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new to sales

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Reply with quote  #1 
Guess which national distributor has announced a new nation wide customer policy?

After the first ninety day period following their customers opening order they will charge $7.50 per invoice for all orders not placed on line.

If you can't see that this company no longer believes or will pay a salesman for taking orders.
 
This policy goes along with their new commission programs that are being rolled out, they do not get paid for each order/drop size anymore. You get paid quarterly for the previous quarter. If you had a bad jan,feb, march you will get 70 % of your pay when you are the busiest in april may and june, just brutal.

I guess a lot of reps will be turning off Runzhiemer at 2 pm so they can go to the neighbors house to key in their orders, they have your home IP. 

Senior reps don't think you are safe. You are the ones they don't want to pay anymore for taking orders and not growing. Any rep selling 5 to 10 million and making 150 -200 K you have a bulls-eye on your head.


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SoCalFoodDude

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Reply with quote  #2 
Guess which national distributor is going to lose hundreds of salespeople to the samller independents when this bullshit kicks in? Guess which national distributor is going to take it in the shorts when those salespeople take their accounts with them? They will be offering customers better prices and deliveries.

Don't use your laptop to do dotcom orders. Use your cell. If your customers don't want to use the website, create a username and password, and enter their orders yourself. 

This national distributor wants to get rid of all the salspeople who have been with the company 20+ years or more. Management doesn't want them infecting the new people with our heretical ideas of selling food, equipment and supplies, and customer service. They want a bunch of twenty-something robots who will spout the company line and sell Avero, Homebase, Chow Now, ExpandShare and all the things that they don't need us to use. Plus those companies don't pay us for selling their products. Not what I signed up for.
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laser

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Reply with quote  #3 
You guys are to be working harder trying to beat the system than you will be selling food. The more things change, the more they stay the same.
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Eyes Wide Open

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Reply with quote  #4 
Going to get paid quarterly?? 
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foodpolitician

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Reply with quote  #5 
Sure hope my company doesn't follow suit.  They want so bad to be like the Blue Cube that they adopt everything they do [frown].
At this point, what does it matter.  they have all turned us into Data Entry clerks with all the online "tools" like CRM, etc., etc.  
Salespeople need not apply ....
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northernms

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Reply with quote  #6 
The independent I work for has gained street and chain business from that national account due to a number of %$&# ups. Failed merger, Teamsters strike... add this to the list!
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DENFOODIE

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Reply with quote  #7 
The comments..... Yeah, you are going to get paid quarterly (insert eye roll). The plan is going to be great from what I was shown. I am going to make a lot more money. I legit am looking forward to it.

Never heard of the $7.50 charge but won't be an issue as my online orders are over 90%. I don't give my new customers any other option for ordering. 
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ScoopSucks69

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Reply with quote  #8 
Denfoodie are you making or drinking the kool-aid in that corner office in Rosemont. I am quite sure most customers won't mind an additional 7.50 on top of a fuel charge for thier rep to put an order through.
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DENFOODIE

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Reply with quote  #9 
The original post said that it would be a 7.50 fee for accounts that do not order online.

I'm sayin that I have a really high e-com rate so my customers won't be impacted. Other than a handful that refused to switch.
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northernms

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Reply with quote  #10 
Yes, we all want our customers ordering online.... .but jesus h. isn't there a more diplomatic way to inflict a little discomfort... like a rebate instead! A reward instead of a punishment. We'll give you .5% back if you place your order online. 

Who is the PR for these guys?!?!
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new to sales

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Reply with quote  #11 
 The business plan is to change the role of the salesman ultimately to save money by removing the commissions paid on each order. Salary plus bonus and you may make 5 % more than the previous year. If you lose a large low margin account you will lose 30% of your previous years income. for example: say you have a 5 million dollar route.

You made 100,000 last year/old plan

This year new plan you get 70K plus bonus/   

70% of last years pay+ bonus 

bonus is made up of overall case growth + EB case growth + % of lines priced within brackets.

You have to hit 95% case growth before you get any bonus for cases

Have to have 70% of pricing within brackets to get any bonus.

Lets say you have an account that is low margin and buys 20 K a week.

Old plan at this distributor would pay you .5% of sales which equals $5,000 a year.

On the new plan if this accounts leaves you will lose 30 K a year because you will not hit you growth goals. So for an account you made 5k on last year this year it costs you 30K.



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Trailboss

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Reply with quote  #12 
You guys are kidding right? 

Which company would do this to their customer base AND to their sales reps?

Who would accept a 30% reduction in pay in the hope to EARN it back in a bonus?


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Eyes Wide Open

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Reply with quote  #13 
I don't think that your going to attract any quality talent unless the bonus is very attainable.

Who is going to want to work well over 40 hours a week & nights & weekends & holidays unless you are well compensated? 
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IKnowStuff

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Reply with quote  #14 
US foods is about to smash their sales force on rebates, off cycles, etc. they kind of rolled out Southern California and did not add specific things for routing and all that. They don’t want us to know yet. Because they don’t want to admit until we are saddled with crap. When I get fucked on rebates and shorts that require offcycles or curriers that I didn’t decide on but will have to pay for, I’m out.
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FSVET

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Reply with quote  #15 
DSMs are telling their people that off-days and van deliveries affect their (DSM) bonuses. My answer: "That's not my problem. I have to take care of my customers."

Correct me if i'm wrong, but aren't we in the foodservice distribution business? If a product is out of stock, don't  we have an obligation to deliver that item when it comes in? If we don't, customers will find other companies to help them.

The new "route compensation" plan is going to hurt a lot of people. But, USF wants to thin the herd, so they don't care. They think they'll keep the business even after TMs leave. Rosemont is in for a rude awakening.

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laser

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Reply with quote  #16 
They do seem to for sure want to thin out the sales force. Nothing new here from what others have done in the past. Sysco admitted that this backfired on them a few years ago when they did the same thing and lost some of their best  people that they did not want to lose and it negatively impacted sales. This will probably happen at US as well. The problem is that the best people are always in demand at competitors, and will land well if they decide to leave, which some inevitably do in these situations.
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