Typical commission for sales people?

[Venzen007]

Is there an industry standard percent range for sales people earning commission? What would be the high to low end of your typical store, excluding the outliers?

 

[Karl_K]

2 to 5 percent + salary/benefits in store. To get 5% + salary/benifits one would have to be a very good sales person. It also depends on the store and volume.
commission only 5%
salary only is getting more common with shrinking margins.

 

[Venzen007]

Thanks for the information, @Karl_K.

 

[sonnyjane]

One of our big local stores (Shane Co.) advertises that they do not earn commission so that there’s “no pressure to sell.”

 

[Daisys and Diamonds]

that's a lot lower than i thought
we always make a point of making sure the person who helped us first gets credit for the sale
for about 30 years my other half has cheesed this one appliance salesmen all over greater Wellington becsuse he's awsome
i would hate to be on commission, im not pushy enough
the worst ones are the people at the bank who get in the poop if they don't meet their add on targets with insurence
its not their fault

 

[MollyMalone]

Tiffany sales assistants here in NYC: 1% - 3% commission calculated monthly (in addition to hourly wage/annual salary + employee discount) -- and IIRC the 3% is possible only if you exceeded the monthly sales goal set by management. Monthly sales goals (which are high imo, seemed calculated to avoid having to pay the higher commissions) aren't adjusted downwards when a an employee is on vacation or sick. And if an item you sold is subsequently returned/exchanged, you can end up having to "work off" the commission originally paid to you. Plus, it's apparently not unheard of for senior sales staff or even minor executives at the 5th Avenue store to poach sales from more junior sales associates.

None of this mattered much to my niece, as she was hired for a temporary, holiday sales position (where you won't be paid more than 1% commission altho' your sales history will determine whether you're offered a position after the holidays), isn't interested in a future with Tiffany. She received high marks from her supervisors, but said she'll return to the flagship store this holiday season only if they agree to place her in the Home department where morale seemed higher.

 

[Karl_K]

Thanks MM.
1% ouch, but temporary holiday workers its not surprising.
Some places also have a training rate where the commission is lower for the first 3-6 months on the premise that someone else is going to have to spend time helping on the sale.

 

[Venzen007]

Given the low percentages, I'm guessing the percent is usually calculated off the entire sale price of the item rather than the store's profit?

 

[Karl_K]

Given the low percentages, I'm guessing the percent is usually calculated off the entire sale price of the item rather than the store's profit?

Sale before tax.

 

[denverappraiser]

One of our big local stores (Shane Co.) advertises that they do not earn commission so that there’s “no pressure to sell.”

This is a semantic argument although it's increasingly common. People who sell a lot get paid more. Sometimes quite a bit more, and if they don't they move on to places that do. Salespeople who don't sell much get fired. Yes, they track this. If that's not the gestalt of a commission, I don't know what is.