Getting out of the traditional salary model of “basic salary plus commission”
Currently, many dealers look at the results rather than the process of salespeople, and sales volume has become the only criterion for evaluating salespeople. If there is sales, the salesperson will get more money; if there is no sales, the income will be low and he or she may even leave. The reality is that old salespeople do not work and receive high salaries; new salespeople work hard and receive pitiful salaries. The direct consequence is that speculation, laziness, and corruption among the sales staff have become common. Especially when dealers use the commission model as the basis for assessment and salary, then the performance of the salesperson is that after opening a store in the early stage and the sales volume is stable, he does not want to make progress, is satisfied with the status quo, and is no longer committed to working for growth and sustainable development. General maintenance is a good old salesman, even "who is in Caoying and in Han", selling other products part-time.
The salary model of basic salary + commission is adopted by most dealers. This model makes the pie bigger, which is conducive to increasing the pressure on salesmen and urging them to achieve the minimum target. However, this model positions the salesperson’s mission and responsibilities on “volume sales.” It is only a salary model that guarantees quantity but not quality. It stays at the level of “just sell it” and does not manage and manage the work process and quality. Assessment. Temporary does not mean long-term. When more salesmen find that the task is impossible to complete or there are more competitive opportunities, they will leave.
Considerations in salary setting
Dealers need to consider the following two factors when setting salary:
1. The competitiveness of the entire industry Salesperson compensation system design model. "Ask the canal where you can find such clarification, so that there is a source of running water." Recruiting from the talent market is the main source of a company's business personnel. At this time, if the dealer's salary system design is not competitive, I'm afraid you will have to find a balance for the salespeople from other aspects (such as brand, strength, development space, etc.). For example, Manager Qu in Inner Mongolia sets the salary structure as: basic salary + commission + lunch. The basic salary is 400 yuan, which is lower than other dealers. However, the profit of its products is higher than that of other agents, which means the commission is higher. The salesperson is given a commission of 1 yuan per box, which is 0.3 yuan higher than that of other dealers.
2. The dealer’s own development stage. If the dealer's company has just started, many aspects are not standardized, and the scope of management is very small, then what is often needed at this time is "hard-working" salesmen, and you may wish to adopt a commission system, because the dealer does not have enough personnel and management models. Go to detailed management.
If the company develops to a certain stage, the market is stable, and it needs to seek benefits from management, disadvantages such as "turning old salesmen into lazy men" caused by the commission system will easily occur, and a growth-based approach will be needed. Salary model, which mainly includes sales task assessment system and comprehensive assessment system. The sales task assessment system assigns work targets to salespeople based on time and draws wages based on the completion rate. Salesperson salary = actual completed sales volume/target task sales volume × base salary, which can also be optimized into: salesperson salary = actual completed sales volume/target task sales volume × base salary × adjustment coefficient. In this way, the company's goals can be effectively decomposed downwards, tasks and pressures can be fully decomposed onto each salesperson, goals can be set and salespersons can be assessed according to local conditions. This requires dealers to have an accurate understanding and mastery of the regional markets and products for which salespeople are responsible, and to plan for key target markets so that salespeople can make the best use of their talents.
The comprehensive evaluation system is a method that evaluates both the results and the process. The salary of a salesperson depends on the quality of the work process and the final result. The dealer gives a benchmark salary indicator, and the salesperson receives salary based on the score. Salary = benchmark salary indicator × salesperson score/100. Dealers can set various assessment items, such as sales volume and completion of terminal work. Each of the above items can be adjusted and selected according to the company's overall goals, but the process must be assessed and linked to salary. This process requires monitoring and evaluation personnel similar to market supervision. At the same time, the evaluation and salary design of the monitoring and evaluation personnel must be done well to ensure that the evaluation process is objective and equal.
On the one hand, it evaluates the sales performance of the salesperson, and on the other hand, it can correct the work problems of the salesperson in a timely manner. It is a process management compensation system.
How do they pay wages
In line with the principle of "practical and effective", we have selected several more useful salary setting methods from the market, hoping to provide some reference for dealer friends. Significance:
Although Jiangxi Manager Xiong adopts a basic salary + commission salary package, he adopts different commission systems (from 1% to 10%) based on product sales and profit levels, rewarding hard work and punishing laziness. Employees who have been in the company for more than six months will be dismissed if their commissions do not reach a certain percentage, and a certain flow of the above-mentioned personnel will be maintained to keep the company's vitality forever.
Jiangsu Manager Yuan adopts the form of "installment payment". Manager Yuan promised the salesperson 1,000 yuan per month, but in fact he only paid 800 yuan. The remaining 200 yuan each month would be paid at the end of the year; the usual commission would be given once every six months, so as to maintain the salesman's ability to a certain extent. of stability.
Manager Chen in Hebei mainly uses "fuzzy bonuses". The salary composition he set is basic salary + commission + bonus. Although the basic salary is public, bonuses and benefits are vague. At the same time, Chen will ask everyone to select the best promoters and salesmen every week and every month, and distribute bonuses of different amounts.
Manager Feng from Anhui is a county-level dealer. He said that in the county-level market, the level of salespeople is generally not high. Generally speaking, those who are capable will not take you seriously, while those who are less capable will leave. Therefore, Manager Feng is very interested in experienced salesmen. Anyone who can work in his company for three years will be given a bonus of 3,000 to 4,000 yuan by Manager Feng. Experienced business people stay.
Although it seems that there is no necessary connection between beauty instructors and medical representatives, upon closer inspection, they are quite related. Perhaps, the comparative analysis of these two professions will bring some new inspiration to the beauty industry, especially to beauty instructors.
As a profession that emerged at the end of the last century, medical representatives were once controversial for their unique sales models and generous career returns; more than ten years later, beauty instructors are becoming more and more popular as a brand new profession. The more people pay attention to it. Although these are two professions in completely different industries, if we look closely at their background and development history, we will find that they have many connections.
□ Sunrise industries give birth to new professions
In the past 20 years, my country's pharmaceutical industry has developed vigorously, with the number of pharmaceutical companies soaring from more than 500 in 1990 to nearly 6,000 in 2000. , the sales model has also begun to enter a fully competitive market state from traditional manufacturers directly supplying hospitals. As a unique salesperson in this industry, "medical representatives" are undoubtedly the most effective and quick magic weapon for manufacturers to promote products to hospitals. From the first batch of medical representatives appearing in Shanghai Bristol-Myers Squibb Company in 1988 to the present more than 20 years of development, pharmaceutical representatives Representatives remain the pharmaceutical industry's irreplaceable sales promoters for prescription drug products.
Since the development history of the professional cosmetics industry in China is not long, it is only in recent years that beauty tutors have become a profession. In the early days of beauty product sales, there were almost no full-time personnel to follow up, and they were basically in a natural sales state of a seller's market. With the development of the national economy, the professional cosmetics industry has gradually become a development hotspot in the post-industrial era with its relaxed development environment, lagging industry regulations and attractive operating profits. The huge market potential makes beauty instructors as the backbone of sales gradually become the focus of people's attention.
□ Professional sales create huge income
In my country, the average basic salary of an ordinary medical representative is about 2,000 yuan, and the commission (commission) ratio is about 5. Usually, he can make a profit every month. If you complete sales of at least 100,000 yuan in the designated sales area, your income will be at least 7,000 yuan. Of course, this is just an average number. Some foreign companies will adopt a high base salary plus bonus compensation method. The bonus is calculated based on factors such as the sales volume of the products the medical representative is responsible for, the proportion of tasks completed by the entire region, and other factors.
It can be seen that in addition to maintaining terminals, medical representatives and beauty instructors also need to develop and manage channels under their jurisdiction, plan and organize promotional activities, and are truly all-round sales personnel. Moreover, due to their in-depth understanding of all aspects of the market, they often choose to start their own businesses after a period of accumulation: elites among medical representatives will set up their own businesses, or act as product agents as "natural persons in pharmaceutical marketing," or Form a partnership with others to set up a pharmaceutical company to focus on sales; beauty instructors usually consider transforming into beauty salon owners or regional agents after two or three years of work practice. Entrepreneurship rates in these two professions are generally much higher than in other industries.
□ Training is the foundation of the profession
In order to accurately convey product information and answer doctors’ related questions during the use of drugs (such as drug side effects, usage methods for different diseases, etc.), Every new pharmaceutical representative must receive detailed product training. In some foreign companies, such training may even last more than 2 weeks. At the same time, due to the rapid development of clinical medicine and drug research and development, in order to promote drugs well, one must also grasp the latest medical trends and information. Therefore, a qualified medical representative is required to not only receive training from the company at any time, but also constantly recharge himself .
Similarly, beauty instructors are also one of the most trained professions. If beauty instructors want to achieve good sales results, they must fully understand the characteristics, mechanisms of action and latest operating techniques of various products, as well as have certain sales skills, eloquence, etc. All these require continuous self-study by beauty instructors to arm themselves. A successful beauty instructor is often a sales elite with strong learning ability.