Jafrum, Inc. is a wholesale supplier of motorcycle accessories, clothing, and tools to
various motorcycle retail stores around the country. Jafrum does not manufacture these
items, but sells them to other retailers and also sells its merchandise through its website.
Sean Thompson is one of the salespeople for Jafrum, and is responsible for obtaining
new customers, increasing sales to current customers, and visiting the retail stores
throughout the country. Recently, he has been given the sales objective from Jafrum’s
management to increase sales dollars by 15% in the coming year by adding new
customers. Sean’s current compensation is based on a $1,000 per month draw, plus 5%
of all sales over $100,000. His salary last year totaled $42,000. Management has given
Sean the choice of going to a compensation plan where he will earn 15% of all sales,
but no draw. Sean selects several motorcycle stores who are not currently his customers.
He then obtains and analyzes information about the current brands of motorcycle
accessories they stock, their sales trends, and credit history. Sean is engaged in:
a. prospecting.
b. preapproach.
c. approaching the customer.
d. making the presentation.
e. overcoming objections.