Trouble is that the ones like us Art who pay out the lions share will have to start doing the holdbacks and the ones who only pay out 40% to start are going to do what? Pay out 25%. At some point it is not worth going into the field at all.
In ###### I pay out 82% of billing in pay to reps and ON site managers. Of that 82% 9% is in contingency which cover background checks, drug tests, ##### logo gear, the occasional chargeback with whatever left going to bonus and trips. Now with a 20-30%chargeback hanging over our heads I have to hold at least 20% of billing to cover that uncertainty. That means pay to the field counting field manager goes down to at best 50-60% of billing. Why have reps. work there when they can get 80% up front working with other MSO's?
####### use to have a clause in their contract that exempted up to 1st 25% of churn from chargeback. Somehow that clause escaped the current contract...... My take is someone is shooting themselves in the foot and it ain't me.
Re: Chargebacks
Member #: 21511
Registered: 2/13/2003
Posted:
69
Name:
Bill Karls
Name:
Bill Karls
Company:
The Bkable Group LLC
Occupation:
Owner direct sales contacting company
Location:
midwest-home offices in Madison Wis.
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