Balancing wages against company resources
In the E-Z-GO example, what were employees forced to do under the new payment plan if they were unable to maintain a price premium?
Take a pay cut
Under which compensation plan do salespeople earn the most on average?
Fixed pay + Incentive
Why is paying a premium NOT good?
It can cause resentment from other employees (including executives) who end up making less
According to the customer product matrix, what type of compensation plan would a sales rep handling account management likely recieve?
Straight Salary
Which compensation plan is used the least among companies?
Straight Salary
Which types of expenses are NOT required but becoming more common?
Car expenses, lodging/traveling, food, entertainment
Under the customer product matrix, a sales rep pursuing new customers would likely recieve what type of compensation plan?
Straight commission
Under a fixed pay + incentive compensation plan, why are sales reps discouraged from leaving their firm after making a large sale?
Compensation plans are spread throughout a period of time.
What are the TWO things payment plans should consider/offer?
Control and incentive
What product did the E-Z-GO company manufacture?
Golf Carts
What is a typical commission range for commission only sales jobs?
5-14%
When evaluating your compensation plan, what should you be comparing?
The previous year's sales figures vs. the sales figures that would result from the new plan