Presentation Transcript

1. Sales Compensation

   Effective 9/1/2012
2. Vision & Mission Statement Vision Be the most preferred sales distribution partner for wireless, broadband and media carriers across the US. Mission Operate “carrier grade” sales distribution, acquiring quality customersfor our carrier partners, providing rewarding employmentto our team and creating profitfor our stakeholders.
3. Sales Compensation Policy Comp Plan Overview Sales Reps Assistant Store Manager Store Manager Policy Review Q&A Action Items
4. Compensation Strategy Provide a meaningful, opportunistic and fulfilling work environment for energetic and motivated employees Focus and Align Employee, Store and Company Profitability Quantity Activations & Upgrades Traffic & Closing Rate Quality GP/Opp Ancillary GP/Opp Encourage and reward the stewardship of Company assets

5. Sales Compensation

   Plan Overview
6. Gross Profit Model Revenue received or associated with a product/service less the cost of the product/service including any discounting Gross Profit does not equal Company profit Company profit equals gross profit less all operating expenses – i.e. payroll and rents
7. Plan Overview Base Pay Sales Representatives Hourly non-exempt, rate differs for each state Senior Sales Reps Status Hourly non-exempt, $1.00/hour increase from Sales Rep pay rate Assistant Store Managers Hourly non-exempt, $2.00/hour increase from Sales Rep pay rate or $1.00/hour increase from Senior Rep pay rate Salary exempt for Store Managers ($28,000/year) Monthly Commission Paid on the 22nd of each month for the prior calendar month activity i.e. February commissions are paid March 22nd Sales Reps based on personal sales performance Assistant Store Managers based on personal sales performance with a bonus opportunity if the store meets or exceeds gross profit target Store Managers based on personal and collective store sales performance
8. Opportunity Review What is an Opp? Activations Postpaid Contracted Upgrades (Eligible Contract Renewal with Handset Upgrade completed through CIHU) Handset Upgrades are non-commissionable if activation/upgrade commission paid within previous 6 months What is not an Opp? Activations Prepaid Monthly 4G Activation “Fully Loaded”
9. Gross Profit Overview Example: Postpaid Family Lines 1 & 2 GP = (MRC / 2) x 4 Example: Postpaid Family Upgrade GP = (MRC of primary lines) x 1.5 Example: Feature GP = 2x MRC
10. Feature Commission Feature GP Feature Policy Feature GP 2x MRC Handset Warranty and Security Feature GP 2x MRC for warranty or security portion only Features with a $1.49 MRC or less are non-commissionable New feature SOCs are commissionable REQ Feature Migrations are non-commissionable New feature SOC must be added in the current month and one of the following must apply: Effective in current month Back-dated to previous month Dealer Code must be accurate between T-Mobile systems and RQ4 No feature chargebacks for feature added 4/1/2012 or later Features deactivated 30 days or less will be refunded in RQ4 impacting current month’s GP Feature Adjustment % consisting of GP Refunds and GP Adjustments will be monitored and reporting provided Review Feature Policy effective 4/1/2012 for further details
11. Chargebacks vs. Refunds/Adjustments Definitions Chargeback = original base commission or spiff is charged back due to deactivation, does not impact current month’s GP GP Refund = original GP is deducted from current month’s GP due to the transaction being identified as non-commissionable GP Adjustment = GP is adjusted (upwards or downwards) from current month’s GP to match payment from T-Mobile Beginning 4/1/2012 No Feature Chargebacks for features added 4/1 or later GP Refunds and Adjustments will continue to take place on features Feature Adjustment % will be tracked by employee and included in daily reporting Feature Adjustment % will include GP Refunds for: Feature same month deactivations Features deactivated within 30 or less Invalid features recorded in RQ4 Dealer Code in T-Mobile systems does not match Express employee’s dealer code in RQ4 Falsely churned features What’s important? Right Fit Dealer Code Record features accurately in RQ4
12. Ancillary Gross Profit How do I reach the Ancillary GP Target? What is Ancillary GP?
13. FT Sales Representative Commission Plan Management reserves the right to make adjustments to targets based on promotional activity driving material increases to sales.
14. PT Sales Representative Commission Plan Management reserves the right to make adjustments to targets based on promotional activity driving material increases to sales.
15. Assistant Store Manager Commission Plan Management reserves the right to make adjustments to targets based on promotional activity driving material increases to sales.
16. Store Manager Commission Plan Payout based on Store Gross Profit and Performance Management reserves the right to make adjustments to targets based on promotional activity driving material increases to sales.

17. Sales Compensation

    Policy Review
18. New Hire Policy New Hire - Sales Rep Stipend (up to $400) Four pay periods up to $100 each Pay period 1 at prorated amount Must complete New Hire Road Map Training Guarantee No decelerator applied to commission earned for up to six months of employment Minimum 6% commission ($8,500 GP Ladder multiplier) for up to six months of employment Store Manager (New Hire or New Store) $1500 Guarantee Month 1 at prorated amount Month 2 at $1500 The Store Manager will receive the guarantee or total calculated commission for the commission period, whichever is greater.
19. Senior Status Policy Applicability Sales Reps Only (ASMs are not eligible) Target Opportunities Achieve 75 opportunities in any 3 consecutive months after hire month 65 opportunities in any 6 consecutive months after hire month Senior Status Targets are eligible for quota relief Receive $1.00/hour pay increase = $2,080 annually Promotion to Senior Sales Representative Minimum Expectation Must attain Target Opportunities each month to maintain senior status Target Opportunities are eligible for quota relief
20. Quota Relief Policy Sales Representatives & ASMs may qualify for quota relief when the following criteria have been met: Minimum of 5 consecutive vacation or PTO days taken FT Rep/ASM worked no more than 17 shifts/days in the applicable calendar month PT Rep worked no more than 12 shifts/days in the applicable calendar month No OT hours clocked or paid for the applicable calendar month Quota relief requests must be submitted at time of vacation request Approved & documented at least 2 weeks in advance in RQ4 ED or DOS approval required and sent to commissions@expresslocations.com
21. Store Manager Policies Managing Multiple Stores Comp Plan applicable for primary store commissions Stipend may be determined by management for secondary store commissions Traffic Tiers will be communicated quarterly New stores will be placed in the Low Traffic Tier until a quarter of traffic pattern is established Changing Locations Commissions based on new location for the month (including chargebacks) Mid month changes are discouraged, but if necessary pro-rated commissions from each location will be calculated Manager Termination Express Locations reserves the right to withhold the final commission payment for potential chargebacks and/or monies owed the Company related to other missing assets i.e. inventory and cash

22. Sales Compensation

    Q & A
23. How do I view my commissions? Each commissionable employee may review calculated commissions at any time in RQ4. Commissions are viewed by following the path below: Reports Commission Commission Details Report Select Location – if the employee works at multiple locations, select ‘Express Locations, LLC’ Select Employee Select the appropriate begin and end dates for the report Select the Run Report The commission amount per item is listed in the Total columns of the Invoice Detail and Product Detail Reports. Commission inquiries should be emailed to commissions@expresslocations.com
24. When will I begin receiving the new commission? September 7th Base Pay 8/16 – 8/31 September 22nd Base pay 9/1 – 9/15 Commission earned from August (August compensation plans) October 7th Base Pay 9/16 – 9/30 October 22nd Base pay 10/1 – 10/15 Commission earned from September (September compensation plans)
25. What’s Important Now! Follow carrier guidelines and policies for all activations, upgrades, and feature attachments Right Fit Onboarding Retention As always be attentive and accurate with time clock punching and approving
26. “We are business owners, not just employees; we run our territory like its our own firm.” - Express Locations Culture Tenet