> INCENTIVES TO INSPIRE
recalls one client who developed a program to reward overall performance using their POS to track number of sales, average sales value, and total sales. But it didn’t work. Employees had a hard time remembering to log their sales in the system, and the program fizzled. Good incentive plans should
strengthen finances, be put in writing for employees to see, have a goal and be measured for success.
Develop and Deploy The first step in creating a simple and effective incentive plan is to identify a financial pain point to address. Florists can use financial statements to find this information, suggests Derrick Myers, PFCI, CPA, CFP, president of the accounting firm Crockett & Myers Associates. Look for places where you’re losing money, or your margins are uncomfortably thin. For example, Myers suggests adding an incentive to push hol- iday-themed hard goods, such as those
LOWER COST OF GOODS
If your cost of goods is too high, task your staff with lowering it by a set percentage. Then offer a portion of that as a bonus to anyone who directly impacts COGS if they can hit the target, suggests Derrick Myers, PFCI, CPA, CFP, president of the accounting firm Crockett & Myers Associates. For example, if you want to lower your COGS by 5%, offer to split 1% of the savings with your purchasing manager and designers. The purchasing manager will be motivated to seek better deals while designers will be less likely to overstuff arrangements.
purchased for Mother’s Day, so the inven- tory isn’t carried into the following year, and you get a return on the investment. Next, identify who can alleviate this
problem and how — for example, with holiday inventory, it’s the sales staff who can suggest customers add on the Mother’s Day plush, balloon, or other item to their order. Then determine how you’ll track
their progress and reward them for their
success. Perhaps you’ll hand out sheets to sales staff, who will mark down what holiday goods they sold along with the order number. Employees turn in the sheets every week, and you pay $1 per item sold. Set a goal and roll out the program.
For example, hold a sales staff meeting in early April and task them with selling every Mother’s Day theme teddy bear before the holiday weekend.
BONUS BOOST Anthony Butler’s paycheck includes a fl at bonus for every add-on he sells at Rothe Florists & Flower Delivery, in Philadelphia. 24 FLORAL MANAGEMENT | March/April 2025 |
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