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Since most incentive programs are based hopefully upon net profit or gross profit, sales reps will drop losing customers fairly quickly. Why pay attention to something that makes you no money and for which you receive no return? Your bonus hungry sales team members are ruthless when it comes to deciding where to spend time and entertainment money. If the returns are not there, your sales reps will insist on price increases or else ignore this group on their list.
Because of incentive programs, your sales personnel will dump losing customers. Again, to reiterate a simple method of natural selection; if you are gutless, let the sales people get rid of the losers. Good sales incentive programs normally take care of losers automatically if upper management will let them, because they will raise prices without thinking. This is good if you will let it happen because sales people will normally not raise prices unless they think they have a shot of getting them. Sometimes they will get them, sometimes they will not. Sometimes it’s best not to fret over something when your incentive plans will take care of it automatically. Remember, good sales personnel will not waste their time with customers that make them no money. This will work to your advantage if you allow them to bring profitable customers to you; profitable for them and more importantly, profitable for your company, a great profit idea.
