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Business of Selling

Why Sales Compensation Based on Gross Margin?

By Dr. Jim Weber posted on September 5, 2012 | Posted in Operations & Finance
While previous articles is this series have addressed the two most prevalent types of sales personnel compensation — salary and cash difference — this column focuses on a system that is not used as frequently, yet should yield significantly greater results. It is a sales compensation system based on the equipment gross margin.
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Business of Selling

Cash Difference Compensation Plan = Low Margins

By Dr. Jim Weber posted on June 14, 2012 | Posted in Data & Forecasts
In a survey conducted several years ago on how equipment dealers compensated their sales personnel, it was revealed that 30% of the dealers paid their sales personnel on the basis of salary while 28% of the dealers paid their sales force on the basis of "cash difference." While salaried sales compensation was the basis of last month's column, this column will explore the nuances associated with paying sales personnel on the basis of the cash difference that is "drawn"? on each transaction.
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Business of Selling: Replacing Non Performers

By Dr. Jim Weber posted on March 10, 2011 | Posted in Dealers on the Move
As the dark clouds of the gathering storm begin to overshadow the prevailing economic prosperity, equipment dealers would be wise and prudent to assess the long-term efficacy of their existing sales force. Rather than wait until the next market downturn, why not take this opportunity to get ahead of the economic curve and purge your sales staff of any and all malcontents and misanthropes?
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