Ask a Sales Expert

The 20010 limit on deductible tax-exempt allowances paid by employers is: 52 cents for the first 5,000 business kilometres travelled and 46 cents per km for each additional business kilometre travelled thereafter.

For the Yukon Territory, Northwest Territories and Nunavut, the tax-exempt allowance is 56 cents for the first 5,000 kilometres driven and 50 cents for each additional kilometre

Source: Canada, Department of Finance

Updated January 11, 2010

Limits for previous years can be found by clicking on the relevant year:

• 2009
  The 2009 limit on deductible tax-exempt allowances paid by employers is:
  52 cents for the first 5,000 business kilometres travelled and 46 cents per km for each additional business kilometre travelled thereafter.
  For the Yukon Territory, Northwest Territories and Nunavut, the tax-exempt allowance is 56 cents for the first 5,000 kilometres driven and 50 cents for each additional kilometre.
  Source
  
• 2008
• 2007
• 2006

For individuals who have entered into a vehicle leasing arrangement after 2008, the maximum amount that you can deduct every month is $800 (plus applicable federal and provincial taxes). The maximum allowable interest deduction relating to borrowed funds used to purchase a vehicle is $300 per month. These limits remain in effect for 2009. Source

Beginning on Jan. 1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 50 cents per mile for business miles driven
• 16.5 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

Source: http://www.irs.gov/newsroom/article/0,,id=200505,00.html

Limits for previous years can be found by clicking on the relevant year:

• 2009
• 2008
• 2007
• 2006

CPSA′s 2008/2009 Guide to Vehicle Costs and Policies is based on a survey of members. This guide features detailed breakdowns of amounts paid for business vehicle allowances for sales reps and managers, vehicle preferences and equipment, taxation information along with operating costs for a compact, mid-size, full-size and passenger vehicles. Cost is $55.00 for members and $95.00 for non-members.

Canadian Automobile Association   CAA has released an updated version of its Driving Costs brochure which can help you calculate how much it costs to own and operate your vehicle each year. Offers general guidelines only and the information is from the previous year.

Fuel Consumption Guide   Developed by Natural Resources Canada you can use this tool to compare the fuel consumption of various makes and models of vehicles for a specific model year and to help you select the most fuel-efficient vehicle that meets your everyday needs.

Fuel Economy Guide and Calculator   U.S. Department of Energy site allows you to compare the gas mileage (MPG), greenhouse gas emissions, air pollution ratings, and safety information for new and used cars and trucks. Side-by-side comparisons of multiple models generated.

Fuel Economy Guide is available to mobile users and is readily accessible from a mobile device, smart phone, or personal digital assistant (PDA).

This is a highly specialized area but the following consultants can assist you:

Roger Brown
RG Brown and Associates
Mississauga, ON
Tel: 416.519.5466
Email: rogergbrown@rogers.com

Specializes in assisting employers in both the public and private sectors in the review of their current business vehicle program, policies and related practices. Their services include fleet management company selection processes, review and development of business vehicle policies, the design of business vehicle allowance programs and policies and conducting industry specific business vehicle program market surveys.

CarDATA
Oakville, ON
Toll-free: 1-888-471-2266
Email: info@cardata.ca

CarDATA designs vehicle reimbursement solutions for North American companies

Corporate Reimbursement Services Inc.
Corporate Reimbursement Services, Inc.
233 Needham Street
Paragon Towers
Newton, MA 02464
Tel: 888-312-0788
Email: sales@crsinc.com

Corporate Reimbursement Services, Inc. (CRS) is a management consulting firm that administers highly flexible and customizable vehicle reimbursement programs for companies with mobile employees.

Runzheimer International
Corporate Headquarters
Runzheimer Park
Rochester, WI
Tel: 262-971-2200;
Toll-free 1-800-263-8762; 262-971-2254 (fax)

Services include review and management of all aspects of a business vehicle program including the accurate calculation of geographically-sensitive vehicle reimbursements, risk assessment of driver population; track and documentation of business mileage and vehicle disposition.

There are a number of iPhone and BlackBerry applications available:

iPhone applications
AccuFuel — Very basic program. Does not track cost of ownership, cost per mile, detailed chart or maintenance costs and service reminders.

Car Care — Expensive but tracks fuel mileage, provides service reminders, and allows you to account for partial fill ups. Drawbacks include small data screen and scrolling odometer.

Gas Cubby — Tracks every fill-up and determines how much you’ve spent, price-per-gallon trends, mileage, and more. Tracks vehicle maintenance such as oil changes, wiper blades, accessory installations, and nearly anything else. Easy to use and recommended.

RoadTrip Lite — Tracks fuel mileage for one vehicle and presents info via a graph or as a number.

MileBug Lite — Allows you to set up multiple vehicles, IRS compliant and you can define multiple business rates (reimbursement vs. deduction). Major limitation is you can only track 10 trips.

TravelLog — Tracks your billable vehicle mileage for business and taxation purposes. Key features: on-screen report showing all entries logged and percentage of logged distance vs. total distance, ability to email trip data in CSV format and option for notation in kilometres or miles.

Tripper Lite — Features live GPS mileage tracking that records your mileage while you drive. Supports miles or kilometres. Customizable categories allow for multiple clients and billing codes.

For the latest reviews about iphone applications visit www.iphoneappreview.com and www.ituneappreviews.com

BlackBerry applications
Mileage Manager — Tracks/calculates amount owed based on reimbursement rate and odometer readings. Ability to export records in HTML format for printing or as a CSV file for integration with Microsoft® Excel by email. Supports a wide range of currencies including Canadian dollar.

MileageTrackerPro — Allows you to tie group trips together based on client or destinations using predefined or custom categories. Ability to wirelessly sync mileage information for savings, viewing & printing mileage reports securely to a secure site.

TrackIt — Tracks an unlimited number of vehicles. Filters out data to view records for certain vehicles or separate business and personal records. View statistics about your inputs. Schedule future maintenance and repairs and set reminders based on a date and/or the vehicle′s odometer.

VehicleTracker — Tracks all repair, maintenance, trip and expense for multiple vehicles. Log date, description, destination, start and end mileage, and notes about your business trips for submitting expense or tax reports.

For the latest reviews on BlackBerry applications check out http://software.crackberry.com/homeSoftware.asp

When an automobile is provided to an employee or an individual related to the employee, Revenue Canada considers the individual to have received two benefits:

(i) Standby charge benefit (which applies when the employee has access to the automobile for personal use); and

(ii) Operating cost benefit (which applies when the employer pays operating costs that relate to personal use).

The employer is required to calculate both charges and to report the total to the employee and to the income tax authorities. The employer must also remit GST/HST in respect of these benefits.

The following charts show how these charges are calculated:

Employer-owned automobile Cost of automobile	$	X 2%	$A
Employer-leased automobile Monthly lease cost	$	X 2/3	$B
No. of days in year auto is available to employee
		divided by 30
		=
Round result (with .05 rounded down to the nearest whole number if this fraction exceeds 1.0		=C
(A x C) or (B x C)		$D

Personal kilometres
divided by (1,667 x number of months auto was available)
= Reduction for low personal use	E

= Standby charge before reimbursements = D x E	$
– Reimbursements to employer during the year	$
= Standby charge	$

• Special rules apply if the employee is employed principally in selling or leasing automobiles.
• The reduction for low personal use is available only if:
  • the employer requires the employee to use the vehicle to carry out employment duties;
  • the business use id more than 50%; and,
  • personal kilometers average less than 1,667 per month

How to Calculate the Operating Cost Benefit

Personal kilometers driven during the year
	x 24 cents*
= Operating cost benefit before reimbursements	$
– Reimbursements to employer made before February 15 of the following year	$
= Operating cost benefit	$

Alternative Operating Cost Benefit Calculation

An employee may use this alternative calculation if both:

• the employee uses the automobile less than 50% for business purposes; and,
• the employee requests (in writing before the end of the year) that this method be used.

Standby charge before reimbursements	$
	x 50%
= Operating cost benefit before reimbursements	$
– Reimbursements to employer made before February 15 of the following year	$

What happens if the employee reimburses the employer?

If before February 15 of the following year, the employee reimburses his or her employer for all operating expenses attributable to personal use, no operating cost benefit will be incurred.

Gas and oil	$
+ Repairs and maintenance	$
+ Insurance, license and registration	$
+ Other operating costs	$
= Total operating costs	$
x Personal km/Total km
= Operating costs attributable to personal use

Avoiding a Taxable Benefit

An employee can avoid the operating cost benefit charge if they reimburse the employer 100 per cent of the personal use portion of actual operating cost before February 15 of the following year. Payments for operating expenses made directly by the employee do not reduce the benefit.

Personal use kilometers driven in the year*	10,000 km
Total kilometres	30,000
Operating expenses paid by employer (including GST/HST & PST)	1,000
Reimbursements to employer	Nil
Results:
The operating cost benefit to the employee is:	10,000 km x 24¢ per km = $2,400
Analysis:
The portion of operating costs that relate to the employee’s personal use of the automobile is:	10,000 km/30,000 km x $1,000 = $333
Observations:
The employee could eliminate a $2,400 operating cost benefit by reimbursing the employer $333 before February 15 of the following year. Therefore, assuming the employee’s marginal tax rate is 46%, the employee can save $771($2,200 x 46% - $333).

Posted November 30, 2009

MJ Ervin & Associates has an extensive database of historical retail and wholesale prices and related margins for gasoline, diesel fuel, furnace fuel, propane, and selected crude oil posted prices. Online users can search the Gasoline Prices database which provides historical prices for all grades of gasoline (premium, regular unleaded, mid-grade and regular leaded), related to wholesale (rack) markets as well as retail for over 60 Canadian cites on a month-by-month basis. They also provide both Canadian and regional averages.

Updated January 11, 2010

Each used car, truck, and SUV is different and depends upon the vehicle′s physical and mechanical condition, local market conditions, potential reconditioning costs, auction results and other factors. Tools such as The Canadian Black Book and Canadian Red Book serve as guides to car dealers to help them appraise the used car. These guides provide a starting point to assess the vehicle.

The Canadian Red Book Online—Subscription service that provides information for Canadian makes and models on the first of each month, and allows for provincial valuation adjustments. Additional information includes: retail and wholesale values, VIN identification section, provincial value conversion chart, major optional equipment charts, and complete odometer tables. Covers model years from 2009-2002.

The Canadian Black Book—Updated monthly this wholesale/retail guide offers a low and a high wholesale value range along with a guideline for retail value for virtually every model sold in Canada, stretching back 13 model years.

The popular website Webflyer.com has extensive coverage of many aspects of travel loyalty programs. Check out the Head2Head section (www.webflyer.com/programs/head2head/) which lets you select any two suppliers listed for a side-by-side comparison of the programs′ major features. The companies whose loyalty plans are available for comparison include a dozen airlines, seven major hotel groups, and two credit card companies. In addition to evaluating the pros and cons of whichever two programs you want to compare, the site also provides overall user ratings for the programs.

Several airlines have added in-flight Wi-Fi services to their fleets and many more plan to do so in the future. Business travellers can save between $10-12 per flight by signing up with Gogo a company which offers unlimited-use monthly subscriptions. Gogo is offered on all AirTran and Virgin America planes, and on some flights of Air Canada, Alaska, American, Delta, US Airways and United. The company is charging $34.95 a month for the unlimited service plan – although new subscribers can get their first month for $19.95 USD. Subscribers can cancel it at any time.

In addition to single-use fees (which range from $4.95 to $12.95 per flight, depending on distance and the device used to connect), the company also offers different pass options. You can get a 24-hour pass for $12.95 for travel on Delta, Virgin or AirTran; a one-time 30-day single-airline pass good on any one of those three airlines or American for $29.95; or a 30-day pass good on all of four carriers for $39.95 (all these options must be purchased in-flight).

Posted July 19, 2010

Many U.S. states have legislation already in place that bans the usage of cell phones and other handheld devices while driving.

The Governors Highway Safety Association has created a chart that outlines all state-level cell phone and text messaging laws and the driver categories that they apply to. Some local jurisdictions have additional regulations that need to be observed.

What is also interesting about this chart is it indicates which states include a category for cell phone/electronic equipment distraction on police accident report forms. Recently federal legislation was introduced to require states to collect this data in order to qualify for certain federal funding.

Posted May 24, 2010

There are several excellent websites plus a host of iPhone and BlackBerry applications.

Traffic.com has updates on driving conditions in and around 52 U.S. cities. You can get a general overview, with maps, or you can input specific driving routes and ask for alerts and alternate routes if there’s a problem.

For drivers who need updates in real time, the site recently developed new applications for the iPhone and the BlackBerry. You can find out more about them at http://bhelp.traffic.com/features-mobile-web .

Telenav is a GPS navigation service that provides traffic updates for mobile phones.

Rand McNally, the world renowned mapping icon also has a traffic information service for mobile phones.

Posted May 24, 2010

Airlines continue to implement and change baggage fees, adding to the overall cost of air travel in their efforts to additional revenues. Keeping track of these changes is often difficult for business travellers as airlines announce new policies or amend existing ones.

Luggage Limits is a terrific site where once you type in your airline, departure airport and arrival airport, it will give you the specific carry-on and checked baggage rules for your flight, including current fees for checked luggage.

Farecompare.com, has compiled a handy chart that lists the number of bags travellers are allowed, the maximum total dimensions, and the weight. Results are presented for U.S. carriers and each listing is linked to that airline’s web page with more specifics of its baggage policies.

Posted May 10, 2010

There are several websites where you go to help you keep on top of things once you arrive at your destination:

www.ifly.com The home page for ifly.com looks like it provides information only on U.S. airports, but it covers airports worldwide as well; hold your cursor on the word “Home” on the top menu bar and you’ll see a menu that includes international airports. Useful features include real-time information on current arrivals/departures.

Another good resource the airport information section of the global reservations system Amadeus, which offers compact descriptions on airports worldwide, including airport hotel options and local transportation.

The giant Sabre reservations system also has an airport information section, although it has a lot more detail on U.S. airports – which restaurants and shops are in which terminals, for instance -- than on overseas facilities.

iPhone Applications
Airport Maps will provide you with maps of the terminal, pinpointing restaurants and shops inside of it.

Flight Update allows you to track incoming flights and stay on the top of things at airports. Provides you with seating charts and even meals in your flight.

Airport Maps shows you where you can locate food outlets and restaurants at your airport. The app provides a map of the airport, so you know where to go right away once you deplane.

Gate Guru lets you check up on what the best food, stores, and services are available at your gate.

iFly Pro covers 350 airports, and it includes information on restaurants, parking maps, retail stores, and so on. It also provides a rough idea as to what you can expect to pay for parking.

GPS-Eat-Shop This app comes with a collection of tools to help you find places to shop, eat, and even workout.

Airport WiFi has over 11,000+ airports covered and tells you which one has free Wi-Fi.

Posted May 10, 2010

Canadian Driver Magazine—Independent online automotive magazine featuring new vehicle reviews and test drives, along with an annual Buyer′s Guide, pricing, specifications and images. All articles on Canadian Driver are written by accredited automotive journalists.

Lemon Aid Used Car Guide—Aimed at consumers and provides information specifically on prices and defects relative to cars, trucks, SUVs, vans, and minivans produced between 1987-2007. Ratings are based on upon over 800,000 owners reports, government-recorded safety complaints, and confidential automaker service bulletins. A "must have" when shopping for a used vehicle.

Consumer Guide—Publication offers Best Buy and Recommended picks in 18 distinct vehicle classes. Also includes professional, unbiased evaluations of nearly 1,000 new and used vehicles along with shopping tips, timely feature articles, and insightful automotive editorials.

Employers cannot be forced to provide a letter of reference, much less a subjective and positive letter of reference.

However, particularly if your employer has promised to provide you with a letter of reference to support your search for alternative employment, a court might well determine that their failure to live up to that promise should be recognized in the form of additional compensation payable to you. Courts are often prepared to reason that the failure to provide a substantive letter of reference, particularly in circumstances where it was promised, has added to the difficulty and length of the search for alternative employment and, hence, can easily rationalize providing an increased notice period or compensation to the terminated employee.

Unfortunately, short of pursuing litigation against your former employer, there is no agency or easy route through which you can enforce the promise.

Submitted by Norman Grosman, Senior Partner, Grosman, Grosman & Gale - Employment Lawyers. This article was originally available at workopolis.com and has been reprinted with permission.

It is, practically speaking, not possible to compel a former employer to provide you with a substantive and positive reference.

Occasionally, courts have sanctioned the failure of a former employer to provide a positive letter of reference to a deserving employee, reasoning that the failure to do so likely extended the time required to search for alternative employment. In these cases, courts have added an incremental two to three months to what otherwise would have been a fair notice period, in the circumstances.

If your former employer will only provide a "neutral" letter of reference, consider using prior performance reviews as to augment any material you send to prospective employers. Also consider asking your former employer to add a paragraph to the “neutral” letter, indicating that it is their policy only to provide such limited information in the form of a reference. This will reduce the likelihood that a third party reading the letter will draw any negative or inappropriate inference from the limited information provided.

Submitted by Norman Grosman, Senior Partner, Grosman, Grosman & Gale - Employment Lawyers. This article was originally available at workopolis.com and has been reprinted with permission.

The short answer to this question is yes. When applying for Employment Insurance benefits you need to supply a Record of Employment (ROE) from your employer. The ROE needs to include the following details regarding your most recent employment: your total salary before deductions including tips and commissions, your salary before deductions for your last week of work — from Sunday to your last day worked — gross amounts received or to be received: vacation pay, severance pay, pension, pay in lieu of notice or lay off and other monies.

The employer′s goal in the hiring process is to select those candidates who possess the knowledge, skills and abilities or other attributes and competencies that lead to successful job performance. Many employers use a variety of psychological and skill-based assessments to assess a candidate′s performance or capacity.

Whenever possible employers should provide feedback to applicants on their test performance or on any decisions they have made based on results, unless this right has been waived by the candidate or is prohibited by law. However many companies do not provide candidates with feedback about how they did on these tests.

Updated January 11, 2010

Since you will be resident in Canada but making frequent trips to the United States to conduct business on behalf of the company and its customers, you will require a B-1 Business Visitor Visa. A B-1 Visa is required for Canadian residents wishing to enter the United States to conduct general business-like activities.

• Attend business meetings
• Consult with associates
• Attend business conferences and conventions
• Negotiate contracts
• Investigate business opportunities
• Purchase property in the U.S Research and design, including technical, scientific, and statistical research
• Growth, manufacturing, and production, including harvest owners supervising harvesting crews and purchasing and production management personnel conducting commercial transactions
• Marketing, including market researchers and analysts and trade fair and promotional personnel attending trade conventions.
• Sales, including sales representatives and agents taking orders and negotiating contracts for goods or services, but not delivering goods or providing services; buyers purchasing for an enterprise located in Canada
• Distribution, including transportation operators delivering to, or loading and transporting from Canada or the United States, with no intermediate loading or delivery within the United States; customs brokers performing brokerage duties associated with the export of goods
• After-sales service, including installers, repair and maintenance personnel, and supervisors possessing specialized knowledge essential to the seller's contractual obligation, performing services or training workers to perform such services pursuant to a warranty or other service contract incidental to the sale of commercial or industrial equipment or machinery, including computer software purchased from an enterprise located outside the country, during the life of the warranty or service agreement.

• Evidence of ties to Canada such as bank records, deed to property etc.
• Evidence of close family relatives
• Property deeds and any other documentation that shows that the applicant will return to Canada before or upon the expiry of B-1 status.
• Documents showing that the applicant will be engaging in permissible B-1 activities (see above)

I would also recommend that you ask to be paid in Canadian dollars. If you are paid in US funds you will need to keep track of the Canadian dollar value when you receive your pay cheques which will enable you to correctly declare your income for the year to Revenue Canada.

Updated January 25, 2010

The Women in Technology networking group has a Toronto chapter that features upcoming events and contact information. I recommend that you get in touch with the chairperson and outline your request.

There are many online sources ranging from blogs to online magazines and forums. Listed below are some trusted sites resources to get you started.

CRM Knowledge Base —Highly valuable portal whose chief benefit is how it organizes CRM-related information into various components such as business intelligence, call centers, sales force automation and others. It also offers links to resources to books, industry articles, vendor white papers and software solutions.

CRM Community —Features the latest developments and announcements in the CRM community. The site also features an online directory of software solutions for SFA, CRM suites, contact management software and hosted CRM solutions.

CRM Daily —Offers the latest in CRM news and visitors can sign up to receive CRM Daily enewsletter. News stories grouped by topics--CRM Systems, sales and marketing, business intelligence and more.

Mycustomer.com —Formerly know as the CRM Forum, this is an industry site for CRM professionals on both the demand and supply side of the industry. The library area of the site is quite useful with a selection of papers by leading CRM academics, case studies, conference presentations, and vendor papers.

Customer Think —Formerly known as CRM Guru, you can access online reports and archives plus participate in live webcasts. Contains detailed resources on CRM strategy, metrics, alignment, redesign and technology.

CRMProject.com —Site provides top-level analysis and best-of-breed solutions by making available white papers, articles and other reports from leading suppliers, academics, and CRM practitioners.

CRMExchange —Site facilitates an exchange of information on customer relationship management (CRM), sales, call center, and telemarketing issues.

DestinationCRM —Great site to start initial research if you have identified customer relationship management (CRM) as a key strategy for creating enhanced customer value. Content crosses many industries including technology, communications, finance, retail, advertising, and healthcare. Notably, the site features a Decision Analysis Toolkit, and a useful database of CRM-related service providers.

eCRMGuide —Customer relationship management and e-business news reviews.

According to research by Gartner, Canada lags behind the United States in the adoption of CRM technology. While no figures on CRM adoption were quoted in their research, in a CPSA roundtable on sales metrics and reporting held in 2008, 82% of Canadian companies use some form of SFA or CRM system.

This is a really interesting and complicated issue as there are several factors and questions that need to be taken into consideration namely:

• Was an agreement signed between the vendor and supplier that outlined rights/ownership concerning intellectual property or industrial design with respect to the product?
• Was any non-recoverable expenses charged for the development? Was there a non-disclosure agreement in place?
• Does the design incorporate proprietary elements that are exclusive to the client alone or are they more industry specific?
• Was this product exclusively designed for the client knowing that they would have exclusive rights to the product?
• What would be the "best" way to handle this issue with the client moving forward?

CRM Community Industrial design is an incredibly complicated area under intellectual property law which is why the Canadian Intellectual Property Office has created a Guide to Industrial Design and features a Frequently Asked Questions to answer basic questions this area of law.

The first step would be to start would start with the agreement (implied or written) with the client and use this as your starting point. If the client uses this product (a durable good) and treats it like a unique sales proposition (USP) in their marketplace, then you have a serious problem.

If a client has asked for a unique solution to solve another issue (special conveyor system to move product in a factory) that system is not exclusive to the client in the sense that it is a USP to the marketplace, just a better way to move product in the manufacturing process, you need to involve senior management and revisit the issue with your client. It is not worth damaging your reputation and integrity or that of your company’s’ by jumping the gun.

Additional Resources
CPSA′s Sales Institute Code of Ethics
"Ethical Sales Practices" Contact Magazine Fall 2008

The answer is no. According to Revenue Canada, any location at or from which the employee regularly reports for work or performs the duties of employment is generally considered a regular place of employment. An employee can have more than one regular place of employment, which can change from time to time because of the nature of the employment situation. For example travel between a sales representative′s home and a regular place of employment is personal travel and the use of an employer's vehicle for this travel would give rise to a taxable benefit to the employee.

Posted May 10, 2010

Canada Customs and Revenue Agency has had a policy in place for a number of years outlining the requirements for employee gifts and their tax treatment.

As of January 1, 2010 this policy changed and the limitation on the number of tax-free non-cash gifts and awards to employees was lifted.

If you give your sales rep a number of gifts and awards over the course of a year and their total value does NOT exceed $500, there is no taxable benefit to the employee. If, however you give gifts and awards to your sales rep with a total value of $650, there is a taxable benefit of $150 ($650-$500).

Not sure what qualifies, the following examples will assist you:

Example 1
In 2010, Jeffrey is employed by Tremclad Paints and his company gave him the following gifts and awards.

Gifts and Awards	Value	Taxable?
T-shirt with employer logo	$15 (cost)	No - non-cash item of nominal value, further reduced by the company logo.
Birthday gift (gift certificate)	$75	Yes - a gift certificate is near cash, and therefore is not included under the gifts and awards policy.
Reward for meeting sales performance target (weekend holiday)	$400	Yes - meeting a performance target does not fall under the definition of an award; therefore it does not fall under the gifts and awards policy. We consider it to be additional remuneration.
10 year anniversary award (art print); the last anniversary award was received 5 years previously.	$275	No - the art print is eligible under the long service/anniversary award, and Jeffrey has not received such an award in the 5 previous years.
Wedding gift (crystal vase)	$300	A gift under the policy**
Innovation and Excellence Award (tickets to a sporting event)	$250	An award under the policy**
Holiday season gift (watch)	$150	A gift under the policy**
Total	$1,465	Taxable amount: $675

*A gift has to be for a special occasion (e.g. religious holiday, birthday, wedding, or the birth of a child). An award has to be for an employment-related accomplishment such as long or outstanding service, employees′ suggestions, or meeting or exceeding safety standards. An award cannot be performance-related.

If you give your employee a non-cash gift or award for any other reason, this policy does not apply and you have to include the fair market value of the gift or award in the employee’s income. As well, certain kinds of gifts and awards are not eligible, such as cash.

**Calculation
The gifts and awards that fall within the policy - the wedding gift, Innovation and Excellence award, and holiday season gift - have a total value of $300 + $250 + $150 = $700. Jeffrey’s taxable benefit under the policy will be $200 ($700 − $500).

As well, both the value of the birthday gift ($75) and the reward for meeting the sales target ($400) have to be included in Jeffrey′s income.

Note that the $225 "shortfall" in the long service award category cannot be used to eliminate the $200 under the policy that has to be included in Jeffrey’s income.

Example 2
In 2010, Ahmed is employed by Bevcott Beverages and he has received the following gifts and awards.

Gifts and Awards	Value	Taxable?
Coffee mug	$8 (cost)	No - non-cash item of nominal value.
Social Committee 50/50 draw - Employer does not fund or control the social committee.	$243	No - the gifts and awards policy applies to employer/employee relationships.
Gift recognizing birth of first child (gift card)	$150	Yes - a gift certificate is near cash, and always taxable.
Holiday gift (voucher for a turkey)	$50	A gift under the policy**
An award (a watch) for 3 years service	$200	Yes - since Ahmed has worked for the company for less than 5 years, this long service award does not meet the parameters of the policy and is taxable.
Award in recognition of running the company charity drive.	$375	An award under the policy***
A birthday gift (concert tickets)	$175	An award under the policy***
Total	$1,201	Taxable amount: $450

***Calculation
The gifts and awards that fall within the policy - the recognition award, the birthday gift, and the holiday gift - have a total value of $375 + $175 + $50 = $600. Ahmed’s taxable benefit under the policy is $100 ($600 − $500).

As well, the value of both the gift for the birth of his child ($150) and the award for 3 years service ($200) have to be included in his income.

Posted May 10, 2010

Steven Van Alstine Director of the Payroll Resource Group for the Canadian Payroll Association wrote that if the employer determines that an individual should be considered an employee, then, at the very least, the employer should begin treating that individual as an employee as soon as possible. The employer may also decide to go back to the beginning of the year and calculate and remit the source deduction amounts that should have been paid in the current year. The fact that the individual may receive a T4 and a T4A in the same year may trigger the Canada Revenue Agency (CRA) to perform an audit. The CRA could request that the employer cancel the T4A and create a T4 for the years in which the individual in question was treated as self-employed but should have been treated as an employee.

The CRA could also impose penalties and interest for unpaid remittances and make the organization pay all of the source deductions that should have been deducted from the individual in question.

Therefore, it is vey important for organizations to ensure from the beginning of the working relationship whether an individual whose services the organization has engaged is properly classified as an employee or self-employed. It is much easier to take preventative measures than to endure the possible repercussions resulting form an incorrect decision.

The Canadian Professional Sales Association turned to Charlie Eansor, Executive Director of Commodity Tax at Ernst and Young who prepared this response:

The challenge for sales representatives when GST was first implemented in 1991 was to have their services zero-rated when provided to a non-resident client. Where services are zero-rated, no GST applies and that is particularly advantageous where the invoice is being paid by a non-resident, as many non-residents are not registered for GST and cannot claim GST back as input tax credits.

Initially, it was commonly thought a particular zero-rating provision for agents′ services applied to the services of all sales representatives. About a year and a half after the GST implementation, however, the Canada Revenue Agency ("CRA") issued GST Memorandum 300-3-5: Exports in which it indicated that the zero-rating for agents′ services applied only to "legal" agents.

Legal agents, in the eyes of the CRA, are persons who are authorized to enter into contracts (such as sales contracts) on behalf of the client they represent. According to that interpretation, the vast majority of the services provided by sales representatives to non-residents would become taxable because most sales representatives did not have the authority to enter into contracts on behalf of their clients (and failed to qualify as legal agents).

This caused a great deal of controversy because Canadian sales representatives would become far less competitive if their non-resident clients (who could not claim input tax credits) had to pay GST on their services.

The CRA initially agreed to enforce its interpretation going forward from the date of the interpretation, and subsequently, due primarily to the efforts of the CPSA, agreed to a moratorium on assessments relating to this issue altogether. In 1996 the CPSA was ultimately able to persuade the Department of Finance to formally amend the GST legislation to allow for the zero-rating of services supplied by sales representatives to non-residents irrespective of whether or not the sales representative was a legal agent. This change was made retroactive to 1991.

So, that solved everyone′s GST problems – right? Well, it certainly opened the door for zero-rating sales representatives′ services but not as wide as some may have thought. What is zero-rated is a particular range of services typically supplied by sales representatives under a particular set of conditions. Go outside the scope of the specified services or fail to document that all of the conditions are met, and the CRA will likely be looking for tax on the transaction.

Conditions for Zero-rating
To know more about this: please view Independent Sales Representatives and the GST: Conditions for Zero-rating

Examples
To view some examples: please read Independent Sales Representatives and the GST: To Tax or Not to Tax Examples

Posted March 1, 2010

An independent or manufacturer′s sales agent is an individual who is either a sole proprietor, partner or incorporated entity working in an exclusive geographically designated territory or a particular market/customer segment, representing one or more principals. (The term principal is used to describe the manufacturer or supplier of goods or services sold by the sales agent.)

An agent may represent one or several non-competitive lines. The agent is remunerated primarily on a commission-only basis for goods shipped or billed from the principal represented. Agents control their own time and level of sales effort. The responsibilities and obligations between the agent and principal or company are usually outlined in a written contract between the parties.

It is important to note that agents must maintain an "independent" relationship with the company that has retained them. The agent should not be 'tied' to the company in any way such as a partner, shareholder or board member. Neither should he/she operate under any constraints imposed by the principal such as being directed by the principal as to how much time he should be spending with specific customers or allocating his sales efforts on call reports.

For more articles about this topic visit the SRC′s Knowledge Centre

Independent sales agents can be found by advertising on selected job boards, associations and networks such as:

Canada
Agentmall
CPSA has partnered with Rephunter.net and members receive a 10% on all subscriptions and services.

Canadian Electronic Representatives Association
Full contact details of Canadian members available

Canadian Sporting Goods Representatives Association

Canadian Professional Sales Association (CPSA)
CPSA has approximately 1,500-2,000 independent sales agents as members.

Canadian Gift and Tableware Association Representatives Association

Ontario Shoe Travellers Association

Promotional Product Professionals Association of Canada (PPPC)

salejobsCanada.com
CPSA′s online niche job board for the sales profession

International
International Union of Commercial Agents and Brokers
Umbrella organization for 470,000 reps in Europe, North and South America

United States
Agricultural & Industrial Manufacturers′ Representatives Association

Food Service Group

Gift and Home Trade Association

Heavy Duty Representatives Association

Industrial Manufacturers′ Reps Association

International Housewares Representative Association

Manufacturers′ Agents for the Foodservice Industry

Manufacturer′s Agents National Association (MANA)
Members can access MANA′s searchable online RepFinder listing its 3,300 rep firm members. Search by product classifications or keyword

Manufacturers Agents of Cincinnati

National Association of General Merchandise Representatives

National Electrical Manufacturers′ Representative Association

Power-Motion Technology Representatives

Professional Sales Representative Association

Shoe and Accessory Traveler′s Association

Society of Manufacturers′ Representatives

United Association of Manufacturers′ Reps

Wisconsin Association of Manufacturers′ Reps

Wood Reps

Additional Resources:
Xerox, Advanced Office Solutions on creating and managing a successful sales agency

Pacesetter Sales Agency carving out an industry niche and illustrating the effectiveness of using independent sales agencies

Frequently the terms "agent", "distributor", "rep", and "partner" are used interchangeably. However, the difference between agents and distributors are distinct.

An independent or manufacturer′s agent is either a sole proprietor or incorporated entity working in an exclusive geographically designated territory or a particular market/customer segment. An agent may represent one or more principals (The term principal is used to describe the manufacturer or supplier of goods or services sold by the sales agent).

An agent may represent one or several non-competitive lines. The agent is compensated on a commission-only basis for goods shipped or billed from the principal represented. Agents control their own time and level of sales effort. The responsibilities and obligations between the agent and principal or company are usually outlined in a written contract between the parties.

A "distributor" tends to be an entity with brick and mortar assets, which purchases (imports) products, takes title, stocks, maintains inventory, and re-sells the product to end-users. Distributors or “dealers” usually work on a sliding scale discount basis and provide installation, repairs, customs and port clearances, delivery, and after-sales service such as warranty work.

Posted November 2, 2009

There are a number of helpful resources that can assist you in determining the pros and cons of becoming a distributor:

Canadian Importers and Exporters Association
Publishes a step-by-step guide on "How To Set Up An Import Business," including the rules and regulations for bringing goods into Canada. This book is invaluable for both start-up and established importers, with a wealth of current information and import strategies.

• The documentation you need from the vendor and your carrier,
• How to keep proper records,
• The records your carrier is required to maintain,
• What to expect at the border,
• How to prepare your customs documents,
• Working with a customs broker, and
• Duties and tariffs

If you′re just starting out, Canadian Business provides answers to the questions that will help you receive and release your goods as quickly as possible.

Canadian Border Services Agency
Offers a Step-by-Step Guide to Importing to help small and medium-sized enterprises that import goods into Canada. It provides an overview of the commercial importing process and is intended to complement, not replace any existing regulations, acts and references.

Forum for International Trade Training (FITT)
A non-profit organization established by industry and government, FITT develops international business programs, sets competency standards, and designs the certification and accreditation programs for the Certified International Trade Professional (CITP) designation.

Offers a free Guide to Importing that outlines the risks and how to minimize them through research when importing products and how to incorporate importing into a sound business plan, and you will find that importing is just one more way to ensure a successful entrepreneurial venture.

Offers a free Online Glossary defining the various terms used in international trade.

Canadian Importers Database
The Canadian Importers Database (CID) provides lists of companies importing goods into Canada, by product, by city and by country of origin. You may want to consider registering yourself and/or your company once you have become established as it’s a free service.

Posted March 8, 2010

The answer: it depends. Two decisions from Ontario are typical of how courts in other jurisdictions would deal with the question.

In Cosman v. Viacom Entertainment Canada Inc., the Ontario Superior Court of Justice decided that an employer could terminate an employee for cause. The employee was accused of falsifying expense reports and sales activity reports in order to recover $300 in membership fees with the Board of Trade.

Hired as a salesperson at Canada's Wonderland, Cosman was paid $40,000 in salary and there was a bonus program that entitled him to earn up to $25,000 per year.

The employer discovered that Cosman inflated mileage claims by documenting and submitting fictitious client visits and cited these reasons in the termination letter. Cosman brought an action for wrongful dismissal and argued that he was owed his bonus because he had met the sales targets by the time of his termination.

The Court found that although Cosman’s 1998 records could not be proven to be false, the 1997 records amounted to a series of dishonest and criminal acts made by the employee.

Further the Court stated that the conduct of the Cosman was not only dishonest, but also criminal as he knew that he was not entitled to receive compensation for his Board of Trade dues, and he falsely inflated his expense reports to be reimbursed for them. The deciding factor for the court was that the Cosman had access to several thousand complimentary entry tickets to Canada's Wonderland each year (general admission was $40). The Court was satisfied that the Cosman's embezzlement destroyed the position of trust between the employee and the employer and poisoned the relationship.

The Court dismissed the wrongful dismissal action. Although Cosman was awarded about $3,000 for monies owing to him prior to the termination, he was not awarded the bonus, because he was not employed at the time when the bonus was awarded. The court noted that if he had been found to have been wrongfully dismissed, the court would have awarded him the bonus in addition to termination notice.

In the case of Graham v. Cuddy Food Products the employee was accused of submitting an expense report indicating that he had made sales calls to two hospitals, when evidence revealed that he had gone snowmobiling with a client that particular day.

Graham admitted that he had been dishonest, but argued that he was engaged in company business on the day in question, and that the accounting department would not have understood that the snowmobiling trip was for business purposes. Graham brought an action for wrongful dismissal claiming three months notice, and reimbursement for mileage expenses pursuant to his employment contract.

Small Claims Court decided that the Graham’s dismissal was too harsh and should have taken the form of a lesser penalty. The court commented that Graham’s assertion that his boss backed him and other salespeople in their ongoing battles regarding their expenses with the accounting department and stated it “had a certain common sense ring of truth to it”. The employer presented no evidence that this was not the case.

The court acknowledged that if Graham had outlined the nature of his trip to the accounting department, there would have been another big battle between the sales and accounting departments.

Thus, even though the Graham lied repeatedly to the employer, there was some aspect of protection of the employer inherent in the lie. In addition there was the fact that the Graham actually made work-related calls on the day in question and did not directly benefit (except as a part of the sales team having fun).

Therefore, the court concluded that the employer did not have just cause to dismiss the employee. It awarded three months' notice to the Graham. In addition the court also decided that Graham was only entitled to the mileage amount as suggested by the employer.

Source: www.langmichener.ca

Posted October 13, 2009

Any valid contract, including an employment contract, requires the parties to give each other something in exchange for entering into the agreement. In legal terms, the parties must give each other "consideration" in order for their contract to be enforceable.

The Ontario Court of Appeal recently affirmed this principle as it applies to employment contracts in the case of Hobbs v. TDI Canada Ltd. ([2004] O.J. No. 4876).

Allan Hobbs, an experienced advertising salesperson, left another job to join TDI Canada Ltd. As a salesperson, Hobbs′ earnings were primarily based on his commissions. In their pre-contract discussions, Hobbs and TDI verbally agreed on commission rates and had a common understanding of how commissions were calculated and paid in the industry. Before resigning from his old job, Hobbs insisted on receiving a written offer of employment from TDI. The offer letter Hobbs was provided with did not specify his commission rates, but read: "Details on the rates, calculation and payment of commissions shall be provided to you in a separate document." Hobbs resigned from his old job the same day he signed TDI′s offer letter. Read more

It is all well and good for the company to go to the trouble and expense of preparing a Code of Conduct, but its implementation and practices create the context in which your behaviour should be assessed. If, as you state, you can establish that many other individuals, including your boss, do not adhere to the Code of Conduct, then it is probable that a court would conclude that your behaviour, taken in the context of the workplace, is not cause for dismissal or, alternatively, that your former employer has condoned such behaviour and cannot rely upon it as just cause for termination.

If your former employer appreciates the risk associated with your allegations, it may do well to sort the problem out with you quickly and quietly, in order to avoid embarrassment, and potentially, the total collapse of the framework of its Code of Conduct.

Submitted by Norman Grosman, Senior Partner, Grosman, Grosman & Gale - Employment Lawyers. This article was originally available at workopolis.com and has been reprinted with permission.

Yes. Provided you have not signed an enforceable covenant not to compete after you depart from your former employer, the law will support your right to join a competitor, and to use your skill, experience and knowledge in your particular industry.

Broadly speaking, there are two exceptions to that rule. The first occurs if you have signed a restrictive covenant that typically provides that for a stated period of time within a restricted geographic area you will not work for a competitor. Courts generally frown on these types of covenants and review them strictly, as it is generally against public policy to prevent somebody from working in the industry in which they have experience. The second exception is that the law provides that a former employee has a duty not to compete unfairly with his or her former employer. In that respect, the use of confidential information or material belonging to your former employer is not permitted, as it would provide you with an unfair advantage and corresponding disadvantage to your former employer.

Generally, the law is simply seeking to strike a balance between the rights of former employers and individuals to co-exist after the employment relationship ends, in a manner which is fair to each.

Submitted by Norman Grosman, Senior Partner, Grosman, Grosman & Gale - Employment Lawyers. This article was originally available at workopolis.com and has been reprinted with permission.

The Ombudsman for Banking Services and Investments (OBSI) is the most likely source to help resolve disputes between you and your financial institution as both major Canadian and foreign-owned banks who operate in Canada fall under the OBSI’s authority. Another resource would also be the Financial Consumer Agency of Canada which states that every federally regulated financial institution must have a complaint-handling process in place and a copy of this process on file at FCAC.

This complaint-handling process usually includes access to an independent dispute-resolution process such as an ombudsman. Furthermore FCAC offers Guidelines for Making a Complaint to consumers who have a complaint or a problem with a federally regulated financial institution and the outlines the steps they can take to resolve it.

Actually, the court would look at a number of factors to determine, as a whole, whether the employer has the level of control and direction over the individual so as to make that person an employee, as opposed to an independent contractor.

Recently, the Ontario Superior Court considered the issue in the context of commissioned insurance brokers. In that situation, the evidence established that:

• sthe producers were entitled to work for more than one business;
• the producers could hire assistants without the company′s consent;
• there were no minimum or maximum hours;
• the producers could work from the company′s location or another location;
• compensation was entirely commission based;
• the producers were responsible for their own expenses;
• if the producers worked from the company′s premises, they were required to pay a rental fee; and
• the company had no authority to discipline the producers.

As a result, the court concluded that the producers were independent contractors, based on the lack of control and, in those circumstances, the severance provisions of the Employment Standards Act did not apply.

Submitted by Norman Grosman, Senior Partner, Grosman, Grosman & Gale - Employment Lawyers. This article was originally available at workopolis.com and has been reprinted with permission.

This is a vexing issue according to Brian P. Smeenk of McCarthy Tétrault who wrote:

"First, one must recognize that this question is different from the issue of what country′s laws apply to the contract of employment. The applicable law is not the same as the selection of the appropriate forum for dispute resolution. A Canadian court may enforce foreign laws, and a foreign court may enforce Canadian laws.

Failing a binding agreement on where and by whom a dispute will be resolved, how will this be decided? To answer this, Canadian courts will look at two distinct issues:

Do they have jurisdiction to consider the dispute?
Are they a convenient forum for considering the dispute?

Somewhat different, but related, factors apply to each question. Therefore, even though a Canadian court concludes it could entertain a dispute insofar as it has jurisdiction to do so, it may still decide it should not do so, if it is not the most convenient forum."

To read more, click here

The primary, or default rule on termination without cause, is that the terminated employee has a legal duty or responsibility to use all reasonable efforts to mitigate his or her economic loss following termination. That is to say, the law implies a responsibility on the part of the departing employee to attempt to secure other forms of employment and employment income during what would be a reasonable period of notice, and any earnings from alternative employment sources will reduce what you would otherwise be entitled to over a fair notice period.

The exception to the rule occurs in cases where the contract of employment can be interpreted as having exempted, either expressly or by implication, the employee from the duty to mitigate. Examples of such exemptions are:

• an express waiver of the duty to mitigate in the contract;
• an express obligation to continue the payments under the contract on the part of the employer; or
• where the contractual provision provides the severance amount is payable immediately at, or very shortly after, the time of the termination. The fact that the payment is to be made prior to the time when either the employer or the employee could know whether mitigation could occur implicitly suggests a waiver of the obligation to mitigate dates.

As a result, there is no rule or principle that because your agreement is in writing you are therefore exempted from the duty to mitigate. That exemption, if it exists at all, must be found in the express wording of the agreement or drawn from the agreement by logical implication.

Submitted by Norman Grosman, Senior Partner, Grosman, Grosman & Gale - Employment Lawyers. This article was originally available at workopolis.com and has been reprinted with permission.

Both options have respective advantages and disadvantages that vary from person-to-person and should be fully discussed with a financial planner and legal advisor before a termination agreement is finalized.

Lump Sum Payment

• Usually immediate payment of the entire severance amount (no need to worry about your former employer′s financial viability over the long-term);
• More flexibility in taking advantage of favourable tax rules; and
• A lump sum payment is typically not subject to set off or reduction for mitigation income from new employment.

• The lump sum package is usually discounted more than a severance package based on a salary continuance model since mitigation and or set off for new employment income is factored into the employer's reduced offer; and
• Benefits in lump sum packages are usually terminated earlier than benefits offered under a salary continuance.

Salary Continuance

• A steady stream of regular income as if you remained at work;
• Usually benefits, E.I. and C.P.P. contributions continue to accrue;
• Usually represents a larger total severance figure than a comparable lump sum offer.

• You remain dependent on your former employer for income (if your former employer is in financial trouble, your fate is tied to their ongoing viability;
• Salary continuance is usually subject to set off or reduction for new employment income (e.g. you may get less); and
• You may be required to update your former employer in your job search efforts as a condition of continuing payments.

As mentioned above, in negotiating either a lump sum or salary continuance severance agreement with your former employer, it is critical to partner with your lawyer and professional financial advisor to determine which of the two options makes the most sense for you (quite apart from what your former employer is prepared to offer in the circumstances.)

Reprinted with permission from workopolis.com

Posted December 14, 2009

There are several websites and online services that house Requests for Proposals (RFPs), bids, Request for and tender information depending upon the type of business you are looking for—institutional, government or private sector.

Many provinces post opportunities onto their own sites in addition to posting them on well-know sites like MERX. Many large municipalities post their data online but many smaller centres do not. Some smaller municipalities do not actually put their procurement out to tender and instead pick suppliers based on personal relationships and mutual benefit. The few tenders which are publicly advertised may be found in small local papers and in some larger newspapers. Most newspapers in Canada do not publish tenders online.

The following is a list of several RFP sources:

www.merx.com
MERX offers public and private sector contract opportunities (tenders) in Canada. New opportunities are listed daily from all levels of government including the federal and provincial governments as well as the MASH sector (Municipal, Academic, School Boards and Hospitals) from across Canada. You can search across 32 products and 19 service categories.

In addition MERX allows purchasers and project managers complete control over the tendering process allowing them to: publish tenders online to an invited group of suppliers or reach over 50,000 Canadian suppliers and contractors; manage tender document distribution; control supplier and contractor information and to receive bids.

This is a subscription-based service that offers two levels of pricing depending upon the level of detail and services required by a subscriber. Available in English and French.

www.rfpsource.ca
RFPSource.ca replaced SourceCan which was discontinued. RFPSource offers small-and medium-sized companies the opportunity to bid, post opportunities and pursue strategic partnerships in Canada, the United States and internationally.

Users must register and create a profile in order to access opportunities. RFPSource features a Business Opportunities section where companies can define what types of opportunities (bids) they are interested in and would like to have matched to their profile. RFPSource′s Match Profile tool allows companies to include keywords and industry codes to identify bids that are of interest to your company. In addition you also have the ability to post opportunities and have them matched against other listed companies.

RFPSource will send you regular e-mail messages to notify you of the latest business opportunity matches to your profile.

www.bidsCanada.com
A Canadian search engine that specializes in indexing brief descriptions and links to tenders, Requests for Proposal (RFP), Requests for Quotation (RFQ) and other solicitations posted on Canadian public sector websites. Although these bid solicitations are freely available from a variety of public websites, bidsCanada.com eliminates the need to search each and every website individually. The search engine is updated daily to ensure that you always receive the most accurate and up-to-date information available.

In addition bidsCanada.com has an e-mail notification service where you can opt in to receive a daily e-mail message that consolidates details of Canadian public sector bid solicitations based on your area of business.

www.iTenders.com
Currently in the midst of a redesign, this site is a business-to-business and business-to consumer service that helps companies develop new business relationships, attract new customers and find suppliers for their services.

Posted December 14, 2009

According to research released by Carnegie Mellon University, many employers believe that even using hands-free devices poses a risk to drivers as they can become distracted even listening to conversations.

The Ontario law for distracted driving is being enforced as of February 1, 2010 even though it′s been effect for several months. It′s up to the employer's discretion whether to allow an employee to use a hands-free device or to make cell phone calls while driving. A majority of employers (over 58 per cent) have some sort of HR policy in place re: cell phone usage while driving.

These legislative efforts, backed by scientific research, provide strong evidence that the risks involved in the use of a cell phone when driving are widely known. This means that an individual who does so anyway is more likely to be found negligent by the courts. And possibly his or her employer if that act was committed in the course of the employee's duties.

In law this principle is known as vicarious liability. For example, if an employer requires that an employee participate in a meeting via mobile device, and as a result the employee causes a collision that injures someone, the victim may pursue the employer.

• Dyke Industries lost a US$21 million lawsuit in a matter where an employee struck a 78-year-old woman while making a business call on a cell phone
• Investment firm Smith Barney paid out US$500,000 when one of its brokers struck and killed a father of three while making a sales call

Similar cases have not presented themselves in Canadian courts. However, the principles of vicarious liability in Canada are similar to those in the U.S., and the use of cell phones in the course of employment is widespread in both countries. This means Canadian courts are likely to be faced with this issue sooner rather than later.

One way in which employers can both limit their liability and keep their employees safe is by implementing a policy banning the use of cell phones, and other wireless communication devices, when driving. Such a policy must include not only the document itself, but also an effective implementation strategy.

• a statement outlining the employer′s stance against cell phone use while driving.
  This clarifies the goals sought by the employer and their importance to the organization.
• applicability, expressed in a clear statement of whom the policy applies to and when.

This avoids misunderstandings, helps employees to follow the policy, and facilitates policy administration enforcement/monitoring, which clarifies how the employer plans to ensure compliance with the policy. This is important in order for employees to take the policy seriously

Important as these elements are to the cell phone policy, their effectiveness depends on proper communication to employees. For employees to comply, they must be fully aware of its existence and implications. One way to do this would be to require all employees to read the policy and sign a letter of understanding/acknowledgement attesting to the fact that they have read and understood the policy.

• while driving, avoid temptation by making your phone inaccessible;
• create a voicemail message indicating that you may be driving, and offer an alternate employee′s contact number;
• if you must use a cell phone, pull over safely and make the call once stopped; and,
• plan your day in such a way that your car does not become a satellite office; in other words, do not leave phone calls for the commute to save time.

A cell phone policy is not only a good response to the scientific literature, it is also a necessary precaution in light of American law. One example of this is the case of Ellender v. Neff Rental Inc., a Louisiana court decision. The Court of Appeal of Louisiana affirmed the trial judge's finding that the absence of a policy against the use of cell phones while driving was a significant factor in holding the employer vicariously liable for the actions of its employee.

Updated February 8, 2010

The Canadian Law List is a free online directory of law firms, lawyers, judges, government departments and related legal services. You can search for a lawyer by area of specialization (e.g. bankruptcy, employment or contract), name, city and keyword.

In addition each province and territory offers a lawyer referral service where members of the public can call to obtain the name of a lawyer in their area. Many of these services can be accessed for free or for a modest fee.

Province	Referral Service
Alberta	Law Society of Alberta Telephone 403.228.1722 (Calgary) Toll-free 1.800.661.1095 (Alberta, Saskatchewan, Lower Mainland BC, Yukon, Northwest Territories, and Nunavut only)
British Columbia	Law Society of British Columbia Telephone 604.687.3221 (Lower Mainland) Toll-free 1.800.663.1919 (BC only)
Manitoba	Community Legal Education Association of Manitoba Telephone 204.943.2305 Toll-free 1.800.262.8800 (outside Winnipeg)
New Brunswick	Law Society of New Brunswick Telephone 506.458.8540
Newfoundland/Labrador	Public Legal Education Association of Newfoundland Telephone 709.722-2643 Toll-free 1.888.660.7788
Northwest Territories/Nunavut	Law Society of the Northwest Territories Telephone 867.873.3828
Nova Scotia	Legal Information Society of Nova Scotia Telephone 902.455.3135 (Halifax Regional Municipality) Toll-free in NS 1.800.665.9779
Ontario	Law Society of Upper Canada< Toll-free 1.900.565.4LRS (4577)
Prince Edward Island	Community Legal Education Association Telephone 902.892.0853 Toll-free 1.800.240.9798
Quebec	Barreau de Quebec (available in French only) Telephone 514.866.2490 (Montreal) / 418.529.0301 (Quebec) Toll-free 1.866.954.3528 / 514.954.3528 (elsewhere in Quebec)
Saskatchewan (province does not have a lawyer referral program)	CanLaw Canada lawyer referral service Only online service available
Yukon Territory	Law Society of Yukon Telephone 867.668.4231 (call collect outside of Whitehorse)

Posted November 2, 2009

The Certified General Accountants Association of Canada is the umbrella organization for all of the provincial associations. Each provincial association offers an online directory or listing service to help you locate an accredited Certified General Accountant by their area of specialization.

Province	Association
Alberta	Certified General Accountants Association of Alberta Telephone: 403.299.1300 (Calgary area) Toll-free: 1.800.661.1078 (outside Calgary) Online Directory
British Columbia	Certified General Accountants Association of British Columbia Telephone: 604.732.1211 Toll-free: 1.800.565.1211 Online Directory
Manitoba	The Certified General Accountants Association of Manitoba Telephone: 204.477.1256 Toll-free:800.282.8001 Online Directory
New Brunswick	The Certified General Accountants of New Brunswick Telephone: 1.506.857.0939 Toll Free: 1.877.462.4262 Online Directory
Newfoundland/Labrador	The Certified General Accountants of Newfoundland Telephone: 709.579.1863 Toll-free: 1.800.563.2426 Newfoundland Listing (no online directory available only a listing)
Northwest Territories/Nunavut	CGA Northwest Territories/Nunavut Telephone: 867.873.5620 Online Directory
Nova Scotia	Certified General Accountants of Nova Scotia Telephone: 902.425.4923 Online Listing (no online directory available only a listing)
Ontario	Certified General Accountants of Ontario Telephone: 416.322.6520 Toll-free: 1.800.668.1454 Online Directory
Prince Edward Island	Certified General Accountants of Prince Edward Island Telephone: 902.368.7237 Toll-free: 1.800.463.0163 E-mail: contact@cga-pei.org(no online directory or listing available)
Quebec	Certified General Accountants of Quebec (available in French only) Telephone: 514-861-1823 Toll-free: 1-800-463-0163 Quebec Online Directory
Saskatchewan (province does not have a lawyer referral program)	Certified General Accountants of Saskatchewan Telephone: 306.955.4622 Toll-free: 1.800.667.4754 Online Directory
Yukon Territory	Certified General Accountants Yukon Territor Telephone: 867-668-4461 E-mail: robert.fendrick@city.Whitehorse.yk.ca (no website, online directory or listing available)

Posted November 16, 2009

It′s important to perform due diligence on prospective vendors/suppliers you are considering a business relationship with to avoid unpleasant surprises down the road.

A background screen should include a search of past addresses, civil and bankruptcy records, credit reports, criminal records, driving records, education and employment histories, liens and judgment histories, media coverage, professional licenses and certifications.

In order to perform this type of search, you need to secure the vendors′ or individual′s permission to perform this type of check.

There are several firms in Canada and the United States that provide international background screening services and they are listed below:

HR Plus
HR Plus Corporate Headquarters
8745 West Higgins Road, Suite 110
Chicago, IL 60631
Toll-free: 800.955.3575

HR Plus offers more than 50 distinct screening products and services.

Kroll
Background Screening Division Headquarters
100 Centerview Drive
Suite 300
Nashville, TN 37214
United States
Toll-free: 800.697.7189
Phone: 615.320.9800
Fax: 615.320. 9916
E-mail: www.krollbackgroundscreening.com

Firm offers a wide range of services including background checks, substance abuse testing, and other employee screening to reduce risk for companies and employers.

Garda Global
36 Scarsdale St North York
Toronto, ON M3B
Telephone: 416.915.9500

Garda Global is a physical security, consulting and investigation, pre-employment screening, and cash handling firm in North America. Garda has 24 Canadian offices along with operations in Europe and the United States.

Posted November 30, 2009

The Canadian Professional Sales Association (CPSA) is a national organization of 30,000 sales and marketing professionals. Members receive significant savings on travel and business costs plus access to professional development, sales certification and other programs

There is no equivalent association to CPSA in the United States but there are several sales associations:

Association of Investment Management Sales Executives
Active membership limited to individuals (approximately 800 members) directly engaged in selling investment management products or services.

Direct Selling Association
National trade association of the leading firms that manufacture and distribute goods and services sold directly to consumers.

Hospitality Sales and Marketing Association International (HSMAI)
With over 7,000 members this association is targeted to professionals in the travel, tourism and hospitality industries interested in sales and marketing.

Manufacturer′s Agents National Association
Largest trade association of professional sales representatives and the principals they represent in the United States with approximately 5,000 members.

Click here for additional independent sales agent associations

National Association of Sales Professionals
NASP offers professional development programs and sales certification

Sales Management Association (SMA)
Professional association for sales management and professionals supporting sales management.

Sales and Marketing Executives International (SMEI)
Membership association with approximately 10,000 members in various chapters worldwide. Open to all sales professionals.

Strategic Account Management Association
With over 3,000 members, SAMA attracts the strategic customer management profession′s most influential decision-makers. Offers resources, training and networking opportunities to its members.

Sales 2.0 is defined as:
Bringing together customer-focused methodologies and productivity-enhancing technologies that transform selling from an art to a science. Sales 2.0 relies on a repeatable, collaborative and customer-enabled process that runs through the sales and marketing organization, resulting in improved productivity, predictable ROI and superior performance. (Source: Selling Power Magazine)

There′s plenty of content regarding Sales 2.0 and CPSA is starting to see discussions about Sales 3.0.

To gain more perspective about this topic I′d recommend the following resources:

All-top Social Media News is an online site that compiles Social Media news and headlines from across the web focusing on business, marketing, technology and consumer areas.

123 Social Media

www.bnet.com is a tremendous site for business and sales. It features the latest business content and there is a lot about technology and the sales process here. A great "go to" site that should be bookmarked.

Anneke Seley along with Brent Holloway co-authored Sales 2.0: Improve Business Results Using Innovative Sales Practices and Technology She is also blogs extensively about Sales 2.0 http://www.sales20book.com/wp/sales-20-book/excerpts/.

Nigel Edelshain′s blog and site http://www.sales2.com/about.shtml There is a LinkedIn group that you can join on Sales 2.0 started by Nigel.

Chad Levitt′s blog http://newsaleseconomy.com/ also features some interesting posts from sales professionals and trainers on how to use social media

Commission-only sales have been around for a long time and it is the primary method for compensating independent/manufacturer’s sales agents. Commission-only plans are highly attractive to new business start ups who are seeking to establish themselves in the marketplace or to penetrate a specific market or territory quickly.

• Simplified sales process. Commission-only plans provide a way for the salesperson to maximize their earnings. In order for that to take place, there needs to be a high transaction level, resulting in several sales per day or week. Typically the ideal sales process involves a few defined steps: generate/follow up a lead, make an appointment with the decision-maker, present the product benefits and pricing, ask for the order and close the sale.
• Formalize the relationship. If there is no signed agreement between the parties outlining the duties and responsibilities along with a defined set of sales objectives and a regular payment schedule, the relationship is doomed to fail. Informal or verbal agreements can result in breaches of the agreement, a lack of trust, and sales coming to a standstill over matters such as what constitutes a sale and the percentage of commission to be paid out and under what terms.
• Foster mutual respect. And finally, commission-only plans don’t work when what each party brings to the table isn't valued properly by the other party. Many salespeople are approached by suppliers who wish to access their network of contacts/customers for free and only wish to compensate them if and when a sale is made.
• Lead generation program. In addition to having the salesperson call upon likely prospects, a supplier needs to develop a marketing plan and invest monies into generating qualified leads for the salesperson.

When does it not work?

• Fail to invest in success. Commission-only plans are perceived as a low risk solution that cost the supplier almost nothing. The axiom “Nothing ventured, nothing gained” is accurate and suppliers that fail to provide adequate training, management and follow-up to their commissioned salespeople run the risk of having their brand image tarnished, lacklustre sales and poor market penetration.
• Length of sales cycle. Commission-only plans work best when there are short sales cycles measured in hours or days. Long sales cycles cause two issues; first, the time invested (Return on Time Invested by the salesperson is greater and therefore translates into lower earnings; and second, the risk of the sale being "undermined" by a competitor (e.g. a member of the same sales team if the territory is not exclusive) or even another vendor also increases dramatically.
• Established customer base. When the salesperson is already selling to the target audience and your "product" would simply be "layering on" additional revenue with minimal effort on the part of the salesperson.
• Lead generation program. In addition to having the salesperson call upon likely prospects, a supplier needs to develop a marketing plan and invest monies into generating qualified leads for the salesperson.

• A commission-only sales force has little interest in providing customer service beyond the sale unless compensated for these efforts in the form of a higher commission payout.
• The hiring and management of commission-only salespeople can be a huge drain on the management team, as these people are all independent contractors.

Commission-only plans are a great tool and are highly effective under the right conditions. A supplier needs to evaluate whether this type of sales channel will be effective in furthering their company’s sales efforts and whether they are prepared to invest in the relationship in order to succeed.

Posted June 14, 2010

There are both free and published sales compensation data available:

Free Online Sources
www.monster.ca Popular jobsite uses a SalaryWizard to provide information on 28 different Canadian sales and executive positions for across Canada. Data includes a brief job description, detailed breakdown of base salary including medians plus bonus information. NOTE: Results are geographically adjusted national averages based on published sales compensation data surveys and may not be reflective of the actual compensation levels in specific regions.

www.workopolis.com Another popular jobsite uses Payscale salary calculator tool to provide reports based on your job title, location, education, skills and experience levels for over 217 positions. NOTE: Payscale bases its reports on data collected from employees and employers not data surveys.

CPSA′s 2008 Sales Compensation and Benefits Report
View 2008 Sales Compensation Ranges

Canadian Sales Compensation Survey Data
Culpepper Sales Compensation Survey Available only to survey participants have access to online survey data. Features 110 job families covering business development, contract operations, sales operations, sales. Canadian and US data.

Mercer Sales Representatives and Automobile Benefits Survey Annual survey featuring 14 sales and management position titles focusing predominantly on large companies in the manufacturing, telecommunications and transportation sectors.

Morneau Sobeco Coopers Lybrand Releases a Sales and Marketing Compensation Report featuring 38 sales and management position titles for companies primarily located in Ontario and Quebec in the manufacturing, logistics, wholesale trade and utilities sectors.

Salary Assessor, Professional Edition Easy-to-use software program that reports "up to the present day" competitive wage, salary, and incentive survey data. Compensation software available to employers and consultants only contains 296 sales and management position titles from published surveys and government data sources. Canadian edition available to employers and consultants.

Toronto Board of Trade Annual survey available to members and non-members alike featuring compensation data for sales professionals and managers located in the Greater Toronto Area.

TowersPerrin General Industry Database Available only to employers who participate in annual survey. Database contains 13 executive sales and marketing, 2 customer operations and 26 front-line sales position titles.

Watson Wyatt Offers an Annual Canadian Salary Survey featuring total target sales compensation for between 40-50 sales and management titles. Data is drawn from over 400 companies from all industry sectors.

The Wynford Group Produces a Call Centre Contact Survey focusing on 31 contact centre titles: inbound and outbound sales, technical customer support, director/manager, supervisor/lead, quality assurance, training, credit and collections. Also includes information on contact centre incentives, benchmarking and productivity indicators plus long-term incentive comparisons.

Norman Grosman of Grosman, Grosman, & Gale LLP maintains that vehicle allowances are typically treated as a form of compensation and not usually as a reimbursement from the employer for the business use of an employee’s vehicle. Many employers argue that their vehicle allowance obligations cease on termination since the employee is no longer using their vehicle for business purposes. In the absence of a written term in the employment contract (e.g. a termination clause that makes it clear that the vehicle allowance is not part of the severance entitlement) this argument tends to be rejected by the Courts since most vehicle allowances are treated as part of an employee’s overall compensation. In other words, vehicle allowance should be included in an employee’s severance package in most cases (e.g.. absent a contract to the contrary).

Posted December 14, 2009

Yosie St. Cyr, Managing Editor of HRInfoDesk, an online payroll and employment law reporting service writes there is a great deal of confusion over whether commissioned salespersons are exempted from certain requirements of the Ontario Employment Standards Act, such as minimum wage, vacation pay, over time, hours of work, or public holidays. Ontario Regulation 285/01 that stipulates "a salesperson, other than a route salesperson, who is entitled to receive all or part of his or her remuneration as commission in respect of offers to purchase or sales that, (i) relates to goods or services, and (ii) are normally made away from the employer′s place of business" does not have these normal entitlements.

• route salespersons are not exempt;
• salespersons who conduct sales on the employer's premises, e.g., commissioned retail salespeople, are not exempt;
• otherwise, salespersons who make sales away from the employer's place of business, are not eligible for minimum wage, vacation pay, over time, hours of work or public holidays.

It is not straightforward to determine whether sales are made at or away from the employer's place of business. For example, a professional salesperson representing a consulting company or software business may do many presentations away from the office, but the preparation for the presentation and the final paperwork for the sale may be completed at the employer′s office.

The exemption has been construed very narrowly and is aimed primarily at salespersons who "work their own hours and make the contacts that underlie their sales in their own way without employer involvement or interference."

Most employers should operate under the assumption that their salespeople are not exempt from the minimum requirements of the Employment Standards Act.

Vacation Pay
Since many commissioned employees also enjoy a base salary, it is not unusual for employers to simply continue paying the base salary while the employee is away on vacation. Many employers and employees do not realize that this practice does not conform to the requirements of the Act in a number of ways.

First of all, 4 per cent vacation pay should be accrued on all compensation paid to an employee. [Note that in some provinces, employees are entitled to 6% vacation pay after five years of service.]When an employee receives vacation pay, the pay stub should show that it is vacation pay and not regular wages that are being paid. The record-keeping requirements of the Act are quite strict and, unless the employer is able to demonstrate that vacation pay is being paid, the employer may be forced to pay twice.

Secondly, paying straight salary may seriously under-compensate the commissioned employee. Under the Act, all employees are entitled to at least 4% of wages as vacation pay. "Wages" include commission pay.

Example 1
Jeffrey works for a small printing company. He earns $52,000 per year as base salary and is entitled to commission on sales. In the previous twelve months, he has earned $26,000 in commission. Jeffrey takes two weeks off and is paid base salary.

In this hypothetical, Jeffrey has been seriously under-compensated. Jeffrey is entitled to at least 4% of $78,000 or $3,120 in vacation pay. The $2,000 Jeffrey receives by way of salary continuation does not meet the minimum standards of the Act.

Example 2
Alexandra works at a large consulting company. She is paid on a pure commission basis. Last year, she earned $168,000 in commission sales. Alexandra works closely with the VP of Sales and the rest of the sales team. Her responsibilities involve a mixture of work in the office and at the client's place of business. She is assigned a territory by her employer and is often given hot "leads" by various salespeople working trade shows or other events. She prepares her presentations at the office. Often, she will make sales calls and presentations at various clients' offices, but all deals have to be approved by the VP, Sales. The company is prepared to let her take two to four weeks' unpaid time as vacation. The company takes the position that she is exempt from the vacation pay requirements under the regulations because she earns commission.

While Alexandra does earn all her income as commission, it is clear that her sales are not "normally made away from the employer′s place of business." In fact, the final approval occurs in the company′s offices. As such, Alexandra is entitled to 4% of $168,000 ($6,720) in vacation pay and is entitled to at least two weeks off per annum. Any additional time off is at the discretion of the company.

In addition MERX allows purchasers and project managers complete control over the tendering process allowing them to: publish tenders online to an invited group of suppliers or reach over 50,000 Canadian suppliers and contractors; manage tender document distribution; control supplier and contractor information and to receive bids.

This is a subscription-based service that offers two levels of pricing depending upon the level of detail and services required by a subscriber. Available in English and French.

www.rfpsource.ca
RFPSource.ca replaced SourceCan which was discontinued. RFPSource offers small-and medium-sized companies the opportunity to bid, post opportunities and pursue strategic partnerships in Canada, the United States and internationally.

Users must register and create a profile in order to access opportunities. RFPSource features a Business Opportunities section where companies can define what types of opportunities (bids) they are interested in and would like to have matched to their profile. RFPSource′s Match Profile tool allows companies to include keywords and industry codes to identify bids that are of interest to your company. In addition you also have the ability to post opportunities and have them matched against other listed companies.

RFPSource will send you regular e-mail messages to notify you of the latest business opportunity matches to your profile.

www.bidsCanada.com
A Canadian search engine that specializes in indexing brief descriptions and links to tenders, Requests for Proposal (RFP), Requests for Quotation (RFQ) and other solicitations posted on Canadian public sector websites. Although these bid solicitations are freely available from a variety of public websites, bidsCanada.com eliminates the need to search each and every website individually. The search engine is updated daily to ensure that you always receive the most accurate and up-to-date information available.

In addition bidsCanada.com has an e-mail notification service where you can opt in to receive a daily e-mail message that consolidates details of Canadian public sector bid solicitations based on your area of business.

www.iTenders.com
Currently in the midst of a redesign, this site is a business-to-business and business-to consumer service that helps companies develop new business relationships, attract new customers and find suppliers for their services.

Posted December 14, 2009

The Runzheimer Guide to Daily Travel Prices published by Runzheimer International profiles 200 U.S. and 100 international cities.

The per diem totals shown below reflect the average costs for the typical business traveller and include breakfast, lunch and dinner in business-class restaurants and single-rate lodging in business-class hotels and motels. Meal costs include customary and appropriate gratuities, taxes and service charges. Lodging rates include all applicable sales and lodging taxes. Values are expressed in Canadian dollars.

Per Diem Rates for Canadian Cities*

Location	Per Diem
Calgary	$194.59
Edmonton	$167.32
Halifax	$200.43
Hamilton	$176.52
London	$172.78
Montreal	$234.01
Ottawa	$193.04
Quebec	$203.81
Toronto	$216.54
Vancouver	$199.43
Winnipeg	$159.86

*Prices reflect First Class Single Average Daily Rate Plus 3 Meals (prices are in Canadian dollars)

Posted November 16, 2009

The National Joint Council of the Public Service publishes a detailed index (updated every 4 months) outlining the limits for meals, accommodation and other incidental expenses that may be claimed by government employees travelling abroad. The most useful feature of this site is that travellers can search the site by country or city for per diem rates. In addition the per diem rates for meals (breakfast, lunch, dinner) and accommodation (commercial and non-commercial establishments) are cited in local currency (e.g. Euros, rupees etc) which makes it easier for travellers to track the amounts they spend.

Posted June 14, 2010

There are several glossaries that can assist you in defining these terms:

http://www.salesopedia.com/index.php/glossary
Contains a comprehensive sales glossary on a wide range of sales and management terms.

Glossary of Sales and Marketing Terms
Free online sales training and selling glossary: sales techniques, selling skills and methods.

Posted June 14, 2010

The answer depends on your circumstances. The general consensus amongst sales expense policies and sales managers is that laundry and valet services provided at hotels are allowable for reimbursement if the trip is extended over the anticipated number of days. The number of days varies citied in policies varies but it′s usually over four days.

You need to supply receipts for these services if they are not itemized on your hotel bill or if the hotel does not provide these services.

It may be your personal bias and definition of what makes a great salesperson that is getting in the way of great hires.

Great salespeople are made not born, but they are made a long time before they ever show up on your doorstep. In his book Outliers, Malcolm Gladwell talks about people needing 10,000 hours of concentrated practice at something to be truly expert in it. This experience generally comes very early in someone′s life.

Many of the attributes that make someone a great salesperson are soft skills that are learned and imbedded in that person′s psyche long before they even contemplate a career in sales. By the very nature of the work itself, successful salespeople possess a unique set of personality attributes that enable them to succeed. There are five key qualities that are essential for success:

Empathy. The ability to identify with customers, to feel what they are feeling and make customers feel respected.

Focus. The ability to articulate goals clearly, stay attentive to one topic and assign timelines.

Responsibility. The ability to take action when situations require action and a person with a strong sense of responsibility does not place blame on other people when placed in a difficult situation.

Optimism. The ability to focus on what can be done as opposed to what cannot be accomplished.

Ego-drive. Persistence for the purpose of succeeding and above all winning

These are also not easy things to uncover in an interview process and may transcend extroverted and introverted, gregarious and soft spoken people and everything in between.

In order to improve your batting average you should apply some science to your selection process. First and foremost find a good psychometric assessment tool that will identify the key characteristics and traits required to succeed in your sales environment and give it to your top sales performers. You may want to try the Profile Sales Assessment which measures twenty key qualities and seven critical sales behaviours.

Use the results to create benchmarks for all future hires. This is what is referred to as your sales DNA profile. If you do the job right and commit to the process, whether you are hiring for a senior or junior position, your hires will have what it takes to become great sales representatives for your company.

It′s a lot better than picking someone based on a well written résumé and your gut instincts.

Sales contests are a great way to encourage your sales teams to achieve specific short-term goals. Keep in mind though when companies fail to follow rules or have a "winner take all approach" this can result in reduced morale amongst those who are not contest winners.

To prevent this from happening, anyone who participates in a contest should be eligible to win a prize or reward even if it is of nominal value. Your salespeople are unique and you need to consider what drives them and what prizes will incent them to participate. Factors such as your employees’ ages and lifestyles mean that one type of incentive may be more desirable than another (e.g. travel may be more attractive to 20 somethings than 50 year olds who travel extensively as part of their job). To be effective, your sales contests should reflect your company culture, your people and your business objectives (read Electron Theory Sales Compensation on how to determine if contest was effective).

As for prizes there are several companies that offer incentive programs for employees and can manage your incentive and reward programs for you. Several of these companies have online catalogues where you can go online to view the types of prizes that they offer and obtain ideas for your own sales contest:

I Love Rewards is a leader in results-driven rewards and recognition solutions. The company offers access to a brand-name rewards catalogue, featuring the hottest electronics, travel, and gift cards.

www.online-rewards.com offers three online incentive program solutions scalable according a company′s size. They offer thousands of prize ideas for both employees and consumers and have created an online catalogue http://online-rewards.com/category/13/ that covers 16 categories. It would be a great source of ideas for your sales contest.

myreward.ca has thousands of merchandise rewards to choose from. You can log into myrewards.ca (user ID & password: guest) and see a wide range of incentive prizes that you can pick from.

www.venngo.com is Canada's leading provider of discount programs and value-added services for professional associations, employee and member-based groups. ...

Posted March 22, 2010

There are several resources that outline the dos and don′ts of running an effective sales meeting and these resources would be a good place to start:
Sales Meeting Checklist
Holding Effective Meetings
How to Plan a National Sales Meeting
How to Avoid Sales Meeting Headaches

Suggested Icebreakers for Meetings
A good list featuring some great ones for sales.

5 Annual Sales Meeting Ideas for Best Sales Conferences

As for ideas on how to get your sales team to be active participants, you may want to assign your reps to handle specific topic areas on the meeting agenda or schedule breakout sessions for sales activities.

One idea is to divide your team into small groups and have each group "sell" a new product based on a scenario you provide to them. Award prizes based on the best sales presentation.

Another great idea is to go around the table and ask each rep to share their best ideas on breaking the ice and developing rapport with a new prospect on a sales call. Compile a list and keep it "fresh" by periodically reviewing it.

Free Video Resources
A sales meeting is a perfect opportunity to incorporate sales training sessions and help your reps "brush" up on their sales skills. You can ask your reps in advance to come up with a list of difficult sales situations or problems that they have encountered and ask the group for suggestions on how to solve them.

There are thousands of free video resources available on all aspects of sales and sales management at www.candogo.com that are well worth checking out. You can include clips in your sales sessions.

The added advantage to this approach is that you can develop a list of resources/takeaways for your reps and share them with any new salespeople you bring onboard.

Posted October 13, 2009

Many companies use independent sales or manufacturer′s agents/agencies as a sales channel for their products and services. There are many associations based in Canada and the United States where you can advertise for an agent.

In addition there are several outsourcing companies that specialize in handling direct sales (not to be confused with call centre or telephone sales operations). In a recent article that appeared in CPSA′s Contact magazine on "Outsourcing the Sales Function" companies that specialized in this function were Direct Sales Force, Consumer Impact Marketing and MarketLink Canada

Determining an appropriate job title is for a salesperson is often a difficult undertaking as it depends largely upon the saleperson’s role (e.g. account maintenance or business development), responsibilities/activities (e.g., customer service or bid preparation), industry/educational requirements (e.g. certifications or degrees) and the percentage of time allocated towards specific activities.

For example an Account Manager in one company may focus the majority of his time on maintaining and managing key customer accounts. In another company the same title may be applied to a salesperson who is responsible for both servicing existing customers and developing new accounts.

First and foremost you need to have detailed a job description that outlines the competencies, industry and educational requirements necessary for an individual to succeed in the sales role. These requirements may vary if you have salespeople who are based in different territories or handle different customer/industry segments (e.g. general industrial sales vs. water/storage tanks).

There are several methods to determine whether your sales position titles accurately reflect the salesperson’s true responsibilities. Peruse well-known job boards (e.g. workopolis.com, monster.ca) and compare the online sales classifieds to your own positions for ideas. Second Watson Wyatt publishes an Exhibit Book of Positions that contains over 2,200 professional, managerial and clerical job descriptions including over 200 sales and marketing positions. Contact CPSA′s Knowledge Centre for details.

As a sales executive you should review your sales titles and job descriptions every 15 months to determine if they need to be updated or modified. In addition any major shift in the strategic direction of the company (e.g. merger, acquisition of new product lines or change in distribution channels) should also trigger a review.

Posted November 16, 2009

• the actual cost or a "reasonable" amount under the circumstances.

The Canada Revenue Agency explains allowable meal and vehicle expenses deductions which can be claimed without keeping receipts. The simplified method of claiming meals allows a claim of $17 per meal, to a maximum of $51 per day. Fifty per cent of this would be deductible.

These limits also apply to the cost of your meals when you travel or go to a convention, conference, or similar event. However, special rules can affect your claim for meals in these circumstances. For more details, see Travel and Convention expenses. There is a higher allowable deduction for meal costs during eligible travel periods of long-haul truck drivers.

• when meals and entertainment are provided as compensation to customers, and you are in the business of providing meals or entertainment (e.g. restaurant, hotel, motel);
• when the meals and entertainment are billed to your customer, and are itemized on the invoice or bill;
• when the meal and entertainment costs are included in an employee's income or would be included if the employee did not work at a remote or special work location, and the expenses are not for a conference, seminar or similar event;
• when meal and entertainment expenses are incurred to provide a party or event (e.g. awards dinner or company Christmas party) to which all employees from a particular location are invited (limit of 6 of these events per year);
• when meals are provided to employees housed at temporary work camps installed for the purpose of providing meals and accommodation to employees working at a construction site, and the employee cannot be expected to return home daily. The special work location must be at least 30 kilometres from the closest urban centre that has a population of 40,000 or more people; and,
• when the meal and entertainment expenses are for a fund-raising event, the primary purpose of which is to benefit a registered charity.

Entertainment expenses include tickets and entrance fees to an entertainment or sporting event, gratuities, cover charges, and room rentals such as for hospitality suites.

If you are a GST/HST registrant, you can only claim an input tax credit for the portion of the expenses that are deductible for income tax purposes. For most meals and entertainment, the input tax credit would be for only 50% of the GST or HST paid.

Posted March 8, 2010

McKinsey & Company has released a new research report that identifies destructive sales practices and prioritizes what customers want from B2B sales organizations.

The company interviewed 1,252 purchasing decision-makers of high tech products and services at small, medium and large business in the U.S. and Western Europe.

There was a big difference between what customers said was important and what actually drove their behavior. Customers insisted price and product aspects were the dominant factors that influenced their opinion of a supplier’s performance and, as a result, their purchasing decisions. Yet when we examined what actually determined how customers rated a vendor’s overall performance, the most important factors were product or service features and the overall sales experience. The upside of getting these two elements right is significant: a primary supplier seen as having a high-performing sales force can boost its share of a customer’s business by an average of 8 to 15 percentage points.

1. The buyer′s experience and interaction with sales and product or service features were cited as being the most important factors in a purchase decision – not price. (All the more interesting given that the survey was conducted during the recent economic downturn).

2. A high performance sales force can boost share of customer by an average of 8 to 15 per cent.

3. The two most destructive sales behaviours (accounting for 55 per cent) that undermined the sales experience for buyers were inadequate product knowledge and excessive customer contact.

Where sales reps go wrong?
Too much contact (via e-mail, by phone or in person)	35%
Lack of knowledge about either their products or those of their competitors	20%
Other factors*	20%
Lack of business/industry knowledge about usefulness of their product or service to my business	9%
Sales style too aggressive	8%
Forgotten and/or ignored after contract is signed	8%

*Other reasons cited include the following issues: inconsistent sales team, slow response to sales-related inquiries, too little contact, no help in optimizing spending, no single point of contact available, and no information sharing on matters specific to my business.

• 86 per cent of respondents do not use Jigsaw nor has it helped them win a sales opportunity;
• 69% of respondents do not use Twitter. Of those that do (31%), 20% have said that it has NOT helped them win a sales opportunity;
• 35% have reported that LinkedIn has helped them sometimes or often to win a sales opportunity;
• 51% do not use Hoovers or OneSource, or they have never helped them win a sales opportunity; and,
• 8% of respondents have said FaceBook has helped them win sometimes or often a sales opportunity.

Posted April 19, 2010

For technical sales representatives, who may also be referred to as Field Technical Product Support Specialists, Pre-Sales Consultants, Post-Sales Consultants), a great deal depends upon the educational qualifications, industry experience and professional/industry certifications sought by the employer.

• Senior Technical Sales between 5-7 years of experience
• Intermediate Technical Sales between 2-4 years of experience
• Junior or Associate Technical Sales less than 2 years of experience

For Sales Technologists and Engineers the requirements are much more rigorous.

Engineering technician and technologist programs are offered throughout several Canadian colleges. Through transfer agreements and institution partnerships, graduates of these engineering technology programs may be credited for their previous education when they apply for a Bachelor of Engineering degree program.

In addition to the meeting the educational qualifications, engineering technicians and technologists are required to be members of a designated provincial association. These associations offer a certification process, which upon completion allows members to one of the following exclusive, protected titles: Certified Engineering Technologist (C.E.T.) Applied Science Technologist (A.Sc.T.) or Certified Technician (C.Tech.).

Engineering degree programs are offered throughout Canadian universities in a wide range of specializations (e.g. software, mechanical, aerospace etc,). Likewise engineers are required to belong to a provincial association which grants members a licence to practise professional engineering, and authorizes businesses to provide engineering services to the public. These licensing bodies set standards for and regulate engineering practice. Licensed professional engineers can be identified by the P.Eng. after their names.

• Senior Sales Engineer more than 7 years of experience
• Intermediate Sales Engineer between 5 to 7 years of experience
• Associate Sales Engineer under 3 years of experience

Posted April 19, 2010

Many companies have now started to look into ways of finding an employee who behaviourally fits their job position. If done properly, taking more time to find the right candidate can cut costs and save the company a lot of time and energy in the long run by reducing staff turnover. Many employers have incorporated online behavioural assessments into their recruitment and selection processes.

Unlike the United States which has conducted recent studies on this subject, Canadian statistics are harder to come by.

According to the latest figures (2003), seventeen per cent of employers do NOT use any form of pre-hiring assessment tool. The percentage of Canadian employers who use one selection tool is 50.8% while employers who use two or more selection tools is 31.8%.

Employers who use a skills assessment rank at 10.7% while employers who incorporate an aptitude or personality test into their selection process rank at 8.6%

Source: V.M. Catano and A. Bissonnette. 2008. Evolution of Selection Tools Used by Canadian Employers. Unpublished manuscript. Halifax.

Posted March 22, 2010

The last detailed research that looked at this topic was conducted by Sales and Marketing Magazine in conjunction with Hay Management Group (US). The costs for four different types of sales calls are as follows:

Transactional Call (sell on price; product is a commodity): $56.52

Feature/Benefit (price and features equally important): $142.63

Solution (tailor products to client′s needs; price is secondary):$164.97

Value-Added (use team-sell approach; solution more important than price): $211.56

Source: Sales & Marketing Management′s 2000 Cost Per Sales Call Survey. All figures in US dollars.

For more information and charts on the cost of a sales call by type of sales approach, industry, size of sales force and geography, click here.

In addition there was research done by Cahners Advertising Group in the early 90s comparing the cost of an inside vs. outside sales call.

Posted October 6, 2009

As a salesperson with limited time available you need to decide how to invest the time in the most productive and profitable manner possible.

The formula for Return on Time Invested(R.O.T.I.) is used to judge the efficiency of your selling efforts, and of your entire territory…or of individual accounts and sales opportunities. R.O.T.I. is calculated as follows:

Return on Time Invested (R.O.T.I.) =	Expected Gross Profit (EGP)
	Time (T) required to capture EGP

The Canadian Professional Sales Association’s Professional Selling online and in-class programs offer training on how to incorporate R.O.T.I. to improve profitability. Here are a few suggestions excerpted from the course:

• Your overall territory
• Existing accounts, new accounts, and prospective accounts
• Big accounts, medium accounts, and small accounts
• Accounts in certain geographical areas
• Individual product lines

2. Manage current customer relationships in order to maximize R.O.T.I. Look for ways to reduce time spent on the account or increase sales volume in the same amount of selling time. Alternatively, look for opportunities to improve selling prices.

3. Maximize R.O.T.I. with each new or prospective customer. Determine minimum selling prices based on desired R.O.T.I. and the time required to secure the customer. Or, in competitive pricing situations, establish the amount of time available to secure the customer, based on minimum expected R.O.T.I.

4. Determine which prospects offer the best financial viability. Some opportunities may not yield a desirable R.O.T.I. possibly because they require too much time to secure and maintain a small volume of business or because they are demanding too low a price.

5. Constantly ask yourself, "How is what I′m doing right now directly tied to revenue generation, and how is it helping me to improve my R.O.T.I. or profitability?"

Additional Resources

Michelle Cain, founder of Cain Sales Solutions wrote Increasing your R.O.T.I.: Return on Time Invested

Paul J. Meyer founder of Success Motivation Institute has authored numerous full-length programs to help people achieve their goals. He has developed a workshop titled “High Payoff Activities,” written an e-book The Power of Goal-setting and numerous articles, namely .

Bnet offers business management and strategy advice for professionals and has over 500 articles, videos and case studies on R.O.T.I.

Posted March 22, 2010

This is a tough question because in a recovery market you are not only battling the competition but you have to overcome the fears and insecurities of your recession battered clients.

The word "recovery" is only relevant to buyers if they are experiencing it directly in their own business. As your clients see tangible evidence that their business is gaining momentum, they will feel more confident and begin to make buying decisions.

Also remember not all businesses recover at the same rate. Some recover earlier than others. Hopefully you’ve stayed close to your account during the recession and you understand where they fit along this continuum.

Nonetheless there are some things you can do to nudge the process along.

Timing and top of mind awareness will ultimately play a big part in whether or not you get the order, so you need to work extra hard at staying in touch with your client. But apply controlled persistence. You don’t want to become a pest. And try to add relevant value in your communications with your client. This could take the form of industry, product or market intelligence that you supply to them on an ongoing basis.

Also, in any sales situation there is no substitute for asking a lot of questions and listening to your client to uncover what is really important or problem areas for them. In fact this skill is probably more important in a recession or recovery period because the solutions tend to be non-linear.

For instance, if you haven′t already tried it, explore whether or not extended payment terms will tip the balance in your favour. This is a non-linear solution because it has nothing to do with the virtues of your product and everything to do with your client′s cash flow and budget.

Scarcity is another great tactic, providing of course it′s legitimate. It is quite possible that, as a result of the recession, your company has limited stock on hand. Advising your client that they might want to stock up now to avoid disappointment later may do the trick.

Abundance can also work in your favour. Offering your client overstock, at an attractive price point, combined with a time limited offer, can motivate cautious buyers.

Risk avoidance is another good discussion to have with your client. If your client is relying on one supplier for all of their needs, what about suggesting that your products become a secondary solution. This is especially important if your client ramps up their business quicker than the incumbent can supply. You will be providing your client with the security of a back up plan.

So, in summary, stay close to your client, create top of mind awareness, ask lots of questions, think non linear, and if relevant, try using extended payment terms, scarcity, abundance or risk avoidance, to help convince your client to place that order.

Updated February 8, 2010

Make sure you know with whom you are dealing. Also consider what information they want, and if it is reasonable for what you want from the site. If you're not sure, look to see if it is certified by an Internet Trust Organization. If it is a retailer you don’t know, you might want to use a free third party payment tool like PayPal, an eBay company. PayPal protects you by allowing you to pay retailers through a PayPal account linked to your credit card or checking account, instead of giving your account information directly to a retail website you never heard of. PayPal also offers an optional personal security device, a very safe way to protect yourself when paying online.

Since the advent of Sales Force Automation (SFA) and Customer Relationship Management (CRM) there is not much call for this type of template as these systems generate reports based on the salesperson's input for the sales manager to review and track their progress in developing the lead. Many of these reports can even be presented in "graph" format allowing the sales manager to see exactly where the salesperson is spending their time.

Microsoft offers several free lead tracking templates on their website that can be tailored to meet your needs:

Detailed leads tracker http://office.microsoft.com/en-us/templates/TC012342041033.aspx?CategoryID=CT101436151033

Follow your sales pipeline http://office.microsoft.com/en-us/templates/TC012253531033.aspx?CategoryID=CT101428241033

Quarterly leads tracking http://office.microsoft.com/en-us/templates/TC100310891033.aspx?CategoryID=CT101436151033

Posted June 14, 2010

There are a number of software programs that will allow companies to transfer their printed product catalogues into digital or even CD-ROM formats. A lot depends upon the format that the original product information has been captured in (e.g. text, CSV, HTML, PDF, SIF or CAD files).

You may want to check out the following providers:

Technicon′s CustomCommerce http://www.technicon.com/solutions_catalog.html

Aglaia′s EpaperFlip software allows you to send your digital catalogue to your clients via e-mail or on a CD-ROM in addition to making your catalogue accessible through your website at all times.

BrotherSoft offers GT Salesman Product Catalog software and you can download free trial versions from their website.

ChronSystem′s CatalogVX product allows you to create and maintain product catalogues in-house. It is ideally suited to retail and wholesale operations.

InstaCat software is an affordable solution that allows you to incorporate video and audio clips into your catalogue.

Updated January 25, 2010

Companies are still spending money on training but the training market in North America was relatively flat in 2008 from 2007 and is expected to decrease significantly in 2009 from 2008 according to US industry predictions.

As for Canadian statistics the Canadian Federation of Independent Business (CFIB) has found that a small business owner spends an average of $2,700 annually per employee on all forms of training, and for new ones with no experience the cost rises to $5,400. The CFIB report said that while informal training represents nearly three-quarters of the average training expense, small- and medium-sized enterprises (SMEs) have also dramatically increased their use of formal training representing a national investment of $18 billion on employee training.

In addition Statistics Canada ran an Access and Support to Education and Training Survey (ASETS) in 2009 but the results will not be available until November 2009 according to the Learning Policy Directorate at Human Resources Social Development Canada.