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MIKAL Salon & Spa Software

Ultimate Salon Software since 1982 

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Set up Ladder Commission Levels to Motivate!

Posted on September 25, 2018 at 10:20 AM

Develop a ladder commission that only pays the extra percentage on the extra dollars earned (not retroactive to dollar one). Make the percentage increases 2% or 3% based on increasing sales about $ 150.00 per level. This gives the employee a continuing goal to aim for.

 Commission example:

 Guarantee $ 320.00 per week to all 40 hour employees

 Percentage From $ To $

45% $ 500 $ 650

47% $ 651 $ 800

49% $ 801 $ 950 no product charge

51% $ 951 $ 1100 $ 1000 per week

53% $ 1101 $ 1250

55% $ 1251 $ 1400

57% $ 1401 $ 1550 no service charge

59% $ 1551 $ 1700 $ 1500 per week

61% $ 1701 $ 1950

63% $ 1951 $ 2100

65% $ 2101 $ 2250

 Note: this is an example of ladder commission levels. You must work with your consultant to set levels that will meet your sales and profit criteria.

 Sample:

Set to hourly $9.50

No overtime till over 40 hours

 No Item commissions

Yes to product deductions

Yes to service charges

Yes to assistant deductions

 No credit card processing deduction

 Ladder commission service

Straight commission retail

 No retention bonus

No activity bonus

 Using this pay structure an operator that brings in $ 1100.00 per week will earn:

 Base guarantee up to $380 based on hours but remember NO overtime - put that in your employee manual

ALSO speaking of manuals if you do not have one call us for a FREE sample - just let us give you a demo of our SEVEN system!

Commissions 45% $ 67.50 on 500 to 650 in service sales

Commissions 47% $ 70.50 on 651 to 800 in service sales

Commissions 49% $ 73.50 on 801 to 950 in service sales

Commissions 51% $ 76.50 on 951 to 1100 in service sales

Total compensation $ 508.00 Average 46% of sales in compensation

Categories: Staffing and Compensation Ideas

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