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Determine about the Sales agents
Normally used for more effective sales and marketing activities for a product for example AVON (cosmetics) door to door agents in the UK.
- Flexible pool of labour to recruit from
- Commission only reduces risk e.g. financial flexibility of variable rather than fixed cost of paying representatives.
- Sales push cultures 'can harm the organisations reputation
- Loss of contact with the customer by the organisation
- Control over reputation can be costly to support e.g. recruitment and training for a geographically dispersed pool of self-employed labour
The amount by which the market price exceeds the conversion value or the investment value called the premium. When expressed as a percentage, it is given by,
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