Worksheet: Put price or margin into the sales incentive

The sales incentive predicts pricing behaviour better than any policy. If it pays on revenue, the price list loses. This sheet reads the current plan, adds a price or margin measure with real weight, and tests it on last year's numbers. It builds the Competent step of the check:

Sales incentives include price or margin outcomes with real weight.

Step 1. Read the plan you have

Component	Weight today (%)	What it rewards in practice	Can a rep hit it by discounting?
e.g. Revenue against target	80%	Volume at any price	Yes

Step 2. The new plan

Measure	Weight (%)	Target	Data source	Paid when
Price realisation, or gross margin dollars
Discounts inside the rep's band
Revenue
Other

Step 3. Test it on last year

Run each rep's actual results through both plans.

Rep	Average discount given	Bonus under the old plan ($)	Bonus under the new plan ($)	Change

The reps who discounted most should earn less under the new plan. If they do not, the weight on price or margin is too low. Change it and run the test again.

Step 4. Close the gaps

Way a rep could game it	Guard
e.g. Push discount into an off-invoice rebate	Measure margin after rebates

Done when: the next plan cycle's sales incentive includes a price or margin measure heavy enough that discounting costs a rep money.

Adapted from our own B2B pricing playbook (PSP, 2026).