The intent behind a COLA is to help salespeople who live in and work in high-cost locations. Find an online cost-of-living calculator or use the one at Compare the living costs in Minneapolis–St. Paul; Raleigh–Durham, North Carolina; Dallas–Fort Worth, and San Francisco. Which area has the highest and lowest cost of living? Compare these costs with a small city near you. How much (more or less) would you need to earn as a sales representative in order to move from one locale to another? Consider two members of the sales force that are producing identical results. Is it fair that one sales representative living in a large metropolitan area is compensated more than another one living in a smaller town just because the costs of living in one location are higher than the other?

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