Business Insight 12 – Income Schemes (blog & vlog)


After 18 months MGW decided that we had broken the market for them in East Sussex and put their prices up by 33%, this to cover the 25% commissions that we were being paid (including my 5% override). However, they deployed their previously unsuccessful (but directly employed) glass trade salesmen to handle the lead flow and for them to carry on selling at the pre-increase price (i.e. one company, two price lists).

Effectively they had decided that they didn’t need me or my 5 self-employed salesmen anymore, and would be able to exist off of the goodwill we had built up for them around the county – they thought the brand was built and was now synonymous with replacement window, doors and double glazing, not just glass.

My operation exploded overnight.

INSIGHT 12:- Their strategy was a disaster; the glass reps only worked office hours and didn’t (or couldn’t) sell, and they only measured and quoted for the work. The factory went out of business eventually, having worked through its diminishing order book; it didn’t happen overnight but happen it did. Never underestimate the value of a real salesman, he or she will (and should) always repay their income several times over.

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