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A concrete example: a company might offer two ways of doing things: - an "old way", which is more expensive, but more easily understood by sales and gives them
by jayofdoom 8y ago
A concrete example: a company might offer two ways of doing things:
- an "old way", which is more expensive, but more easily understood by sales and gives them more commission because it's base price is more expensive
- a "new way", which while cheaper and better from a "meta" business standpoint, doesn't bring in as much for an established sales person, because the overall sale would be smaller, and on top of that, they have to make the effort to understand how to sell the new way.
I've seen several higher-quality products get choked out because of this pattern happening, and sales being accidentally-incentivized to keep people in the old, pricier way of doing things.
- paulddraper 8y ago> more expensive Lower margin products carry lower commissions. (Or should, at least.)