Dealer's Sales Commission System in Excel
Budget: $10 – $30 USD
Dealer’s Sales Commission: Project cost AED 100
Kaltenbach Middle East (FZE), also called KME, is proposing to provide its dealers with a commission for Sales of Kaltenbach machines.
Quotation- Refers to the Technical and commercial offer provided by KME.
Quoted Price: Refers to the total price including “List Price + Negotiation Margin + Add on Margin”.
List Price: The is the standard Sales price of the machine as mentioned by Kaltenbach head office (HO).
Negotiation Margin- Refers to the additional margin for price negotiation over and above the list price kept by KME in consultation with HO and dealer.
Add On Margin: Refers to the additional margin as mentioned by the dealer over and above the “list price” + “Negotiation margin”.
Discounts: Refers to the rebate/discount in percentage or amount offered by KME on the List Price.
Discount % on List Price Dealer Commission % on Order Price
Up to 0% 2.5%
0.1% to 3.0% 2.25 %
3.1% to 6.0% 2.0%
6.1 to 10.0 % 1.5%
Above 10.1% 1.0%
Order Value: Refers to the final Basic price at which the customer agrees to order the goods. This price is Ex-works, Kaltenbach premises. The shipping costs, Installation and commissioning charges, Taxes and duties are not included in the order Price.
Net Order Value: Refers to the “Net Value for calculating the Sales Commissions” = Volume Factor x Order Price.
Order Price in Euro Volume Factor
0 – 250,000 1.0
251,000 – 500,000 0.9
501,000 – 750,000 0.8
751,000 – 1,000,000 0.7
1,001,000 – 1,250,000 0.6
1,251,000 – 1,500,000 0.5
Above 1,500,000 0.4
Volume Factor: Refers to the “multiplication factor” on the “order Value” to arrive at the “Net Order Value”.
Please refer to the Excel file which has 3 sheets which are interlinked.
1. Summary Calculation – Calculates the Dealer commission based on commission % and Volume factor.
2. Volume factor - Provide the Volume factor with which the Order Value needs to be multiplied to arrive at the Net Order value used for calculating the dealer commission.
3. Commission % - Provide the commission slab applicable based on the discounts offered on List Prices.
Dealer Margin: Apart from “Dealer Commission” the dealer would also be eligible for Dealer margin provided that the “Order value” is greater than “List Price” and the difference would be given to dealers as “Dealer Margin”.
Assumptions:
1. The Product may be sold
1.1. at List price,
1.2. higher than list price with an add on margin or
1.3. lower than list price with discounts.
2. The discount % on list Price is used to calculate the Dealer sales commission % as per the excel sheet “Commission%”. The commission % varies from maximum of 2.5% for No discount on List Price to minimum of 1.0% for discounts above 10.1% on the list prices.
3. The Net Order Value is calculated as Order Value x Volume factor and the Sales commission % is applied on “Net Order Value”. This is to reduce the amount of commission on higher value machines. Please find below examples for reference.
3.1. With an Order value of Euro 250,000 will make the dealer eligible for commission on Euro 250,000 (Net Order Value) = Euro 250,000 x 1.0 (Volume factor).
3.2. With an Order value of Euro 1,500,000 will make the dealer eligible for commission on Euro 750,000 (Net Order Value) = Euro 1,500,000 x 0.5 (Volume factor).
Attach file for your reference
Kaltenbach Middle East (FZE), also called KME, is proposing to provide its dealers with a commission for Sales of Kaltenbach machines.
Quotation- Refers to the Technical and commercial offer provided by KME.
Quoted Price: Refers to the total price including “List Price + Negotiation Margin + Add on Margin”.
List Price: The is the standard Sales price of the machine as mentioned by Kaltenbach head office (HO).
Negotiation Margin- Refers to the additional margin for price negotiation over and above the list price kept by KME in consultation with HO and dealer.
Add On Margin: Refers to the additional margin as mentioned by the dealer over and above the “list price” + “Negotiation margin”.
Discounts: Refers to the rebate/discount in percentage or amount offered by KME on the List Price.
Discount % on List Price Dealer Commission % on Order Price
Up to 0% 2.5%
0.1% to 3.0% 2.25 %
3.1% to 6.0% 2.0%
6.1 to 10.0 % 1.5%
Above 10.1% 1.0%
Order Value: Refers to the final Basic price at which the customer agrees to order the goods. This price is Ex-works, Kaltenbach premises. The shipping costs, Installation and commissioning charges, Taxes and duties are not included in the order Price.
Net Order Value: Refers to the “Net Value for calculating the Sales Commissions” = Volume Factor x Order Price.
Order Price in Euro Volume Factor
0 – 250,000 1.0
251,000 – 500,000 0.9
501,000 – 750,000 0.8
751,000 – 1,000,000 0.7
1,001,000 – 1,250,000 0.6
1,251,000 – 1,500,000 0.5
Above 1,500,000 0.4
Volume Factor: Refers to the “multiplication factor” on the “order Value” to arrive at the “Net Order Value”.
Please refer to the Excel file which has 3 sheets which are interlinked.
1. Summary Calculation – Calculates the Dealer commission based on commission % and Volume factor.
2. Volume factor - Provide the Volume factor with which the Order Value needs to be multiplied to arrive at the Net Order value used for calculating the dealer commission.
3. Commission % - Provide the commission slab applicable based on the discounts offered on List Prices.
Dealer Margin: Apart from “Dealer Commission” the dealer would also be eligible for Dealer margin provided that the “Order value” is greater than “List Price” and the difference would be given to dealers as “Dealer Margin”.
Assumptions:
1. The Product may be sold
1.1. at List price,
1.2. higher than list price with an add on margin or
1.3. lower than list price with discounts.
2. The discount % on list Price is used to calculate the Dealer sales commission % as per the excel sheet “Commission%”. The commission % varies from maximum of 2.5% for No discount on List Price to minimum of 1.0% for discounts above 10.1% on the list prices.
3. The Net Order Value is calculated as Order Value x Volume factor and the Sales commission % is applied on “Net Order Value”. This is to reduce the amount of commission on higher value machines. Please find below examples for reference.
3.1. With an Order value of Euro 250,000 will make the dealer eligible for commission on Euro 250,000 (Net Order Value) = Euro 250,000 x 1.0 (Volume factor).
3.2. With an Order value of Euro 1,500,000 will make the dealer eligible for commission on Euro 750,000 (Net Order Value) = Euro 1,500,000 x 0.5 (Volume factor).
Attach file for your reference