1. Is your company going to raise its frontline pricing due to the price increase ?

2. How will your accounts react ?

3. Will you lower salesmen's commisions structures ?

Just wondering because I am interviewing for a Red Bull sales route position.

Thanks,

DLR

Not a current Red Bull distributor but I'm sure prices will go up. I've had a few beverage sales routes and I've always been paid by a percentage of gross sales which means if the price goes up, so does my commission. I make more money if the volume doesn't decrease dramatically.

Reset man:
Saratoga? Like Saratoga Springs? What company do you work for up there?

Originally posted by DLR:
1. Is your company going to raise its frontline pricing due to the price increase ?

2. How will your accounts react ?

3. Will you lower salesmen's commisions structures ?

Just wondering because I am interviewing for a Red Bull sales route position.

Thanks,

DLR

I don't work for RB but I have an idea of what will go on:
1.Prices will increase to the retailer in most cases. That is business 101. Margin is margin and RB distributors are used to making certain margins and have planned their business accordingly.
2.Accounts will do excatly what you expect them to do....Bitch and Moan. After a month or two the volume levels should be back to normal though.
3. It shouldn't affect commissions. However, if the price increase is not parlayed to the retailer expect job cuts, therefore creating more accounts per salesman effectively giving him a raise monetarily but using more of his time.

Thanks for the reply Reset Man. Things seem uncertain with Red Bull now and their distributors, but hpoefully I'll get the job and try to get promoted to company's other division (beer/wine sales}.

Our distributor has no plans to alter their price to retailers or vending operators. I am sure that many other distributors will not take the same approach however.

My distributor has chosen to compensate by concentrating more on areas with high growth potential. We're already seeing some benefits of this philosophy in the way of vending contract referrals and leads.

So instead of raising prices your distributor is just going to sell more... I wish them luck.

I am sure the remarkable philosophy of selling in areas that will sell more product will work well for them....

Originally posted by TallThinBlonde:
So instead of raising prices your distributor is just going to sell more... I wish them luck.

See TTB, Thats why RB is so much bigger than you and me...They are just smarter! I mean, C'mon, Just sell more instead of raise prices?!?!?! Why didn't we think of that! I didn't realize it was that easy. LOL [img]tongue.gif[/img] [img]tongue.gif[/img]

LOL !!! Yeah and the philosophy of selling where you can sell even more.... brilliant !

Edited after a bout of remorse brought on by unprofessionalism - you nearly pulled me in TTB.

[ 12-11-2006, 10:17 PM: Message edited by: -VV- ]