Here are two case studies with tactical illustrations of how two separate distributors revised longstanding sales compensation plans to adapt to a new competitive environment.
The Margin Conundrum
This
is an example of a straight-commission compensation program with a few twists. The company was clear on what it was trying
to accomplish and did a good job of communicating and transitioning the sales representatives to the new program.
The net profits of a multiple-branch building products distributor kept decreasing as sales and prices for the products sold were increasing. Investigating the cause, executives realized that sales representatives were not passing along price increases to their customers. Asked why, the sales ...
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Here are two case studies with tactical illustrations of how two separate distributors revised longstanding sales compensation plans to adapt to a new competitive environment.
The Margin Conundrum
This
is an example of a straight-commission compensation program with a few twists. The company was clear on what it was trying
to accomplish and did a good job of communicating and transitioning the sales representatives to the new program.
The net profits of a multiple-branch building products distributor kept decreasing as sales and prices for the products sold were increasing. Investigating the cause, executives realized that sales representatives were not passing along price increases to their customers. Asked why, the sales ...
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