I used to be a manager at a shop.
Despite easily selling $500 Arcteryx rain jackets like its nothing (in Minnesota, not Seattle), I would get no commission because I am a manger. I think I was actually the only person who actually sold that item.
I think that policy was unfair to me as I made the sale, but I get jack. Meanwhile, someone who does nothing all day or condescendingly lectures a customer (who walks out of the store confused and buys nothing) for 2 hours on the definition of a jacket membrane gets my commission.
We didn't have direct commission. We had a profit sharing pool that excluded managers. That means that someone who busts their ass all day is giving money to someone who does nothing.
I don't like the idea of commission or (sole) profit sharing.
Commission would encourage people to push products people don't need as quickly as possible. Those products could be returned and not be sold as new. Then we have to deal with deducting the commission from the sales persons commission. Very complicated.
Profit sharing in lieu of a decent wage would encourage some people not to work as others would pick up the slack.
I would personally just pay people well. Our shop paid sales staff minimum wage (just under $8 a hour) in lieu of possible profit sharing, pro deal discounts, being in the industry, etc.
It's a much clearer motivator to just pay people a honest wage, even higher than other similar businesses to get the best rather than confusing and complicated to administer profit sharing or commission schemes.
When word gets out that you pay more per hour then your competitors, you will get the best who are more motivated.
**This post was edited on Aug 18th 2020 at 7:26:59pm
**This post was edited on Aug 18th 2020 at 7:27:32pm
