I recently had a very productive one-hour phone call with a long-time distributor client that operates six showrooms. This came after several back-and-forth emails. It started out as a conversation on how to put together a compensation package for the company’s dozen or so sales consultants.
The president of this well-run business shared sales and gross-profit numbers as well as annual total compensation for his showroom team. After punching numbers, I determined the average monthly sales and gross-profit figures were well below what I believe national averages are. However, the salespeople appeared to be fairly compensated for their productivity. The president and I agreed the size of the showrooms, the demographics of the geographical area and the amount of competition played a big part in their productivity potential.