Scott Billeadeau's questions to Sonoma Pharmaceuticals (SNOA) leadership • Q1 2019
Question
Scott Billeadeau of Walrus Partners inquired about the sales force's visibility into prescription profitability to align incentives with net revenue, and also asked about sales representative turnover and performance management.
Answer
CEO James Schutz and CFO Robert Miller confirmed that sales reps have access to data on physician prescribing patterns and patient insurance coverage. Reps are not paid commissions on unprofitable 'bad scripts,' which strongly incentivizes them to focus on profitable net revenue. Mr. Schutz added that voluntary turnover is low, and performance is managed using data on territory profitability, with swift action taken on underperformance.