Restructure compensation of sales force to enhance profit

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You are a manager of a Door to Door Vacuum Cleaners, Inc. Each salesperson is paid a base salary plus a percentage of revenue she or he generates. In addition, each salesperson drives his or her car to and from each sales call and is reimbursed $.40 per mile driven. On average, each sales person drives about 150 miles per day and 240 days per year. As a manager of the Door to Door, how might you restructure the compensation of your sales force to enhance you profits? Are they any potential disadvantages of your plan? Explain?

Reference no: EM13899128

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