Case Study: a petroleum and lubricants distributor optimizes sales compensation and drives lubricant growth with Alexander Group

Petroleum and Lubricants Distributor realigns sales pay with Alexander Group to drive more lubricants and services

A petroleum and lubricants distributor faced a challenge after growing through acquisition, which left it with multiple misaligned sales compensation plans. These legacy plans paid salespeople based on territory size rather than growth and failed to incentivize selling more profitable products. The company needed to increase lubricants and services sales to meet profitability targets and required new, cost-neutral compensation plans to focus its sales roles. It engaged the Alexander Group for a sales compensation design solution.

The Alexander Group assessed the existing plans and then designed future state compensation plans. These new plans introduced product category-specific commission rates to prioritize strategic products, encourage over-performance, and drive volume. The solution ensured cost neutrality and mitigated transition risks. As a result, the company fully aligned its sales measures with corporate strategy and anticipated an increase in cross-selling lubricants and services, as well as higher rebates from strategic suppliers.