If you create your own sales or should you outsource it? The standard analysis of the cost-based and suggests that direct sales is a fixed cost and the cost of external sales varies depending on sales. The standard analysis then calculates the volume of sales, in which the cost of direct sales equal to the cost of outsourcing sales and assumes that the sales volume is higher than the amount the company should use the direct sales. This analysis has two problems. First, a number of other cost factors not included in the standard analysis. Second, the standard analysis considers only the cost, ignoring the coverage efficiency and effectiveness of sales difference between the two sales forces. Details and develops both problems. "Hide
by Frederick Delsace, Erin Anderson, William T. Ross Jr. Source: Business Horizons 14 pages. Publication Date: January 15, 2005. Prod. #: BH142-PDF-ENG
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