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Highland Superstores Inc, a 49-store consumer electronics series, has transformed into a noncommissioned sales staff, and vendors' opinions are divided about whether the transfer can support a motivated, customer service oriented environment. Some vendors support the business for attempting to differentiate themselves. Others predict which noncommissioned sales will push away great sales people, while those who stay might be less inspired. The conversion comes at an essential period for Highland as it strives to refinance a $100 million debt.

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Almost 3 years following Minneapolis-based Best Purchase rocked the industry with its first Concept II stores in Rockford, Ill., the 49-store Highland series, facing significantly different circumstances, has opted to undertake the commissionless approach, in what some view as a last-ditch effort to salvage the generations-old firm.


It reported that a $2.99 million loss for its first quarter ended April 30, on sales of $92.1 million.


"I commend [Highland] for attempting to differentiate themselves," said Joe Richter, vice president of sales at Kenwood, a crucial Highland home music supplier that parted business with Best Buy as it established Concept II. He pointed to Kenwood's long relationship with Highland along with the retailer's stable management team as reasons he will continue to support the provider.


Even though Highland's decision was regarded as a response, in part, to Best Buy's decision to go into the Chicago market (among Highland's staying strongholds), Circuit City's recent decision to enter marketplace in fall, 1993, together with as much as 20 stores makes Highland's changes more crucial.


While saying it was too premature to speed Highland's approach, Richter said based on meetings with Highland through the past month that he understands that the rake will be in accord with the skilled however commissionless sales flooring in Rogersound Labs. "In Highland's case, they are not stressing self-service but saying sales advisors will be present to answer questions"


"We are well aware of how significant Kenwood is to us," said Phil Garrison, senior vice president of advertising at Highland. "It's a need line ... we do not wish to lose it" He suggested that Highland salesperson possess the freedom to suggest specific lines or products if the consumer walking at the doorway isn't predisposed to another new but said counselers will not steer or sell off one brand to another, which vendors commend. He also said the new structure is "designed to improve the closing speed on the people who walk into the doorway at Highland."

Highland "seems to be quite pumped up on it," said Matt Rounds, national sales director at Yamaha Electronics, in a current Highland auto electronics show and sale. "Time will tell [if Highland's strategy will succeed], especially in the region of highend products ... but we are pleased with what they have done for us" from the past.


Another top seller at the vehicle stereo occasion declined to speculate how the new format could influence his relationship with Highland or how it could do but did say if it helps the series from its present troubles, so much the greater.


Dan Dodson, sales engineer in Pyle, that supplies What are the best 6.5, 6x9, 6x8, 4 inch car speakers in the world into Highland, said he supported the move to a more demanding sales environment. "If a customer walks into the door, it's as though a seed has been planted they can either kill or grow. I sense they have made a decision to let it grow" 1 market watcher familiar with Highland praised the chain's willingness to alter but was unsure about the results.


"You can not be pregnant," he said, noting that Highland isn't shifting to the bare-bones, low-overhead look associated with warehouse clubs, in addition to cutting edge commission sales. And he predicted that without incentivized sales," they will lose the fantastic salespeople while others [who stay] could care less about sales."


Highland is altering the look of the stores to create them "brighter, more and more visually appealing, using brand new vibrant signage and displays," while sales advisors are casual wearing sweaters and polo shirts.


Highland already has started a promotional blitz detailing its fresh non-commissioned sales approach, enjoying the consumer friendly whilst expecting to put behind it the used-car salesman picture of their past.


He called the policy "pay impartial," emphasizing that a sales consultant's earnings "will not be affected by this." He said the firm has been telling employees, "Whatever you're used to creating, we have slotted you for this and so you'll continue to create it."


Asked if a salesperson earning a commissions at the upper $50,000 and $60,000 array would get this in salary, Mondry would just say "we've quite few in [this] range."


Mondry declared sales consultants also will be offered incentive bonuses based on a specific store's performance, using a bonus bundle divided one of the store based on the performance of every staffer.
 
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