subject: Re-Configuring Your Sales Incentive Plan [print this page] It means that the seller is working the mind faster and more accurate than a super-computer, when it comes to the calculation of its incentive payments. You know how they achieve their goals and to optimize their pay by providing the most efficient of all actions.
But despite all the incentives that give the companies their sales people, there are some chronic problems of most sales forces, as encountered:
* Sales of products with low profit margins and surrender to highermargin those that sell it easier and much faster;
* Pushing products rather than offering solutions, the long-term benefits for the customers;
* Sales to the same customers, and not enough to develop new ones;
* Does not take communication with the same unique contact in the organization of the people most of the time and initiative to develop more relationships with more people;
* Making to produce many customer visits, which ultimately results slightlyetc
While much has been training to overcome the aforementioned problems Seller, their behavior is still very similar. Now that we are all in the winter economy, budgets and time for sales training probably pruned further.
In each case, with the right training for your sales staff just a part of your solution for better sales performance. Giving is your sales people theright incentives so that they can concentrate on the right things to be more important than the education itself.
What is paid for gets done
Here are some common methods, such as merchants, they are paid for their work:
* Commission based on a percentage of sales;
* Bonus on the achievement of a predetermined sales target (based on sales);
* Profit-sharing based on gross revenues or profit margins;etc.
Identified from the 3 common ways of 1 and 2 are the most common, while some companies are beginning to focus on achieving good margins, in addition to the revenues of. However, people who are rewarded by sales dollars and cents, they bring, but as to how she sustained "pipelines" that the revenue can be made available in the future, and are also less susceptible to vicious price competition.
Here is a simple example. Imagine that you work for a companythat computers sold to other companies. They sell both desktop computers and servers. While margins for desktop computers are becoming thinner buy from day to day, if you identify your customers with your brand, they tend to be from you. Even if they haggle discounts some of you, but the sale is relatively easy.
However, servers are selling a little more complicated. You need to get more technical details about the needs of your customers andCustomers are also especially about how you lead your product, as well as the after-sales maintenance contracts. While servers are relatively less vulnerable to severe price competition (as a desktop computer), it can double the time for the same amount to pay the incentive to sell servers have outsold desktop computers.
So, it becomes a no problem for you is always focused selling desktop computers for sale as a server, even if your company needs toestablished itself as the big seller of high quality and high-performance servers.
At (the sales people an incentive to sell more products from the difficult or too difficult) target customers, companies are offering "spiff" for the hard sell, sell additional bonuses or commissions, that is, that stuff hard to sell. But that can not or do not work for you, especially in difficult times.
