While the key pitch of Profit and Promote is an opportunity to earn 50% bonus commission, the agreement Bauer wants newsagents to sign says the 50% bonus commission will be paid on incremental sales – sales in the retail store (not subs) above a sales target. The sales target is to be set by Bauer.
So, if your sales are $1,000 and your sales target is $1,200 and you sell $1,500, you get 50% bonus commission on $300.
With the average newsagency reporting magazine sales decline of between 6% and 9% year on year, any sales target should reflects and not have a base of greater sales than being achieved today.
The Bauer material says you will receive individual stretch targets based on historical sales. If done properly it should be a forecast based on year on year trend. i.e. if you are declining it should be reflected in your target. That targets have not been sent with the document means newsagents do not have enough information to sign the agreement.
I am all for incentive programs. However, they must be easily understood, have realistic goals and reflect current conditions. The documentation as presented for Profit and Promote is too complex and has too many unknowns for active newsagent engagement in my view. I’d love others to share their views here.