Click the image for details Distributors often complain: the bigger the scale, the less money they make; the stronger the brand, the less money they make; the more they value culture, care, and corporatization, the less money they make. In the new situation, distributors need to innovate and move forward. The most fundamental is to improve internal management and reshape comparative competitive advantages. By using various methods to motivate employees to actively expand networks, do well in core terminal displays, and promptly clear near-expiry products, they can enhance their own strength and cope with fierce competition. For distributors, reshaping comparative competitive advantages is urgent. Internal management mechanisms need to be restructured Nowadays, most employees do not lack work ability but work attitude. The essence of distributor personnel management is not control but stimulating vitality and releasing potential. This requires distributors to set up corresponding mechanisms to motivate employees to unleash their potential and create benefits for the company. Compensation mechanism The purpose of setting up a compensation mechanism is to let some excellent people get rich first. This requires following several principles: First, the income difference between the first and last place should be more than ten times; Second, focus on promoting products that can make both employees and the trading company money and increase the commission ratio; Third, employee wages should be higher than other companies in the same region and industry, such as grassroots employees more than 20% higher, and middle and senior management more than 50% higher; Finally, let employees do things according to the money they get, and take responsibility according to the money they get; responsibilities, rights, and benefits must be equal. On the surface, setting up a compensation mechanism makes distributors pay more costs, but the benefits brought by stabilizing employees and excellent teams far exceed the costs paid. Promotion and demotion mechanism There are usually two types of promotion and demotion mechanisms: promotion in position and promotion in salary. The promotion and demotion of trading company employees must be linked to performance completion, with everything based on performance. The automatic promotion and demotion mechanism needs to follow four key points: First, list N levels of promotion system, and the monthly and annual salary assessment of employees is never fixed; Second, use profit as the guide to list the promotion standards for each level, with economic incentives as the main and administrative levels as auxiliary; Third, publicly post praise and warnings for promotions and demotions each month; Fourth, give grand rewards and publicly award promotion and demotion red or black flags. The setting of this mechanism must have the game rules defined in advance, clarify the promotion and demotion standards, promote the capable, demote the weak, and implement promptly; at the same time, strengthen talent reserves to ensure the catfish effect. Employees who complete the lowest tasks for three consecutive months must be eliminated. Internal PK mechanism Without a sound competition mechanism, distributor teams are prone to being weak, disorganized, and lacking combat effectiveness and ambition. Through PK, stimulate team vitality. The winning side gets encouragement, and the losing employees try harder. When the team is surrounded by positive energy, they can continuously bring benefits to the company. Here are some operational points to note: find a good PK target, which can be yourself, a colleague, or a team. After determining the target, clarify the PK project, standards, and time. The internal management of a trading company is a very complex matter. In addition to the compensation mechanism, promotion and demotion mechanism, and PK mechanism mentioned above, there are many other areas to pay attention to, such as the principle in the recruitment mechanism that the team leader who lacks staff is responsible for recruitment and training. In addition, a Bole Award can be set up to encourage employees to actively recommend talent and give the recommender certain rewards. Set up a reasonable compensation system Generally speaking, a salesperson's monthly salary = basic salary + performance salary + assessment salary. How to use salary design to improve employee enthusiasm? Let's look at two examples. First, look at a single employee case. According to the monthly cumulative sales task completion assessment method to receive wages. Anyone who fails to complete the monthly cumulative sales task, from the month of failure, can only receive the guaranteed basic salary. Only after completing the cumulative monthly task can they receive the previously unclaimed performance salary. Employees who do not overfulfill the annual task by the end of the year have no year-end bonus. For example, a salesperson's basic salary is 2000 yuan (including 1200 yuan for transportation and meal allowance and 800 yuan for discipline assessment), performance salary is 4000 yuan, plus other comprehensive assessment methods. If he fails to complete the sales task for eight consecutive months, then in these eight months, he can only receive 2000 yuan of guaranteed basic salary each month. When he completes the sales task in the ninth month, the performance salary for the previous eight months will be paid together with the ninth month's performance salary. Moreover, if the cumulative completion in the ninth month is 120%, then in the ninth month, he can also receive a bonus of 120%-100%*4000=800 yuan. If the salesperson continues to overfulfill the cumulative task by 120% until the end of the year, then the year-end bonus is (120%-100%)12 months4000=9600 yuan. Now look at a team combat case. The distributor divides each regional market into ABC categories according to the previous year's sales volume or profit. Markets or channels with large sales volume and high profit are classified as A, markets with low profit and low sales volume are classified as C, and the rest are B markets. For example, markets with annual profit of more than 1 million yuan are A, markets with annual profit of less than 400,000 yuan are C, and markets with annual profit between 400,000 and 1 million are B. Among them, the guaranteed basic salary for salespeople in A markets is 5000 yuan, B markets is 3500 yuan, and C markets is 2500 yuan. The division of areas is implemented in conjunction with the PK challenge system. The distributor determines the next year's sales target based on strategy each year. Each area can conditionally challenge tasks and markets, and each challenge increases the task by no less than 5%. Personnel in the same type of market can challenge each other. If a lower level wants to challenge a higher level, they must overfulfill the task by 30% within the assessment cycle to be qualified. All challengers who fail to complete the cumulative monthly challenge task for 5 consecutive months can be judged as challenge failure. Those who fail the challenge return to the original market and are downgraded to the original level. If the original market already has personnel and does not accept the challenger's return, the company will make other arrangements. High-level personnel, after overfulfilling their team's task by 30%, can apply to merge the next market and enjoy the next level of treatment jointly. Teams that overfulfill the cumulative monthly task will be given corresponding rewards according to the corresponding level. For example, for every 5% over, ABC markets are rewarded 500 yuan, 300 yuan, and 200 yuan respectively, with no upper limit. Anyone who fails to complete the cumulative monthly task will have their basic salary deducted according to the corresponding difference percentage. If they work hard to complete the previously uncompleted cumulative monthly task within the assessment period, the deducted part will be returned. At the same time, the excess performance salary will be calculated and paid from the month of cumulative completion. For distributors and salespeople, after conquering the market, it is even more important to defend it. This method is relatively complex, but reasonable operation has a greater effect on stimulating team potential and driving sales growth. Sales assessment model should achieve both volume and profit It is necessary to completely change the past assessment model that focused mainly on sales volume with other assessments as auxiliary, to a comprehensive assessment model oriented by profit, so that salespeople actively promote and sell profitable new products, thereby bringing profits to the company. Scoring by markup rate The distributor divides all company products into grades ABCDEFGH according to the different markup rates per piece, and corresponds to corresponding scores. The relationship between markup rate and score is a company secret. (See Appendix 1 for details) Scoring by markup amount The distributor lists the markup amount of all products, and converts the different markup amounts per piece into corresponding scores. The ratio can be set freely. The relationship between gross margin and score is a company secret. (See Appendix 2 for details) Scoring by net profit amount Nowadays, the daily expenses and monthly expenses of each salesperson, each area, can be clearly calculated. The distributor needs to use the total monthly expenses of each area to deduct the average cost per piece. Among them, total expenses equal the sum of warehouse fees, personnel wages, rent, commissions, bonuses, benefits, promotions, store entry fees, freight, vehicle management fees, office expenses, entertainment expenses, etc. The average expense rate is calculated based on the total expense rate of the first half of the year to assess the average expense rate for the next year. That is, the previous year's expense rate = previous year's total expenses / previous year's total sales volume * 100%, where total sales volume is not calculated at the manufacturer's price but at the distributor's ex-warehouse price. The net profit per piece (pure profit share) = (ex-warehouse price - factory price) - ex-warehouse price * expense rate. (See Appendix 3 for details) This method can effectively avoid the situation where salespeople use the company's money to promote products because they cannot complete sales tasks. A reasonable assessment design directly presents to the distributor each salesperson's task completion rate, that is, the profit brought to the company. By comparing scores among different employees, it is easier to distinguish the contribution rate of employees to the company. With one month as the assessment period, normally, each salesperson completes 30% of the monthly task in 10 days, 60% in 20 days, and 100% in 30 days. -END-