Your recommendation 12 oustomer Services and Retail selling s31 sell After consulting is have a to increase in average transaction Th two-day workshop would cost $5,000. with training on size of s30 and an increase in the conversion rate of preceding information, the pact on annual sales of the proposed program. show Jane's Attic in a major 2008, Whitler decided to the metropolitan area in a used store. moved last years was Southwest United States, and part of the growth of the an increasing retired that to spend their from the Midwest Many of the retirees moved years and Northeast they neared retirement. this to this city in the Many of the aging back in the mid-1970s were now One of the conse population was that fine quality used furniture at decades earlier. tired of the upkeep on prices. In addition, more and more retir sales of Increasingly, the houses th their many they were deciding to move into retirement villages, and this trig joked back the sales volume home furnishings By end lane was very at the last of Jane's Attic nearly $2 million. At the same t Jane two years and, although sales rose from $650.000 1.000, why she was still losing money. In 2009, she lost s68000, in 2010 the loss was able. and in 2011 it was down to s20.000. She was determined that 2012 would be profit But, she also noticed that sales were beginning to plateau. and thus, could not silly grow her way out of the problem Recognizing that her biggest operating expense was compensation of 10-person sales force, she decided to consider the possibility of a new sales force compensation sent plan gave each salesperson a $1,500 monthly base salary and commission on an 8 percent les they generated. Thus, an employee with s200,000 in annual sales would receive 8 percent or $16,000 and also a base of s18,000 or a total of s34000 On top of this were fringe benefits that averaged 25 percent of compensation. Jane wondered if she should lower the base salary to perhaps as low as si 000 monthly and then perhaps increase commission rate. She asked Ted, her brother, who had spent his entire career in business- business sales if she should consider establishing the commission as a percent of gross mar llars generated on each sale. He felt this was an especially viable option because Jane e to negotiate the selling price, if the salesperson got her permission. line was not at the store. the salespeople could call her to discuss for permission recently Jane concerned that Hector was calling her too often pleading became No lower the selling price. prepare sales statistics that might help her John Barnes, her accountant, to data prepared is presented consider compensation plans. The John performance different sales establish some minimum clients accompanying exhibit. Jane also wanted to retail for her mentioned to her that some of his other have salespeople. John merely order takers, tried to lespeople or order getters versus annual compensation benefits in gross least twice and ideally three times their compensation and margin margin dollars if salesperson had total gross of $50,000 they needed to generate between S100000 and S150.000