Collegiate Promotions
A Sales Examination Exercise
Collegiate apparel is perhaps one of the most popular in terms of clothing and accessories in the United States. Sports team apparel is also quite high, but collegiate apparel does seem to take over the lead, for it appeals to so many more people-males and females alike. In fact, collegiate apparel is rated on internet websites, which can provide links to the best places where to buy these kinds of clothes. The exercise below aims to reference a sales study that was involved with various collegiate items, and will answer the five questions relating to strategy and profit.
The first question was whether the compensation system at Collegiate Promotions was effective in this particular exercise. In order to answer this question, one must examine this compensation system. In this case study, the company did not set an absolute price for products, according to the short summary provided. Instead, Collegiate Promotions utilized a "wholesale plus" pricing strategy so that its sales representatives could sell within a certain range. This range was from 30 to 50% higher than the wholesale price for these various items, which included mugs, clothing, and others. For example, according to this case, if the wholesale price for a mug is $10, the representative...
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