Monthly Archives: July 2013

Math for Salespeople: The Definitions

Dollar SignHere are a few terms I will be referring to in this series, and the book.

These definitions are not accounting definitions, but are mine as they address salespeople working everywhere.

Changing Seasons, Changing Directions

Dollar Sign The time has come for The Magnum Life to change directions and focus on a different aspect of life … increasing income for salesmen. Not in the conventional way, but by teaching salesmen the importance of the numbers behind what they sell and how it affects their commission checks.

As I work with salesmen, it is apparent many don’t understand the basics of markups and margins, which is critical because commissions are generally based on the gross margins of their sales.

With a teacher’s heart, I have started working on a book that will cover this aspect of sales in depth, with The Magnum Life acting as the rough drafts and sounding board for the book.

Where It Began

For the last several years, The Magnum Life has been about my travels and experiences on the road as a traveling salesman. The name originated as a result of buying a 2007 Dodge Magnum for a road/sales car. It has a lot of room, runs great, looks great, and gets good gas mileage. But The Magnum Life means far more. It’s about living and enjoying life.

I am no longer a traveling salesman covering the State of Texas, having left the road for a management position for a wholesale/retail distributor. I do, however, still work with salespeople and see several recurring themes … difficulty in getting new business and commissions.

I may address gaining new business as it pertains to the math of commissions, but the main focus is on increasing paychecks by understanding how the percentages work.

Your Input

One of the ideas of writing articles about the endeavor is to solicit your input, questions, and ideas. If I write something you agree or disagree with, that is valuable information in structuring the book. It might not change my viewpoint, but I think discussion about this is important.

The math portion is based off commissions plans I’ve worked under or know other salespeople have been compensated with. The rest is based on my experience as a sales manager for many years.

That’s it for now …