Shaefer relies entirely on manufacturer's representatives (MRs) located throughout the United States to sells its products. MRs
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a) Shaefer should continue to sell through MRs. Whether it uses MRs or an in-house sales force it has to pay commissions. By relying on MRs, it avoids the variable selling expenses (e.g.. travel expenses for salespeople) it would incur if it had its own sales force. As a result, Shaefer's selling expenses are lower than they would be with an in-house sales force of comparable size, talent, and know-how.
b) Selling through MRs made sense for Shaefer when it was first getting started and specialized in capacitors. However, given its current product mix, it would not want to set itself up the way it is now if it were designing its sales force strategy from scratch. But with what it has got, Shaefer should be extremely cautious about changing.
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Related Book For
Financial Accounting
ISBN: 978-1259222139
9th edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
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