Q.Explain the factors affecting the remuneration of salesmen.

Remuneration is the reward a salesman receives for his services; how much and in what form he is paid depends on several factors.

Remuneration is the reward or payment a salesman receives for his services. Deciding a fair, motivating plan is important because it affects the salesman's effort, loyalty and the firm's ability to attract and keep good salesmen. A good plan should be fair, simple, flexible and should reward results. The chief factors that affect remuneration are:

1. Nature of the product and selling job — selling technical or high-value goods that need skill usually commands higher pay than selling simple, fast-moving goods.
2. Ability, experience and qualifications of the salesman — more capable and experienced salesmen expect and receive more.
3. Prevailing rates in the industry and locality — a firm must pay roughly what competitors pay, or it cannot attract and retain salesmen.
4. Firm's financial position and policy — a prosperous firm can pay more, and its overall wage policy sets limits.
5. Cost of living — pay must give the salesman a reasonable standard of living in his area.
6. Type of customers and territory — difficult territories or demanding customers may justify higher or additional payment.
7. Degree of responsibility and duties — a salesman who also collects payments or supervises others is paid more than one who only takes orders. …

Do not confuse factors affecting remuneration with the methods of remuneration; the …