[Video] Dealer-to-Dealer Panel: Compensation Plans That Ignite Sales

2023 Dealership Minds Summit Video Series

2023 DEALERSHIP MINDS SUMMIT - VIDEO SERIES Dealer-to-Dealer Panel: Compensation Plans That Ignite Sales Hi there   We are pleased to bring you the next installment of the 2023 Dealership Minds Summit Video Series! This video series is brought to you by DeLaval.   As the equipment market continues to change, it’s vital to assess if your sales compensation plan is the right fit for today’s sales environment. This session details 3 dealership sales managers with different compensation structures and what each plan uniquely brings to their dealership. WATCH NOW Zane Watson, Farmers Implement & Irrigation, Brookings, S.D. – New Holland and Kubota dealer Farmers Implement & Irrigation rolled out a “washout cycle” sales compensation plan in 2020, around the same time Zane Watson was promoted to sales manager. The new program, says Watson, “keeps our salespeople actively working to move trades that they could otherwise lose interest in selling. Since the new comp plan was implemented, it’s moved our used inventory turns move faster and at a higher margin than ever before” while incentivizing the team to make better trades with a closer eye on reconditioning costs.   Pierce Randall, Salem Farm Supply, Salem, N.Y. (Dealership of the Year Alumni Group) — On the other end of the spectrum, Pierce Randall says Salem benefited the most from paying its sales staff a straight salary. Pierce has worked in traditional commission-based structures and understands its pros and cons.   “I believe there should always be a relationship between our net profit and a salesman’s net pay,” he says. “We’ll give different bonuses based on moving specific products or hitting certain metrics throughout the year. It’s important to reward the right actions and behaviors” he says. Randall covers the structures need to make the system work, including reviews, goal setting and the resulting bonuses for success.   Federico Lamas, Virginia Tractor, Winchester,Va. — Federico Lamas, vice president and corporate sales manager at 6-store Virginia John Deere dealer Virginia Tractor believes in a 3-prong approach to sales compensation. He has a role in managing the dealership’s 3 departments and also pays their sales team from each department, including incentives on how much aftermarket business comes from their sales. Part of this is his belief that customers trust the salesperson they know personally more than the parts counter employee or technician they don’t know.   Lamas believes “superstar” salespeople are made through goals that incentivize them to earn as much as possible. He avoids “cookie cutter” solutions and reevaluates each employee’s compensation plan every 12 months to ensure it still works for them. The 2023 Dealership Minds Summit Video Series is brought to you by DeLaval DeLaval provides integrated solutions designed to improve dairy producers’ production, animal welfare and overall quality of life. DeLaval is the worldwide leader in milking equipment and solutions for dairy farmers, which make sustainable food production possible, ensuring milk quality and animal health. DeLaval solutions are used by millions of dairy farmers around the globe every day. Learn more at www.delaval.com. Join us at the 10th Annual Dealership Minds Summit in Madison, Wis., on August 6-7, 2024. This once-a-year opportunity to learn and network with the most influential “Dealership Minds” in the industry — of every color, size and experience — will provide actionable, best-practice ideas to take your dealership to the next level. Register using promo code SUPER15 and save 15% off each attendee. Dealership Minds Summit • 16655 W. Wisconsin Ave, Brookfield, WI 53005 Click here to update your email preferences for exclusive Farm Equipment content series like this. Click here to unsubscribe from this mailing list.   View Email Online