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In this video we give you 5 ways that a sales rep could be stealing from you.
1. Credits are high - Sales rep is inflating sales to increase commissions. These extra sales are coming at the expense of your business because it is product that the customer will be unable to sell. Either the customer will refuse this extra product or the customer simply won't be able to sell through and you'll have credits left over.
2. Sales Rep Doesn't Visit The Customer - Here the sales rep takes the order from home or over the phone. This means that the customer is not actually visiting the customer. By not visiting the customer the sales rep may be under/over supply the customer and you may be losing sales or too many credits.
3. Abuse Price Changes - Sales reps will drop pricing and squeeze your margins to increase volume. You can combat this by paying on gross profit instead of sales. A gross profit system will protect you against shrinking margins.
4. Sales Reps Stealing Customers - Sales reps that have all of the liberty in the world have the potential of stealing your customers and servicing them under their own distribution company. When this happens you will start seeing a drop-off in sales. Keep an eye on your customer sales over time to protect yourself from this.
5. Sales Reps Taking Promo Product - Every company has promo product that they give to sales reps. This promo product is often used to drive new business. The problem is that this promo product is often valuable and not tracked by the parent company. Therefore, the sales rep can steal this promo product and no one would find out about it.
