Compensation--A Tale of Two Distributors
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Although they were previously done haphazardly, SBF's evaluations now occur both monthly and quarterly. One thing that these evaluations have always been is frank. "We shoot it straight," said Grayson. "We call a spade a spade, and everyone is fine with it."
Instead of reporting each salesperson's gross profit figure for a particular month, Grayson reports the percentage of profit, compared to last year. "I inform the sales representatives whether they are plus or minus from the same month in the previous year," said Grayson. "It provokes a spirit of competition."
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