Sales discount commission

Sales discount commission - The assessment basis for this form of commission is the sales achieved by the seller. The lower the discount granted, the higher the commission rate.

Advantages of the sales discount commission:

The sales force sells in a profit-oriented manner. The profitability effect is greater, the smaller the discount levels are, from which a different commission rate applies.

The sales management is relieved, as the discounts or prices can be set independently by the seller within the given framework.

Disadvantages of the sales discount commission:

There is a risk of customer annoyance if the different discount rates become known (discount spread).

Der Außendienst konzentriert seine Verkaufsbemühungen auf diejenigen Produkte und Kunden, bei denen er die geringsten Rabatte einräumen muss. Dieser Konzentrationseffekt kann der Distributions- und Product range policy des Unternehmens widersprechen.

With an extensive range, the calculation of the commissions for the individual seller is very time-consuming.

The graduation of the commission rates according to discount rates is a difficult optimization problem.

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