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Financial Auumen

In: Business and Management

Submitted By shashics
Words 547
Pages 3
Case study: Joe Salatino, President of Great Northern American30
As president of Great Northern American, Joe Salatino gauges the success of this 35-year-old company by the amount of money he pays employees. The firm’s salespeople will sell more than $20 million in office, promotional, arts- and-crafts, and computer supplies to more than 60,000 businesses around the country this year. Great Northern American sells more than 7 million yards of packaging tape, 8 million paper clips, and 11 million BIC and Papermate pens and pencils bearing customer logos, along with about 12,000 other products, each year. The head of this Dallas-based telemarketing company believes that spending money on commissions and bonuses is necessary to keep his 30-person sales force motivated, especially in the face of stiff competi- tion from Internet users.
The company’s salesroom features all kinds of motiva- tional devices. On a recent Friday morning, rotating blue lights signal that a special deal on pens is on. For the next hour, customers can get two for one on Stars and Stripes promotional pens. When the blue-light special is off, they’re back up to 39 cents apiece. When the light goes off, a leader draws a large snowball on one of the large dry-erase boards to indicate another sale has ended. The noise and pace is fast and furious.
Many of Salatino’s salespeople earn more than $60,000 a year, and top producers earn more than $100,000. Gary Gieb, aka John Johnson, because it’s easier to spell and sounds more all-American over the phone, earned more than $100,000 last year. During a typical day, he makes 20 to 25 calls per hour. If a customer places an order, the entire sale takes just under 5 minutes. He earns commission of between 5 and 12 percent on the list price, depending on the merchandise. A salesperson usually needs a year to build up a good account base. Many employees...

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