INTRODUCTION

This document describes the anticipated operating structure for outside salespeople working for Arkansas Bag & Equipment Co. (ABEC).

Implementing this structure is the responsibility of the Vice President of Sales of Arkansas Bag & Equipment Co. or an appropriate designee.

FUNDAMENTAL JOB

An Outside Salesperson working for ABEC is expected to manage and complete the entire sales cycle from prospect identification through account collections.  The established (recommended) processes are as follows:

1. Identify credit worthy prospects for the purchase of goods and services warehoused by ABEC.
2. Contact these prospects, on a regular basis, for the purpose of establishing a consulting relationship resulting in sales of goods and services warehoused by ABEC.
3. Conduct on site surveys, on a regular basis, with the purpose of selling deeper into the account by recommending further use of goods and services warehoused by ABEC.
4. Secure referral leads from these now customers to allow the salesperson to identify further prospects, repeating the cycle.
5. Help in collections of all past due accounts.

In order to discharge these responsibilities, the Outside Salesperson will be expected to have knowledge of customer-focused selling strategies and techniques.  While expertise in the field of janitorial supplies and equipment is beneficial, ABEC will provide employee salespeople with ongoing training as needed on industry developments, vendor/material specifications and standard practices.

ABEC intends that Outside Salespeople will work on an employee [W-2] basis, representing only Arkansas Bag & Equipment Co. in the marketplace. 

SALESPERSON COMPENSATION AND PROVISIONING

Outside Salespeople at ABEC will be paid on a commission basis, according to the schedule found within this document.  Employee salespeople will be qualified for a “draw against commissions” in accordance with the details outlined below.  Commissions will vary according to individual accounts by account class and sub-category penetration calculated on gross profit dollars.  Commission will be calculated within 14 days of the end of each month with commission checks being issued, ½ on the 15^th and ½ on the last day of the following month. i.e. January commissions will calculated before the 14^th of February with ½ being paid February 15^th and ½ paid February 28^th.(29^th on leap years).

All Outside Salespeople are expected to provide many of their own “selling tools”.  Necessary industry and marketing products such as samples and brochures will be provided by ABEC.  The anticipated provisioning arrangement is as follows:

• ABEC provides
• Business cards for each salesperson.  Business cards for employees will include a personal cell phone number.
• Mini-computer with Wi-Fi capabilities, loaded with software for customer order entry and order transmission into ABEC. (to be kept current through daily uploads)
• Sales materials, which include:
• Product Brochures
• Vendor Product Books
• Monthly Specials to  entice sales
• Samples as needed and requested
• Demo equipment
• Field support from management

• Outside Salesperson provides
• Cellular phone
• Reliable personal transportation
• Clothing appropriate to making sales calls to upper management within customer facilities.

SALES PROCESS

Sales Process Flow

1. The Outside Salesperson will use usual prospecting skills to identify potential customers.  Prospects located outside of ABEC’s traditional service area must be coordinated with the Vice President of Sales before approaching to ensure suitability of delivery and pricing.
2. From among these prospects, the Outside Salesperson will make an initial contact with the intention of introducing ABEC, telling the company story, all the while looking for sales opportunities.
3. During this sales call, the Outside Salesperson will conduct an initial survey of the facility with an emphasis on what exact products are being purchased now, what the prospect is using said product for, what the prospect likes or dislikes about each product, all for the purpose of consulting the customer on the correct ABEC product to fill the prospects “real” needs. The outcome of each sales call is intended to sell ABEC products that lead to better customer loyalty and further account penetration.
   • In addition to telling the company story, with sufficient interest generated, the Outside Salesperson will obtain a customer application that will be used to correctly set up the customer account and check for credit worthiness. (we need this customer application on every customer for proper account set up)
4. After successful completion of the initial sales call the sales person will set up an account so a quote can generated and delivered to the proper prospect contact with explanations of product choices.

• Recommending an order is a must at all sales call. “Ask for the order”.

Commission Structure

Commissions will be paid according to the following table.  Commission rates will vary according to individual accounts by class and penetration calculated on gross profit dollars. (Class and penetration will be calculated quarterly.  Commission will be calculated within 14 days of the end of each month with commission checks being issued, ½ on the 15^th and ½ on the last day of the following month. i.e. January commissions will calculated before the 14^th of February with ½ being paid February 15^th and ½ paid February 28^th.(29^th on leap years).

“Draw Against” Policy

ABEC provides Outside Salespeople with a guaranteed monthly income based on a “Draw against Commission” system.  For all months in which the Salesperson earns commissions less than that amount, the difference between the commissions earned and the Draw will be advanced to the Salesperson, at no interest, to be repaid from the next commission check in excess of the Draw.

This draw provision will remain in effect until such time as the Salesperson has accrued over $2,000 in outstanding draw amounts.  At this point, the monthly draw guarantee will drop by 10%.  From this point forward for every $1000 in additional outstanding draw amounts the draw guarantee will drop by 10%.  i.e. at $3000 total outstanding another -10% draw, at $4000 total outstanding another -10% draw.

Once the Salesperson accrues an outstanding draw balance exceeding $5,000, that salesperson could be terminated, and all revenues from any in-process sales will revert to ABEC as partial repayment of the advanced draws.

As an incentive, for any complete quarter (calendar quarter) when total commissions for the quarter exceed total draw for the quarter a bonus of 20% of all access will be paid to that Salesperson.  Example, draw is $6000.00 per quarter, commission is $6500.00.  Excess is $500 times 20% for a $100.00 bonus.

Lead Sharing Policy

Prospects and leads generated by ABEC may be shared with the Outside Salesperson at the sole discretion of the Vice President of Sales.  The Outside Salesperson is responsible for generating all prospective leads for his use, except in the case where the Salesperson staffs an exhibit/booth on behalf of ABEC.

Individual Expenses

ABEC, as a matter of policy, does not pay the normal expenses incurred in the process of conducting business, such as cellular phone, office supplies and gasoline/mileage.  Extraordinary expenses can be submitted to the Vice President of Sales on a case-by-case basis for evaluation, but they are not guaranteed to be paid.

EVALUATION MEASUREMENTS   

The beauty of an Outside Salesperson position on a commission basis is that the output really defines the quality of the employee performance.  However, in order to prevent and forestall declining performance, we will review and evaluate the following measures on a weekly basis

New Prospects Per Week:  The Outside salesperson will report the number of new prospect calls made, by phone or in person, during the week.

Number of Sales Calls Per Week: The Salesperson will report the number of attempted Sales Calls made, whether contact was made or not, during the week.

Number of Contacts Per Week: The Salesperson will report the number of times that he actually reached the person he was intending to reach, by phone or in person, in an attempt to make a sale, during the week.

Number of Sales Made Per Week: The Salesperson will report the number of, and the value of, all sales during that week.

The results of each week’s performance will be provided to the Sales Manager, who will review and consolidate company-wide performance, adjusting focus and performance where it is indicated.