1.     A rate that is high enough to ensure the rep will make a profit and, at the same time, is practical for the manufacturer.

2.     The rate should be competitive with the other lines the rep carries. Large disparities are the fastest way to minor-line treatment.

3.     Flexibility. Fixed rates must be set, but must remain flexible to handle special situations, larger quantity purchase, for example.

4.     Rates should be high enough to encourage the rep to invest in local promotion of the product.

THESE ARE THE MAINSTAY OF A GOOD SYSTEM

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Date Updated: June 11, 2010