Question

Topic: Other

Incentive

Posted by Anonymous on 3/4/2010 at 4:38 AM ET 25 Points
is it right to pay extra incentive for the salemen when i launch new item?
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted on 3/4/2010 at 4:40 AM Author
    is it right to pay the sales men extra cash incentive for the new item we i launch it?
  • Posted on 3/4/2010 at 5:23 AM Author
    is it right to pay the sales men extra cash incentive for the new item we i launch it?

  • Posted by Jay Hamilton-Roth on 3/4/2010 at 8:32 AM Accepted
    Why would you need extra incentive for salespeople to push your product? If your product solves a need better than anything else, then your product should sell itself. If your product requires more effort to sell, then additional compensation may be required by the salespeople. However, the practice varies from company-to-company.
  • Posted by michael on 3/4/2010 at 8:44 AM Member
    By "right" do you mean correct, ethical or a good idea?

    There's never anything wrong with paying an incentive. The question is always whether you would have gotten the business anyway.

    If no, then yes. If yes, then no.

    Michael
  • Posted on 3/4/2010 at 3:53 PM Moderator
    What industry? What country? What do others in your business do? Captive sales force or independent reps? B2B or B2C?

    The answer to your question will depend to a large degree on the answers to these questions.

    Separate issue: No female salespeople?
  • Posted by steven.alker on 3/5/2010 at 5:29 AM Member
    If it’s harder to sell due to a lack of track record or perceived pricing, yes. If it’s new and your research has indicated that it should be in demand once released, no.

    We rarely changed the incentive on new products, like recording electronic thermometers when they came out in the late 1980’s - we knew that the market wanted them and we were the first to make them. Salesmen devoted all of their field time to them so sales of other products nearly fell off a cliff whilst the new product sunk into the customers buying cycle. We had to manage that.

    Then once the forecasts started to turn into orders, we all popped out and bought a Porsche or a Ferrari in order to spend the bonus!

    Steve Alker
    Xspirt

BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Other)