Sales conditions commission

Sales conditions commission - In the case of sales-related commission, the seller is tempted to grant the customer generous payment terms, ie to conclude risky deals. In addition, many sellers do not feel responsible for the slow receipt of payments or the high outstanding amounts. These disadvantages can be mitigated by the fact that the turnover achieved is only rewarded when the corresponding payments have been received.

Another possibility to accelerate the receipt of payment is to make the commission rate dependent on the turnover rate of the receivables. The commission rate is higher, the shorter the turnaround time of the receivables. When introducing a sales condition commission, however, there is a risk that sales will decline somewhat because some customers react negatively to the supplier's restrictive credit policy.

In this case there would be opportunity costs. The sales and financial effects of the sales conditions commission must therefore be carefully weighed before a decision is made.

Was the explanation to "Sales conditions commission"Helpful? Rate now:

Weitere Erklärungen zu Anfangsbuchstabe "U"