auto allowance

Let me give the company answer...

Has the profit on sales gone up? I don't think so.

Is the increased cost of gas only effecting the rep? Quite the opposite. The Dealer not only has increased costs of gas but everything associated such as freight. Freight costs here have doubled and now Ricoh doesn't pay the freight on DMAP orders so that is a double wammy.

You might want to be careful what you ask for. You might get the company looking at gas expense and deciding they can't afford to pay reps anything anymore.

I'm in sales for a small copier company. We are paid $0.15 per mile. (We can claim the rest of the allowed amount on our taxes.) Regardless of the compensation plan currently in place, the high gas prices probably negate the original intent of the company. Most sales personnel are probably spending more than their compensation plan allows, especially if you take into account the maintenance (oil changes, tires, etc.) and the wear-and-tear on the car.

You're right about the freight cost on DMAP, but it probably does affect the sales personnel as well. We add freight into our cost...higher freight means higher cost and lower profit -- which in turn means lower commission for us. We both lose when freight cost is high.

Yes, I understand the company is getting hit, but they are not alone, and I definitely would not say it's "quite the opposite". The double-whammy hits the sales staff just like it does the business owner.

Profits are lower for all of us, and I, for one, appreciate ANY attempt my company makes to help ease my burden. I think offering an increase in gas allowance would be a great gesture that would be appreciated.

The price of gas has doubled, and I'm sure you can't afford to double their gas allowance, because your cost has increased as well. Any increase you would be willing to do will most definitely be appreciated. Since your question is worded like you own the company (or are at least in management), you are to be commended for your consideration.

Use the Phone, then drive.

our salesmen arnt compensated for driving. Techs get $700/month

Is the $700 /mo a flat rate or is there an additional per mile???? And requirements for vehical standards?? Thanks!!

Flat rate. and stardards are "can you get to work everyday, work all day and carry a reasonable # of parts"
Since it is a flat rate, tech make money by not having to make extra trips.

Flat rate seems silly to me, we have some techs that can spend all day in one building running calls (because that Building is their territory) and others that can drive 500 miles in a single day.

The intent may be to reward fewer return trips, but unless their territories all cover the same geographic area, it just rewards those with "in-town" territories.

My company pays techs .37 cents a mile, and it adjusts Monthly (it used to adjust Quarterly until the recent crisis) tied to the price of gas.

Sales reps get a flat $200, but can get he above rate for any travel done outside their normal territories.

We dont any accounts with more than 1 or 2 machines in a building and 1 maybe 2 techs will handle downtown accounts in a day. Parking for them may run $50/day or so and they burn a lot of gas sitting in traffic. Out in the burbs, parking is not a problem or at least there are plenty of quater meters but the distance between calls is greater.
So it works out. Nobody is complaining, not even the guy who pays the bills.

So it just depends upon the area the dealership covers. Since we cover 4 states and 2 metropolitan areas, a flat rate would not work.

Our rates (per week) are:

First 350 miles (miles 1 - 350) .37
Next 500 miles (miles 351 - 850) .33
All additional miles (miles 851+) .28