Refer to the scenario below to answer the following question(s).
Reliable Tools Company is a manufacturer of hubs and axles for the trailer and heavy truck industry. Although Reliable Tools only has 15 customers, the company is the sole supplier of hub and axle components to those customers. Monthly sales at Reliable Tools are approximately $1 million. "You might say we have all our eggs in one basket," says owner Arthur Deetz.
It is critical that a competent sales force be maintained in order to nurture those few but large accounts. Ninety-five percent of Reliable Tools' customers are located in Michigan, Ohio, and Indiana, which means that travel time to all customers is relatively short. However, given the nature of the industry, time spent with each customer is crucial.
-Several compensation plans are available to reward and motive Reliable Tool's sales people. Since generating new leads and new business can be a goal for the sales force, which compensation plan approach is MOST likely to motivate and direct the salespeople in that direction?

Question

Quizplus · Accepted Answer

A compensation plan that includes salary, commission, and bonus is most likely to motivate salespeople to generate new leads and business, as it provides a stable income (salary), rewards for sales made (commission), and additional incentives for achieving specific goals (bonus).

Refer to the Scenario Below to Answer the Following Question(s)