Commisions on Outsourced Work Benefit All
January 2003

Here's a surprising trend: Printing companies are causing their salespeople to turn away lucrative business. Before you dismiss such a preposterous notion, consider the reason: Most salespeople are not being paid commission on the outsourced portion of the jobs they sell.

Paying salespeople commission on outsourced work encourages them to find the best solutions for your customers, regardless of where they come from. Failure to do that can limit the creative freedom your salespeople crave. When that becomes a standard operating procedure, customers will perceive your company as having limited knowledge and services.

Once this perception takes root, your company loses top of mind positioning with customers. That can cause you to lose not only jobs currently in the hopper, but projects that will come along in the future. Worse, salespeople who aren’t rewarded for outsourcing efforts may defect to a competitor that will.

I’m a printer with post press equipment. Why outsource? – Outsourcing allows you to offer customers a total package without actually having a total package under your roof. When a frequent customer comes to you with an odd job that you can't produce entirely in-house, they don't want you to shrug your shoulders and thumb through a PIA directory. They want you to give them peace of mind by saying, "We'll handle it," and then contracting with the best supplier available to get the project produced properly. Maintaining responsibility over the project's entire production cycle demonstrates your company's expertise and confidence.

Markups are a premium on knowledge – Although many companies are reluctant to mark up outsourced work, it’s essential to cover your salesperson’s commission and any spoilage or waste. According to industry consultant Dick Gorelick, there’s an even more compelling reason to mark up:

"Your customers are paying for your expert knowledge," says Gorelick. "You have every right to add on a fee for that. Your expertise will determine the best way to get a job done, and the customer is willing to pay for that knowledge."

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