Selling 9th Edition by Stephen Castleberry,John Tanner

تمرين 11

Energy Master Controls, a manufacturer of heating and air-conditioning control systems for commercial properties, has the following compensation program. Reps are paid a $3,500 draw per month, with straight commission paid on a point system and a bonus based on quota performance. The SmartMeter, Energy Master's newest product, does much the same thing as the older Flex- Meter but 30 percent faster and with greater accuracy. The point system is shown in Table 1
Table 1

Reps are paid $5 per point, or $5,165 plus a bonus of $500, if they sell quota for each product, for a total of $6,675. The total number of points to reach each month is 1,035, but reps have to reach quota for each product to get the bonus. Tables 2 - 4 show the performance of the district.
Table 2

Table 3

Table 4: Total Sales Calls

The VP of sales managed to get the product specialist idea approved by the CEO, even though the CEO argued that the salespeople were just too lazy to make the effort to sell the SmartMeter. "Lower the compensation on it to the territory reps, and everyone will sell the FlexMeter at its lower price," the CEO says. "The best way to get more SmartMeter sales is to cut compensation on the FlexMeter to 20 points." What do you think should be done? Why?