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Setting Quotas for the Company and Sales Representative

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Most companies set annual quotas. Quotas can be on dollar sales, unit volume, margin, selling effort of activity and product type. Compensation is often tied to the degree of quota attainment. What problems does the setting of quotas present to both the company and to the sales representative?

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This solution discusses setting quotas for the company and the sales representative.

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Quotas, when used right, can be a motivational tool and increase profitability and morale. However, if they are not used correctly they can be ...

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