Presented by: Warren Dietel, President & OwnerOrlando, FL

The Anatomy of a Commission Sales

Plan

Warren Dietel, Owner & President• Entrepreneurial from the beginning• Professional Experience

– Car Detailing, Puff ‘n Stuff Catering, Disney Weddings, Disney Institute, Scott Kay

• Purchased PnSC in 2003• Current ICA board member and

regular speaker for the ICA, NACE and The Special Event

My Story

• Opened in 1980, purchased in 2003• Tremendous potential + aggressive growth plan =

267% growth in 3 years• (4) Exclusive venues and over (400) staff members

strong – Diversifying segment base

• 2011: expanded in Tampa market with an acquisition and opening of a second office

• “Passionately Perfecting Life’s Celebrations!”

The Puff Story

• Develop a picture of today, tomorrow, and what governs decisions• Put the foundation in place to support excellence and growth • Use an outside source to assist with development• Create a plan that includes assessment of and future planning for

– Management– Staff– Customer Base– Research and Development– Human Resources– Operations– Sales and Marketing– Financial– Technology

Mission, Vision & Values

The Mission A mission statement is a brief written statement

of the purpose of a company or organization. Ideally, a mission statement guides the actions of

the organization, spells out its overall goal, provides a sense of direction, and guides decision making for

all levels of management.

Passionately Perfecting Life’s Celebrations

VisionA vision statement outlines what the organization

wants to be. It concentrates on the future. It is a source of inspiration. It provides clear decision-

making criteria. Puff ‘n Stuff Catering will possess the systems

and procedures necessary to provide the foundation for excellence and profitable

growth. We will be recognized as the event/catering organization of choice by our

team members and clients.

Core ValuesCore values reflect what is truly important to an

organization. These values do not change from time to time, situation to situation, or person to person, but are the underpinning of a company’s culture.

Professional – In behaviors and appearanceRespect – For self, team members and clients

Own – Accountable for each others’ success and safetyAnticipate – Serving team member and clients needs

Communicate – Timely, accurately and honestly

•Create a WIN/WIN opportunityWhat motivates employees?

•Money & Performance Pay•Recognition & Appreciation•Ask them!

•Balance perceived positive and negative reinforcement •Incentive programs = positive•Accountability = negative•Place value on the behaviors driving company

objectives•Creates ownership mentality – untapped

potential

Building a Case for Incentive Based Compensation

The role of a good manager/leader is to guide employees to work on what

is most important in the most efficient manner.

•Begin with the end in mind know your desired result•Set clear, upfront expectations •Create measurable and focused goals

•Make the plan easy to calculate •Ensure the plan is accurate the first time•Review with a labor consultant/attorney •Assign leadership to champion the

process •Perform regular, reoccurring

performance reviews

How to do it ... EFFECTIVELY

Wouldn’t it be great if…every individual in your organization had a real

stake in, and understood how they are impacted by

company success?

KISS• Keep it simple and special (KISS)• Good plans = easy to implement and follow • Be clear about the incentives and how employees

earn them

Performance indicators that are too detailed and

complicated to track waste management's time and

confuse employees

Employee EngagementEmployee Engagement is a positive attitude

held by the employees towards the organization and its values.

An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of

the organization.

Creating Engagement

Leadership must:

• Acknowledge individual contributions• Deliver supportive feedback• Foster collaborative interdepartmental working

relationships• Provide empowerment that promotes success• Discuss expectations that set clear, challenging

and attainable performance goals• Show that you and the company care about

employees and their success• Trust and get out of the way

Warren DietelOwner/President

Warren DietelOwner/President

Heidi BriceSr. Special Event Planner

Heidi BriceSr. Special Event Planner

Paula SautterSpecial Event PlannerPaula SautterSpecial Event Planner

Sharol BrennanVice President

Sharol BrennanVice President

Nicole GerardiSpecial Event PlannerNicole GerardiSpecial Event Planner

Sandy GeorgeSpecial Event PlannerSandy GeorgeSpecial Event Planner

Heather AllenSpecial Event Planner Assistant

Heather AllenSpecial Event Planner Assistant

Jamie KennardSpecial Event Planner Assistant

Jamie KennardSpecial Event Planner Assistant

Crystal MillikenIntern

Crystal MillikenIntern

Carli CepekIntern

Carli CepekIntern

Michele ButlerSpecial Event PlannerMichele ButlerSpecial Event Planner

Mary BrumleySpecial Event PlannerMary BrumleySpecial Event Planner

Dana Alvarez-FerrySpecial Event Planner

Dana Alvarez-FerrySpecial Event Planner

Tina OstermanSpecial Event PlannerTina OstermanSpecial Event Planner

Emily GeorgeSpecial Event PlannerEmily GeorgeSpecial Event Planner

MaryBeth FarrellSpecial Event Planner

MaryBeth FarrellSpecial Event Planner

CorporateCorporate

ConventionConvention

Orlando Sales Team Structure

WeddingWeddingNaomi ClementsReception/Lead DistributionNaomi Clements

Reception/Lead Distribution

Ballroom

Key Plan ComponentsSEPs:

• Participate in forecasting annual goals– market, prior experience, and company needs

• Are assigned to specific vertical markets – Opportunity to sell outside a defined market is

available– Relationships trump everything

• Earn commission on both gross profit and gross revenue

• Participate in a lead rotation with set parameters– Venue assignment

• Receive administrative support – On a 1: 2 ratio for <$1M annual revenue– Dedicated for >$1M annual revenue

• Marketing expenses are absorbed by the company

Setting Goals and Targets

Compensation Components• Food, beverage, and company-owned

rentals are commissioned at a rate of 8.5% of gross revenue.

• Venue fees, delivery fees, and other direct costs are deducted before calculating commissions.

Food & beverage sale of $10,000 and $4,000 in Guest Seating/Linens

Total sale of $14,000 commissioned at a rate of 8.5% resulting in a commission of

$1,190 for the SEP

Compensation Components• On approved discounted business,

commission will be calculated on the reduced gross revenue at a rate equal to the reduced commission.

A discount of 10% on a $10,000 food sale results in $9,000 gross revenue.

Commission is equally reduced by 10% (from 8.5% to 7.65%)

7.65% is calculated on the $9,000 gross revenue

resulting in commission of $688.50

Compensation Components

• Service Personnel sales are commissioned at a rate equal to the percentage of gross profit– Maximum potential - 30%.

100 labor hours are estimated for an event at $30 per hour = $3,000

125 labor hours were needed to produce the event with a cost of $1,800Gross Profit = 40% - $1,200

SEP receives 30% of the Gross Profit - $360

Compensation Components

• Subcontracted services are commissioned at a rate equal to the percentage of gross profit– Maximum potential - 30%.

Our cost to rent a small tent is $1,000

The client is charged $1,250 (25% markup)Gross Profit = $250

SEP receives 25% of Gross Profit - $62.50

Compensation Components

• Year End Bonus: If total annual sales of a SEP exceed his/her annual sales goal, then the SEP is eligible for an individual bonus of 5% of the amount of actual sales over the annual goal.

For Example:

Actual individual sales $ 1,375,000Individual sales goal $ 1,200,000 Amount eligible for individual bonus $175,000Bonus percentage 5.00% Bonus $8,750

Reporting & Payment

• Finance supplies sales reports to SEP at month end

• Payment-in-full must be received to earn SEP commission

• Commission for a month is calculated and paid equally over the total number of pay periods in the subsequent month

For Example: January commissions are divided and paid equally

over the pay periods in February

Thank You!

Warren Dietel warren@puffnstuff.com | 407.629.7833

To download a copy of my slides, go to: http://www.slideshare.net/WarrenDietel

www.facebook.com/puffnstuffcatering | Twitter: @pscatering