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Salespeople's territories

Salespeople normally are prohibited from going outside their territorial boundaries in search of business. Sometimes, however, a customer located in one district will voluntarily seek out a sales rep or branch office located in another district. Perhaps this customer can realize a price advantage by buying outside his/her home area.

Answer the following questions:

What should be the position of the seller in these situations? Should it reject such business?

Should the seller insist the order be placed in the territory where the customer is located?

If the order is placed in the foreign territory, should the salesperson in the customer's home territory be given any commission or other credit?

Solution Preview

The seller should pursue company's policy, code of ethics and rules in this situation. If the company prohibits such sales outside of his territory, he should definitely reject such business and insist that the order be placed in the territory where the customer is located. However, if the company rules ...

Solution Summary

Salespeople normally are prohibited from going outside their territorial boundaries in search of business. Sometimes, however, a customer located in one district will voluntarily seek out a sales rep or branch office located in another district. Perhaps this customer can realize a price advantage by buying outside his/her home area.

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