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Who Are We? Flaum Technologies was founded in 1987. At that time, we sold and supported Enterprise Resource Planning (ERP) software. Over the years we found that many of our clients had commission and rebate plans that were too complex for the ERP system to compute, and too complex for general-purpose reporting software as well. Each company had honed a marketing strategy based on its product, competitive position, and unique selling proposition. Their commission plans were designed to focus the sales force on these marketing strategies and, if they paid rebates, these rebates were designed to reinforce the marketing plan with customers. Since they had no other option, our clients had to compute commissions manually, typically using Excel. Unfortunately, this procedure is seriously flawed. The most obvious problem is that it can waste a lot of accounting time. A more serious problem is that it typically results in 2-5% overpayment, because people make errors if they spend hours or days making thousands of adjustments based on dozens, hundreds, or more intricate rules. Since commission and rebate recipients are better at finding errors which reduce their income than the reverse, this leads to systematic overpayment. There has long been a solution to this problem. Rule-Driven commission software can automate almost any plan. However, traditional rule-driven commission software can cost $100,000 or more. Also, it is complicated to use. Therefore, it suits only large companies with a correspondingly-large software budget and a staff with the time to manage this type of software. After seeing many companies who couldn't find a good solution to this problem, we decided that there was a need for easy-to-use, rule-driven commission software with a price that is practical for companies of all sizes. Software which small and mid-sized companies can afford. Software which will save money for large companies. We met this need by introducing CommissionCalc in 2000, and have been selling and enhancing it since. Because of CommissionCalc’s success, we stopped working with other ERP software a few years later so we could focus exclusively on CommissionCalc. Today, Flaum Technologies is still the only company providing economical, straightforward software which can calculate virtually any sales commission or rebate. |
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