COLLEGIATE PROMOTION

Collegiate Promotion

Collegiate Promotion

Q1. Evaluate whether or not the compensation system at Collegiate Promotions is effective.

The compensation method that is in case study is commission based compensation. It is effective to get the sales person engaged with their work. It means sales representative has to give a percentage of sales made and defined once and is very easy to calculate, just simply add their sales for the month and apply the commission rate preset. This method is very motivating, but provides very little security to the seller, because if the external conditions have changed or the seller has some personal problem which does not sell anything in a month, your income will be zero. It also has the disadvantage of being only a fee; do not feel part of the company, when every other person will be selling same collegiate products and are not considered actual employees. Another limitation is that the sellers just want to give them sales activities to win, and leave out the service activities because, they feel they do not win anything with them.

Q2. Discuss why a sales representative would try to sell at the top of the price range? Why at the bottom of the price range?.

A sales representative would sell at the price of 30 to 50 percent above the whole sale price in order to get the maximum commission on every sale that the sales person makes. Selling at the bottom of the price range in order to increase his sales so the more sales he makes the more commission he gets. Customer will undoubtedly opt for that sales representative who is selling at low price.

Potential workers will be comparing wages, compensation, benefits, and organizational structure. Employers have been surveying the job market, and construction comparable and enticing paid work opportunities. Throughout this paper, an analysis of various compensation procedures and advantage programs visited (Schermerhorn, 2005).

In the diverse world that built around us, compensation methods and benefit opportunities are plentiful. As people enter they workforce for the first time, their fundamental need is for a sufficient income, enough to pay the bills and support all necessary female obsession. Beyond the prerequisite, of a salary, the needs and desires of people are as diverse as each person.

Q3. Do you predict that most sales at the top or bottom of the range of possible prices? Explain.

Yes it can be predicted that most of the sales representative would be selling at the top of the range price in order to get maximum compensation. Since anyone can sell the collegiate then, it increases the fear of having competitors in the markets. So additionally we can say that sales representative might sell at the bottom of the range of possible prices to gain competitive advantage against other sales persons (Hollenbeck, 2004).

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