Friday, July 13, 2007

Bonus

Paul has the kind of job where he has the opportunity to get a bonus each quarter. The first quarter was great, he grew his territory enough that he qualified. We planned that the second quarter check would pay for the last installment of the property taxes and the rest of the truck registration. We got the statement today and the news wasn't what we had planned on. It seems Paul missed the mark by .01% on the gross margin of his sales. The frustrating thing is that he doesn't have much if any control over the margin. Big accounts like Halliburton have the margin set at corporate and are below the minimum rate needed for a bonus. The most frustrating thing is that he worked harder the second quarter and even grew his accounts more than the first quarter. So he sold more but got a lower bonus, somehow that doesn't seem like a very good incentive for the third quarter. I can only thank God that he got that second job and will start in 2 weeks.

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