BUSINESS DEVELOPMENT - MCR - Minimum Commission Requirement

Boatshed is a business about selling boats and making commission from the sale of these boats.

In order that the Boatshed business, group, technology and systems can be developed, plus all offices can be supported, it is vital that each office contributes commission on an ongoing basis. Increasing the strength of the group directly increases the success and value of each individual business. You have a set minimum commission specified in your contract.

We operate a system of staged minimum commission payments. This is to avoid a potential shortfall in minimum commission occurring at the end of the calendar year and an office being billed a larger amount than it had financial reserves to cover resulting in the cancellation of the contract. By spreading the burden of the minimum commission payments, the financial burden for each office is distributed over the whole trading period and the group can better budget for investment and growth.

The annual minimum commission total is divided by 12 months and then this amount forms the minimum amount of commission payable each month. Depending on how much commission your business makes will dictate whether you are above or below this monthly line. If you exceed the monthly minimum amount then your excess payment is carried forward to reduce the minimum commission for the following month or months.

If you do not exceed the monthly amount then a charge is made to bring your account back up to the level of the minimum commission for that month.

This makes the system equitable for all parties.