Worldwide Equipment - New & Used Heavy Trucks, Parts ...



3778885482600Sales Compensation Plan00Sales Compensation PlanThis Plan is effective April 1, 2017, and shall continue until amended or a similar or revised Plan implemented, or this Plan terminated. Worldwide PacLease and WE Leasing reserves the right to change or alter this Plan at any time, as it deems necessary. The President and/or the Vice President and General Manager of the Leasing group must approve any exception to this Plan.All commissions herein are based on each transaction continuing through the full term of the contracted Agreement.Full Service Lease – New or Add Equipment New/Add units are defined as any unit signed to a minimum 3 year full service lease contract. Examples below are based on the minimum margin Gross Profit Dollar requirements(Example)Class(Example)Annual Gross Profit Dollars(Example)Gross Profit Margin %(Example)Percentage of Pay (Example)Commissions Amount Sleeper8,00018%85%$1,224.00Day Cab7,50018%85%$1,148.00Reefer Truck6,00018%85%$918.00Straight Truck4,50018%85%$688.50Under 16,000 GVW3,50018%85%$535.00Trailers2,50018%85%$382.50Commissions pay-out will equal the gross margin percentage times the annual gross margins dollars for the deal, multiplied by 85%. All commissions will be paid 100% when the unit is in-serviced and billing of the vehicle has startedNew/Renewal business which would include an early termination window or out, the pay-out will be prorated based on the percentage of the total term versus the early out. (Example, 6yr term with a 3-year early termination clause would pay 50% of the earned pay-out upon in-service of the vehicle. Upon the 3rd anniversary, if the customer continues for the duration of the 6-year term the balance of the commissions will be paid)Quota BustersOnce a lease sales person adds 25 qualified new power units to the fleet in a year, and adds 5 new customers that have received new equipment, the gross margin percent will increase by 5% for the 26th new power unit and 5% for each new customer over five. The additional 5% gross margin will be paid added to the 85% level, as noted in the above table capped at 100%Qualified units exclude all National Accounts and local renewals.New Accounts are defined as a customer that has no Lease units with any WE Leasing locations. A rental or contract maintenance conversion would count as a new customer.Renewal of Existing Customers Lease Units – New EquipmentThe commissions will be calculated the same way as a New/Add (see above); however the sales person will be [aid at 75% of the calculated commissions on renewals. The renewal for new equipment must be for a minimum of 2-years.(Example)Class(Example)Annual Gross Profit Dollars(Example)Gross Profit Margin %(Example)Percentage of Pay (Example)Commissions Amount Sleeper8,00018%63.75%$918.00Day Cab7,50018%63.75%$860.00Reefer Truck6,00018%63.75%$688.50Straight Truck4,50018%63.75%$516.38Under 16,000 GVW3,50018%63.75%$401.62Trailers2,30018%63.75%$286.88Used/Rental FSL Units (New/Add Accounts)Used power units signed to a minimum of 13-months (Requires Rate Sheet and Schedule A) full service lease contract and meet or exceed gross margins of 18%; a Flat Rate per unit commissions will be paid as followsModel CommissionsTractors $350.00Straight Trucks $275.00Trailers $150.00 Finance Lease or Net LeaseCommissions for Finance Lease Agreements are paid based on the 1st year’s margin dollars. The commissions paid will be 20% of the rated margin dollars. In the case of a rental conversion or short termed deal the commissions will be prorated based on term. Example if a unit is currently in the fleet and is financed for 72 months and it is converted to a MMLA for 36 months then the commissions will be paid at 50%Contract Maintenance UnitsCommissions for Contract Maintenance Agreements will be paid based on the particular type of vehicle Leased under a Contract Maintenance missions outlined below are paid annually, in advance. The first payment is earned upon the in-servicing of the unit and paid 30 days after each anniversary date of the respective vehicle. The commissions listed are annual payments with the maximum payment for power vehicles being six years of age and trailers, Ten years of age.Vehicle TypeGVWCommissionsTrucks 10,000 – 20,00020,001 – 33,000Tandem AxleRefrigerated$75.00$100.00$125.00$250.00TractorsSingle AxleTandem Axle$150.00$175.00TrailersRefrigerated Dry Van$100.00$50.00Preventive Maintenance Agreements$150.00 One Time PayoutNational Account SalesNational Account Lease or contract maintenance agreements placed in area of territory sales person will be assigned to the territory sales person at the direction of the General Manger.The lease sales person selected to manage the National Account will act as the local sales representative and as the liaison between the customer and National missions will be paid based on the National Account Rate sheet at 75% of the calculated commissions for new units or additional units.Long Term Rental Agreements New BusinessSix Months Agreement $75.00One Year – Requires rate sheet$150.00One Year New Customer - Requires rate sheet$200.00New Customer Non Active for 24 months, Customer Information Sheet completed in Sales Force, Active Account and 5 day rental revenue required$50.00Non-Contractual Sales & Service MaintenanceAll Non-Contractual S&S Maintenance Customer repairs will be paid 4% of repair order amounts exclusive of any applicable tax, paid out Quarterly for in house labor & parts only. No Collision or over the repairs included unless approved by the General ManagerRegion Sales Manager Sales Override1 - 25 Units $125.0026 – 50 Units $150.0050 and over $175.00Trailer - $75.00Participation of Disposition or Sell of Leased UnitsAny unit signed after May 1, 2016 that has been signed to a FSL or MMLA deal from the original funding date. The Original Sales person that signed the unit to contract will be eligible for a 20% bonus commissions at the time of sale of said units that have termed naturally based on the unit gain on saleAny unit currently signed to a FSL or MMLA that has current language in said contract that the unit sale or disposition has been negotiated to the agreed to during the original contract. The managing Account Manager will be eligible for a 20% bonus commissions at the time of sale of said units that have termed naturally based on the unit gain on sale Transactions Profitability/Margin/Rate StructureConsidering that the rated profitability and annual margin of any transaction should be the result of joint communications between the WE Leasing Sales associates and management. All transactions rated below 18% using the current rating procedure require approval in advance. Any exceptions to the current rating procedure including but not limited to the term, residual values, and projected accumulated mileage must be approved in advance.Separation of Employment If a sales person leaves Worldwide Equipment’s employment, either voluntarily or involuntarily, any sales that are completed and funds received in full within 2 weeks of the sales person’s separation will qualify for a commission. Any sales that do not qualify will not be paid. IF the company is required to assist in the final delivery of a qualifying deal, it may, at its discretion, pay a lesser commission to allow for another sales person or management to facilitate completion of the mission Charge BacksCommissions are advanced assuming the Agreement will continue through their expected expiration. Also the employee is required to service the account throughout the period. If a customer terminates its contract early for any reason, it ends the commercial return for which the compensation was advanced. The same applies whenever a customer refuses to accept vehicles or refuses to purchase them as required by the Agreement. In any of these situations, the unexpired portion of the terminated Agreement and the Company will charge-back the excess advances against upcoming commissions.If a customer fails to keep their contractual agreement to keep their account current the employee will be charged back by the following. (Excluding National Account Sales paid through Home Office)If a customer’s account goes over a 61 day period with no payment with in the first 12 months of their New Agreement or the in-servicing of new units the employee will be charged back 10% of the total commissions advanced. If a customer’s account runs over 61 days in the same 12 month period the employee will be charged back 25% of the advanced commissions.If a customer’s account runs over 91 days in the same 12 month period the employee will be charged back 75% of the advanced commissions. Equipment In-Serviced for less than 12 Months: 100% Commissions charge back if units are returned for non-payment Any Commission charged back to a sales person will be repaid to that sales person once the delinquent account is brought back current and stay current for a period of 60 days General Plan ProvisionsThe following provisions shall be applicable to any calculation and distribution of commissions under this plan.Scheduling of PaymentsThe following procedure will be followed for the payment of commissions unless specifically addressed differently in the planCommissions for standard fixed term agreements without “walk-away provisions will be paid in full when the unit or units are in-serviced with customer and commencements of the billing have started.Transactions with total eligible commissions in excess of $25,000 require a separate commission’s arrangement approved in advance by the President and VPGM of the Truck Leasing group ................
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