Precise Software

1563 Words7 Pages
1. In assessing the value of Precise SQL for the user firm one has to consider increase in DBA productivity. Assuming 52 weeks in a year, how many hours does a DBA save in a year because of Precise? 3 Points DBA Hours Saved per year 52 * 9.4 488.8 DBA Hourly Wage (assuming 40 hours to a week) 3 Points Unburdened DBA salary $60,000 Hours worked Per Year 52 * 40 2080 Burdened DBA salary 1.33*$60,000 $79,800 DBA Hourly Wage (unburdened) $60,000/2080 $28.84 DBA Hourly Wage (burdened) $79,800/2080 $38.36 Annual Saving for the customer firm Hours saved per DBA per week 9.4 Hours saved per DBA per year 52 * 9.4 489 Savings per DBA per year (unburdened) 489*$28.84 $14,102 Savings per DBA per year (burdened)…show more content…
Each rep is paid a base salary of $75,000 plus a commission depending on how many licenses they sold. The average rep made sales of up to $800,000 annually and thus earned $120,000. The highest paid rep about $300,000. Options: a) Keep the same sales force Advantages - Able to continue to cultivate existing business relationships with IT managers and DBA's. Since the sales cycle of software, especially of higher priced suites, could take up to 12 months, these relationships could prove beneficial for a new product launch. Their overall knowledge of Precise products and services is also an advantage, allowing the sales rep to leverage the full specter of Precise product offerings to a potential client. Disadvantages - The current sales team is perhaps not the best. Their annual sales and salaries are below average for commercial software sales forces. It may not be the wisest decision to leave the sales of your newest product in the hands of an underperforming team. Additionally, the current sales force is already heavily tasked, as Alon stated "They're running in ten directions at once." Adding to what appears to be an already overloaded sales team would not be the optimum way to introduce a new value and feature laden product to the market. b) Create a more specialized sales force Advantages - Precise would be able to recruit top
Get Access