TANMIMI

Please give me some advise, we are opening our first salon and I am trying to figure out the most effective way to pay my sales people and keep them motivated. I planned on minimum wage plus a commission on lotion and retail items. What is a fair rate of commission? Also do you pay on tanning packages. Any help would be grately appreciated.

angelcat04

Here's what we started doing.

We set a monthly sales goal for the whole salon. If we don't hit the sales goal than NOBODY gets comission. But once we hit the goal they get paid based on what their sales are..this includes sample packs

$0-$500 gets 4%
$500-$1000 gets 6%
$1000 and up gets 10%

I don't feel like the girls should get comission on the packages but that's my opinion.


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[ This Message was edited by: angelcat04 on 2004-11-22 13:59 ]

TANMIMI

Angelcat that is a great idea it should motivate everyone to get their coworkers selling so everyone makes extra cash! What about the hourly rate?

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[ This Message was edited by: TANMIMI on 2004-11-22 14:28 ]

sbtan

Do a search on commission

angelcat04

Manager $9.00 + commision
Front sales $7.00 + commision
Bed cleaners start @ 5.50 max =$6.50

angelcat04

My manager sold $2,000 in lotion April of last year. Got over $200.00 in commision that month.

dudette

We are planning to go to commision. Right now we set a monthly sales goal for all of our employees to hit like angelcat, but it just doesn't seem to keep the girls motivated on selling. A search on commision helped me to decide. Good Luck

angelcat04

I tell my girls with every package sale their should be a lotion sale. We do very well with lotions. Just this month 40% of our sales are lotions.

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[ This Message was edited by: angelcat04 on 2004-11-22 14:29 ]

TANMIMI

Angelcat those are great numbers!

MJ

Quote:
On 2004-11-22 13:57:00, angelcat04 wrote:
Here's what we started doing.

We set a monthly sales goal for the whole salon. If we don't hit the sales goal than NOBODY gets comission. But once we hit the goal they get paid based on what their sales are..this includes sample packs

$0-$500 gets 4%
$500-$1000 gets 6%
$1000 and up gets 10%

I don't feel like the girls should get comission on the packages but that's my opinion.


JMHO but that reward staff members that do not sell...and can cause problems when the sellers realize they are the only ones doing the selling to meet the goals.
This leads to any one of these things:

A. The intersalon moral to be upset and divided. (Slackers & the Sellers) Then in house tensions fly. Not good for business.

B. The sellers quitting after seeing management not crack down the slackers.
Because they have to work twice as hard to make up for the slackers.

C. A. & B. Happening all at the same time.

OR even worse....

D. The GOOD sellers get so frustrated after concluding ( rightly or wrongly)the slackers don't sell and keep their jobs. So...They think kc*f it, I will do that too.
And since they now have an attitude about your management.( or in their minds lack thereof)They are more likely to be a less enthusiastic about their job, and even turn into a bitter/dishonest employee to get what they feel they deserve.

Since you did not allow them a fair playing field to earn honest commision..they could just take what they think they deserve.

My husband and I have owned businesses for over 20 years....I hope you understand I am not putting you down. I am sharing what I have learned the hard way.
The search option has lots of info. BUT There are several post in the last few days alone... explaining different commission structures that will be more fruitful and less upseting to your staff moral.

Good luck