Vincent Anderson's questions to Lavoro (LVRO) leadership • Q2 2024
Question
Asked for an update on the sales staff hiring initiative, including how it's tracking against plans and the structure of their performance compensation. Also inquired about the company's pricing model and the degree of centralization versus decentralization in setting prices.
Answer
The executive reported that sales staff hiring is on track, with a standard variable compensation model based on sales. The pricing model is a hybrid approach: pricing decisions are decentralized to regional clusters to adapt to local markets, while supplier negotiations are centralized to leverage the company's scale.