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December 13, 2004
Hobart Reveals Functional Incentive Plan
Hobart Corp., Troy, Ohio, has announced that it is moving away from the practice of offering its distributors volume-based rebates in favor of a functional incentive plan.
The much-anticipated system, which Hobart is introducing to its dealer network this week, will be put into effect for 2005.
According to Hobart President John McDonough, “this new program represents a shift in emphasis from volume to value creation. …We believe this fundamental change in the way we compensate our dealers is essential to ensure the success of our respective business plans.”
Under the program, dealers will be rewarded for fulfilling three primary functions: specifying Hobart and Traulsen products into new construction or major renovation projects that they design; stocking and offering immediate delivery of Hobart and Traulsen goods; and offering DSRs a compensation structure that favors the sale of Hobart and Traulsen products.
Dealers will still receive rebates based on the volume of Hobart and Traulsen goods that they sell, though those rebates will be significantly smaller than in past years.
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