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RandomMrdan's avatar

What do you think of my pay structure?

Asked by RandomMrdan (7439points) December 21st, 2008

I work in retail, and I’m paid on commission. The way I’m paid depends on two variables, Sales/Hr and Margin Attached to each computer sales (with the exception of refurbished computers). I work at a Micro Center, and they seem to be price driven like so many other places now a days. It seems a lot of items are getting to the point of being disposable when and if they break giving people less reason to buy warranty. Or, we sell so many “netbooks” (small little laptops), that are really designed to be a second or third computer that no one wants to buy anything with.

Here I am in the middle of the holidays dealing with the most customers I’ve seen all year long, selling more volume, still managing to sell warranty. But if you compared my sales to a friend in another department, he has made more money than I have selling less volume, and less warranty. I feel as though I’m being shafted, I am a top performer nearly all the time, but the system is bringing me down.

Oh, and another factor in my pay structure. There is an 8 weeks running table that moves with me. For each two week pay period, they look back 8 weeks to see how well my sales/hr and margin was to determine my pay (8 weeks ago we were dead, and sales were few and far between). So it seems convenient to get paid very little during the busiest time of the year. Working harder to make less.

Do you think they may change this structure to give us some actual growth in my department? Or let it work itself out to get people back in my department willing to settle for less pay?

Some factors I’ve even thought would fix this slow uphill battle against a pay structure would be a couple different scenarios. 1) they simply take computers under 400 dollars out of our pay structure (they don’t factor in for margin attached, only come out as sales/hr), or 2) Change it all together, lock us in at 1.5% for primary items such as computers, or TVs, and everything else that we can attach we get 2% to still give incentive to make attachments.

The problem they always tell us is that we will stop trying if we get locked in. I would argue that if we get paid more to sell attachments we would still try for those items, and other departments are locked in, so why not ours?

Either of my scenarios will still give us incentive to sell attachments and give top performers more pay over time. I honestly don’t see anything improving though.

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9 Answers

RandomMrdan's avatar

I hope I’ve explained this well enough, ask me if you don’t quite understand how my pay works. Oh I forgot to mention, my percentage of sales I get will usually fluctuate between 1.0–2.3 depending on how well I do. And I get 4/hr base pay, and 10% of any warranty sold.

Snoopy's avatar

Wow. That gives me a headache. Whatever you suggest to your employer, you will need to come up w/ a suggestion that will benefit not only you (and your co-workers) but also benefit the company in some way….
Will these new pay structures help them move more product?
Will it help them retain good employees?
Will it help them attract good employees?

To get them to change, you will have to sell the benefits of your (potential) pay raise…..otherwise they will just shoot it down outright. After all, you are working there now at the current scale…..

RandomMrdan's avatar

@snoopy believe me, it gives me a headache too. It’s so convoluted, sometimes I don’t even know what I’m getting paid until payday and I realize I’ve been shafted.

srmorgan's avatar

From management perspective, when dealing with commissioned salespeople you get what you pay for. In other words, if I incentivize paying a higher percentage on gross profit than on accessories, then the salesforce will concentrate on higher dollar items and skip the surge protectors or the thumb drives.

My supposition about the rolling 8 week statistic is to allow for the variation in foot traffic that might come into the store. If the entire place is slow, then no one gets a competitive advantage over anyone else.. If you have a great week, you continue to get credit for that week for a period of time even if you have a lousy week.

This is always a contentious subject.

Do you work for a big box or for a local operation??

SRM

RandomMrdan's avatar

This is slowly turning into a big box, at the moment there are 22 stores nationwide.

Mizuki's avatar

This is the sales person’s problem these days. My husband has always made 100k+ for 20 + years in sales, in 5 or 6 different industries.

In the last 2–3 years he has taken a 75–80% cut in pay, even though his sales are higher than ever before. Think about supply and demand: there are so many unemployeed sales people that companies can put together a pay structure that screws the workers/sales people.

When the sales person gets tired of being screw he/she quits and there are 100 sales persons ready to take the same job for a few months, until they get tired of being screwed and quit too. This works very well for the company, and most sales companies my husband says are following this model.

Screw the sales person, let them quit, repeat process. Get used to it or find another career. In a weak economy, sales people get shafted the hardest, and most often.

LKidKyle1985's avatar

dayum son you gettin screwwwed

judochop's avatar

RandomMrDan: Find yo ass a new spot to kill 40 hours ASAP.

RandomMrdan's avatar

thanks for the words of advice guys.

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