Compensation Programs

Compensation Programs

Through these webinars we have done all the marketing work, we have segmented our customers, we have determined our market coverage strategy and we have assigned territories to salesmen – both Product Support Salesmen and In-Store Salesmen. All of this will be wasted unless we develop and implement a proper compensation program to reward these employees for their success.

From a base salary, to vehicles and cell phones, and customer entertainment expenses, we have covered all of the normal parts of the compensation “package.” Next, we move to the incentives. There are a wide variety of approaches to use and we discuss most of them: from a fixed rate approach, to variable rates at variable levels of performance, to the establishment of a fix “bogie” before any commissions come into play.

The need to limit the upside of incentives and territory splits is also discussed. The webinar ends with a “deep dive” into establishing the market potential of each customer and your actual market share. There has never been a “real” ability at the dealership to know the actual market share. This has given both sales and operations personnel a pass on performance. This webinar exposes the methods to employ and obtain actual potential. Don’t miss it.