The Challenge
Our mid-size manufacturing client was struggling with the effectiveness of their sales compensation program. Was it driving the right products and services? And was there any way for the payout structure to be more predictable?
The Solution
INSIGHT2PROFIT assessed the current compensation program and worked closely with the client to build upon the program’s strengths; namely the fact it was based on Gross Profit Dollars (versus revenue), incorporated sales representatives’ expenses, and was a good mix between base salary and variable pay. The modified program also compensated sales representatives on price waterfall elements they could influence, such as terms discounts, freight revenue and invoice deductions. We also built a business application that gives sales representatives the ability to clearly understand the program and see how their daily decisions impacted the company’s profit and their resulting pay.