Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

do you agree or disagree and what do you like or dislike about the discussion? The compensation system at Collegiate Promotions is designed to attract,

do you agree or disagree and what do you like or dislike about the discussion? The compensation system at Collegiate Promotions is designed to attract, retain, motivate and reward a quality work force of independent sales representatives. It is highly effective as it helps achieve more sales, faster, and at a lower cost than other recruiting methods. However, there is an opinion that the compensation system currently being used at Collegiate Promotions is not effective, as it only benefits the employees if they make a sale, which has the potential to hurt both the employees and the company. A company that distributes products marketed to students and alumni of major universities. They use a wholesale plus pricing strategy that allows sales representatives to sell within a relatively broad range, which is normally 30 to 50 percent higher than wholesale.
A sales representative would want to sell at the top price range where there is less competition and the volume of items needed is low. A sales representative would want to sell at the bottom of the price range where there is more competition to out beat their competitors and where the volume is high.
Therefore, it seems that sales representatives may try to sell at the top of the price range to maximize their commission when the volume of items needed is low. On the other hand, they may try to sell at the bottom of the price range when there is more competition and the volume of items needed is high. However, I could not find any data to predict whether most sales are made at the top or bottom of the range of possible prices. sales representatives may want to price their products at a lower sales price when there is more competition in the same geographic location. They may also want to focus more on internet sales. Independent contractors may not be very committed to Collegiate Promotions since they only earn a percentage from the sales they make. This means that in seasons when the business goes down leading to low sales, they are likely to earn less leading to a lack of motivation. This leads to a decrease in their level of commitment. Collegiate Promotions is effective since most sales representatives will sell at the top of the price range in order to increase their earnings. Some sales representatives will also opt to sell at the bottom of the price range because through that they realize more sales compared to those selling at the top of the price range. In this case, the greater the sales made on goods, the larger the amount compensated for by the company.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Measurement Theory In Action

Authors: Kenneth S Shultz, David Whitney, Michael J Zickar

3rd Edition

9780367192181

Students also viewed these General Management questions