"Get them in the theater, break even on tickets and make your money on popcorn."
Commoditization is the process that transforms a profitable, differentiated product or service into a commodity.
Is your business all hat and no cattle? In other words, are you focusing on increasing revenue at the expense of profit?
When management start talking about increasing profitability, sales representatives start to worry. They know improving profitability usually means cutting commissions and eliminating expenses, possibly for marketing, administrative support or benefits they value. They are concerned the increased profitability will come at their expense.
But that's not the way CM Global Partners and CompensationMaster approach the situation.
You have closed the books for last year so now it's time to look at your results and see what changes, if any, need to be made for this year.
Obtain the following statistics for the past three years. If you don't already have them at your fingertips, they should be in the end-of-year information you get from your accountant:
•Sales representatives ranked by production