The 2½ percent incentive plan.

The recent two-and-a-half percentage drop in VAT won't make a difference to customer spending, but it could make your incentive campaign.

Instead of passing the saving onto a customer in the form of lower prices, why not use the money that would have gone to the VAT man to fund your sales incentive? Those 2 and a half percentage points won't be noticed by the customer, but they could drive your sales team or reseller to help make that sale. Discounting will only get you so far - customers are more likely to buy from knowledgeable and friendly sellers they can trust. An incentive that inspires and encourages sales teams can be the most effective way of driving sales, and is more sustainable than lowering margins.

Think of the drop in VAT as a boost to your incentive fund.