Compensation plans can be as different as the salespeople they are going to. For Salem Farm Supply, the diversity and volatility of its market influenced the dealership to go with a fixed salary comp plan.
When it comes to recruiting, hiring and retaining top-level sales talent, the compensation plan can often times be the make or break part of the negotiation that will have people running to join your team or continuing their search elsewhere.
Dealers lament about the struggles of keeping salespeople focused on moving used equipment rather than just the shiny new units. A sure way to light a fire under your sales team is with compensation plans designed specifically to move used equipment — where the biggest impact exists. From withholding commission until a trade is sold to attaching bonuses to the used units, compensation plans tied to used equipment vary greatly — all with their own pros and cons.
AgriVision (John Deere) and Livingston Machinery (AGCO) detail the compensation programs they’ve developed to keep attention on used equipment — and the actions they most want to drive.
Used equipment experts agree that there’s no silver bullet when it comes to a compensation plan. There are numerous variables, personalities and ways of doing business and no single program is a panacea. But like most things, as a manager, you get to choose which behaviors you most want to drive, and also the set of challenges that go along with them.
Executive editor Kim Schmidt checking in from Farm Equipment headquarters with an update on 2025 Dealership Minds Summit set for July 29-30 in Iowa City.
The program is out. Check it out at DealershipMindsSummit.com.
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