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Leo Hamel Policy Letter

Rev1

Giving Away Merchandise and Repairs

Sometimes a salesperson will want to give something away to a customer as a closing technique or just a thank-you. It can be in the form of merchandise or a repair that we would normally charge for. Since these items actually cost the store money, they must be factored into the sale. The price of the giveaway is taken off the price of the other item(s) that the customer is buying.

Giveaway Items

If the customer buys a $6,000 watch and the salesperson wants to give away a $200 winder, then the winder is rung up at $200 and the watch is rung up at $5,800.

We do not ever manage the cost of the winder into the cost of the watch or other item and sell them as one item.

THE GIVEAWAY ITEM IS ALWAYS RUNG UP AT THE MINIMUM PRICE, NEVER UNDER MINIMUM. If doing so makes the other item(s) go under min, then the entire sale is under min and the commission is calculated appropriately.

Giveaway Repairs

There are no-charge repairs that we do during normal business. See the “No Charge” Repairs policy.

If a repair is given away by a salesperson that is not one of the 6 no-charge repair types, it has to be backed out of the amount of the sale and statted to the repair department. The repair department determines price to the customer.

Leo Hamel, Founder