Footwear Insight

footwearinsight.com May/June 2023 ~ Footwear Insight • 23 Carla Irvin, owner of Plum Bottom, Harrisburg, Pennsylvania, stated, "We moved away from commissions because of the competition it engendered, as well as the reluctance of staff to pitch in with daily tasks. We do, however, pay a monthly bonus based on team sales goals". Eric Michelson, President, Michelson's Shoes of Lexington, Massachusetts, told us that his business doesn't pay commission "because of the competition it creates among the staff, especially surrounding dealing with other sales associates' returns." e owner added, "I want my associates to be attentive to the non-sales work and I want them to pass on a sale if it is the wrong thing for a customer. We do set weekly sales goals and if the team makes the goal, they get a bonus." An anonymous retailer from Florida noted, "e one thing that has changed is the addition of direct to consumer (DTC), which has greatly altered the traffic we would usually see coming in our door. To combat this, we have established bonus dollars based on monthly sales quotas for the entire floor so the entire sales team is involved in achieving sales goals and growth together." is retailer is a strong advocate for "building good team unity in which everyone must push each other to hit goals and everyone shares in the benefits." Jim Robeson, owner of SAS Shoes of Riverside, California, cautioned that "commissioned sales are for employees that understand the incentive associated with it." Jim felt that younger salespeople don't understand commissioned pay systems. There was also strong support for maintaining a commissioned based pay system, and comments from these industry veterans: Peter Sachs, General Manager for outdoor brand LOWA Boots offered up this analogy, "You eat what you kill! Otherwise, sales people sell the easiest and usually lowest priced merchandise." John Dhondt, independent wholesale sales representative, made these comments, "ere are many pros and cons to commission when competing in a store. You get what you pay for. One of my favorite lines an old shoe dog shared with me years ago was: 'Pay Bananas and you get Monkeys'". Gary Heflin retired retail western wear operator and independent rep, posted this comment, "e success of commission sales depends entirely upon the sales force. If you have order takers, no commission. True sales people are motivated by money and competition. I don't think you can teach desire and the will to excel. I don't know a percent increase number for you, I just know sales will increase. e ideal setup for me is all sales personnel are commission and you have a sales manager that does not compete with the sales force. He settles disputes, fairly and efficiently. He also helps to close sales if necessary. His salary is determined by the stores total sales." In Support of Commission An industry veteran stepped forward and emailed me an extensive set of comments in support of operating a commission-based pay system. Mau r i c e Bre ton , re t i re d C E O of Comfort One Shoes, Manassas, Virginia, is well known as a strong supporter of commissioned sales floors. Although his content was considerably more extensive, I have summarized his position as follows: Commission is good!! However, the shoe store owner must consider the type of organization, service level, and working environment he wants his store to reflect. A formalized "up system" is critical. e manager or lead person on the floor must manage the up system. • Don't go to commission without a up system or it will fail. Excellent training is paramount to running a proper commission- based store. • Commission sales does a fabulous job of building loyalty to your store, and to each and every sales associate. • Commissioned selling leads to fabulous one-on-one relationships with the customer. • Commission sales people must keep a private book on customers which is critical to building a business. Prior to trunk shows your professional, commissioned sales associate, well call their private customer list. That is the best marketing you can possibly have, and it's only achieved with a commission-based system. • ere is no way your store will be in the upper quartile of industry performance in terms of multi pair rates, inner-sole attachment rates and accessory penetration rates without commission. If you think a team commission scheme is appropriate, you're wrong, in my view. • You will never be able to retain performers in the upper quartile of the industry without commission. • You will never attract, and/or, retain highly productive people in your organization with the team commission system. • People that produce at the highest level of sales in the industry must be compensated at the highest rates. • Additionally, commission has no top rate. Quite simple - the more shoes you sell, the more money you make. Your income is dependent on you and your very own performance skills and attitude. Making Sense of it All ere were also comments from some who straddled the fence and tried to make Commission sales does a fabulous job of building loyalty to your store. Excellent training is paramount to running a proper commission-based store.

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