Retail Sales Staff'S Commission

[Zen]

Hi i would like to get some ideas from everyone regarding the commission structure of retail sales staffs in thailand - is it a norm to give everyone a percentage based on the shop's total sales?

Currently i give commission based on individual sales - whoever sold the item will get the comm. But my sales staffs are now "killing" each other and "snatching" each other's sales.

Someone said to me the normal practice here is to give each staff a percentage of the shop's total sales, is this true?

Anyone got any suggestions for me how to handle this problem? By the way i sell high end products, everyday maybe about 10 customers walk into my shop but normally only 2-3 will buy. Maybe this is why my sales staff gotta fight for sales? I have only 2 staffs now.

[givenall]

Give them legal minimum salary and do not give them commission on the total business sales, they become lazy when you share equally, the only way to motive them is individually, so give them commission on their sales only

[fletchsmile]

I'd say use a combination, without making formulas overly complex, so that you reward both total team performance and individual performance, as a balance between the two. i.e take some of the edge off killing each other, but still retain the value of those with better results getting more

Also consider coming up with some performance related rewards/ bonus etc which rewards less tangible factors and values you desire, teamwork, referrals.

Also with sales staff you'll inevitably have people with different strengths, eg those that bring in and interest or create "prospects" and those that "close" deals.

[nong38]

Always reward individual performance, pooled commission does make staff lazy, unless your 2 staff have decided to work as a team then you might look at things differently and reward that in some way.

With a sales ratio of 3 out 10 customers there is room for improvement, your staff need be knowledgeable and give good service to make people spend and asimportant, that they come back again and again. Good trade for you and repeat commisssion for them. I dont think this a Thai trait but if you can get it across you might be onto a winner. Good luck.

What is your line of business and where are you?