Compensation Question

Jason HMaven VIP

This is by no means scientific survey or anything like that just had some thoughts going through my head the last couple days.

Is anyone being compensated on volume of machines and not GP? I hate to compare our industry with car sales but I know a lot of dealers are on this model. I know several people who make nothing but a very small salary until they sell 10 cars in a month and then start getting paid a commission after that 10th car for each one.

My thoughts are that it probably would not work in terms of keeping reps on your sales team in the short term, but I could see the flip side as well.

9/20/164:46 PM

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CzechMaven VIP

I get paid strictly on GP, but I would be unopposed to a bonus structure for this model. 90% of my sales are new business, so I sell anywhere from 4 to 7 machines per month with 1000 to 2000 GP in each one.

9/20/165:37 PM

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Art PostAdmin VIP

I get a salary, mediocre commissions, bit have a revenue bonus for the month and the quarter. If I hit the revenue marks it's good money. Problem is to hit those revenue marks on a consistent basis.

But to answer your question, no I don't receive anything for volume of systems sold.

Jason, are you in North Carolina or South Carolina, can't remember.

9/20/169:28 PM

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Old GloryMaven VIP

Salary, commission on GP and bonus based on revenue.

9/21/169:19 AM

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fisherMaven VIP

Honestly, compensation models got out of whack when the industry became predominantly color devices. Compensation models are stuck in the B/W days. There is a reason that the manufacturer gives you a much bigger spiff on a color device than a similar B/W device. Does your dealer compensation reflect anything like that? It probably should.

9/22/168:51 AM

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Art PostAdmin VIP

Fisher

I agree!! Many principals are doing very well with the profits on color pages!

9/22/168:53 AM

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