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Reply to "Shorter Refresh Cycles, Good or Bad for dealers?"

Everybody's market strategy is different and a lot of it is driven by pay-plan. I have both a revenue quota and a GP quota and little happens if I don't meet both. Our commission plan sets the sales cost on renewals at the buy-out so the GP opportunity is great. My talk track suggests that an alternative to being stuck for 60 months is to consider a 36 month term and evaluate at expiration. If the needs haven't changed and the service history is stellar we can consider a renewal with a payment that is 50% lower. It's not uncommon for me to have $3,500 of G.P. in a $5,000 sale and no competition. I get most of my revenue from my net new accounts and most of my G.P. from my renewals. I don't think I could hit both numbers any other way.

Again, my company's market strategy and comp plan drives the train.

 

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