- 14 -
performed and risks borne by petitioner, a gross profit spread of
10 to 15 percent was appropriate.
During the examination, Mr. McGinley provided copies of the
following documents to Ms. Hamilton:
a. The 1992 MANA Research Bulletin Survey of Sales
Commissions;
b. the 1990 MANA Research Bulletin Survey of Sales
Commissions;
c. an article entitled "Compensating Manufacturers'
Agents: Guidelines for Determining Agency
Commissions, Fees and Incentive Programs";
d. an article entitled "Guidelines for Determining
Agency Commissions, Fees Incentive Programs"; and
e. the 1992 MANA Survey of Manufacturers' Sales
Agency Annual Revenues and Expenses.
The MANA Research Bulletins provide data concerning the
sales commissions charged by agents to their principals. The
MANA Research Bulletin states:
Typically, an agent and a manufacturer will offer what
they feel is a fair rate for the work to be done when
they negotiate their contract. * * * But, in general,
fair is a figure whereby both parties can make money
and where both are pleased with the arrangement. * * *
* * * * * * *
The important point to remember is that a commission
rate should be determined empirically to insure that
you and your agencies can make money--read profits.
* * * * * * *
Decide specifically what the agent is expected to
do in order to receive his basic commission
compensation.
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011