Use of company car and expenses (with sales manager's approval).
Company was recently purchased by financial investment firm that is slowly reducing staff and closing facilities in all areas. The actual product is of poor quality, often late in delivery, and not a very economical option for most customers. It is a tough sell in any market that does not have one of the manufacturing locations or branch service centers in the sales area. Most of the senior management were brought in from outside industries over the past two years, and not familiar with the product or the construction industry in general, as a result there is a larger than normal turn-over in these positions, and no constant or clear direction the company is heading toward. The biggest downside of all is that the customer base views the product as second tier/secondary materials. Not as a primary source for needs.
This company is also in the process of changing the sales representative's compensation on July 1st 2009. The new package will cut the average outside sales rep. salary 75% and add to it a comission based on collected accounts receivables of only 2% (the comission is approx. 60% lower than industry standard which is typically based on actual sales rather than accounts receivable). This will make the average outside sales rep. the lowest paid in the industry. This position is now appropriate for recent college graduates that need to get some sales experience under their belt.
This company will be sold in the future, either in parts or as a whole, if they can stay afloat during the recession. They may not make it.
Advice to Management
Turn the company back over to people who have industry experience.
Focus on providing a quality product, not how much money you owe the bank.
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