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Old 03-16-2010, 12:54 PM   #1 (permalink)
 
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Question Commission question

We offer our employees commission sales of 5% up to $500 and 10% over $1000. The girls in the office are very motivated by this policy and we have seen a great increase in lotion sales since we began this. Here is my problem - if one of the girls spends time with a customer explaining the lotions and helping them pick one out but then the customer doesn't buy it that day and comes in a few days later and buys it from another employee who gets the sale? I can see it from the perspective of the employee who has spent 20 minutes working with them - they want to get something for their efforts! But, I've had some customers mention "so and so told me this was a good lotion" which probably means they just mentioned it while checking them in and I'm not sure that is enough to count towards a "sale" if someone else is working when they actually buy it. I don't want employees to tell customers to only buy from them as we really are working on a team effort approach, but I'm afraid if I change our policy to one in which everyone receives the same amount if we hit a certain sale level than the employees won't be as motivated on their individual shifts. Any thought?
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Old 03-16-2010, 01:30 PM   #2 (permalink)
 
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Re: Commission question

We put a note on the system if the situation is as you described, long discussion, no money, will buy next visit. Credit goes to the person who worked with the customer. If you have someone who notes everyones account they need to be reminded of the guidelines.
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Old 03-16-2010, 02:24 PM   #3 (permalink)
 
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Re: Commission question

This is a sticky situation every time.

I've found it best to tell the staff to close the sale then and there or forget the commission.
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Old 03-16-2010, 03:52 PM   #4 (permalink)
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Re: Commission question

Whoever puts the money in the drawer gets the commission. Fortunately we have a staff that gets along well so if they know someone else actually made the sale they'll assign the commission to that person when ringing up the sale.
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Old 03-16-2010, 07:03 PM   #5 (permalink)
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Re: Commission question

I'm with movieking on this one. Money in the drawer it is. As far as the "buy from me" syndrome, here's a little notice we make sure all employees see during training:
-------------------------------------------------------------
I have heard that some Employees have told Customers to “Buy from them instead of another Employee”. There is nothing wrong with asking a Customer to “Buy Now”, however, it is the retail kiss of death to tell a Customer to wait to buy from a particular Rep instead of another Rep.

First of all, every single Employee in a sales position has benefited from the efforts of other Employees. Everyone has had Customers walk up and say “I’ll take such and such lotion today” just as everyone here has had experience with sales “resistant” Customers. Every Employee in a sales position has benefited from the fortune that’s spent advertising lotions and specials.

Effective now, (insert your date here), if I learn of an Employee telling or instructing any Customer on or after (same date) to skip buying from another Employee in order to buy from them (or telling a Customer to buy “only from me”) I will allocate that Employee’s monthly bonus as follows: that Employee’s ENTIRE monthly bonus will be divided equally among all other Employees.
---------------------------------------------------
Haven't had this problem in years :)
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Old 03-16-2010, 07:35 PM   #6 (permalink)
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Re: Commission question

I like that Ken. Something I would add is if you find out that an employee has told customers that they receive a commission on sales the same rule will apply.
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Old 03-17-2010, 12:46 PM   #7 (permalink)
 
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Re: Commission question

We also go with whoeverrings up the sale, gets the commission. My theory is that all of us work with the customers. There may be times that Employee A works with the customer but ends up purchasing it when Employee B is working and vice versa. So it pretty much equals out.
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Old 03-17-2010, 08:53 PM   #8 (permalink)
 
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Re: Commission question

What about sitting up a group commission on lotions then dividing the total commission by transactions.
Example $1000 commission
Sally 20 of transactions = 20% of commissions
Jane 15% of transactions= 15% of commissions
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Old 03-18-2010, 05:15 PM   #9 (permalink)
 
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Re: Commission question

I set sales goals if their met then they get a bonus. I did away with commission for that reason
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Old 03-19-2010, 10:52 AM   #10 (permalink)
 
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Re: Commission question

This happened to me this week. I was really working up a bottle
of black. It was our last bottle and we needed to hit our goal. She said she would come back the next day I was working. She didn't show up that day but came back on a day I was off and bought the lotion from a girl. But we are all really close and she didn't know I had talked it up. So she said she would give me the next black sale or whatever was equal in price. (that She would of talked up) hope that made sense. Basically if you have a good staff that respects each other then it shouldn't be a problem. Employees will look out for each other. If there
is drama between the girls then that's a whole nother issue.
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