Service & Supplies Residual

Any company that isn't giving lucrative compensation for service revenue is completely missing the boat. Even the best hardware margins come nowhere close to service margins, even when you factor in manufacturer rebates. Whether they are paid out up front or on a residual basis, companies must pay substantial commissions on aftermarket regardless of whether it comes from MFPs, printers or network services if they want to grow their businesses in the direction our industry is heading toward.

I get no comp for maintenance, however I will get a comp on supplies if I don't sell am maintenance agreement, go figure. Over the years I've gotten pretty good with selling service agreements, but there was also a time when I did not sell them. So, I guess I'm know back to selling the standard warranty and supplies. Hey, I'll make more money, however for those larger accounts I will se3ll service agreements when needed.

Wow, I'm shocked to hear this!!!

I always sell service contracts if possible and we set our hourly rates and parts prices high to assist in that, I don't get comp for maintenance on regular deals, but on deals where the company is losing money on Hardware up front, or if I'm giving away a used machine then I get paid on the MA. My comp plan is very good though, my commissions are based on what the company actually pays for the equipment so I don't mind not getting paid on MA's.