commission rates
Post on 12-Aug-2015
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Ashnil Mara Camp
Mara Naboisho Conservancy, Kenya
Increase Commission to 8%, but keep markup below 18%
Executive Summary .
Ashnil Mara Camp can increase commission rates to 8% if they keep markup price below 18% to meet their net profit goal of $135,000.
2
Table of Content
2. Executive Summary 3. Current Situation and Objective 5. Scenarios & Commission
Earned 6. Net Profit 7. Contact Information 8. Bibliography
3
Current Situation and Objective
Ashnil Mara Camp wants to determine the impact of raising commission for their sales team from 4-8%
They want net profit to remain above $135,000
To accommodate the potential incase the owners need to increase the markup at which they see timeshares.
When owners incase price, assume sell fewer timeshares
We created and compared 3 scenarios for the new commission rate and projected timeshare sales based on three potential price markups 4
Scenarios and Commission Earned
Using the 3 scenarios above, we calculated how much commission would be earned at the current rate of 4% and at a rate of 8%
Scenario 1 Scenario 2 Scenario 3
Commission Earned at a 4% Rate
6167.07 5923.6 5615.37
Commission Earned at an 8% Rate
12334.14 11847.2 11230.74
$1,000.00$5,000.00$9,000.00
$13,000.00
Commission Earned
Scenario Markup and Timeshare
Total Unit Price
Total Amount
Sold
Scenario 1
Markup 17% , Timeshare 105
$1,468.35 $154,176.75
Scenario 2
Markup 18% , Timeshare 100
$1,480.90 $148,090.00
Scenario 3
Markup 19%, Timeshare 95
$1,493.45 $140,384.30
5Appendix 1,2
Net Profit
Scenario 1 Scenario 2 Scenario 3
$154,176.75
$142,166.40 $134,7
68.93
$141,842.61 $136,2
42.80 $129,153.56
4% Commission 8% Commission
The chart demonstrates that net profit (total amount – commission earned) can remain above $135,000 at a commission rate of 8% if markup remains below 18% 6Appendix 2
stephanie.e.heintzman@gmail.com647-980-3696
STEPHANIE HEINTZMANFor More Information Contact
BIBLIOGRAPHY8
Sources All images were photographed
by Stephanie Heintzman at the Ashnil Mara Camp, in Kenya using a Canon T4i (April 2015)
Appendix 1
MS Excel:
• Scenario PivotTable created with Scenario Manager
Appendix 2
MS Excel:
• Scenario Summary using Scenario Manager
Appendix 3
MS Excel: Scenario Summary looking at different percentage markups and different commission rates
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