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Steve415

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Reply with quote  #1 
I'm a sales rep in New England potentially looking to make a move. I'm currently doing over 4 million in sales with an avg margin but taking home less then 2% of sales. I know many distributors structures change but which do you guys feel are most competitive.
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Sidney

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Reply with quote  #2 
Not sure if I understand what your asking but US Foods averaged is about 2% and that is declining for the most part. However they are now paying milage along with some other expenses that used to be baked into the commission rate
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BostonPaperGuy

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Reply with quote  #3 
Steve we (Arrow Paper) pay on average 8% of sell. We are always looking for salespeople and we have a very well run company. Please message me and we can chat. Thanks.

Mike
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broadliner

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Reply with quote  #4 
Average DSR commission is 2% nationwide.

US and Sysco will soon be going to a "salary-plus" format. TMs/MAs can no longer charge enough to get a decent margin because of the pads on items we sell. Customers do better at cash-and-carries and independent distributors.
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BostonPaperGuy

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Reply with quote  #5 
Steve, We are paid 40% of the gross profit on orders delivered via our truck, and 50% gross profit on drop ship orders. We have a straight 5.5% load on in stock items and no load on dropship items. The owners are very liberal with sales people knowing actual costs so there are no secret backside deals that we do not know about. That might sound pretty foreign to most broadline reps but that is how we run our business. The average rep here is making $110k per year with the mean being a little lower. The top 5 guys are all north of $200k and top 2 north of $300k. 

With higher pay comes more responsibility though. We type all our own quotes, broker our own deals on special order items/print jobs etc, get our own samples etc etc.

we will also pay you some sort of salary to "get you going" for  a while PLUS your commission. if this is something that you are interested in please let me know. Thanks!
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Investigator

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Reply with quote  #6 
Quote:
Originally Posted by broadliner
Average DSR commission is 2% nationwide.

US and Sysco will soon be going to a "salary-plus" format. TMs/MAs can no longer charge enough to get a decent margin because of the pads on items we sell. Customers do better at cash-and-carries and independent distributors.


I wonder why I get so much push back on this website when I point out that inflating prices for Wall Street takes commission dollars away from the sales force? 

Here again you confirm what should be obvious to anyone in the biz. Theft on a mass scale.
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BostonPaperGuy

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Reply with quote  #7 
Or you could just work for an independent and not worry about things like that.
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Reply with quote  #8 
How do you think Sysco and US Foods was created? They're both a conglomeration of formerly independent distribution companies. It's a slime mold.

Independents? Here today gone tomorrow.

Maybe you'd be better off placing an employment ad for sales people instead of using this site? If you can't afford the cost of recruitment then what does that say about your company?
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BostonPaperGuy

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Reply with quote  #9 
I guess, but we have been here under the same family of ownership since 1952 and there are a few other in the north east that were started about the same time. Here at Arrow the Third gen will be taking over in the next 10ish years so we are not going anywhere anytime soon. if the next generation is young enough the walk-a-way money isnt enough to spread out so it really doesnt make sense to sell. 

Now for the regional dist. that cant compete or are having trouble competing it might make more sense. 
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broadliner

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Reply with quote  #10 
Speaking of commissions, I'd like to hear from any USF TMs who are piloting the new Cookbook commission program. How bad are we going to get screwed?
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Sidney

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Reply with quote  #11 
experience after almost a year into it, my team is about 10 to 20 percent up over LY in total comp
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JustAnObserver

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Reply with quote  #12 
Is it strange to anyone else that a company that experienced massive fraud 15 years ago would name a program anything remotely close to "Cooking the Books"? [eek]
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texaspeddler

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Reply with quote  #13 
JustAnObserver,
would'nt you think somebody would have caught that?  But I guess that would be giving Rosemont to much credit.
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SoCalFoodDude

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Reply with quote  #14 
Irony! I wonder if there are two sets of books in Rosemont?

Quote:
Originally Posted by JustAnObserver
Is it strange to anyone else that a company that experienced massive fraud 15 years ago would name a program anything remotely close to "Cooking the Books"? [eek]
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