Sales commissions

[Jim Steele]

What's the difference betwee a "hard" pack and a "commission" pack when calculating sales commissions?

[texaslp]

I've never actually heard the term hard pack.

A commission pack is a figure that is used to calculate sales commission only, it is not posted anywhere as an accounting entry.

My guess would be that a hard pack would be something that is an accouting entry that adds an amount to the cost of the vehicle and is credited elsewhere like a wholesale reserve or an offset to delivery expense.

[Jim Steele]

Thank you.

I hadn't heard the term before either. My understanding of the pack is a somewhat arbitrary number, say $500, that is deducted from gross profit before commissions are calculated. It's ostensibly to cover the cost of advertising, floor plan, etc.