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Jul 2013 - Vol 8, Issue 7
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In this issue of AV Matters, I share a new video on Sales Commissions and Bonuses. This is a challenging subject: everyone wants the results, but maybe aren't willing to put the work into creating the program. I try and spell out the basics to help you get started sooner.

I have an upcoming InfoComm webinar on how to deal with RFP's. I will expand on the concepts introduced in my Youtube video series on the same subject. If you think webinars are a good way for me to share ideas and best practices, please let me know.

There are a lot of right ways to setup your P&L, but what do your choices say about you? I answer a letter from a client about how to deal with discounts in accounting terms.

Do you wear a lot of hats at work? Of course you do. Did you know there is a right and wrong way to assign multiple hats? This is a big topic to tackle, but I take on the basics in this article.

Thanks for Reading,
   
Tom Stimson
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BEST PRACTICES VIDEO

In my career I have seen more commission plans that are broken than those that actually work. A good commission plan will reward salespersons for selling the right products and services, profitably. Ideally, higher profit should yield a higher commission. However, most incentive plans tend to be volume-based, which tends to encourage low margin sales. The best commission plans assure that the "house" earns its cut before "sales". The trick is in making the plan fair to all participants.

Bonuses are another frequently misused tool. While salespeople need to deliver a project that is potentially profitable, someone else generally has control over whether profit is actually achieved. Bonuses are a way to align the goals of management, operations, and sales under once incentive plan. This video is a primer on the concepts you need to understand before designing the right plan for your company.
Sales Commissions & Bonuses 
Sales Commissions & Bonuses


Each Best Practices video will be added to my YouTube page and as inspiration permits, you may see additional video blogs from time to time. I hope you find the content helpful. -Tom
 
WEBINAR

07-11-2013 09:38:36 AM

Register now for this InfoComm Webinar: Don't Be A Commodity - Dealing with RFP's, which takes place Wednesday Aug 13 at 1:00 pm EDT. Presenter: Tom Stimson MBA CTS, President of Stimson Group Tom Stimson is a Management Consultant specializing in the AV Industry. He has spent over thirty years in the Live Events world. Learn more and register here ...»



RECENT ARTICLES 

07-15-2013 08:24:37 AM

It is an industry practice for rental companies to extend discounts to customers in order to secure business. But, as an industry - we are kidding ourselves if we think we are just marking down equipment. This email question from a client lets me reinforce some basic concepts about owning your numbers. ...»

 

07-12-2013 09:20:08 AM

For many people, wearing a lot of hats at work is a source of pride, a symbol of individual value. Too often, I find that employees and managers end up being bottlenecks in a poorly distributed process. Multiple hats becomes, "I have no idea what I should be doing right now." There is a better way to manage the multiple responsibility problem. ...»


05-30-2013 10:21:49 AM

How well do you know your numbers? How can your financial data become a tool for running your business better? What will help your team better understand how they can improve performance? It all starts by analyzing your data and choosing the metrics that matter most for your company. In this seven minute video, learn what you should be paying attention to. ...»


ClosingThoughts CLOSING THOUGHTS

Here's a few scribbles from the margins: 

Culture eats Strategy for breakfast.

If you hire a Project Manager, you give them projects. Why do we expect Account Managers to go find their own accounts?

Isn't a rental day rate an arbitrary price for an arbitrary period of time? Then why does this concept consume so much energy?

See you next month, Tom  

 
About Thomas R. Stimson, MBA, CTS
Stimson Portrait
Tom Stimson consults with organizations to improve their performance through strategic planning, process improvement, and team development. The Stimson Group provides coaching and tools to companies in the Audiovisual Industry that enable them to define and reach their strategic goals.

Whether you serve the Rental/Staging market, the Systems' Integration market, or or provide blended services - The Stimson Group provides unparalleled expertise, industry insight, and methodologies that drive operational efficiencies and increase profitability. 

For more information visit the website.