| |
The Business Supply Company and our Associate Dealers work very hard to become successful in this Industry and we want to make sure we both get rewarded for our efforts. The Premium Plan offers 50% of the gross profit as compensation while the Basic Plan offers a 5% commission based on the Total Monthly Net Sales (view table below). Yes! with our Premium Plan we split it right down the middle and that is why our Program provides one of the highest monetary earnings in the industry. We are offering a true partnership and providing you with an easier way to generate more revenue and add value at the same time.
Compensation: Basic vs. Premium
|
Basic Plan
|
Premium Plan
|
|
5%
Total Net Sales
|
50%
*GP-Gross Profit
|
Gross Margin: What remains from sales after a company pays out the Cost of Goods Sold (CGS). To obtain gross profit margin, divide gross profit by sales. Gross profit is expressed as a percentage.
*Gross Profit: Calculated as sales minus all costs directly related to those sales. These costs might include product cost (CGS), delivery, labor, and other expenses.
Premium Plan Example: If a company receives $20,000 in sales and its cost of goods sold were $12,000, the gross profit margin would be equal to $20,000 minus $12,000 which equals $8,000, divided by $20,000, or 40%. Basically, 40% gross margin means that for every dollar generated in sales, the company has $0.40 cents left over to cover basic operating costs and profit.
| |
