Happy Sales People = Happy and Healthy Sales Numbers

1. Happy Sales People = Happy and Healthy Sales Numbers Jennifer PernaVice President of SalesBlue Plate Catering

2. Overview • How to Motivate your Sales Team • Encourage Growth • Develop Performance Based Compensation Structures • Have Positive Numbers Hit the Bottom Line

3. AboutJennifer • Studied Hotel and Restaurant Management • Hotel Catering Background • Off Premise Catering • Salesperson – six years – sold $2.5 million peak year • Sales Manager – seven years – average annual growth 20% • Independent Sales Consultant – 2 years • Vice President of Sales – 5 years

4. AboutBlue Plate • Company Overview • Sales Team Composition • Sales Consultants • Event Producers • Roles and Responsibilities • Develop Individual Sales Goal • Reviewed by VP Sales and Approved/Modified • Develop Sales Implementation Plans • Manage Individual Expense Budgets • Manage Venue Relationships • Sell, Produce, Attend Events • Goals range from $500k – $3 million based on experience

5. Analyze your Existing Compensation Structure • Have you been Compensating the Same “Just Because” • Has the existing package retained your staff • What is your turnover ratio? • Do you ask people why they leave? • Do you have people that never leave? • Do you feel your plan is fair – and does your sales team? • What does your sales team ask of you? • Do you know what your competitors are paying? • Geographic considerations – what is the norm?

6. Analyze your Existing Compensation Structure • Is it individual based or group based • Do your sales stars stay if group based? • Benefits of individual based • As a manager/owner – how do you feel about the comp plan? • Do your salespeople have a year end W2 higher than yours? • How does that make you feel? • Can you actually change the plan – and if so – what will happen? • How will you explain and are you willing to share numbers? How open are your books to the sales team?

7. Developing Individual Performance Based Compensation Plans • Traditional Compensation plans – Advantages/Disadvantages • Salary • Budget friendly • Candidate pool wider – traditional hiring process • Doesn’t pay for performance – tenure based for compensation increases • Safest plan for sales person • Goals important but not relevant to compensation

8. Developing Individual Performance Based Compensation Plans • Traditional Compensation plans – Advantages/Disadvantages • Salary plus commission • Hiring process more traditional • Safe plan for business and sales person • Encourages and rewards for growth • Goals defined

9. Developing Individual Performance Based Compensation Plans • Traditional Compensation plans – Advantages/Disadvantages • Commission with Draw • Define draw = loan • Allows salesperson stability • Pays on individual performance • My favorite for off premise catering • Encourages individual goal development and annual growth

10. Developing Individual Performance Based Compensation Plans • Traditional Compensation plans – Advantages/Disadvantages • Commission only • No “payroll” risk to company • For sales sharks • Should be higher percentage than commission plus draw due to individual risk • “Own the business” mindset • Difficult to project goals • Part time options/Independent option • No benefits to employee

11. Design Non Financial Motivators/Rewards • Weekly Sales Sheet • Woo Hoo Emails • Achieving Year End Goal • Big Wins • Contests • Miles for Trips • Blitzes with Instant Rewards • Gift Cards • Trade with Vendors • Flex Time

12. Profitability Guidelines in a Competitive Marketplace and Building Your Team • Work Backwards – stars with your annual budget • Spending time with CFO/Accounting • What is the company profitability goal and how does the sales team fold into that?

13. Profitability Guidelines in a Competitive Marketplace and Building Your Team • What is profitability %? 10%? 15% • What is net revenue goal? (after commissions and discounts) • How much should the sales team cost? Define a percentage that works in net profitability after all operating costs and is based on net revenue (range between 8-12% before taxes and benefits) • Example • Company wants 15% net profitability with 10% annual net revenue growth; Sales for year 2013 were $5 million

14. Profitability Guidelines in a Competitive Marketplace and Building Your Team • How to Develop 2014 Model • Net Revenue Goal $5.5 million • Net Profit $825,000 • Sales Team Compensation Budget based on 8% = $440,000 • Sales Team Compensation Budget based on 12% = $660,000 • How do you “spend” the budget and how do you achieve $5.5 million??? • Where are your sales people pacing now? • Where were they in 2013? • Are they capable of more growth? • Does the Existing compensation plan work as is? • What are your existing commission percentages now? • Does that include event production support? • Do you want to build the team?

15. Reasonable Growth Expectations • Factors • Geography • Company History • Company Capabilities • Market Segments • Company Initiatives • New Salesperson (1-2 years) 50-75% first few years • $250,000 - $500,000 goal year one • $375,000 - $875,000 goal year two • $600,000 - $1.5 million goal year three • Established Salesperson (3-5 years) 10-25% annual • $750,000 - $2,000,000 • Seasoned Salesperson (5+ years) 0-10% annual • $1,000,000 - $3,000,000

16. How to Broaden Your Sales Team Base • Network • Build from Within • Year one salary – company investment • Year two salary plus commission • Budget

17. Remember Happy People, Making People Happy Jennifer Perna Vice President of Sales Blue Plate Catering 312.239.2846 jperna@blueplatechicago.com