Commission at Valley Implement is paid as a percentage of the total gross margin. The percentage will be calculated based on gross margin tier beginning 2019.
$0 - $150,000, Margin: 24.00%
$150,000 - $250,000, Margin: 26.00%
$250,000-plus, Margin: 28.00%
❏ When a trade is being taken on the sale of new or used:
❏ Commission paid when all trades are sold in the series.
❏ Commission will be split equally between all salesmen who sell the new or any of the series of trades.
❏ Management sets trade values and minimum selling price. With collective group input at our sales meeting.
❏ The better the appraisal, photos, and notes – the more capable management will be able to establish market price.
❏ Trade will be valued well below wholesale in order to make up no margin on the deal.
❏ Salesmen cannot buy trades
❏ Manufacturer salesmen bonuses and finance spiffs will be given to the selling salesmen.
❏ In return, sales reps agree to sell problem units at a loss without a spiff.
❏ Commissions are paid when all funds are collected from the customer.
❏ Draws will be handled the same as they have been in the past.
❏ If you get a multiple unit deal with single trades, the margin will be split uniformly to all units sold.
❏ Customer PR account to take care of incidentals will be 0.5% of the total selling price per piece of equipment.
❏ This account will be used on rare occasions to take care of customer problems and will not be used for reconditioning.
❏ Store manager and selling salesman will both sign off on using these funds.
❏ In conjunction with the customer PR account: units will not be charged back after 60 days. In other words, sales margins will not erode the charges hitting the unit after 60 days from sell unless there is a previous circumstance pending.