Essay about Outdoor Sporting Goods Case

1395 Words Dec 7th, 2011 6 Pages
Background
Outdoor sporting productions manufactured and distributed sporting equipment, clothing, and accessories nationwide. The company has annual sales volume between $6.2 million to $6.8million with approximately 700 items in its catalog. Those items can be group into three segments: fishing supplies, hunting supplies and accessories.
Sales Force & Issue Sales forced played an important role in the company, since the company doesn’t use any magazine, newspaper, radio or other media advertising. Outdoor has 11 full time sales peoples in total, ranging from 23-67 years old, and each salesperson is required training to learn the product before they take over a territory. Each salesperson is responsible for their own territory, they
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Commission can be withdrawn each week from the salesperson’s guarantee, and salespeople get paid for their traveling expenses as well. They also get a $70 bonus if they are willing work on Saturday and Sunday night. Letting salespeople withdraw their commissions is an absolutely drawback because salespeople feel discouraged when they see their commission account reach zero balance. They feel all the effort and work has not paid off. Paying additional $70 just for those salespeople work on Saturday and Sunday is ineffective; if the sales staff is responsible for their own schedule they should receive close to the same amount on a Saturday or Sunday as any other day. Salespeople can earn cash rewards under two incentive plans: the first one is a total $10,400 paid to five salespeople that had significantly increased in sales volume over previous year. The second plan is a weekly sales increase award for each week in which their sales volume compare than previous year. The company’s comptroller and production manager submit a new compensation plan proposals. The new proposal will discontinue these current incentive plans in effect. Now let’s take some time to conclude some major issues: first of all can straight commission actually motivate salespeople and is it the best incentive plan. Secondly, Mr. McDonald should also consider is

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