In a pay system based upon commission,rewarding only sales volume can lead salesmen to heavily discount merchandise.

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Salesmen may heavily discount merchandise to increase sales volume and therefore increase their commission payout. This can negatively impact the profitability of the company and the value of its products. Therefore, a commission-based pay system should also take into account factors such as profit margin, customer satisfaction, and repeat business in order to incentivize salesmen to sell products at a fair price and prioritize the long-term success of the company.

In a Pay System Based Upon Commission,rewarding Only Sales Volume