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
• 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
About Blue 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
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?
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?
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
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
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
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
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
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?
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
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?
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
How to Broaden Your Sales Team Base
• Year one salary – company investment
• Year two salary plus commission
• Budget
• Network
• Build from Within
Remember
Happy People, Making People Happy
Jennifer Perna
Vice President of Sales
Blue Plate Catering
312.239.2846
jperna@blueplatechicago.com