MIKAL Salon & Spa Software

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Set up Ladder Commission Levels to Motivate!
Posted on September 22, 2020 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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