# Ethan Paint Department Meeting — March 25, 2026

## 2025 Commission Resolution

- Ethan was upset he didn't receive what he expected for 2025
- Based on sales projections set in June 2025, he never hit the December target — came up ~$3,000 short
- **Modified arrangement for 2025:** Straight commission on the difference between 2025 paint department sales vs. 2024 paint department sales
- Already paid Ethan $5,000 — will owe approximately $2,000 more under the revised formula

## Staff Bonuses & Raises

- **Jason:** $750 bonus
- **Paul Mealey:** $1,500 bonus
- **Both Jason & Paul Mealey:** $2/hour raise effective next week

## 2026 Commission Structure

- **Rate:** 6% commission on paint department sales above the 2025 baseline
- **2025 baseline:** ~$1,834,000 (to be confirmed)
- **Review schedule:** Every 6 months
- **Full renegotiation:** February 2027

## Paint Inventory Incentive

- **Target:** Get paint department inventory below $300,000 for at least one day in 2026
- **Baseline:** $425,000 (current approximate inventory value)
- **Payout:** 10% of the difference between baseline and actual = up to ~$12,500
- Ethan was initially skeptical he could achieve this

### Tactics Discussed to Reduce Inventory

1. **Customer POs** — Make sure all customer purchase orders are entered properly (deducts from inventory automatically)
2. **Min/Max optimization** — Tighten reorder points across all paint products
3. **Accessories & sundries** — If there are 10 on a hook, maybe we only need 5. Every hook counts toward the number.
4. **Eliminate underperforming lines** — Free up shelf space for better-performing products
5. **Fire-sale dead inventory** — Even at a loss, clearing it out helps hit the inventory target
6. **Order more frequently, in smaller quantities** — Reduces on-hand levels without affecting availability

### Edwin Collaboration

- Edwin was brought into the conversation to work with Ethan
- Joint effort: clean up inventory, work customer POs, coordinate on Min/Max settings
- Both stores need attention (Tuckerton + Surf City)

## Possible Interim Incentive (Pending)

- Discussion point: If $300K feels too far, consider an interim target of **$325,000** with a **$3,500 bonus**
- **Joe Lynch and Joey Young to discuss** and get back to Ethan

## Next Steps

- [ ] Joey Young to send his spreadsheet with the commission/bonus calculations
- [ ] Joe & Joey Young to decide on interim inventory incentive ($325K / $3,500)
- [ ] Forward this summary to the team
- [ ] Rob Lobster to file Joey's spreadsheet when received