Here's my commission schedule that works!!

[northtanman]

Thought i'd post my employee lotion commission chart that seems to be really working. i have 3 full time employee's whom sell like crazy and are making good monies as a result and i'm also keeping my employee's longer too.
It works on LPPA...lotion per person average's....

anything below $1.65 they don't get a commission

from $1.66 - $2.74 they get 10% of gross sales

now, here it gets a little tricky...they have the ability to more than double their 10%...here's how.

if they get between $2.75 and $2.99 they get 25% more (than their 10%)

between $3.00 - $3.99 - 50% more

between $4.00 - $4.99 - 75% more

between $5.00 - $5.99 - 100% more

and if they get over $6 LPPA they get 125% more!!

theres quite an incentive to always sell and maintain a higher LPPA...

last month they nearly doubled last years lotion sales. they sold over $9,000 in july. (lotion only)

also for each $1,000 more than than last years totals, they each earn a $25 bonus. they were over 4k better than last years totals in july so earned another $100 each. i give it to them in gift cards and or cash...restaurants...gas cards...this incentive has them daily watching the totals...and striving to outdo last yers sales as a team...not ust their individual LPPA's....
in june they hit a high...and were over by 5k in lotion sales alone...which netted them another $125 each plus their LPPA commissions, which we pay every 2 weeks. the $25 incentives gets paid monthly.

hope this helps everyone as much as its helped us!! its an huge incentive for them to sell !!!!!!!!!!!!!!!!

[Jones]

ok ...explain this!!!!!!

If my lppa is $5.25...I get 10% of sales and because im btw 500-599 I get double commission??? So i really get 20% commission???

[enuf]

Is this commission scale for just your full timers? Do you have any parttimers and how does this work for them?

[JustTans23]

I'm not so good at math, but it seems like you end up paying them more than you profited on the lotion. But like I said, math isn't my thing.

[dcjjp1]

I do a straight 10% on bottled product, nothing on packettes (I might go with .50 per in the near future) and 5% on regular month and sessions packages. EFT's get a flat rate, level 1 $5, Level2 $7, Level 3 $10

[northtanman]

Originally Posted by Jones

ok ...explain this!!!!!!

If my lppa is $5.25...I get 10% of sales and because im btw 500-599 I get double commission??? So i really get 20% commission???

well, you get double of your 10%

[northtanman]

Originally Posted by enuf

Is this commission scale for just your full timers? Do you have any parttimers and how does this work for them?

i only have full time employees but its for any that you have on commission!! does'nt matter...they just have to average over the minimum to get at least, their 10% of their sales. but, they can get up to 125% of 10% too.

[northtanman]

Originally Posted by JustTans23

I'm not so good at math, but it seems like you end up paying them more than you profited on the lotion. But like I said, math isn't my thing.

Nope! maximum they can make on a $100 lotion is $22.50. if they are over $6 on their LPPA, and sell a bottle of black lets say...they would get their 10% ($10) but they'd get 125% more maximum...($22.50)
$100 lotion
-$22.50 comm paid
=$78.50-$25 cost=$53.50 profit to me.

the proof is in my sales! 9k in july nearly the same in june...of course more previous months.
i'm just sharing something that works!!!

[northtanman]

Originally Posted by dcjjp1

I do a straight 10% on bottled product, nothing on packettes (I might go with .50 per in the near future) and 5% on regular month and sessions packages. EFT's get a flat rate, level 1 $5, Level2 $7, Level 3 $10

so, they get paid whether they sell one bottle or a ton...my commissions entice them to sell constantly. a flat 10% does not. mine gives them incentives to up their LPPA and constantly be striving to get over $6 LPPA. they don't get a penny if they don't get over the minimum...and if they don't get over the minimum they get to clean beds...or get layed off...to make room for those that can sell!!!

[KoolTanz]

How would an employee figure out how much LPPA they have for a week?

[dcjjp1]

Sure, but there's a huge difference between getting $8.00 in commission vs. those that get $500+ monthly.

The one's that are lacking are let go or demoted to just cleaning beds (they usually leave at that time anyway)

[Mojave Tan]

What system are you using to track sales?
Do all employees have access to this data or just individual results?

[northtanman]

suntouch tracks individual sales....its easy. yes, employee's constantly figuring their sales...but thats what keeps them aggressive and our lotion sales better than ever

[Jones]

Now that I understand this, I can see how it will work very well. Thanks for sharing! I will mess with the numbers so that it works for my salon and see what happens!

Sliding commission scales normally work well for sales people...so if you have sales ppl...they will love this. My employees request daily thier numbers so they can keep a good eye on what they need to be doing to get their commissions.

[KoolTanz]

northtanman: Do your employees get paid commission on package sales or just lotions?

[Mojave Tan]

Helios...not so easy for employees to track sales. Unless you want them to have access to all data.

[KoolTanz]

Tan Track...not so easy for employees to track sales. Unless you want them to have access to all data.

[SurfCity]

I allow all my employees to see the Employee Averages report in Helios to see the Lotion PPA and the Services PPA. Most of the girls are competitive, so seeing how each other is doing makes them sell more.

[northtanman]

Originally Posted by KoolTanz

northtanman: Do your employees get paid commission on package sales or just lotions?

they only get paid commissions on lotions and certain packages when i run a special for them to push. they sell packages very well anyhow. the way i kinda look at it...people walk thru the door to buy tanning anyhow, but lotions need to be "sold"

[STC1996]

So basically your doing it like this....

$1.66 - $2.74 = 10%

$2.75 - $2.99 = 12.5%

$3.00 - $3.99 = 15%

$4.00 - $4.99 = 17.5%

$5.00 - $5.99 = 20%

$6.00 and up = 22.5%

Is this pretty much how you are doing it? I crunched the numbers and that is what I came up with.