Evaluate whether or not the compensation system at Collegiate Promotions is effective.
I think that the compensation system at Collegiate Promotions is not effective. The system that
they currently have at hand only rewards the employee if he/she sells an item. It’s stated that the individual can raise the price of the wholesale product to 30-50% above wholesale price. The compensation package that Collegiate Promotions have could be seen as being an at-risk program. This type of reward system fluctuates, and can even result in an employee not receiving any compensation if he/she does not sell any products for the week. If the employee becomes ...view middle of the document...
Discuss reasons a sales representative would try to sell at both the top and the bottom of the price range.
The sales representative would sale at the higher end of the spectrum in order to maximize the amount of profit received for the effort put into selling the product. A career as a salesperson is not an easy job even if you have a product that is highly sort after. For example if a salesperson set up at a football game where there are more than one vendor selling the same product. In order for the vendor to make a profit that person would have to sale said product at the top end of the spectrum if they don’t then the time and effort put in may not beneficial for the vendor.
Predict whether the most sales are made at the top or bottom of the range of possible prices. Explain your prediction.
Yes, I would say that most of the sells are made at the top end of the spectrum. Why is this the case? Because, the salesperson needs to make the most profit from the product that they are selling. First of all the salesperson has to make enough money to recover the start up cost. The salesperson also has to cover the time, gas, storage and other necessities needed to run an independent sales operation. Also with there being more then than one or two independents the competition to sale...