5 Reasons Why I hate My Comp Plan!!

Awesome first time I saw that

I was reminded today of the "Few Good Men" parody. I thought this might be a good forum to reintroduce it. I'm certain it will be the best 3 minutes of your day!

 

http://www.youtube.com/watch?v=-mcpMM1w1qY

John

 

GP Quota's is what I grew up on.  Revenue Quota's are not healthy for the sales people, but good for the dealer. I'm 34 years in the business and still have yet to hit monthly, quarterly and yearly in the same year. 

 

Although GP commissions is not what it used to be

Might work. Of course will require managing customary ingredients for sales to achieve above quota results... Best of luck...

I am developing a new comp plan for my team which I will implement in 2015.  My intent is to establish a GP based plan which has a minimum for a rep to  cover salaries/guarantee's, commissions over draw, related employment cost (FICA, benefits, insurances), and a contribution towards branch expenses. 

 

Considering a $40,000 annual pay guaranteed, we are looking at a 96K GP quota. Above that we are looking at 50% sharing of GP, maybe a kicker for a 150% performer.

 

With $150.00 delivery charges, actual Bill of Lading return charges, and true delivered costs as sales reps.  We are a 23 year old highly respected company

 

Are my reps stupid thinking this is an unrealistic plan??  Its pretty much 50% of profit with the lowest street cost, virtually no padding, tons of support?

 

I would be curious on how some other comp plans are administered.

Hello Ghost - i feel your pain and especially having been there in the same boat as you. My former employer marked up hardware by at-least 30% and lease rates by 4 to 5 points.

 

Having transitioned to my own dealership 5 years ago, we do things differently. If you are looking for a partnership opportunity (you can be located anywhere in the USA), get in touch with me.

 

For others reading this and interested in running your own copier sales business, please contact me. You must currently be in copier sales and generating at-least 360K in annual revenue.

 

Best

 

Philip John

philip@usamagnum.com or text me @ 646 644 7155

I took the dealer leap back in 1986 and did it for 12 years, I'd still be doing it today. However, I had one lazy partner and another who was, well lets say he was a lot like Slip Mahoney in the Bowery Boys. 

 

Risk is inherent in everything you do, from crossing the street to driving from appointment to appointment. 

 

Does taking the risk mean that you're allowed to charge whatever you want, well, yes it does.  On the flip side, I'd bet dollars to doughnuts there is a high turn over.  That's not good for anyone.

Maybe after 22 years, you should start your own dealership to be on the flipside of your comp plan concerns.  But...oh...wait.  That means that YOU have to put up with all the risk.

We offer salary + comm.   At dealer cost, no lease pad, 30% existing accounts, 40% new accounts, 5% bonus with growth.  $200 install 1st, $100 additional units. questions - bobb@synergyoffice.com

It helps if salesperson is at quota. May have compassionate ear . Best of luck. May be a good idea to consider working on a contract basis , need to have the business and confidence and resources to do so. Don't plan on many incentives other than making your own fortune... Best wishes...

Great post. Sounds like the frustration level is at a boiling point.

 

One thing I can offer is in regards to the delivery/install fee, this is not as scalable as you might think. But in my time at a dealership the company president, sales managers, and I designed a plan that would scale based on speed segment and quantity. So, with some TLC, your company should have some wiggle room here rather than just stamping a flat fee on everything. The other thing we did was bundle the price into the outcost so you would really never see it anyway.

 

Other than that, I couldn't comment on the specifics of you plan. If I'm reading between the lines, it sounds like your employer isn't very open to dialogue on this issue. If not, then it sure sounds like you might be happier somewhere else.

Re negotiate your comp plan. Are you receiving a significant salary? Ins coverage? Perks?

Maybe it's time to find a new home?  Times are tough all over.  But, you do have a few valid concerns.  Do you get a salary or is your comp plan commissions only?