The size of any price-based competitive disadvantage a footwear-maker might have in selling branded footwear to footwear retailers in a particular geographic region depends on how unfavorably the company's average wholesale price compares against the wholesale price being charged by whatever rival company captures the biggest market share of branded footwear sales to the region's footwear retailers the amount by which its average wholesale price is above the region's average wholesale price; the further a company's average wholesale price is above a region's average wholesale price, the greater is its price-based competitive disadvantage. how far (in percentage terms) its average wholesale price is below the price of the company charging the highest average wholesale price in the region how unfavorably the company's average wholesale price compares to the lowest average wholesale price being charged by a rival company in that same geographic region the degree to which its average wholesale price is more than 20% above than the region's average wholesale price-any company's average wholesale price that is less than 20% above the regional-average wholesale price has a modest price-based competitive disadvantage that results in less than a 4% negative impact on the number of pairs it is able to sell to the region's footwear retailers. The factors that affect worker productivity include the size of annual base pay increases, how much the company spends annually for TQM/Six Sigma training to enhance worker skills, and whether the S/Q ratings of the footwear being produced are above or below 5.0 stars the percentage of newly-hired workers, the percentage use of superior materials, and how much emphasis is placed on incentive compensation (as measured by the percentage of the company's total compensation package accounted for by incentive pay) the warranty claim rate on recently-sold branded and private-label footwear, the amount of overtime pay workers receive, and how many pairs each worker is able to make during a year the ratio of production workers to supervisors, and how favorably a company's total compensation package compares with the industry-average total compensation package at all production facilities in the same region whether workers are making branded or private-label shoes and annual expenditures for proper maintenance of footwear-making equipment.