Commission to motivate and increase business

[beautygeek_11]

hi all,

just read this blog on commission and want people to give there analogy or thoughts on what works best for you and your business. i have a therapist who is with me 6 months has trained in all the salon brands now and i want to introduce some more opportunities to earn for her and to keep her motivated and ultimately increase booking and retail sales

Tiered commission structures work amazingly well!-

For a monthly commission:
0% up to 3 times your salary ex – 1500 (not sure what -1500 means?)
5% up to 2000
10% for any amount after that

This means that when I achieve 2000, I would be encouraged to push myself a lot more because anything over that amount, then the 10% starts kicking in!

So ideally a good jump in the % has the biggest effect on increasing sales.
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ive always just done 10% on all retail but want a treatment based structure too as i think this is important!


thanks in advance as usual everyone :wink2:

 

[squidgernetball]

I find I'm too busy to faff too much with commission structures. If it's not easy, I won't do it!

I pay a basic wage then 10% on all retail and 5% on all treatments.

This means she comes out with, what I consider, a pretty good salary!

She had an incentive to retail and also to book clients in with her. She retails a lot!

Vic x

Sent from my GT-I9195 using SalonGeek mobile app

 

[beautygeek_11]

do you ask they cover their basic salary before commission so you are just paying commission on the profits?

 

[squidgernetball]

I pay a basic hourly wage, and commission on treatments and products. No minimums and no targets.

Vic x

Sent from my GT-I9195 using SalonGeek mobile app

 

[beautygeek_11]

I think id like something tiered to encourage to go beyond as I find generally ppl get very complacent very fast! Has anyone else got something they feel works great?

 

[Jen889]

From someone who used to work on a tiered commission base, i can personally tell you it's terrible. You retail products but see nothing from it so you, eventually, stop. unless you have clients that buy a ton it's very hard to reach 2000 a month, solely.

If you really want to do tiered then you might want to up the percentage. To be honest 5% wouldn't make me want to retail much but 10% (which is pretty standard) would and then at 2000 up to 20%. That would be worth it.

I'm very much like Vic, i couldnt be bothered with tiered systems. I pay my girl 20% commission on products and 5% of advanced treatments.

 

[NailAddiction]

I have an apprentice on apprenticeship minimum wage. She also then has a weekly target to hit with her treatments and anything she hits over her target she gets 10% commission. On the 6th week of running the commission/target and she has only missed her target once... Will be reviewing it soon. But definitely motivated her! Xx