What does GM get from apps?

Contrary to popular belief, no, we don't bonus directly off apps. The bounty from each app is significantly greater than many other components that can affect your overall NOP rate per month/qtr/year. It's also 100% controllable. Most store associates bonus off All Channel Rev while leaders bonus off NOP %. If you miss apps by let's say 50, you could easily miss $5K of direct profit to your NOP. Where as the opposite, if you're over 50 apps, you get a bonus to your NOP by means of FIN Serv Rev = bounty * # of apps. Once you get over budget, the bounty slightly increases per app which generates greater returns.

While you may be thinking that this still doesn't effect your bonus rate, again be mindful of the benefits of what the card offers. Zero interest financing by creating more buying power, it allows the customer the freedom to get the GSP/mount/services/install that they wouldn't have been able to get before. Those bonuses translate to addition RPH and ASP for you as an associate, which funnels into a higher % of All Channel Rev to target, which you as an associate bonus off of.

As a leader, we want NOP to be high because it shows that the business is doing well and that we have a decent chance of keeping our jobs this month. Also, it allows your store to get bigger and better things if you have a high enough NOP rate. The greater the margin rate of your store, the better opportunity you may have to jump revenue bands to gain additional associates and other labor benefits. Whereas the opposite effect occurs if you are missing NOP for long periods of time. You could lose what you have now in terms of labor and drop a Rev band, or you won't be ale to get everything from transformation projects every year because they cost money that you're not making already and can't afford to add another project to.

All in all, we don't mean to come down hard with apps, but it's by far the easiest way to generate more direct profit for the store which helps everything grow. If you're not growing the business, then what are you doing?

Talk to your sales ASM about the why behind hitting apps as opposed to just hearing "we need to hit x apps this month" and you'll get a good understanding of the passion behind it.

/r/Bestbuy Thread