---
title: "Economics at present: How to Proceed in times of turbulence"
description: Pricing tips during trying times.
image: https://www.pricespace.com/hubfs/AI-Generated%20Media/Images/A%20professional%20office%20setting%20is%20depicted%20with%20a%20large%20conference%20table%20at%20the%20center%20surrounded%20by%20sleek%20ergonomic%20chairs%20Sunlight%20streams%20through%20floortoceiling%20windows%20casting%20a%20warm%20glow%20on%20the%20polished%20wooden%20surface%20of%20the%20table%20A%20whiteboard%20st.jpeg
---

# Economics at present: How to Proceed in times of turbulence

## 2 minute read

## Economics at present: How to Proceed in times of turbulence

**How to Compensate Sales Teams During Trade Wars and Economic Uncertainty**

In today’s volatile global landscape, manufacturers and distributors are facing unprecedented pressure from rising tariffs, supply chain disruption, and shifting geopolitical alliances.

**Your sales compensation plan needs to be more resilient than ever**.

Here’s how to design a compensation strategy that keeps your sales team aligned, motivated, and focused on growth — even in turbulent times.

** Understand the Trade War Impact on Your Sales Motion**

Before rewriting comp plans, assess how a trade war reshapes your core sales levers:

- **Margins:** Tariffs shrink profitability — you can’t afford to pay on gross revenue alone.
- **Demand Patterns:** Orders may shift from long-term commitments to short-term rebuys.
- **Sales Cycles:** Customers delay buying decisions, increasing pressure on the funnel.

Your compensation plan needs to **flex with these dynamics**, not fight them.

** Principles for Resilient Compensation Design**

1. ** Protect the Base — Balance Fixed vs. Variable**

In uncertain markets, sellers crave stability. Comp plans with a higher **base salary ratio (60/40 or 70/30)** offer security while still incentivizing upside. This balance keeps morale high even when deals slow down.

1. ** Incentivize What You Can Control**

During trade wars, sales reps may lose control over pricing, availability, or timing. Shift performance measures toward:

- **Renewals** and **customer retention**
- **Product mix optimization**
- **Margin-conscious selling**
- **Volume-based incentives (when inventory is stable)**

These are actions within a seller’s control — and they still move the needle.

1. ** Add Flexibility Through Tiered Incentives**

Use a **tiered commission structure** with accelerators for overachievement but build in **soft landings** for underperformance. Instead of cliffs or decelerators, create structures like:

| Attainment % | Multiplier (of Base Commission Rate) |
| --- | --- |
| 0–80% | 0.8x |
| 80.01–100% | 1x |
| 100.01–125% | 1.5x |
| >125% | 2x |

This allows reps to stay engaged even in choppy quarters — while still rewarding top performers.

1. ** Make Renewals King**

If 80-90% of your revenue is recurring (as in most manufacturing or channel sales businesses), tie a **meaningful portion of compensation to renewal rates**.

Use a **step-up schedule** that rewards improving retention, not just hitting quotas.

1. ** Shorten the Feedback Loop**

Move from annual to **quarterly comp plans** if volatility is high. This lets you adjust to external forces faster and gives reps a renewed sense of control over their earnings.

** Migration Strategy: Shifting from Stability to Agility**

If you’ve had the same comp plan for 5+ years, now is the time to evolve. Here's a migration path:

| ** Phase** |  Action |
| --- | --- |
| **Phase 1: Audit** | Map out how trade wars affect your sales process and pricing. |
| **Phase 2: Segment** | Separate roles into “growth” (new business) and “protection” (renewals, retention). |
| **Phase 3: Redesign** | Build comp plans that reflect this segmentation, with different levers. |
| **Phase 4: Test** | Run a shadow comp for 1–2 quarters to see the real-world impact. |
| **Phase 5: Launch** | Roll out with training, sales tools, and clear modeling scenarios. |

** Final Thoughts**

Compensation is more than just a paycheck — it’s a signal. During a trade war, it must **signal stability, focus, and adaptability.**

The best comp plans reward **resilience**, not just revenue.

If you lead a sales team through uncertain times, now’s your chance to turn volatility into a competitive advantage. With the right incentives, even the most turbulent market can become a moment of growth.

[PricingJourney](https://www.pricespace.com/blog/tag/pricingjourney), [Pricing Journey](https://www.pricespace.com/blog/tag/pricing-journey), [Sales Strategy](https://www.pricespace.com/blog/tag/sales-strategy), [Pricing Analytics](https://www.pricespace.com/blog/tag/pricing-analytics)

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