A recent survey from the Associated Equipment Distributors Compensation Study Report shows that sales by rental sales reps that focus exclusively on rental revenue rose 56.3 percent since 1999. Conversely, the study showed that sales figures for equipment distribution sales reps have continued to decline for the past four years, falling 11 percent since 1999.
According to the survey, average rental sales increased 19.5 percent to $1.5 million from 1999 to 2000. However, the rate of increase slowed from 2000 to 2001 to 5.0 percent for an average of nearly $1.6 million. Between 2001 to 2002, average rental sales jumped 20.4 percent to nearly $2.0 million.
The study also showed that rental sales reps sold 27.2 percent less than heavy and specialized equipment sales reps, but 14.7 percent more than medium equipment sales reps.
The study also features an analysis of rental sales rep compensation, compensation as a percentage of rental sales, rental sales rep gross profit and rental sales rep compensation formulas.
To order a copy of AED’s Sales Compensation Study visit www.aednet.org.
