If I were an employee, I would value my independence in this area a lot. This is a commission/compensation that I would be interested in:
The sales person has a base pay/benefits. Also, % commission on what is purchased. On top of that, there would be leeway to negotiate prices with suppliers. So, for example say you would pay $0.20/lb for desktops. You offer 5% commission on that so the sales person gets 0.01/lb so the total out of pocket per pound is 0.21/lb for you. It would be beneficial to let the sales person try to get a lower price while splitting the savings for you. So, say he is able to get desktops for 0.10/lb. He still gets the 0.01/lb commission, but you split the difference 50/50. So, in the end, the sales person gets 0.06/lb and total out of pocket for you is 0.16/lb.
I hope that's not confusing, but it creates an incentive to both generate volume, and also get better deals.








Bookmarks