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Collegiate Promtion

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Submitted By pisse2580
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Collegiate Promotions distributes products that are marked to students and alumni of major universities. High-selling products include coffee mugs and T-shirts that bear collegiate logs. In order to distribute its products, collegiate promotions has adopted an independent sales representative model. The sales representatives work for themselves and are not actual employees of collegiate. They have independent contractor status.
Becoming an independent sales representative is easy. An interested person pays a $300 fee to obtain catalogs and other literature needed to advertise and sell the line of products. The sales representative then begins to write orders for products. A sales representative can sell to anyone through any channel. This means that there are no protected territories, so several sales representatives are often working in the same geographic locations. Many representatives also sell through internet web sites.
Collegiate promotions do not set an absolute price for its products. Instead, it uses a wholesale plus pricing strategy that allows sales representatives to sell within a relatively broad range. The range is normally 30 to 50 percent higher than wholesale. For instance, if the wholesale price of a coffee mug is $10, then the representative can choose to sell the mug at a price anywhere between $13 and $15. The sales representative receives a commission of half the amount charged over the wholesale price. If the mug sells for $13, the representative receives $1.50. If the mug sells for $15, the representative will receive $2.50. Because they are independent contractors, the sales representative receive no other

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