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Generally, Adam starts new salespersons with a small commission with the promise to raise the commission rate if they prove to be effective and remain with the firm. The second component is a commission on the mark-up on a boat. Mark-up is determined as the difference between dealer cost and the sales price. Dealer cost is recorded as the amount Adam paid for a boat. In the case of trade-ins, the dealer cost recorded is Adam's estimate of the boat's wholesale value. Prices in this industry are very much subject to negotiation. Sales are negotiated by the sales staff but much be approved by Adam...
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