Personal Selling Opportunities in the Age of Information

CHAPTER 2: Personal Selling Opportunities in the Age of Information

Question 1: List the Pros and Cons of this job opportunity

PROS
CONS
*Ron can earn more money than he earns with his current job based on commissions ($50,000-$60,000).

*Ron gets a new car.

*Ron’s living expenses will be paid for.

*Because Ron’s commissions are based on the number of boats his dealers sell, he has less control over his earnings.

*There is no guarantee of a secure income.

* Ron has proven experience in his current job and the opportunity to advance to a supervisor position. There is no clear career path with this new job.

* Ron’s new job does not offer the same benefits as his current job. These benefits include a good insurance and retirement program, two weeks of vacation and sick leave.

Question 2: On the basis of the information given should Ron accept the new job? Why or Why Not?

After assessing the pros and cons of both jobs, Ron should not accept this new job offer. While Ron is an opportunist and has the potential to earn more money in the new job, his current job provides financial security, a clear career path and lots of extra benefits. The new job has a “draw against

commission” compensation which is equal to the salary of his current job. The draw against commission usually indicates a person’s expected earnings. Because Ron’s expected earnings for his new job is almost the same as his current job, he should not accept this new job. On top of this, Ron’s commissions are based on the number of boats his dealers sell, so he has little assurance of a secure income.

CHAPTER 5: The foundation for Relationships in Selling

Question 1: Has Dana Davis’s behavior been ethical? Why or Why not?

Dana Davis’s behavior has not been ethical. Firstly, Dana should not have asked the clerk for information regarding the prices of type 304 stainless steel, regardless of his suspicions about its quality. Secondly, Dana should not have asked Tyler Hensman about the price of this shipment from Quality Distribution.

Question 2: Has Tyler Hensman’s behavior been ethical? Why or Why not?

Tyler Hensman’s behavior has not been ethical. Hensman did not inform Davis that he has changed suppliers to ‘Quality Distribution’. It seems as though Hensman is disappointed with American Steel and is now purchasing cheaper, low grade products from other suppliers.

Question 3: What Should Dana Davies do?

Dana Davies needs to try and repair the relationship. Hensman is obviously not happy with the quality of the structural tubing purchased and this may be the reason for changing suppliers. Davis should replace the tubing and provide an explanation about the quality control of American Steel. Davis should then offer a competitive price on the nuts and bolts (316) and try to re-establish the relationship.