I. INTRODUCTION

Much of the profit in vehicle rental comes from the sale of additional products and services on a rental agreement. In order to encourage the sales of these options, many operations offer incentive pay to rental agents. As a result, several reports in CARS+ cover the option sales that employees generate.

In addition to simply reporting the sales, CARS+ can also be configured to calculate the actual incentive pay earned. Reports used to calculate incentives on option sales are based on closed RAs (incentives are only paid on completed transactions). These reports are usually run either once a month or in conjunction with payroll pay periods.

Other reports can be run by the RA open date, including those opened during the current day. This allows a manager to immediately notice when an employee is under performing so that coaching can be arranged as soon a possible.

This chapter covers the various ways to track employee sales. It contains the following sections:

II. Required Set-up for accurate reporting
III. Management use of the Extra Revenue Report
IV. Other management reports for Option Sales
V. Set up and use of Employee Incentive logic
VI. Set up and use of Current Option Sales monitoring
VII. Sales Reports for Employees

II. REQUIRED SET-UP FOR ACCURATE REPORTING

A. Edit Incentive Control Record

Regardless of which method of reporting/tracking option sales is used, it is required that decisions be made for handling certain situations to allow sales performance reporting to be fair and accurate.

A number of circumstances can cause options to be added to a RA other than through the rental agent 'selling' the item to the customer. The item may be included automatically for any of the following reasons:

• the rate is an inclusive rate, or has an add-on option set.
• the customer record has the coverage flags set to always accept the coverage or may specify an option set
• a tour voucher includes the option
• the CDPID has a privilege code for the option
• the option was sold by the user who booked the reservation; not the agent opening the RA

As a result, the rental agent who opens the RA may not have the opportunity to sell the option.

When calculating sales performance, rather than penalizing the agent for rentals where a sale was not possible, several fields in Edit Incentive Control Record can be set to disregard such circumstances. That is, if the agent opened 5 RAs where 2 already had LDW included in the rate, the agent's performance for LDW sales can be measured against the 3 RAs where the agent actually had the opportunity to sell it -- not the 5 RAs opened.

Other situations requiring decisions for sales performance include:

• Treatment of a RA when the vehicle was delivered
• Multiple invoiced rentals that clone month after month
• How chargeable extra hours (partial day) should be treated

The fields in Edit Incentive Control Record allow you to decide how the system will handle these types of situations.

III. HISTORICAL REPORTS: EXTRA REVENUE REPORT

The main report for presenting employee sales on closed RAs of coverages, options, upgrades, and prepaid fuel is the Extra Revenue Report.

Among other things, for each employee it shows:

• the number RAs where sales of the item were possible
• the number of sales
• percent of penetration
• revenue generated

The data is sorted by the code of the employee who is responsible for the sale of the item. As a result, this report can be used to evaluate the sales performance of rental agents and to calculate incentive pay off the system. The standard output of this report is two lines of summary data per employee. But it can also be run in detail mode so that each individual RA is listed for each employee. In detail mode, the report can be used to audit several other Incentive reports. Revenue reported is based on the DBR date of each individual charge which comes into play when editing posted RAs.

Note that the Extra Revenue Report, Extra Revenue Report 2 and the Employee Performance Report are all similar, but there are important differences in how data is selected and reported. Please refer to the Extra Revenue Report chapter introduction for a full explanation.

IV. OTHER MANAGEMENT REPORTS FOR OPTION SALES

In addition to the Extra Revenue Report, several other reports are listed on the Manager's Sales Reports Sub-Menu of the Daily Procedures Menu. A very brief summary is given below:

Report Name	Summary	RAs Reported
Extra Revenue Report 2	Similar to Extra Revenue Report but is contract oriented.	Closed RAs
Employee Performance Report	Similar to Extra Revenue Report but is contract oriented. Offers different sorts.	Closed RAs
Prepaid Fuel Report	Shows half-tank and full-tank prepaid fuel sales by employee.	Closed & Posted RAs
Walk-Up Rentals Report	Shows number of walk up RAs by employee. Can be run by Open date or Closed date	Open or Closed RAs
Optional Revenue Report	Shows all sales for a single option; can be sorted by employee. Can be used as an exception report for option rates that were edited.	Closed RAs
Optional Revenue Report for LDW	Shows all sales for a single option and indicates which RAs also had LDW; can be sorted by employee.	Closed RAs
DDW Opportunity Report	Reports DDW sales results by employee on closed RAs. ("DDW" refers to a 'buy down' of responsibility level of LDW when LDW is included in a rate, CDPID privilege, or tour voucher.)	Closed RAs
Optional Sales Yield Report	Reports option sales on posted RAs. Can be sorted by employee or option. Choices for tour RAs or retail RAs or both. Choices for voucher revenue, customer revenue, or both.	Closed and posted RAs
Employee Sales Report	Reports sales by employee based on the opening date of the RA. Can sort by employee.	Open and closed RAs - reported by open date
Sales Rev Per Day Report 1	Produces a csv text file that results from calculating the average daily revenue produced by employees through their sales of options.	Closed RAs
Options Sales Report	Produces a csv file of sales for up to 12 options on closed RAs. Can sort by employee. Can be used as an exception report for option rates that were edited.	Closed RAs
Today's Option Sales Report	Reports employee's progress in reaching option sales targets. Reports on options sold by opening date.	Open RAs reported by open date

V. EMPLOYEE INCENTIVE LOGIC

The employee incentive logic provides management with the ability to:

• set goals or 'targets' for employee sales
• produce a report that tracks each employee's progress in reaching sales targets
• set up incentive payment levels for reaching sales targets
• have the system calculate incentive pay that has been earned

A. REQUIRED SET-UP: EDIT EMPLOYEE INCENTIVES

Use this program to:

• create sales targets for employees
• enter incentive payment rates for reaching the targets

Sales targets specify a volume of sales for various options that can be expressed as any of the following for a month or payroll period:

• a number of RAs - such as selling PAI on at least 20 rentals
• a monetary amount - such as generating at least $1,000 in upgrade revenue
• a percentage of sales- such as selling LDW on 30 percent of all rentals where LDW could be sold

The method for calculating the incentive pay can be defined in one of the following ways:

• an amount earned per transaction - such as $2.00 per sale of PAI
• a percentage of the sales amount - such as 10% of upgrade revenue
• an amount earned per sales day - such as $1.00 per day for each day LDW was charged on the employee's RAs

Multiple levels

Up to 3 levels of targets can be set up with 3 corresponding levels of incentives.

Example of 3 levels based on a target percentage for LDW sales:

Agents who sell LDW on at least 20% of their RAs earn $1.00 per LDW day charged on their RAs.

Agents who sell LDW on at least 35% of their RAs earn $1.25 per LDW day charged on their RAs.

Agents who sell LDW on 50% or more of their RAs earn $1.50 per LDW day charged on their RAs.

B. CALCULATION OF THE INCENTIVE EARNINGS

The Update Revenue Incentives program MUST be run at least daily to calculate the appropriate incentive pay earned from closed RAs. It can be run as often as desired.

As this program can involve a significant amount of calculations, it is usually scheduled by the Report Driver to run every night when system resource demands are low. This will mean that the resulting Revenue Incentive Report will be for RAs that closed in the current month through yesterday.

C. REVENUE INCENTIVE REPORT

The resulting calculations of revenue incentives from the Update Revenue Incentives program are available on the Revenue Incentive Report. It reports an employee's progress in reaching their "targets" and reports the incentive pay earned to date by the employee. Instead of printing a report, the data can be exported to a csv file.

USER TIP: The Extra Revenue Report is at the heart of the incentive logic. When Update Revenue Incentives is run, the Extra Revenue Report is actually being run in the background in an "update" mode. Therefore, if there is a question raised by the figures on the Revenue Incentive Report, the Extra Revenue Report could be run in detail (listing each RA individually) to satisfy any questions or for audit purposes.

D. CONCEPT OF SRPD

Instead of tracking incentives based on each individual option, incentives can be based on sales for a group of options (Option Set). The daily average of revenue sold by a rental agent is referred to as: Sales Revenue Per Day or "SRPD".

For example:

1. If an agent sells LDW at $10/day, PAI at $5/day and SLI at $7/day on the same RA, that would be $22 per day of additional revenue.

2. If the agent opened two RAs each for 5 days and sold all three coverages on both RAs, the average SRPD would be $22.

3. If the agent sold all three coverages on just one RA and none on a second RA, the SRPD would be $11.

E. SET UP REQUIRED FOR SRPD:

1. Set up an Option Set that is made up of all of the Options whose revenue is to be tracked in this manner.

2. In the Edit Incentive Control Record, place the Option Set defined in Step 1 above into Field 13: SRPD Optset.

3. In the Edit Employee Incentives file DO NOT set up any records for the individual options that are included in the SRPD Option Set. (To do so will result in incentives being calculated more than once on the same sale.)

4. In the Edit Employee Incentives:

a. Set up the target by entering "SRPD" in Field 3: OPTION. ("SRPD" is the reserved code for incentives of this nature; therefore, you can only have one set of Options incentivized this way).

b. Incentives for SRPD can only be done with Target Amounts (Fields 7, 13 and 19). Enter into these fields the average daily revenue targets that are desired.

c. Incentives of this type can only be rewarded on a percentage basis (Fields 9, 17 and 23).

EXAMPLE:

OPTION: __ EDIT EMPLOYEE INCENTIVES 1 Location 2 Employee 3 Option SRPD 4 Eff Date 04-01-17 5 Term Date 6 Target Pct 1 18 Target Pct 3 7 Target Amt 1 20.00 19 Target Amt 3 40.00 8 Target Num 1 20 Target Num 3 9 Per Day 1 21 Per Day 3 10 Per Transaction 1 22 Per Transaction 3 11 Pct 1 3.00 23 Pct 3 8.00 12 Target Pct 2 13 Target Amt 2 30.00 Create Date 14 Target Num 2 Create Empl 15 Per Day 2 Mod Date 16 Per Transaction 2 Mod Empl 17 Pct 2 5.00 24 Daily Target Amt 25 Daily Target Num 1SAVE 2NEXT 3ERASE 4DELETE 5BACKUP 6 7HELP 8

The example above is an incentive record for SRPD which, in this example, includes all coverages.

The agent earns 3% of all coverage revenue if the calculated average daily revenue from these three options exceeds $20/day.

If the SRPD exceeds $30/day, the incentive is 5% of their total coverage revenue.

If the SRPD exceeds $40/day, the incentive is 8%.

F. Sales Revenue Per Day Report 1

Use this program to:

• Produce a csv text file that results from calculating the average daily revenue produced by employees through their sales of options (SRPD).
• Ranks employees from the one who sold the most to the one who sold the least.

VI. TRACKING CURRENT DAY OPTION SALES

In addition to tracking performance on closed RAs, management may want to examine how well agents are selling on the contracts that opened today. This allows a manager to notice immediately when an employee is under performing.

The Today's Option Sales Report is based on today's open RAs. Before running it, the following set up is required.

A. REQUIRED SET-UP

1. The fields in Edit Incentive Control Record must be set. (See Section II above)

2. The Option Set for "SRPD" must be set up in order to report "ALL" incentivized options. (See Section V.E.1 above)

3. The Option Set code for "SRPD" must be entered in the "SRPD" field of Edit Incentive Control Record. (See Section V.E.2 above)

4. Daily target amounts for total option sales should be entered in the Edit Employee Incentive control file. The targets specify either a daily target monetary amount or a daily target number of transactions. See Fields 24 "Daily Target Amount" and Field 25 "Daily Target Number.

5. EDIT LOCATIONS

Page 7, Field 13: OPEN OPT TRACKING

Enter:
Y = Yes, when RAs are saved, the designated option revenue is tracked for the purpose of reporting it in the Sales Revenue Per Day Report.

User tip: It is this field that turns on the logic for current day option sales. RAs which were opened prior to turning on this field are not included.

B. REPORTING