Our Three 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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10%
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2
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On all sales over $4,000 ($4,001 and up) earn...
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20.0%
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3
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at $10,000 add a bonus of
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$400
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Examples of profit distribution:
Example A: A School with sales of $5,000
1. Earn $400 (level 1- 10%) 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);
$600 is total profit in cash (12% of $5,000.)
School A decides to convert all their cash profit into books. They buy $900 worth of books, but they pay only $600 for them*. So, of their $600 profit, they take $0 in cash, and $900 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 = $150 in Book Fairs books).
Example B: A School with sales of $10,000
1. Earn $400 (level 1- 10%) on the first $4,000 in sales ($1 to $4,000);
2. Plus $1,200 (level 2- 20%) on the next $6,000 in sales ($4,001 to $10,000);
3. Plus $400 (level 3- bonus) for reaching $10,000.
$2,000 is total profit in cash (20% of $10,000.)
School B decides to buy some books with their profit. They buy $150 worth of books, but they pay only $100 for them*. So, of their $2,000 profit, they take $1,900 in cash, and $150 in books.
Example C: A School with sales of $15,000
1. Earn $400 (level 1- 10%) on the first $4,000 in sales ($1 to $4,000);
2. Plus $2,200 (level 2- 20%) on the next $11,000 in sales ($4,001 to $15,000);
3. Plus $400 (level 3- bonus) for reaching $10,000.
$3,000 is total profit in cash (20% of $15,000.)
School C decides to take their entire profit as cash and have $3,000 in cash when the fair ends.
Your school can earn extra profits here!
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