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Valley Implement’s Sales Program Checklist

Presented at the 2019 Dealership Minds Summit, Fred Titensor C.O.O., Valley Implement explained his dealership’s sales compensation plan.

Mike Lessiter
October 22, 2019

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.

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Mike Lessiter

Mike Lessiter, a second-generation ag journalist, has been Editor/Publisher of Farm Equipment since 2004. He has covered business-to-business operations, manufacturing, and marketing topics since 1992 and has held various roles with the Farm Equipment Manufacturers Assn. and the Assn. of Equipment Manufacturers. Mike is a graduate of the University of Wisconsin-Madison and was named president of Lessiter Media in 2007.

Contact: mlessiter@lessitermedia.com