Part 48 (1/2)

”Suppose we need extra help?” I said.

”If ye hae tae have extra help, the expense o' it'll hae to come oot o'

the $1,100.00 bonus, or whatsoever the amount might be. Unless ye did this, ye'd be exceeding your original allowance for wages. If your people know that, the less people there are wor-rkin', the more money each o' them makes, they'll all o' them work as har-rd as they can to accomplish the results wi'oot adding extra people tae tha payroll. There is one ither thing I must warn ye of, and that is, tell all your people that this is only a plan tae be tried for a year, and that each year ye'll decide upon the sales quota according tae the growth o' the beesiness.

”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 salesmans.h.i.+p,” I commented, for I remembered that my friend Robert Sirle--if I could call such a big man my friend--had said that ”salesmans.h.i.+p is the creation of additional business without additional cost.” ”What we must exercise this next year is salesmans.h.i.+p. 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. La.r.s.en, 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.”

”When you start it, Boss?” then asked La.r.s.en.

”We will start this on June 1,” I said. I noticed La.r.s.en's face fell, as also did Jones'. ”But,” I continued, and here they brightened up, ”if we do exceed our $30,000.00 this year, I shall give a bonus, though only half of what it will be next year.”

”Why only half?” asked La.r.s.en.

”Because,” said I, ”our expenses have been $750.00 too high as it is. If we do exceed our $30,000.00 for the year ending May 31, we will split up six cents on every dollar over that amount, in proportion to your salaries. How does that strike you?” I said, for every one was silent.

La.r.s.en rose to his feet, coughed impressively, and said: ”Mr. Black, on behalf of us fellows I say we appreciate it. I don't quite follow this per cent. stuff. You are bigger business man than we,”--I could not help looking at Charlie Martin, when he said this, for Charlie, with his thorough business training in the college of business administration, I knew to be a better business man, on the theory of business, at any rate, than all the rest of us--”and, if you say so, we know it's O. K.

It looks good to me. I know the wife will be tickled to pieces.”

I smiled at the way La.r.s.en drifted from general congratulations to thoughts of his wife.

Well, the meeting broke up pleasantly, and every one left with a firm determination to do his best to increase sales without the need of increasing our force. Jones and La.r.s.en and the boy Jimmie walked down the road together, and I heard Jones say: ”We will work day and night.