Comments on: Salesperson Compensation Questions

By: Ron

Ron — Thu, 04 Nov 2010 20:23:11 +0000

10% on the average; a lot if good.

By: Claude DeMoss

Claude DeMoss — Tue, 02 Nov 2010 07:15:55 +0000

Aloha,
What does a straight commissioned Art salesperson make in Hawaii’s galleries?
Mahalo,
cdm

By: Lestie

Lestie — Mon, 22 Dec 2008 07:45:27 +0000

Hello everybody,
>>>>Sometimes, the second “Team Member” does just as much work as the first, only the latter closes. Well, who gets the sale then? >>>>

Runway wrote this above. I am a Recruiter and Retail Sales Trainer (Coach!) amongst other things, and one idea that I have transferred for my Clients to use is one that comes from recruitment. Here there are three parties - The CLIENT company who is recruiting, the CANDIDATE/APPLICANT who is seeking work and the CONSULTANT who is matching skills to job requirements (simply put). The CCO is the Controlling Consultant of the ORDER, the CCA is the controlling consultant of the APPLICANT and if, say, I was the CCO in a specific transaction, then I would be the one who is in liaison with the Client company, and as it is the Client company who is the paying party, then I would be the consultant who is ‘in charge’. If I do not have a Candidate/Applicant on my books to suit, I would then go out to the team, tell them what I am looking for and someone else would/may then be the CCA for that transaction. I would take over the Candidate, mix and match, make the placement and SHARE the commission either 50/50 or 60/40 as appropriate. As CCO I am doing all the Client liaison, I got the work in, I nurture and service ‘my’ Client regularly etc. As the CCA, I advertise for or recruit the person, bring them in for interview, do all background checks, review CV and often do some career coaching, so in turn am doing my work to ‘make’ them placeable orprepare them for interview etc. In the course of everyday consulting, everyone gets to be CCO and/or CCA and commission splits are amicable and even promote tramwork within the sales team.

My retail Clients use this system and pair off sales associates, that way when one does the opening work the other takes over when customer delays or on comebacks … works like a charm for all the same reasons and moreover, the sales staff think and know its fair.

Learnt something from you again Ron, thanks, which I will now pass on when necessary - if there is a breakdown, make it a house sale.
Cheers
Lestie

By: Ron

Ron — Wed, 10 Dec 2008 06:03:53 +0000

Aloha Angelic on Canvas;
To determine how much you can pay your salespeople, prepare a budget starting with known expenses like rent, overhead, non-selling employees, insurance, and merchandise. Calculate those costs as a percentage of sales along with a desired profit percetage and see what’s left. You can now establish a sales cost budget. Be willing to spend that on good salespeople. “Geese that lay golden eggs won’t work for chicken feed.” Once that selling cost is determined hold your salespeople to it. You can lower selling cost by either increasing sales or lowering salary. Given the choice most will opt for increasing sales.

By: Sales Guy

Sales Guy — Tue, 09 Dec 2008 19:45:21 +0000

Jeff is right. If you can’t cut it move on. They are hiring at McDonald’s and their isn’t any competition for sales there.

By: mauijeff

mauijeff — Tue, 09 Dec 2008 18:20:39 +0000

splitting up the pie… pooling commisions… breeds contempt and Mediocrity… it is socialized sales.

Competition makes everyone perform to their best ability… to win!

Sales are not fair… neither is life… get over it.

By: Angelic on Canvas

Angelic on Canvas — Tue, 09 Dec 2008 06:49:53 +0000

I am starting my own art gallery and trying to figure out a good commission program. Most of the art will be my own, so I have good margins, but I don’t want to be too generous. I have to pay the other bills as well. What would work best, a high salary and small commission or low salary with a high commission?

By: Retailmagic

Retailmagic — Tue, 09 Dec 2008 01:30:15 +0000

Runaway has it all figured out. If everyone were to think as he does it would be a better world out here.

By: Runaway

Runaway — Mon, 08 Dec 2008 23:17:39 +0000

Sometimes customers can’t make up their minds, come back later, and get a different person to help them. They may not have liked the first person enough to close with them, or just needed to sleep on it or go eat something. Then they show up later, and just hand over their money and want their merchandise. If the person was given a business card or paper with the original salespersons name and employee number, and knows that the first employee would like to protect her sale because she is being tracked, then sometimes the customer will make sure credit goes to where it is due. Getting a deposit is also a good idea, asking for it with a smile. Say, you would like to see me get credit for our hard work, so would you mind taking my card and if you do decide to make this purchase, allow me to get credit for it. That is what the Disney Vacation Planners do to protect their customers, because when you call back, you do not get, nor can you ask for the Team Member who spent time with you earlier.

Sometimes, the second “Team Member” does just as much work as the first, only the latter closes. Well, who gets the sale then? Usually the tie goes to the closer. But, keep in mind, that sometime later. the same thing will happen and the closer will be the other team member. It will even up later. Remain calm and professional, and say I will get the next one when the situation is reversed. That was my attitude in the past, and I was very successful, pleasant, confident and happy to show my customers an enjoyable buying experience.

No one wants to work with a whining, complaining, hard to get along with desperado. Dig yourself always or you won’t have a job to complain about.

By: onethatknows

onethatknows — Mon, 08 Dec 2008 22:38:48 +0000

“What’s wrong with just splitting up the pie, or selling for the good of the company?”
_____________________________________________

Well, that sounds good in theory, but not in practice. The problem with the pie splitting is that the losers sit back and enjoy the benefits created by work of the winners.

And, you can’t turn a nice person into a “Monster” for money alone. Hire nice people and then let them compete.