What is sales quota? Explain.

What is sales quota? Explain.

The sales executives are given certain targets to be fulfilled within a given period of time. This is called sales quota. The sales quota so fixed can vary according to the organisation objectives.

They may be assigned a certain volume of goods say 6000 units in a year or Rs.40,000 worth of goods within the next 6 months. Sometimes the quotas maybe fixed on the basis of the profit margin rather than the volume, then it is known as profit quotas.Here, the company asks the sales executives to try to maximize the profit margin that they get out of every sale they make.