Sales Rep Based On Commission

[liebz15]

I am owner of a new (7 months old) 30BBL brewery. We started distribution a couple months ago and have quickly learned the importance of have a person in the market, visiting accounts and trying to get more. Thus far, that person has been myself and one of my assistant brewers. I am interested in hiring someone full-time but not sure how to structure their pay scale. Is it common for sales reps to be paid based on commission, salary or a combination of both? Also curious how commission is structured. I presume it is common to base commission upon new accounts and retained accounts (reorders). If anyone cares to share their expenses, I'd love to understand a formula how to responsibly pay a new sales rep while also not having to break the bank on salary. Cheers!

[BeerBred]

Commission is for breweries that don't know how the brewery/distributor relationship works. Essentially you are paying a guy by the box or keg he sells and not for managing and building relations with distributor sales personnel and managers. Why would I want to ride with a distributor guy who may knock off a draft line 3 weeks down the road as a result of a call the both of us made today and I don't get paid on that because I wasn't there when the account converted?

If it's commission, it ought to be on every box and keg that goes through the distributor. If you are self distributing, well you should have clarified that in the post... Hire a commission guy with no experience who can live on nothing, or pony up for a professional with a long term strategy with the wholesaler.

[liebz15]

Commission is for breweries that don't know how the brewery/distributor relationship works. Essentially you are paying a guy by the box or keg he sells and not for managing and building relations with distributor sales personnel and managers. Why would I want to ride with a distributor guy who may knock off a draft line 3 weeks down the road as a result of a call the both of us made today and I don't get paid on that because I wasn't there when the account converted?

If it's commission, it ought to be on every box and keg that goes through the distributor. If you are self distributing, well you should have clarified that in the post... Hire a commission guy with no experience who can live on nothing, or pony up for a professional with a long term strategy with the wholesaler.

Just as you mention, the distributor's loyalties are to many brands. I can work hard to get an additional handle at a restaurant just to have it pulled because another brand was there at the right time...or worse, some big brand comes by and illegally pays to keep me off. I figured that hiring someone motivated to get sales and keep sales, perhaps is a good idea. Based on your response, I guys your opinion is salary over commission. That is also part of my question, is commission a good idea. I don't know these answers and that's why I'm asking. I will say that our distributor is making it tough to find availability to create such a relationship.

[BeerBred]

Where are you located and who is the distributor?

[liebz15]

Where are you located and who is the distributor?

I'm in South Florida. Signed with GoldCoast. Nothing against them, they've been great. But their sales people have dozens of brands so it's tough to stay on top of their minds, especially being a new brewery with a limited budget.

[beerguy1]

I'm in South Florida. Signed with GoldCoast. Nothing against them, they've been great. But their sales people have dozens of brands so it's tough to stay on top of their minds, especially being a new brewery with a limited budget.

Here in Michigan with the large amount of very good craft beers it makes it tough to find a distributor that will push your product that is until you hit a homerun with a beer then they will be all over you. One of our best distributors is one that we got in with early and they was out looking for the small brewery and didnt want to have alot of brands just some great beer options. That distributor has rose almost to the top of our sales list and bounces back between second and third against distributors that are much larger than they are. One idea is go spend time with there "craft beer specialist" and see if the both of your plans seem to fit. If they dont thats ok move on as it most likely wouldnt have worked anyway

[BeerBred]

The key to staying on top of them is having a guy/girl in the market doing the ride-withs, promotions, keep up the point of sale, manager meetings, code issues, inventory monitoring etc... Here's why I hate commission (one of many reasons) commission only pays me for new business I acquired myself. There is no incentive to build the brand or the relationships. It's self-centered sales with a commission guy. Brand building with a wholesaler is a team game and not a short term game (you hope.)

I see you are in Delray. I spent a lot of time in Boca growing up, Gramps had a couple of condos. I would love to come down and do this for you, but the budget prevents it.. Let me know if you need any advice. Managing distribs is/was what I did nationwide.