Question

Explain why high-performance value-added salespeople earn much more than high- performance transactional salespeople g

Answer 1

High-performance value-added salespeople earn more due to the complex nature of their sales process, which involves creating tailor-made solutions and building long-term client relationships, leading to higher prices and larger commissions. Transactional salespeople, handling more straightforward, one-off sales with lower margins, earn less as a result.

Step-by-step explanation:

High-performance value-added salespeople typically earn more than their counterparts in transactional sales because they engage in sales processes that add significant value to the products or services they sell. This involves a deep understanding of a client's business, offering tailored solutions, and potentially altering the product to meet the client's needs. As a result, they can command higher prices and earn larger commissions.

On the other hand, transactional salespeople focus on selling commoditized products where the primary differentiator is often price. Since these products don't offer much room for additional value, the sales process tends to be shorter and less complex, leading to smaller commissions.

Moreover, value-added selling typically involves a long-term relationship with the client, which can lead to repeat business and referrals—both of which can significantly increase a salesperson's earning potential. Conversely, transactional sales are often one-time deals with little to no post-sale interaction.

Answer 2

Answer with Explanation:

The Value-added salespersons are the one with better qualification, trainings, experience and have thorough understanding how the sales mechanism would better work in different circumstances and thus are far much better than the transaction salespeople. Furthermore, they are the one who knows what the customer is desiring and this helps them in adding value to their operations and product. Whereas transactional salesperson add very little value to sell the product because the customer knows about the product features and the presence of the transactional salesperson doesn't have any significant impact on the customer perception.