Products distributed at collegiate promotion company determine the payment made to the sales representative. The amount of compensation one gets from the sales is effective if one sells highly. In order to receive a high commission one is supposed to sell higher than the retail price, for instance if for every mug one sales i.e. $13 than the amount of wholesale i.e. $10 then he/she receives a commission of $1.50.Therefore, it simply means that for every sale one makes, the higher the commission one receives in return (Stewart & Brown, 2008). It is with respect that the compensation that is received is very effective to the sales representatives and that the more the potential one exerts gives him /her good pay at the end of the sale.
For any representative to really earn a good amount of commission at the end of the sale, then he/she is supposed to aim at selling highly. By selling at lower price it is possible that one can get more customers but the amount of commission that one will earn at the end of the sale will be very small. Therefore, sales representative value selling at a higher price so as the commission can be high (Stewart & Brown, 2008). Furthermore it is important for the sale representative to sale at a higher price for example if one sale a t-shirt that costs $30 dollars in a wholesale price for $45 dollars then one earns a very good commission than when you sell the product for $35 dollars or bellow.
Collegiate promotions are possibly made at higher prices because if one sells at a higher price the commission is also high, but if one sells at a lower price then he/she receives a lower commission. It is therefore, the obligation of every sale representative to aim and sell highly so that he/she can earn more commission. Collegiate promotions on the other hand depend with the number of customers one has since, the more the supply the more the money one makes. Sales representatives always aim at reaching for the highest prices possible so that by the end of each sale one will be paid in accordance to the sales, it is by this reason that each individual at collegiate promotion sells highly so that the payment will be high.
It is very possible that through restricted geographical sales routes, sales representative face a major challenge of sales that one target to sale. It is also possible that many of the representatives have targeted the same clients and for this reason the sales become very difficult. Many sale representatives have the problem of selling their commodities and it becomes very difficult to sell since every individual who pass through that area has his/her own price regardless he/she doesn’t sell lower than the wholesale price.
Any independent supplier may for some reasons be committed to the collegiate promotions for instance if the products the individual supplies are of high quality and of good and marketable price (Stewart & Brown, 2008). The supplier is only committed if the wholesaler buys the products at a better price, thus enabling them get more commission. It is also probable that the supplier will be committed to collegiate promotion if they are offering wonderful market prices. In addition, sales personnel will be committed if for sure they are getting the commission one has done the sales.
Reference
Stewart, G., & Brown, K. (2008) BUS530: Human resource management (1st Ed.). Hoboken, NJ: John Wiley & Sons.