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Thread: Attn: Hot Boat Sales Managers.............

  1. #1
    bear down
    Just started with a new company and they are on a straight commission program. I have never been a fan of this and they are giving me free riegn to change the whole program. Can you guys give me some examples of what has worked. I am contemplating a salary to draw program, but not sure if I would rather go with straight salary with a bonus program instead. Give me your thougths
    Thanks
    Memo

  2. #2
    voodoomedman
    Just started with a new company and they are on a straight commission program. I have never been a fan of this and they are giving me free riegn to change the whole program. Can you guys give me some examples of what has worked. I am contemplating a salary to draw program, but not sure if I would rather go with straight salary with a bonus program instead. Give me your thougths
    Thanks
    Memo
    Salary plus commission. People need to live and sometimes there are just bad months no matter how good you are. Of course if every month is a bad month then they need disciplined up to and including termination. Just make sure the commission is setup as a reward for production and not a scare tactic or carrot on a string in front of the donkey. Also look at the percentages. If the salary is too low then you will not have happy folk. But if it is too high and the commission is not very much then there is no incentive to bust your a$$ for another 10 grand when your already get 60 for doing crap kinda thing. It's sales and your always going to have whiners but do it right and you will minimize it.

  3. #3
    Senior Member
    Join Date
    Feb 2010
    Posts
    474
    I am one of those people who who has to survive on straight commision. It really sucks. I am a loan officer and it takes awhile to get a loan thru, so being without is a really hard deal. If you could go with the salary/commision deal I think the employees would be very greatful

  4. #4
    PinkTaco
    We used to be straight commision. It worked out great while the market was good, but things have changed a bit. Basically we have gone to a commision with subsidy plan. In other words, if our people don't exceed a certain number with their sales they are subsidized with a salary at a preset dollar amount. They get either salary or commision. Which ever is higher. There are consequences for those who subsidize more than two months in a row. Seems to be working out so far...

  5. #5
    Boozer
    Salary +
    ALWAYS give a salary +
    If your employees work on straight commission their productivity can be grealty limited do to the fact that a person who is flat broke is going to be more concerned about how they are going to get the bill collectors to stop calling then how they are going to set new company sales records.
    ALWAYS give commission when pertaining to sales. If I get paid the same regardless of what I sale why am I going to stress over setting records, making huge checks, etc...?

  6. #6
    Havasu1986
    What are you selling.

  7. #7
    fatboy95
    What are you selling.
    And what margin is the employer working on? :idea:

  8. #8
    lalhc
    We offer our employee's the opportunity to be straight commission only or salary +. In either case make sure you have a baseline of what their expected goals are during a ramp-up period and once they're ramped up. You may also want to set minimum expectations (below ramp-up goals) in order to meet to get their salary.

  9. #9
    racecar.hotshoe

  10. #10
    Old Texan
    Always base commissions on profit, never volume. Your sales people need to realize profit makes the company stable and is in the best interest to their personal bottom line. Anybody can be an order taker, only professioanls can be salesmen(women).

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