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Table of Contents
Introduction
Last year, we enrolled a marketing company to market our products. We did this so as to reach a wide customer base that our company could not manage. For some time, we registered a substantial profit that saw our company become one of the most competitive in this business. However, early this year, the marketing company has doubled its commission, and this is working negatively to our company. The profit margin has reduced significantly. If this continues, we will not manage to pay our workers in the next five years. Therefore, we should end our marketing contract with this marketing company.
Discussion
The financial report compiled by the accounts team show that our profit margin is decreasing with every passing month. This needs to stop with an immediate effect. The major contributor of this scenario is the marketing company’s constant increment of the commission rate. The company claims that it has gone far to market our products. In fact, the company has just created a website to do the marketing. Evidently, this is not enough reason to double the commission rate agreed upon during the signing of the contract.
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The increasing commission rate will be a barrier to this company’s progress since we will not manage to increase our products. We will also not manage to open another plant, leave alone paying our current employees.
Conclusion
In this light, we need to end the contract with our current marketing company. This company should start its own marketing department that will take care of all the marketing. This will ensure that the company makes enough profit. Thus, we will manage to open other plants, increase our products and give our employees a competitive compensation.
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