Boatshed Business Information ONLY (This article does not relate to the sale of boats)

Boatshed's Minimum Commission Requirement (MCR)

Boatshed's Minimum Commission Requirement (MCR) is designed to ensure the sustainability and development of the entire Boatshed network, which includes technology, systems, and support for all offices. Here's a clearer explanation of the MCR:

Purpose of MCR: The MCR exists to fund the ongoing development of Boatshed's business model, technology, and systems. It also supports the operational costs of each Boatshed office. This collective effort strengthens the Boatshed brand, benefiting each individual office by enhancing the overall success and value of the network.

Variability of MCR: The Minimum Commission Requirement (MCR) is tailored to account for the unique characteristics of each Boatshed office's operating environment. Factors such as the geographical size of the service area, location, and the typical stock and value of boats in the region influence the MCR. This flexible approach ensures that the MCR is fair and reflects the potential market opportunities and challenges specific to each area.

Standard MCR Example: For illustrative purposes, let's consider a standard MCR of £6,000 for the first year of operation. This amount represents the baseline total commission that your office is expected to contribute to the Boatshed network over the year, broken down into £500 per month. This figure is an example and may vary based on your office's specific geographical and market factors, as mentioned earlier.

Staged Payments System: To manage this requirement effectively and avoid any financial strain at the year's end, Boatshed employs a system of staged minimum commission payments. This approach divides the annual MCR into 12 equal monthly payments. This system helps spread the financial responsibility throughout the year, making it more manageable for each office and allowing Boatshed to plan its investments and growth more effectively.

Monthly Commission Adjustments: If your commission earnings exceed the monthly minimum, the surplus is carried forward. This can offset the minimum commission required in subsequent months, potentially reducing future payments.If your office does not meet the monthly minimum commission, a charge will be applied to your account to meet the monthly MCR. This ensures that all offices contribute equitably to the Boatshed network's maintenance and growth.
This structure is designed to be fair and supportive, ensuring that all Boatshed offices can contribute to and benefit from the collective growth and success of the network, while also managing their financial commitments in a sustainable manner.