IDEA: Let sales reps raise prices or dump your ‘Bottom Rung’ customers.

If your incentive program is really working, you will not have to intervene to raise prices on the lowest margin customers; your sales reps will do it automatically.  When your sales personnel see they are not earning anything when they spend time with these ‘bottom rung’ clients, the good ones will automatically contact these buyers and hand them price increases. Your sales representatives should be financially motivated to do what needs to be done when they realize they are wasting their time with commission-less clients found at the bottom of their commission payout list.  Your sales personnel will know that either the buyer values your company and is willing to spend the money because you offer something he cannot get elsewhere, or he refuses the price increase and your sales representatives spend time seeking profitable clients.  It should be  a great system  that boosts your company’s bottom line.  Your incentive program if set up properly should clean out these breakeven or gross profit loss customers automatically. You should not have to do anything because if you chose wisely and have an effective commission program, your sales personnel will do it for you.