Our Six Level Incentive Plan
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Profit Sharing Levels
LEVEL
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SALES
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CASH
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1
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On the first $4,000 ($1 to $4,000) earn…
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12.5%
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2
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On the next $4,000 ($4,001 - $8,000) earn...
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20.0%
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3
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On all additional sales ($8,001 and up) earn…
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25.0%
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4
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at $10,000 add a bonus of …
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$200
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5
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at $14,000 add a bonus of …
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$300
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6
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at $18,000 add a bonus of …
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$200
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Examples of profit distribution:
Example A: A School with sales of $5,000
1. Earn $500 (level 1- 12.5%) on the first $4,000 in sales ($1 to $4,000);
2. Plus $200 (level 2- 20%) on the next $1,000 in sales ($4001 to $5,000);
$700 is total profit in cash (14% of $5,000.)
School in Example A decides to convert all their cash profit into books.
They buy $1,225 worth of books, but they pay only $700*.
With their $700 profit, they take $0 in cash, and $1,225 in books.
*Schools may choose to take any part of their cash profit to convert it into Book Fairs books.
We will assist you in calculating these totals using the ratio of $100 cash = $175 in Book Fairs books).
Example B: A School with sales of $10,000
1. Earn $500 (level 1- 12.5%) on the first $4,000 in sales ($1 to $4,000);
2. Plus $800 (level 2- 20%) on the next $4,000 in sales ($4001 to $8,000);
3. Plus $500 (level 3- 25%) on the next $2,000 in sales ($8,001 to $10,000);
4. Plus $200 (level 4- bonus) for reaching $10,000.
$2,000 is total profit in cash (20% of $10,000.)
School in Example B decides to buy some books with their profit.
They buy $175 worth of books, but they pay only $100*.
So, of their $2,000 profit, they take $1,900 in cash, and $175 in books.
Example C: A School with sales of $15,000
1. Earn $500 (level 1- 12.5%) on the first $4,000 in sales ($1 to $4,000);
2. Plus $800 (level 2- 20%) on the next $4,000 in sales ($4001 to $8,000);
3. Plus $1750 (level 3- 25%) on the next $7,000 in sales ($8,001 to $15,000);
4. Plus $200 (level 4- bonus) for reaching $10,000.
5. Plus $300 (level 5- bonus) for reaching $14,000.
$3,550 is total profit in cash (23.7% of $15,000.)
School in Example C decides to take their entire profit as cash and have $3,550 in cash when the fair ends.
Your school can earn extra profits here!
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