Let’s Talk Commission
I know this blog is a personal tribute to my current career path, but I want to show a side of retail that you may not have known about. This blog post is going to be all about commissions in retail.
Whether you are the customer or the salesperson, a commission is a double-edged sword in the retail business. It also means different things to different people in the marketing world.
Commission for a retail store employee—depending on the customer service position you are in—is a rainy storm cloud that hangs over their heads every minute they are at work and wakes them up in the middle of the night in a cold sweat. Commissions are always encouragements to go above and beyond for a customer, which makes the visit to the store an unforgettable one. Well, that is my opinion on Commissions.
Commission means many things, but according to Merriam-Webster, it is a fee paid to agents or employees for transacting a piece of business or performing a service. For example, I am in a section that has multiple big-ticket items like suits and swimsuits. For every swimsuit that I sell, I get one percent of commission. My goal by the end of the sift is to make that percent and sell the product that is assigned to me.
There are diffident kinds of commission structures that a business can put in place. According to Chris Hamilton on Chron.com, there are four different types: Fixed, Variable, Residual and Profit-sharing.
Fixed-commission
Retail companies can create a program that makes set percentages or lump sums for their employees. The price range can vary the amount of money the company will give each employee according to the product that they sell. This is what my commission entitles. I can build up my commission rate by selling other product besides my own, but that does not help make my commission any higher because it is not a product I am designed for sale.
Variable-commission
A salesperson can make the commission on a certain tier. The trier can depend on the number of sales the salesperson will have to make to receive the commission. If there are additional sales added before a set time, the salesperson will receive a higher percentage of their commission.
Residual-commission
If a business uses this type of commission structure, the employees will be paid an upfront commission, but also, an additional percentage if they have repeat customers coming in.
Profit-sharing commission
This commission structure is common for businesses that sell high-end products, like cars. The salesperson and the company will have a share of profits and it will depend on how much the final asking price is.
If you want to read more about commissions, then click here.
Where does the customer play a part in commissions? Well, the customer is the foundation for making commission goals. As a customer, you can do a few things that will help the Sales Associate in a retail store make their commission.
Things you (the customer) can do for your local Sales Associate
• If the Sales Associate takes the time to help you find what you are looking for, go to them when checking out. It is alright to find another Sales Associate to check out with if you cannot find the person who helped you.
• Try to seek out a Sales Associate. It depends on how many employees are on the floor that day but find someone who works in the section you are in and see if they can assist you in your search. That helps you find what you are looking for and it helps the Sales Associate make a sale that can go to their commission.
Now, Commission is not the only thing a Sales Associate has to worry about. There are department goals, how many store credit cards they must open, and if there is a store-wide event happening. Dona DeZube, a Monster Finance Career Expert, says that closing a sale is like pitching at a job interview and you are reading off your Resume. I believe it is looking someone in the eyes and making a connection with them. I see a customer as a new opportunity to learn about how marketing works.
I am learning how to keep the customer interested in what I am saying. I remind myself that each person that I meet are going to be feeling and thinking differently, so I must be flexible in my tone of voice and my mannerisms. Each sell that I make will lead me closer and closer to making my commission and that is what is important to me. I want to succeed at what I am doing right now.
I hope I make my goals tomorrow.
Thank you for reading.
Your Local Sales Associate
Whether you are the customer or the salesperson, a commission is a double-edged sword in the retail business. It also means different things to different people in the marketing world.
Commission for a retail store employee—depending on the customer service position you are in—is a rainy storm cloud that hangs over their heads every minute they are at work and wakes them up in the middle of the night in a cold sweat. Commissions are always encouragements to go above and beyond for a customer, which makes the visit to the store an unforgettable one. Well, that is my opinion on Commissions.
Commission means many things, but according to Merriam-Webster, it is a fee paid to agents or employees for transacting a piece of business or performing a service. For example, I am in a section that has multiple big-ticket items like suits and swimsuits. For every swimsuit that I sell, I get one percent of commission. My goal by the end of the sift is to make that percent and sell the product that is assigned to me.
There are diffident kinds of commission structures that a business can put in place. According to Chris Hamilton on Chron.com, there are four different types: Fixed, Variable, Residual and Profit-sharing.
Fixed-commission
Retail companies can create a program that makes set percentages or lump sums for their employees. The price range can vary the amount of money the company will give each employee according to the product that they sell. This is what my commission entitles. I can build up my commission rate by selling other product besides my own, but that does not help make my commission any higher because it is not a product I am designed for sale.
Variable-commission
A salesperson can make the commission on a certain tier. The trier can depend on the number of sales the salesperson will have to make to receive the commission. If there are additional sales added before a set time, the salesperson will receive a higher percentage of their commission.
Residual-commission
If a business uses this type of commission structure, the employees will be paid an upfront commission, but also, an additional percentage if they have repeat customers coming in.
Profit-sharing commission
This commission structure is common for businesses that sell high-end products, like cars. The salesperson and the company will have a share of profits and it will depend on how much the final asking price is.
If you want to read more about commissions, then click here.
Where does the customer play a part in commissions? Well, the customer is the foundation for making commission goals. As a customer, you can do a few things that will help the Sales Associate in a retail store make their commission.
Things you (the customer) can do for your local Sales Associate
• If the Sales Associate takes the time to help you find what you are looking for, go to them when checking out. It is alright to find another Sales Associate to check out with if you cannot find the person who helped you.
• Try to seek out a Sales Associate. It depends on how many employees are on the floor that day but find someone who works in the section you are in and see if they can assist you in your search. That helps you find what you are looking for and it helps the Sales Associate make a sale that can go to their commission.
Now, Commission is not the only thing a Sales Associate has to worry about. There are department goals, how many store credit cards they must open, and if there is a store-wide event happening. Dona DeZube, a Monster Finance Career Expert, says that closing a sale is like pitching at a job interview and you are reading off your Resume. I believe it is looking someone in the eyes and making a connection with them. I see a customer as a new opportunity to learn about how marketing works.
I am learning how to keep the customer interested in what I am saying. I remind myself that each person that I meet are going to be feeling and thinking differently, so I must be flexible in my tone of voice and my mannerisms. Each sell that I make will lead me closer and closer to making my commission and that is what is important to me. I want to succeed at what I am doing right now.
I hope I make my goals tomorrow.
Thank you for reading.
Your Local Sales Associate
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