Replies (1) \| Respond to of 4345

Sorry, but I disagree with you. My disagreement is based on field experience, and field management experience. Smoothing personal and company results is desired by almost everyone including senior management and stockholders. When results are coming up short, there is a drive to increase sales. When results are more then adequately met, everyone is happy and relaxed. They also don't cut prices to meet sales goals and margins go up. Nothing wrong with letting a few orders slide until next quarter.

To: The Duke of URL© who wrote (2066)	11/2/2002 12:23:50 AM
From: rudedog	Respond to of 4345

Duke - I agree with NW. Let me give you a one scenario I have been involved with. In this case, a customer was waiting until end of the quarter to buy, pushing for an "extraordinary discount" and betting that the quarter would be tough and he would get the reduction. The field team, based on guidance from their management, was told not to give the additional discount. Sales were on target and they wanted to preserve margin. Quarters that are tough invite cut-throat pricing to close deals, which hurts margin and also makes it tough to sell that cutomer at a higher price in the future. If the sale is not needed to make the revenue targets, and the sale is not likely to be lost to the competition, sometimes it's better to hang tough. Those are of course all judgement calls. The sales team works on a complex mix of incentives, and no salesman likes to lose a deal or defer his or her own compensation, so the bias is always to get the business. But in a well run field organization, especially close to the end of the quarter, the priorities shift depending on business needs and are communicated, often daily, to try and achieve the best overall results, not just the highest revenue numbers.