Colorado Ski Company: Salesperson’s Performance Evaluation
The Colorado Ski company distributes four lines of products nationally- ski, ski accessories, ski pants, and
ski parkas (the latter two lines are limited). The firm sells to two basic classes of customers- sporting
good stores and specialty ski shops. The company uses its own sales force to reach these customers
directly. Salespeople are paid travel expenses plus straight commission of 5 percent on sales volumes.
For purposes of a performance evaluation, the sales manager of the Colorado Ski Company has divided
the products into two basic lines: skis and ski accessories (equipment) and ski pants and parkas
(clothing). The retailers’ usual initial mark up on these products is 50 percent of the retail selling price.
There are no significant variations among products in the gross margin percentages realized by the
Colorado Ski Company.
The sales manager is especially interested in the performance evaluations of three of the sales reps: Joe,
who sells in the Rocky mountain region (a huge territory); Gus, selling in Pacific Northwest; and Puala,
who covers the New England market. Much of the quantitative performance data for these sales reps is
summarized in figures 16-6. Based on an analysis of these data, the sales manager is trying to decide
(1).
which of the three did the best job?
(2).
which particular point should be discussed with each person to improve performance?