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Shane Decker: Commissions That Work

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Here are 9 rules to ensure your commissions inspire sales, not discontent.

[span class=notice] Catch Shane Decker at The Smart Jewelry Show, being held in Chicago April 23-26, 2010. Check our full education schedule here. [/span]

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Commissions That Work

Ever seen an adult act like a child? If not, try installing commission-based compensation without guidelines. You’ll have your staff crying “It’s not fair!” in no time.[/dropcap]

Research tells us that stores that pay commission make more sales. But how can you gain the sales while avoiding the headaches?

Instate the following set of rules. Require each staff member to sign off on them, and enforce them vigorously.

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Given the chance, you’ll find your staff will become more productive and your customers will be even happier.

Rule 1: If you have a sales floor manager, his job is to help sales associates to close sales, not to compete with the associates. Your salespeople should feel comfortable calling him in when they need help closing a sale. Put the salesperson’s name on the ticket for purposes of commission, and compensate your sales floor manager based on overall productivity of the sales team.

Rule 2: Whoever waits on the client and closes the sale gets the commission. (For the only exception to this rule, see Rule 3.)

I sometimes hear salespeople say, “That’s my client.” I always reply, “Oh, is that person’s name stamped on your forehead?” 

Rule 3: If a client walks in and asks for a particular salesperson who has helped him before, but the salesperson is out of the store, put that salesperson’s name on the ticket once the sale is closed (no matter who waits on the client). This is not a split. Yes, you helped out your teammate this time, but they’ll help you out next time. It all evens out in the end, and it encourages teamwork.

Rule 4: If it is a team sale, the sale is a split.

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Rule 5: If it is a T.O. — that is, one salesperson needed to get out of the sales presentation because he didn’t match personalities with the customer — it’s a split.

Rule 6: If a salesperson is out of the store, and a client that he’s waited on before does not ask for him when she comes in, the salesperson that waits on her and closes the sale gets the commission.

Rule 7: If a client comes in and doesn’t ask for a salesperson, but he thinks she should have, he should not “make himself available” or do a walk-by to be seen. That’s unprofessional and could kill the sale. If, when the sale is complete, the salesperson wants to walk over and say his pleasantries, he can, but only once the sale is finished.

Rule 8: If two sales associates argue over a client, that sale goes to the house.

Rule 9: Do not split hairs. Do not rewrite the rules and make it difficult. If you’re fair and honest, everybody will win.

I sometimes hear salespeople say, “That’s my client.” I always reply, “Oh, is that person’s name stamped on your forehead?”

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The fact is, if a salesperson leaves his place of employment, only about 4 percent of his clientele, on average, will follow; 96 percent remain loyal to the store. Salespeople don’t own clients. Clients can own salespeople, but not the other way around.

The better the leadership in your store, and the better your salespeople follow these commission rules, the better the teamwork will be on the floor.

Shane Decker has provided sales training for more than 3,000 stores worldwide. Contact him at (317) 535-8676 or at ex-sell-ence.com.

This story is from the March 2010 edition of INSTORE. 

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Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

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Shane Decker

Shane Decker: Commissions That Work

mm

Published

on

Here are 9 rules to ensure your commissions inspire sales, not discontent.

[span class=notice] Catch Shane Decker at The Smart Jewelry Show, being held in Chicago April 23-26, 2010. Check our full education schedule here. [/span]

{loadposition shanedeckerheader}

Commissions That Work

Ever seen an adult act like a child? If not, try installing commission-based compensation without guidelines. You’ll have your staff crying “It’s not fair!” in no time.[/dropcap]

Research tells us that stores that pay commission make more sales. But how can you gain the sales while avoiding the headaches?

Advertisement

Instate the following set of rules. Require each staff member to sign off on them, and enforce them vigorously.

Given the chance, you’ll find your staff will become more productive and your customers will be even happier.

Rule 1: If you have a sales floor manager, his job is to help sales associates to close sales, not to compete with the associates. Your salespeople should feel comfortable calling him in when they need help closing a sale. Put the salesperson’s name on the ticket for purposes of commission, and compensate your sales floor manager based on overall productivity of the sales team.

Rule 2: Whoever waits on the client and closes the sale gets the commission. (For the only exception to this rule, see Rule 3.)

I sometimes hear salespeople say, “That’s my client.” I always reply, “Oh, is that person’s name stamped on your forehead?” 

Rule 3: If a client walks in and asks for a particular salesperson who has helped him before, but the salesperson is out of the store, put that salesperson’s name on the ticket once the sale is closed (no matter who waits on the client). This is not a split. Yes, you helped out your teammate this time, but they’ll help you out next time. It all evens out in the end, and it encourages teamwork.

Advertisement

Rule 4: If it is a team sale, the sale is a split.

Rule 5: If it is a T.O. — that is, one salesperson needed to get out of the sales presentation because he didn’t match personalities with the customer — it’s a split.

Rule 6: If a salesperson is out of the store, and a client that he’s waited on before does not ask for him when she comes in, the salesperson that waits on her and closes the sale gets the commission.

Rule 7: If a client comes in and doesn’t ask for a salesperson, but he thinks she should have, he should not “make himself available” or do a walk-by to be seen. That’s unprofessional and could kill the sale. If, when the sale is complete, the salesperson wants to walk over and say his pleasantries, he can, but only once the sale is finished.

Rule 8: If two sales associates argue over a client, that sale goes to the house.

Rule 9: Do not split hairs. Do not rewrite the rules and make it difficult. If you’re fair and honest, everybody will win.

Advertisement

I sometimes hear salespeople say, “That’s my client.” I always reply, “Oh, is that person’s name stamped on your forehead?”

The fact is, if a salesperson leaves his place of employment, only about 4 percent of his clientele, on average, will follow; 96 percent remain loyal to the store. Salespeople don’t own clients. Clients can own salespeople, but not the other way around.

The better the leadership in your store, and the better your salespeople follow these commission rules, the better the teamwork will be on the floor.

Shane Decker has provided sales training for more than 3,000 stores worldwide. Contact him at (317) 535-8676 or at ex-sell-ence.com.

This story is from the March 2010 edition of INSTORE. 

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

Promoted Headlines

Most Popular