Question

Topic: Other

Sales Commission Compensation Plan

Posted by Anonymous on 9/13/2009 at 11:46 AM ET 25 Points
We are a small family owned retail business specializing in the manufacturing of jewelry. Our boutique also offers apparel, handbags, etc. We are now ready to launch the jewelry division into the market place and are considering hiring a representative for our line. This employee will also work at the boutique and be paid by the hour. My question is how to combine the two. 1) She will wholesale jewelry for commissions and 2) She will work for hourly wages. Trying to figure out if we
give her commissions on both retail and whlse? How much commissions? The going rate in wholesale for jewelry (accessories) seems to be at about 10%.

Any feedback would be greatly appreciated. I hope I am not confusing the issue here.

Thanks!
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RESPONSES

  • Posted by michael on 9/14/2009 at 2:39 PM Accepted
    I would go with an hourly rate and then a percentage of total sales...whether wholesale or retail. Otherwise, you have someone in the store who is thinking about how to get out instead of thinking of the sale.

    Michael
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