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scratch pad entries to his order writers. The order writers then
documented the orders on forms provided by TAG, and sent the
forms to TAG. When a TAG sales representative opened a new
account, the sales representative was required to fill out a
credit report for that prospective customer. TAG sales
representatives were not required to submit to TAG any other
types of reports.
Apart from placing orders, Hathaway communicated with TAG on
an irregular basis; he spoke to TAG’s comptroller and national
sales manager primarily when he had a problem with a customer.
Hathaway also called on TAG’s national sales manager, for
example, to meet with a potential customer's upper-level
management when he closed a contract with a major company. TAG’s
national sales manager had final approval when a special
arrangement with respect to price, service, or advertising was
requested by a major company. Events such as these might cause
Hathaway to communicate with TAG as often as three times in a
week, or as rarely as once a month.
Compensation and Benefits
TAG paid its sales representatives on a commission basis,
calculated on the amount and cost of merchandise shipped by TAG,
not based on the orders a sales representative placed with TAG.
The commissions a sales representative earned were put into a
reserve. TAG then paid its sales representatives a draw against
the previously earned commissions in the reserve on a semimonthly
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Last modified: May 25, 2011