Vision Committee Named a Growth 100 Company by the Kelley School of Business at Indiana University three years in a row, Dillon was invited to attend Kelley School seminars. At one, Dillon learned that if he wanted a dream — and a corporate vision — he needed a “vision committee.” He invited his banker, the local BBB president, Andretti, and two employees. He gave them an idea of where he wanted to be in five years and turned them loose.
Because recruiting and retaining salespeople is always a problem, the committee suggested a salary-based pay plan. Dillon took three years to evolve the program. Even with salary, home improvement selling is a tough job in Indiana, because it can mean 200-mile trips and nine o’clock nights.
The way the pay plan works is best illustrated by example. Dillon hires sales reps at a base salary of $400 a week ($20,800 a year).
A monthly scaled “productivity bonus” of 2%, 3%, or 4% sets sales targets of $40,000, $50,000, $60,000, and higher. This means if the rep sells $60,000 a month, he receives $2,400 in bonuses, or $28,800 a year on top of his salary.
Weekly goals are set too. If the rep sells $15,000 each week, he receives $450 per week or $23,400 a year for that incentive. There’s also a graduated bonus for add-ons, referrals, and canvassing leads.
“It rewards consistency of effort,” Dillon says. “Not ripping off some little old lady on one deal.”
Linda Carmody, president of the Better Business Bureau of Central Indiana, who sat on the committee, felt consumers would be more comfortable dealing with salaried reps. (see, “Salary vs. Straight Commission,” page 54).
“For Bob to sit back and say, ‘I don’t want high-pressure salespeople, I want salespeople to sell the product’ — that took guts,” she says.
“In this business,” Dillon says, “let’s face it: A lot of guys go out and they make two grand on a two grand sale.” With his compensation system, no one sale brings one big payoff. “Their monthly productivity bonus is where they make their money,” Dillon says.
He says it also helps reps not to worry that they won’t get a paycheck if they don’t make sales.
Assuming the sales staff performs, the cost of sales is no higher than for commissioned reps. The only time it hurts is if they don’t perform. Constant training and running on calls with general manager Paul Harlow or vice president Stevens boosts performance.
Rick Grosso, a sales/motivational consultant in Bolton Landing, N.Y., says he’s seeing more companies paying sales reps salaries, but Dillon, one of his clients, was the first he knows to do it.
“His guys hold him with such respect,” Grosso says. “He’s created a real team core. And his standard of ethics is so high, literally, he’s got to satisfy that customer. Period.”
Dillon knows that with happy customers, his achievements will equal his vision.
The Unique owner no longer has delusions of covering the whole region. Through his employees and his vision committee, he knows that to grow, he has to offer more products and motivate people to reach higher.
Dillon says he never wants to retire from Unique. After all, it’s become his dream. —Joseph F. Schuler Jr. writes frequently about the remodeling and home improvement industries.