All tagged Cost of Compensation

However, there is one thing that I’ve bumped into repeatedly that is puzzling. For most brokers, compensation expense takes up 30% - 50% of the total gross margin generated by the company. More money is spent on compensation than is spent on the TMS system, the website, insurance, displays for trade shows, or pretty much ANY other single area of expense. However, it is not uncommon for me to be asked something along the lines of, “Can’t you just tell me how so and so does it?” or “Just tell me the answer. I just want the quick fix.” or “How does everyone else do it?” or “This is how we did it at my old company, why can’t we just do that here?”