RE:RE:RE:RE:Back to $1.10Benedictus wrote: Certainly a solid PLUS side list there Stan. I believe another positive, albeit an intangible one, is the way CV has described their rigorous hiring process, bringing together a sales team that is in alignment with the company mission statement and Id imagine equally passionate about the mission critical mindset to replace traditional potash and grow the business. If properly incentivized such a motivated team should run circles around a sales team working for "dirty" potash. I was never in sales but I believe there is a very big distinction between a sales rep passionate about the product they sell and what it means vs. one that is working for a living.
Hello Benedictus,
I will add this important intangible to my list, thank you. Given the experience of the last 3 years, it would appear that a different sales strategy is going to be required to generate the kind of growth needed to hit the Phase 1 target of 600,000 tonnes per annum, and to progress the Company to the 5 million tonne per annum Phase 2 target.
Having sales and marketing staff who are passionate about the role Verde's products can play in advancing agricultural sustainability is a great starting point. Better understanding the buyer's mindset and resistance points would also be essential, especially if we are dealing with older, established farmers who might find the evangelical fevor of a young salesperson a bit hard to take.
From the "Company Interest" perspective, I would offer the view that placing a pool of $420,000 of potential bonus for sales staff who receive less than $9,000 per year might be a better way of motivating sales growth than having this only available for the CEO. I would guess that a field salesperson would be very interested in doubling their salary to $18,000 by hitting stretch sales targets that took us to 600,000 tonnes per year, as opposed to working diligently all year to see their CEO make a $420,000 bonus on top of his $420,000 base salary in 2021 for hitting 350,000 tonnes. Please note that the CEO's compensation (base, bonus, options, etc.) is fully disclosed as public information and you can be absolutely certain all the young, internet savy sales staff know to the penny how much he makes in Canadian dollars and how that compares to their local currency paycheques.
In the absence of a dedicated VP of Sales (the last one did not last 6 months when hired back in 2019) I am not confident the sales and marketing strategies are being optimally implemented. The slow path to the first 600,000 tonne per annum Year 1 target (we are now in year 4 and have a stretch target of 350,000 tonnes) does not, in my opinion, demonstrate a successful roll-out of the sales plan.
What do other investors think?
Cheers,
S.