Compensation is Complicated<\/strong><\/span><\/h5>\n

Every business manager or owner says, \u201cPeople are our biggest asset\u201d but for distributors the statement is true in spades.\u00a0 \u00a0In many wholesale lines of trade benchmarking reveals 60 percent of every Gross Margin dollar goes to compensation.\u00a0 If not the distributor\u2019s biggest asset, compensation truly is the distributor\u2019s biggest expense.\u00a0 \u00a0Nothing negatively impacts distributors quite like a poorly thought out compensation model.<\/p>\n

In the sales department, changes in compensation plans always raise employee anxiety.\u00a0 Further, many distributors lack a well thought out plan which ties employee actions to company goals.\u00a0 Commission plans, which are the single most common type of sales compensation, are often a historical hodgepodge of existing plans inherited from years gone by.\u00a0 But, conditions change, strategic company direction shifts and the commission plan continues.<\/p>\n

River Heights Consulting has assisted dozens of distributors in crafting just the right plan for their team.\u00a0 In each case, the discussion revolves around the following:<\/span><\/strong><\/p>\n

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• Strategic company objectives, future direction and critical customer focus<\/li>\n
• Understanding how the current plan evolved<\/li>\n
• Management\u2019s need to properly communicate the changes<\/li>\n
• Appreciation of employee concern with compensation<\/li>\n
• Specific seller\u2019s unique situation within the company<\/li>\n<\/ul>\n

  We recommend you review these articles from \u201cThe Distributor Channel\u201d Blog:<\/span><\/strong><\/h5>\n

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  • An Exercise in Questioning Your Sales Compensation Plan<\/strong><\/a><\/li>\n
  • More questions about commissions and sales compensation<\/strong><\/a><\/li>\n
  • Compensation\/Commission Thoughts from Daniel Pink<\/strong><\/a><\/li>\n<\/ul>\n

    And an article originally published in “Distribution Center Magazine”:<\/span><\/strong><\/h3>\n

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    • Sales Compensation: Are Commissions Obsolete<\/strong><\/a><\/li>\n<\/ul>\n

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