This company has clearly had its share of issues - for quite awhile! A lot said on this board contains an element of truth. But now Elite is fixed, Revolve will be much better (and 2013 expectations adjusted), and a new sales leader is in place. I think reps on this board are genuinely worried that they will soon have nothing to complain about and that sales performance will be expected.
The new sales leader is not in the home office so the disconnect continues. So we now have two MP's - big help. Revolve will be much better? You mean it might work. Still not a game changer and all conversions to date support that fact. Accountability? Only for the bottom of the totem pole. TD's inner circle will never be accountable.
They should just pay on Gross Profit...would weed out the weak and reward those able to hold margin. Some reps have territories with avg 25% discounts while others at avg 10%. seems like they would want to reward this behavior.
In most cases, the pricing discounts are due to large IDN contracting or competitive pressure...and have NOTHING to do with the rep's skill or lack thereof. Paying on GP is not a bad idea--as it does challenge the rep to hold themselves and their customers accountable, but you can't make sweeping assumptions like the previous comment. It's also very difficult to construct a plan that is fair...which is why it hasn't been done already.
So for large IDN and blue bird type deals so what. It was an easy contract so fine, pay on that. But there should always be the idea to make big money when you close a highly profitable customer. Example...you have a small 50k account with big discounts and you are $200k under plan in Sept. basically, you don't give a crap about the account because you are busy looking at job postings. Same scenario, chance to win a 50k at list price. You are paid on GP lets call it 15%. Now things are looking up because you just secured a 7.5k payout. That same behavior will find its way to happen over and over and before you know it...viola, you made your money and the company made money. It's not that hard. In fact, if they did it could probably even turn us into 1099 and start growing again.
But if 80% of your volume is coming from a large system/account that is at a ridiculous discount...you're screwed.
