Pro Audio Sales Agent Program 1. Major Facts / Major Problems: – The program is an administrative nightmare at retail level – Retailers have problems in delivering the product -many dealers were spending time training customers and later losing them to other dealers. -there were errant sales agents working against the retail price -the product image of PSX-360 was on the verge of damage because of the new plan. 2. Possible Solutions: Solution A: Control the retail price of electronic, and sound processing equipment through public awareness programs Pricing is a relevant issue in procurement at all levels.
Individuals purchasing the commodities of an organization should receive clarity on pricing. There is confusion in this organization because dealers are giving different prices for the equipment. This makes customers shop around for the lowest price and buy from such a dealer. Ensuring the same retail price for all dealers will ensure a level playing ground for all the dealers. This means that customers will buy from any dealer in the market. This will help in streamlining the market and reducing the problems faced currently. Solution B: Canceling agreements with errant sales agents
The reason for the state the organization is facing might be the issue of errant sales agents. These rights should be cancelled to ensure that all dealers have a say in the market. This will stop dealers who take local markets from far, leaving local dealers with no market. This will ensure that sales increase in the market without having to sideline other dealers. 3. Possible Solutions: Advantage A: Controlling the retail price ensures that dealers get a level playing field. Furthermore, dealers will not lose customers after training them. This is because the retail price is the same at all levels.
The problem of persistent discounting of products will be solved with a common price. Complaints on the loss of sale by other dealers will be an issue of the past. Evaluation of the sales agents was a step in the right direction for Pro Audio. Disadvantage A: The errant sales agents who were getting the largest chunk of profits will lose in this new move. This is because other dealers in the market will get an opportunity to sell their products in the market. Customers can get products locally with the change. Some suppliers can still get a way of working around the pricing issue to increase their sales.
Advantage B: An increase in sales will translate to profitability in the organization. This in turn translates to revenue increase in the organization and dealers. Canceling agreements to exclusive rights of sale will give all dealers similar opportunities. This means that the dealers in the market have an opportunity to reach any consumer. Additional dealers will help in leveling the playing field. Disadvantage B: Canceling sale agreements may constitute a breach of contract, which means that dealers can sue the organization where there is no proof of error.
This cancellation might make dealers feel shortchanged in the organization. This means that it is critical to have a clear direction so that such occurrences do not happen in organizations. 4. Choice and Rationale: Solution A: Control the retail price of electronic, and sound processing equipment through public awareness programs. Rationale Pricing is a pertinent issue in procurement and acquisition in organizations. Consumers buying the commodities of an entity should get clarity on pricing related issues. There is uncertainty in Pro Audio because dealers are presenting differing prices for the products.
This makes buyers look around for the lowest rates and buy from these dealers. This means that customers will buy from any dealer in the marketplace. Maintaining the same retail price for all dealers ensures a level playing field for all the traders. This will help in reformation of the market and reduce the troubles faced currently by Pro Audio. Furthermore, making the customers aware by providing a hotline where queries can be lodged is relevant. Public awareness gives consumers information that helps them in making sound decisions. In this context, any retailer found on the wrong loses the contract. 5.
Implementation: 1) Termination of old contracts would be the first step. This would mean that the terms would change to favour the retail market. 2) New contracts would be given to suppliers to ensure that they are aware of the retail terms of agreement. These contracts must be given on the basis of performance. 3) Retail agents should be hired to train and demonstrate consumers on the use of the products in all dealerships. 4) Orders will be processed by the company on the basis of payment to avoid losses. 5) The prices for the products should be fixed to stop issues of discounting and negotiating with dealers.
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