"I think I follow you," I said thoughtfully. "The more business we do with less help, and therefore less payroll, the bigger will be the bonus to divide. But where do I come out in all this?" I asked. "Eleven hundred dollars seems a lot to give to those fellows."
"Here's where you benefit," said Jock. "Ye give yourself a salary at present of $25.00 a week, don't you? That's $1,300.00 a year. Now, then, if ye sell $40,000.00 worth of goods next year, ye will make a net profit of five per cent. on $40,000.00, which is $2,000."
"That's so," I commented.
"In addition to that," he continued, "ye make an extra eight per cent. on $10,000.00, the excess sales over quota, on which ye hae no expense ither than salaries; eight per cent. of that $10,000.00 is $800.00. Then, again, remember that ye share in the bonus, for eleven per cent. for salaries includes your ain, so ye receive a bonus of $403.00 oot o' that $1,100.00. In other wor-rds, if ye hae $40,000.00 worth o' beesiness the next fiscal year, and keep your expenses doon tae twenty per cent. on a sales quota o' $30,000.00, your income would be $4,503.00."
"Can you beat it!" I said, under my breath. "Four thousand five hundred and three dollars," I continued slowly, "Ninety dollars a week. Great Scott, that's making money!"
"It's aw' a question o' being able to get your people to speed up your sales to increase the turn-over o' your capital so as tae make extra profit wi-oot extra salespeople," said Jock.
"That's salesmanship," I commented, for I remembered that my friend Robert Sirle—if I could call such a big man my friend—had said that "salesmanship is the creation of additional business without additional cost." "What we must exercise this next year is salesmanship. Why, I can afford to make small increases in salaries and still make a good thing for myself," I added.
"Aye," said Jock, "o' course ye can make increases in salaries, but recollect ye can only give people the money in one way or the ither. If ye increase salaries ye must reduce bonuses in proportion."
I decided to try the plan, and at our next Monday evening meeting I announced it to the fellows. Jock was there, fortunately, to explain it all to them, and finally they all understood it. Larsen, however, said dubiously, "It's complicated to me, Boss."
"All ye've got tae think aboot," said Jock, in answer to him, "is that ye get no bonus until the store has sold $30,000.00 worth o' goods. After that eleven cents on every dollar is divided amongst ye according to your salaries."