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j_rod #1 Posted 04 February 2020 - 09:09 PM

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Hey guys, I need some help with my business, specifically with my sales team. All of a sudden I find that we're in the red and losing money and I can't seem to figure out why. I've got seven reps and each rep is paid a set monthly salary and as we're a services company, the revenues they bring in are only offset by the cost of their salaries, so profit = Sales - Salary.

 

Can you help me understand why I'm losing money??

 

Rep Salary Sales
1 $10,000 $7,900
2 $10,000 $12,000
3 $13,500 $14,250
4 $11,000 $9,500
5 $9,600 $9,000
6 $9,700 $9,250
7 $9,000 $8,000

Working as intended
 

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RoadKutter #2 Posted 04 February 2020 - 09:41 PM

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krietenstein34 #3 Posted 04 February 2020 - 09:45 PM

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You're fired !
:girl:

_Cletus #4 Posted 04 February 2020 - 09:46 PM

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It's hard to say without knowing more about your business, but the sales guys at my company can get complacent.  This is why a lot of businesses pay commission instead of salary.  If those were commissioned sales people than employees 1, 4, 5, 6, and 7 wouldn't have received a check at all.  That's some motivation to get out there and talk to customers and stir up the biz-nass.

 

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j_rod #5 Posted 04 February 2020 - 09:55 PM

    Better Looking Than Cletus, and The Forum Jester

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View Post_Cletus, on 04 February 2020 - 03:46 PM, said:

It's hard to say without knowing more about your business, but the sales guys at my company can get complacent.  This is why a lot of businesses pay commission instead of salary.  If those were commissioned sales people than employees 1, 4, 5, 6, and 7 wouldn't have received a check at all.  That's some motivation to get out there and talk to customers and stir up the biz-nass.

 

Great point! These are monthly averages over the past year. 
 

So what do you do when you put these numbers in front of a rep and they tell you how hard they’re working yet they cost you as much as $25k a year in losses?? 


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j_rod #6 Posted 04 February 2020 - 10:03 PM

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View Postkrietenstein34, on 04 February 2020 - 03:45 PM, said:

You're fired !


Man, I wish. Sales rep 1...yeah, he’s my Brother-in-Law, my wife’s sister’s husband. My wife has already told me she’d take the kids and all my earthly possessions if I fire him. 

 

Here’s the thing - I’ve provided him with every tool possible to be more successful, but all he does is blame his failures on market conditions, his fellow sales reps, you name it. I’ve shown him point blank that he’s costing me money, but he still insists that he’s doing a great job. 

 

What can I do??


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Texas_Tyrant #7 Posted 04 February 2020 - 10:07 PM

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I might be able to help. I read a lot on business, PM me on what your business is about, does, services. Cletus is right though. Have a low base salary with commission. Business is hard, it takes strategy. Have yo heard of Purplemonkeygarage? Look them up, they are great business advisors/company fixer-uppers. 

 

https://purplemonkeygarage.com/

 

Met the owner Josh Tolley few years ago, great guy. Smart.

 

Best of luck!


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rhinotx #8 Posted 04 February 2020 - 10:09 PM

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View Postj_rod, on 04 February 2020 - 04:03 PM, said:


Man, I wish. Sales rep 1...yeah, he’s my Brother-in-Law, my wife’s sister’s husband. My wife has already told me she’d take the kids and all my earthly possessions if I fire him. 

 

Here’s the thing - I’ve provided him with every tool possible to be more successful, but all he does is blame his failures on market conditions, his fellow sales reps, you name it. I’ve shown him point blank that he’s costing me money, but he still insists that he’s doing a great job. 

 

What can I do??

Your wife needs to realize that you both need to eat, but you're in a spot.



_Cletus #9 Posted 04 February 2020 - 10:12 PM

    Voodoo Wizard

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Here's the solution, make it a partial commission job.  Reduce salary's, institute a partial commission so that if they hit all their goals they have the potential to make more than they do now.  If they don't hit their goals they make less money.  Make sure they aren't complacent, they need to be making phone calls to potential customers, visits to customers, if they are just sitting waiting for the phone to ring they aren't really selling, they are just taking orders.

Edited by _Cletus, 04 February 2020 - 10:12 PM.

 

If a person feels powerless or insignificant in their life, the easiest way to achieve power is to make other people angry; every internet troll has known this since 1993 and every toddler has known it since the dawn of time.

wrecker1968 #10 Posted 04 February 2020 - 10:12 PM

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And what does this have to do with the game?:facepalm:

j_rod #11 Posted 04 February 2020 - 10:12 PM

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View PostTexas_Tyrant, on 04 February 2020 - 04:07 PM, said:

I might be able to help. I read a lot on business, PM me on what your business is about, does, services. Cletus is right though. Have a low base salary with commission. Business is hard, it takes strategy. Have yo heard of Purplemonkeygarage? Look them up, they are great business advisors/company fixer-uppers. 

 

https://purplemonkeygarage.com/

 

Met the owner Josh Tolley few years ago, great guy. Smart.

 

Best of luck!

 

Thanks for the tips...I’ll be sure to check them out. Unfortunately these salaries are based on long-term contracts so the only way to be profitable is for my reps to produce more. 

 

View Postrhinotx, on 04 February 2020 - 04:09 PM, said:

Your wife needs to realize that you both need to eat, but you're in a spot.

 

Sucks yeah? Suggestions on how to discuss with my BIL? To me, it’s pretty obvious, but he’s just not getting it. 


Working as intended
 

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j_rod #12 Posted 04 February 2020 - 10:15 PM

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View Postwrecker1968, on 04 February 2020 - 04:12 PM, said:

And what does this have to do with the game?:facepalm:


Patience Padawan. 


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Gavidoc01 #13 Posted 04 February 2020 - 10:20 PM

    Platinum Card Wallet Warrior

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Guaranteed and performance based income.


Reduce overall salaries by a percentage, set a monthly quota and if said number is hit the performance based % increase equals their original salary. Numbers above that quota returns a larger percentage.

 

Reduces you overall output for the low earners, and the net return for greater sales from the high performers should result in increased profits despite a % of that profit going to increased salaries for them.

 

Or just go to a commission based system.


Edited by Gavidoc01, 04 February 2020 - 10:23 PM.

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wrecker1968 #14 Posted 04 February 2020 - 10:22 PM

    Head of Security

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Aaaah......... Someone is about to teach me a lesson.

j_rod #15 Posted 04 February 2020 - 10:29 PM

    Better Looking Than Cletus, and The Forum Jester

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View PostGavidoc01, on 04 February 2020 - 04:20 PM, said:

Guaranteed and performance based income.


Reduce overall salaries by a percentage, set a monthly quota and if said number is hit the performance based % increase equals their original salary. Numbers above that quota returns a larger percentage.

 

Reduces you overall output for the low earners, and the net return for greater sales from the high performers should result in increased profits despite a % of that profit going to increased salaries for them.

 

Or just go to a commission based system.


I wish. These are long-term contracts with set salaries. 


Working as intended
 

It was never fair... but it was fun! - Krietenstein34 

 


j_rod #16 Posted 04 February 2020 - 10:31 PM

    Better Looking Than Cletus, and The Forum Jester

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View Postwrecker1968, on 04 February 2020 - 04:22 PM, said:

Aaaah......... Someone is about to teach me a lesson.


I’m actually hoping you can help me. What would you do in this situation?


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acrisis #17 Posted 04 February 2020 - 11:08 PM

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View Postj_rod, on 04 February 2020 - 05:29 PM, said:


I wish. These are long-term contracts with set salaries. 


So, you will need max sales, trim fat elsewhere etc to be profitable or figure out how to renegotiate the lot ... 

 

Either you are profitable or you go belly up. 


 

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wrecker1968 #18 Posted 04 February 2020 - 11:09 PM

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View Postj_rod, on 04 February 2020 - 10:31 PM, said:


I’m actually hoping you can help me. What would you do in this situation?

 Sorry, I am not qualified To help you in this situation. 1st, I do not have all the information about your employees. Do they contribute in a positive way to your company in other ways? 2nd, do you offer any type of incentives ? 3rd, have you sat down with the numbers and discussed it with them? 4th, this seems like you trying to draw me into the trap. 5th, thank God we already established that I am stu pid. 6th, never mix family and business. 7th, you have a habit of pointing out the negatives but not the positives.

  Once again I state that I am not qualified to help you. Sorry


Edited by wrecker1968, 05 February 2020 - 05:25 AM.


BorisBaddenov #19 Posted 04 February 2020 - 11:11 PM

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View Postj_rod, on 04 February 2020 - 02:09 PM, said:

Hey guys, I need some help with my business, specifically with my sales team. All of a sudden I find that we're in the red and losing money and I can't seem to figure out why. I've got seven reps and each rep is paid a set monthly salary and as we're a services company, the revenues they bring in are only offset by the cost of their salaries, so profit = Sales - Salary.

 

Can you help me understand why I'm losing money??

 

Rep Salary Sales
1 $10,000 $7,900
2 $10,000 $12,000
3 $13,500 $14,250
4 $11,000 $9,500
5 $9,600 $9,000
6 $9,700 $9,250
7 $9,000 $8,000

 

Bring all 7 of them in to a meeting -- must be all 7 and must be face to face.

 

Show them these numbers.  Ask them -   What do we do as a team to prevent me from having to reduce the number of sales personal.    Lead the team to a consensus decision - hopefully the solution they decide upon is one that THEY came up with - maybe with some prodding on your side - but I think it very important for the sales team to buy into the solution - and you'll have better luck with that if the idea is theirs.

 

 

Peace-

Boris


Edited by BorisBaddenov, 04 February 2020 - 11:18 PM.

I’ve noticed a strong lack of Spare Parts. Is that intended?

No, it is not. This problem will solve itself with time. Many players have several dozens of vehicles in their Garages, so they don’t have enough Spare Parts for the entire vehicle fleet. But you will gradually collect enough Spare Parts to unlock new slots for purchased tanks in time.


Bait_Car #20 Posted 04 February 2020 - 11:37 PM

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View Postwrecker1968, on 04 February 2020 - 10:12 PM, said:

And what does this have to do with the game?:facepalm:

7 sales people and 7 tanks. 
 

a business has so many other variables, my guess is that this has nothing to do with business and everything to do with the game. 






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