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To Pay Commission Or Not to Pay Commission? That Is The Question

Here’s how our Brain Squad members pay their employees.

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  • Commissions only get paid if the employee’s wages plus the commission check is half or less than what the employee brought in for the month. And all bonuses are paid on the profit the employee brings in. It makes it easier for all involved. — David Dumas, Diamonds and Gold, Int., St. Louis Park, MN
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  • I believe in giving commissions for many reasons. I believe it can be used as a reward system as well as helping to establish an “owner mentality,” by encouraging them to develop relationships with customers. — Rita Wade, Wade Designs Jewelry, Rocky Mount, NC
  • We have a living wage guarantee for all employees and it is all the same. Commissions are the opportunity to earn what you deserve. I love paying the bonus because it shows the employee is working for our mutual good. — Russell Criswell, Vulcan’s Forge, Kansas City, MO
  • We do not have commission. We have team sales goals. If we meet our monthly goal then we all get a bonus. This encourages us to work as a team and sell as much as we can, together. — Erica Lorenz, Michael & Sons, Reno, NV
  • They have to make our baseline requirement for profitability before we distribute commissions. They can earn up to 3 percent commission, they can earn a bonus for selling a high-dollar item over $10,000, and the manager can earn additional perks. — Elizabeth Kittell, Pretty In Patina, Omaha, NE
  • No commissions. I pay a fair wage and everyone works as a team. Less conflict and happier customers without heavy-handed sales techniques. — John Hayes, Goodman’s Jewelers, Madison, WI
  • We have a profit sharing program that the sales staff gets monthly depending on total sales. This way, we do not get competition for a big customer. — Michael Halem, Halem & Co. de Sonoma, Sonoma, CA
  • Commission does not work for our store. I prefer to build in daily team incentives. If sales on given days meet or exceed our daily goal, every person who worked on that day receives the same bonus. Our bonuses are usually in-store credit that staff can spend as they wish, or accumulate for something substantial. The only stipulation is that it must be for the individual staff member to enjoy, not for gift purchases. — Laurelle Giesbrecht, French’s Jewellery, Wetaskiwin, AB
  • I don’t pay commissions; I pay monthly bonuses. Most of our sales are custom designs, which require a team effort between the designer, CAD artist, and diamond/gem specialist. We have monthly sales goals, and if we make them as a team, everyone receives a bonus. — Dianna Rae High, Dianna Rae Jewelry, Lafayette, LA
  • We pay commissions to some and not to others. We used to pay commissions to everyone, but that got buggered up so we went to salary only, and when the “issue” no longer worked full-time, we went back to paying commission. Our team is so great at working together that we hear most often, “No, you take it; it was your sale.” We just try to encourage that behavior! — Nicole Shannon, Keir Fine Jewelry, Whistler, BC
  • We pay commissions, but everyone has to play fair. I will revoke if someone is being nasty. — Amanda Lanteigne, Gold-n-Memories Ltd., Steinbach, MB
  • Will never do commissions, they are the worst thing you could do to a customer. — Craig C. Curtis, Belfast Jewelry Belfast, ME
  • We stopped commission when we saw it creating a nasty work environment for sales staff and customers’ needs with the right product being overlooked for the sake of trying to make money. We instead raised the salary/hourly wage and went to performance bonuses and saw a huge improvement in teamwork and getting the client the right solution. — Julie Terwiliger, Wexford Jewelers, Cadillac, MI
  • Employees are motivated by money. We pay between 3 percent and 6 percent commission. — Brian Goff, Goff Jewelers, Staten Island, NY
  • We did salary plus commission for 18 years but switched to salary base two years ago. It has gone well. Our sales staff still has goals, and we review monthly/quarterly to make sure that everyone is hitting their targets. — Valerie Naifeh, Naifeh Fine Jewelry, Oklahoma City, OK
  • We pay by the hour because my staff all do different things. I don’t feel it is fair to pay by commission when one key employee is often handling all the engraving jobs, thus not allowing her to be on the sales floor. We all work together without any competition. I do, however, have several items listed each month that we have a spiff for if sold. — Sue Parker, Nyman Jewelers, Excanaba, MI
  • I’m a sales guy at heart. I’m motivated by money (and lots of other things), so I LOVE to pay my employees a commission. — Travis Piper, Piper Diamond Co., Vincennes, IN

What’s the Brain Squad?

If you’re the owner or top manager of a U.S. jewelry store, you’re invited to join the INSTORE Brain Squad. By taking one five-minute quiz a month, you can get a free t-shirt, be featured prominently in this magazine, and make your voice heard on key issues affecting the jewelry industry. Good deal, right? Sign up here.

Over the years, INSTORE has won 80 international journalism awards for its publication and website. Contact INSTORE's editors at [email protected].

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