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
What are the 3 types of expense reimbursement programs?
unlimited plans, per diem plans, and limited repayment plans
Why is paying a premium NOT good?
It leads to resentment from other employees who end up making less than salespeople
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
What type of plan does the company set dollar limits on each category of sales expense?
Limited repayment plans
What types of expenses are optional in a compensation plan but becoming more common?
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 type of plan does the salesperson gets a fixed amount of money for each day or week?
Per diem plans
What TWO things should a compensation plan 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%
What type of plan is when as the salesperson you would be reimbursed by the company for whatever itemized expenses you report to them?
Unlimited plans
When evaluating your plan, what should you be comparing?
Last year's sales figures and the projected sales figures under your new plan