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Sales Comp Modeling Tool to Optimize Expenses Plus Improve Sales Results . HR Specialty Products & Services Catalogue Executive Summary A No Frills Distillation of Vendor’s Marketing Collateral Thomas A Ference President & CEO Human Resources Mining & Distribution Co

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Sales Comp Modeling Tool to Optimize Expenses Plus Improve Sales Results


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    1. Sales Comp Modeling Tool to Optimize Expenses Plus Improve Sales Results HR Specialty Products & Services Catalogue Executive Summary A No Frills Distillation of Vendor’s Marketing Collateral Thomas A Ference President & CEO Human Resources Mining & Distribution Co Locating, Validating and Accelerating HR  Innovation Office: 219-662-0201 Cell: 630-240-2583 Fax: 219-661-0236 e-mail: tference@hrmdco.com Website: www.hrmdco.com

    2. Sales puts together the annual Sales Plan / Revenue Forecast and Finance assembles the budget but there is no science applied to determine whether the budgeted expenditures will actually produce the desired net income results • This LEAN principles-based sales compensation modeling tool ties BU-level general ledger expense items to sales compensation and P&L forecasts • The system creates an optimized expense model for all sales related expenses including but not limited to just the sale compensation program component (e.g. it considers marketing support, PDA’s, autos, etc.) so as to improve sales performance and thus, shareholder value Sales Comp Modeling Tool to Optimize Expenses Plus Improve Sales Results

    3. It tests the veracity of the employer’s current sales comp programs in real time with all or just the desired internal stakeholders being at the table • The tool models multiple alternative programs as needed by type of sales force so as to optimize compensation and assure hitting net income targets at every level of sales • This tool typically improves Net Sales Revenue by at least 20% Sales Comp Modeling Tool – Continued

    4. -Green line is current sales plan (which may or may not be optimal) -Red dots show actual results Current State Analysis

    5. FORMULA FOR SUCCESS: • PROCESS: Sales revenue is compared to profit & expenses first & then every possible iteration of sales comp programs are tested • EXPENSES: • All expenses input as fixed or variable. • Each is correlated to sales • And a desired net income is entered. • REVENUE: • And production per sales rep is input • and continually updated. • Each Sales Rep is an individual P&L entity

    6. “Charge-backs” are those fixed other expenses that sales people might receive This box shows the results of the changes being made. When it flashes “red”, the desired net income is not being achieved. Design Any Plan You Like Plan and Amount Types are the different types and timings of variable compensations Split schedule is the many different ways to set quotas and percentages paid.

    7. Net Income is always protected The software does find the perfect quotas and percentages to be paid. This box is NOT flashing Red. The desired profit is reached. The software ALWAYS protects the company profit.

    8. A PICTURE IS WORTH A THOUSAND WORDS See the results of your plan designs in low to high sales levels. Plot any lines that you want. See your break even points and profit points.

    9. This product/service is contained in the HR Specialty Products & Services Catalogue™ • Operational level details about this particular service provider can be obtained in conference with the vendor • The HR Mining &Distribution Co. is an independent and contracted representative of the vendor • Upon your request, we will arrange for an introduction that can range from a simple, quick conference call to a services overview / system demo • Tom Ference 219-662-0201 (Chicagoland area) or tference@hrmdco.com • Thank you for your potential interest in this fresh thinking Next Steps