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Happy Sales People = Happy and Healthy Sales Numbers

Happy Sales People = Happy and Healthy Sales Numbers. Jennifer Perna Vice President of Sales Blue Plate Catering. Overview How to Motivate your Sales Team Encourage Growth Develop Performance Based Compensation Structures Have Positive Numbers Hit the Bottom Line. About Jennifer.

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Happy Sales People = Happy and Healthy Sales Numbers

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  1. Happy Sales People = Happy and Healthy Sales Numbers Jennifer PernaVice President of SalesBlue Plate Catering

  2. Overview • How to Motivate your Sales Team • Encourage Growth • Develop Performance Based Compensation Structures • Have Positive Numbers Hit the Bottom Line

  3. AboutJennifer • Studied Hotel and Restaurant Management • Hotel Catering Background • Off Premise Catering • Salesperson – six years – sold $2.5 million peak year • Sales Manager – seven years – average annual growth 20% • Independent Sales Consultant – 2 years • Vice President of Sales – 5 years

  4. AboutBlue Plate • Company Overview • Sales Team Composition • Sales Consultants • Event Producers • Roles and Responsibilities • Develop Individual Sales Goal • Reviewed by VP Sales and Approved/Modified • Develop Sales Implementation Plans • Manage Individual Expense Budgets • Manage Venue Relationships • Sell, Produce, Attend Events • Goals range from $500k – $3 million based on experience

  5. Analyze your Existing Compensation Structure • Have you been Compensating the Same “Just Because” • Has the existing package retained your staff • What is your turnover ratio? • Do you ask people why they leave? • Do you have people that never leave? • Do you feel your plan is fair – and does your sales team? • What does your sales team ask of you? • Do you know what your competitors are paying? • Geographic considerations – what is the norm?

  6. Analyze your Existing Compensation Structure • Is it individual based or group based • Do your sales stars stay if group based? • Benefits of individual based • As a manager/owner – how do you feel about the comp plan? • Do your salespeople have a year end W2 higher than yours? • How does that make you feel? • Can you actually change the plan – and if so – what will happen? • How will you explain and are you willing to share numbers? How open are your books to the sales team?

  7. Developing Individual Performance Based Compensation Plans • Traditional Compensation plans – Advantages/Disadvantages • Salary • Budget friendly • Candidate pool wider – traditional hiring process • Doesn’t pay for performance – tenure based for compensation increases • Safest plan for sales person • Goals important but not relevant to compensation

  8. Developing Individual Performance Based Compensation Plans • Traditional Compensation plans – Advantages/Disadvantages • Salary plus commission • Hiring process more traditional • Safe plan for business and sales person • Encourages and rewards for growth • Goals defined

  9. Developing Individual Performance Based Compensation Plans • Traditional Compensation plans – Advantages/Disadvantages • Commission with Draw • Define draw = loan • Allows salesperson stability • Pays on individual performance • My favorite for off premise catering • Encourages individual goal development and annual growth

  10. Developing Individual Performance Based Compensation Plans • Traditional Compensation plans – Advantages/Disadvantages • Commission only • No “payroll” risk to company • For sales sharks • Should be higher percentage than commission plus draw due to individual risk • “Own the business” mindset • Difficult to project goals • Part time options/Independent option • No benefits to employee

  11. Design Non Financial Motivators/Rewards • Weekly Sales Sheet • Woo Hoo Emails • Achieving Year End Goal • Big Wins • Contests • Miles for Trips • Blitzes with Instant Rewards • Gift Cards • Trade with Vendors • Flex Time

  12. Profitability Guidelines in a Competitive Marketplace and Building Your Team • Work Backwards – stars with your annual budget • Spending time with CFO/Accounting • What is the company profitability goal and how does the sales team fold into that?

  13. Profitability Guidelines in a Competitive Marketplace and Building Your Team • What is profitability %? 10%? 15% • What is net revenue goal? (after commissions and discounts) • How much should the sales team cost? Define a percentage that works in net profitability after all operating costs and is based on net revenue (range between 8-12% before taxes and benefits) • Example • Company wants 15% net profitability with 10% annual net revenue growth; Sales for year 2013 were $5 million

  14. Profitability Guidelines in a Competitive Marketplace and Building Your Team • How to Develop 2014 Model • Net Revenue Goal $5.5 million • Net Profit $825,000 • Sales Team Compensation Budget based on 8% = $440,000 • Sales Team Compensation Budget based on 12% = $660,000 • How do you “spend” the budget and how do you achieve $5.5 million??? • Where are your sales people pacing now? • Where were they in 2013? • Are they capable of more growth? • Does the Existing compensation plan work as is? • What are your existing commission percentages now? • Does that include event production support? • Do you want to build the team?

  15. Reasonable Growth Expectations • Factors • Geography • Company History • Company Capabilities • Market Segments • Company Initiatives • New Salesperson (1-2 years) 50-75% first few years • $250,000 - $500,000 goal year one • $375,000 - $875,000 goal year two • $600,000 - $1.5 million goal year three • Established Salesperson (3-5 years) 10-25% annual • $750,000 - $2,000,000 • Seasoned Salesperson (5+ years) 0-10% annual • $1,000,000 - $3,000,000

  16. How to Broaden Your Sales Team Base • Network • Build from Within • Year one salary – company investment • Year two salary plus commission • Budget

  17. Remember Happy People, Making People Happy Jennifer Perna Vice President of Sales Blue Plate Catering 312.239.2846 jperna@blueplatechicago.com

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