Commission Paid to Non-Sales Personnel

On occasion “non-sales” employees will assist in making sales for the Retail Sales Department. Sometimes all the salespeople are already helping other customers or have different reasons for turning over a sale to another employee. The non-salesperson who gives their best effort and closes that sale will be paid a commission.

In general, non-salespeople will earn a slightly higher commission on their sales to encourage and thank them for helping. We usually base commission on profit, not GI.

Commission schedule is:

• 30% of the amount over minimum
• 7% of the amount from adjusted cost to minimum
• If sold for under minimum, 3% of the adjusted profit

(Adjusted profit: we adjust the item’s original cost for additional costs such as repair labor and market value.)

DEFINITION: SPLITS

Splits: Any sale that is split between two or more salespeople or a salesperson and the store. The store can receive a split when a non-commissionable person helps a sale, such as a Sales Manager or Leo. Neither of them takes commissions, so the commission would go to the store.

If a salesperson is on vacation or out sick, and their customer comes in or refers a new name, we split the sale. The original salesperson keeps the original customer or the referred new customer. The referred customer is NOT treated as an “up” for the salesperson who helps them because they don’t get to keep that customer.

We may also split the sale when two people work on the same sale.

A split can be 50/50 or 70/30 or any such. If a disagreement arises about how to split the sale, the decision is made by the sales manager.

Because salespeople need to close their sales, if a Sales Manager closes or significantly helps a sale, the sale is split 50/50 with the store. The Sales Manager makes this call and should err on the side of the store as the Sales Manager should not be closing sales or spending significant time on them. The salespeople should improve their skills so that they don’t NEED the Sales Manager to close.

Splits between salespeople at different locations can happen when a customer shops two locations. These splits can be coordinated between salespeople before the sale if known about in advance. The salespeople involved work out the split and note it in the customer’s record. Accounting will count the sale in the store where the item was picked up.

If it ever happens that two salespeople end up helping the same customer (at two different stores, over the phone, or at different times) and a sale is made and one of the two did not fully update the computer, then the sale may NOT be split. Updating the computer is that important. The sale belongs to the salesperson that updated the computer.

Example: Customer Beeg Spender comes in one store and learns all about HOF. Beeg spends two hours with salesperson Lazy Jo at the end of the day. Lazy Jo decides only to update the computer that the customer came in. Beeg Spender goes to another LHFJ store and asks to look at HOF and buys a 5ct engagement ring from Slick Sally. The next day Lazy finds out and screams to high heaven, “Hey! That’s my customer!” Sales Manager Terrific Terriey looks up the customer and sees a note that says, “Beeg Spender came in on Tuesday.” Nothing about HOF, engagement rings, or anything else. The ENTIRE SALE can go to Slick Sally because Lazy did not fully update the computer.

Fully updating the computer protects you.

If the sale is to be split with a salesperson as above, ring it up under the salesperson’s e-code and add the non-salesperson’s name on the invoice, as is usually done for a split sale. If the non-salesperson did enough to earn a split, they know it, and the salesperson knows it too. If they just stood with the customer for 5 minutes and then turned them over, that is not a split.

For split sales, the split will be 50%-50% on GI and GP and commissions.

This policy applies to sales assistants, buyers, repair, estates, marketing, IT, and yes, even accountants! So when someone calls us out on the floor, let’s make our best effort to close those sales!

We do not wish to encourage conflict regarding who will help what customer. Suppose a non-salesperson starts with a customer, and a salesperson becomes free and wants to assist with the sale. In that case, the non-salesperson is to turn the sale over gracefully with complete data to the incoming salesperson and with good manners towards the customer. Don’t stomp off in a huff or leave the customer with the impression that something is wrong. We want our fully trained, professional salespeople to be closing sales whenever possible.

However, if the non-salesperson is doing fine and closing a sale, a salesperson should not sweep in at the last minute to try to get half the sale! It’s awkward for the customer and unfair to the non-salesperson who has worked to close the deal.

And if it’s left up to you, the non-salesperson, to close the sale, don’t just phone it in – give it everything you have, and we all win!