Ps 12 tse_anatomy of a commission sales plan
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Transcript of Ps 12 tse_anatomy of a commission sales plan
Presented by: Warren Dietel, President & OwnerOrlando, FL
The Anatomy of a Commission Sales
Plan
Warren Dietel, Owner & President• Entrepreneurial from the beginning• Professional Experience
– Car Detailing, Puff ‘n Stuff Catering, Disney Weddings, Disney Institute, Scott Kay
• Purchased PnSC in 2003• Current ICA board member and
regular speaker for the ICA, NACE and The Special Event
My Story
• Opened in 1980, purchased in 2003• Tremendous potential + aggressive growth plan =
267% growth in 3 years• (4) Exclusive venues and over (400) staff members
strong – Diversifying segment base
• 2011: expanded in Tampa market with an acquisition and opening of a second office
• “Passionately Perfecting Life’s Celebrations!”
The Puff Story
• Develop a picture of today, tomorrow, and what governs decisions• Put the foundation in place to support excellence and growth • Use an outside source to assist with development• Create a plan that includes assessment of and future planning for
– Management– Staff– Customer Base– Research and Development– Human Resources– Operations– Sales and Marketing– Financial– Technology
Mission, Vision & Values
The Mission A mission statement is a brief written statement
of the purpose of a company or organization. Ideally, a mission statement guides the actions of
the organization, spells out its overall goal, provides a sense of direction, and guides decision making for
all levels of management.
Passionately Perfecting Life’s Celebrations
VisionA vision statement outlines what the organization
wants to be. It concentrates on the future. It is a source of inspiration. It provides clear decision-
making criteria. Puff ‘n Stuff Catering will possess the systems
and procedures necessary to provide the foundation for excellence and profitable
growth. We will be recognized as the event/catering organization of choice by our
team members and clients.
Core ValuesCore values reflect what is truly important to an
organization. These values do not change from time to time, situation to situation, or person to person, but are the underpinning of a company’s culture.
Professional – In behaviors and appearanceRespect – For self, team members and clients
Own – Accountable for each others’ success and safetyAnticipate – Serving team member and clients needs
Communicate – Timely, accurately and honestly
•Create a WIN/WIN opportunityWhat motivates employees?
•Money & Performance Pay•Recognition & Appreciation•Ask them!
•Balance perceived positive and negative reinforcement •Incentive programs = positive•Accountability = negative•Place value on the behaviors driving company
objectives•Creates ownership mentality – untapped
potential
Building a Case for Incentive Based Compensation
The role of a good manager/leader is to guide employees to work on what
is most important in the most efficient manner.
•Begin with the end in mind know your desired result•Set clear, upfront expectations •Create measurable and focused goals
•Make the plan easy to calculate •Ensure the plan is accurate the first time•Review with a labor consultant/attorney •Assign leadership to champion the
process •Perform regular, reoccurring
performance reviews
How to do it ... EFFECTIVELY
Wouldn’t it be great if…every individual in your organization had a real
stake in, and understood how they are impacted by
company success?
KISS• Keep it simple and special (KISS)• Good plans = easy to implement and follow • Be clear about the incentives and how employees
earn them
Performance indicators that are too detailed and
complicated to track waste management's time and
confuse employees
Employee EngagementEmployee Engagement is a positive attitude
held by the employees towards the organization and its values.
An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of
the organization.
Creating Engagement
Leadership must:
• Acknowledge individual contributions• Deliver supportive feedback• Foster collaborative interdepartmental working
relationships• Provide empowerment that promotes success• Discuss expectations that set clear, challenging
and attainable performance goals• Show that you and the company care about
employees and their success• Trust and get out of the way
Warren DietelOwner/President
Warren DietelOwner/President
Heidi BriceSr. Special Event Planner
Heidi BriceSr. Special Event Planner
Paula SautterSpecial Event PlannerPaula SautterSpecial Event Planner
Sharol BrennanVice President
Sharol BrennanVice President
Nicole GerardiSpecial Event PlannerNicole GerardiSpecial Event Planner
Sandy GeorgeSpecial Event PlannerSandy GeorgeSpecial Event Planner
Heather AllenSpecial Event Planner Assistant
Heather AllenSpecial Event Planner Assistant
Jamie KennardSpecial Event Planner Assistant
Jamie KennardSpecial Event Planner Assistant
Crystal MillikenIntern
Crystal MillikenIntern
Carli CepekIntern
Carli CepekIntern
Michele ButlerSpecial Event PlannerMichele ButlerSpecial Event Planner
Mary BrumleySpecial Event PlannerMary BrumleySpecial Event Planner
Dana Alvarez-FerrySpecial Event Planner
Dana Alvarez-FerrySpecial Event Planner
Tina OstermanSpecial Event PlannerTina OstermanSpecial Event Planner
Emily GeorgeSpecial Event PlannerEmily GeorgeSpecial Event Planner
MaryBeth FarrellSpecial Event Planner
MaryBeth FarrellSpecial Event Planner
CorporateCorporate
ConventionConvention
Orlando Sales Team Structure
WeddingWeddingNaomi ClementsReception/Lead DistributionNaomi Clements
Reception/Lead Distribution
Ballroom
Key Plan ComponentsSEPs:
• Participate in forecasting annual goals– market, prior experience, and company needs
• Are assigned to specific vertical markets – Opportunity to sell outside a defined market is
available– Relationships trump everything
• Earn commission on both gross profit and gross revenue
• Participate in a lead rotation with set parameters– Venue assignment
• Receive administrative support – On a 1: 2 ratio for <$1M annual revenue– Dedicated for >$1M annual revenue
• Marketing expenses are absorbed by the company
Setting Goals and Targets
Compensation Components• Food, beverage, and company-owned
rentals are commissioned at a rate of 8.5% of gross revenue.
• Venue fees, delivery fees, and other direct costs are deducted before calculating commissions.
Food & beverage sale of $10,000 and $4,000 in Guest Seating/Linens
Total sale of $14,000 commissioned at a rate of 8.5% resulting in a commission of
$1,190 for the SEP
Compensation Components• On approved discounted business,
commission will be calculated on the reduced gross revenue at a rate equal to the reduced commission.
A discount of 10% on a $10,000 food sale results in $9,000 gross revenue.
Commission is equally reduced by 10% (from 8.5% to 7.65%)
7.65% is calculated on the $9,000 gross revenue
resulting in commission of $688.50
Compensation Components
• Service Personnel sales are commissioned at a rate equal to the percentage of gross profit– Maximum potential - 30%.
100 labor hours are estimated for an event at $30 per hour = $3,000
125 labor hours were needed to produce the event with a cost of $1,800Gross Profit = 40% - $1,200
SEP receives 30% of the Gross Profit - $360
Compensation Components
• Subcontracted services are commissioned at a rate equal to the percentage of gross profit– Maximum potential - 30%.
Our cost to rent a small tent is $1,000
The client is charged $1,250 (25% markup)Gross Profit = $250
SEP receives 25% of Gross Profit - $62.50
Compensation Components
• Year End Bonus: If total annual sales of a SEP exceed his/her annual sales goal, then the SEP is eligible for an individual bonus of 5% of the amount of actual sales over the annual goal.
For Example:
Actual individual sales $ 1,375,000Individual sales goal $ 1,200,000 Amount eligible for individual bonus $175,000Bonus percentage 5.00% Bonus $8,750
Reporting & Payment
• Finance supplies sales reports to SEP at month end
• Payment-in-full must be received to earn SEP commission
• Commission for a month is calculated and paid equally over the total number of pay periods in the subsequent month
For Example: January commissions are divided and paid equally
over the pay periods in February
Thank You!
Warren Dietel [email protected] | 407.629.7833
To download a copy of my slides, go to: http://www.slideshare.net/WarrenDietel
www.facebook.com/puffnstuffcatering | Twitter: @pscatering