What is a Tiered Retail Commission structure?
The tiered structure allows you to create a variable commission structure based on the amount of sales generated by the staff member. Thus, as the sales volume increases so does the commission percentage. For example, you may offer 5% commission to staff who sell $100 - $300 worth products, and 10% commission when the sale increases from $301-$500. This structure encourages employees to make additional sales.
In Book4Time you will need to create a tiered structure under Retail Commission Profile and assign that profile to individual staff profiles.
Tip: You can create multiple Retail Commission Profiles based on your requirement and assign them to various staff members. For instance, you can create one profile for junior staff and another profile for experienced staff.
How to set it up?
- Select the commission type:
The retail commission rate module supports commissions based on two different methods. Choose one method that best fits your requirements:
- Retail Penetration: Calculates commission based on a preset retail penetration rate. Penetration is based on the value of products sold by the value of services performed by the technician. To set this up, read: How to set up a commission profile based on retail penetration?
- Retail Sales: Calculates commission based on technicians achieving a preset retail sales value i.e., the value of products sold by the technician. To set this up, read: How to set up a commission profile based on retail sales?
- Assign the appropriate commission type created in step 1 to the technician profile from Staff > Staff Management > Expand Service Profiles > Select the location > Select the technician name and click Edit at the right corner of the screen > Select the retail commission type from the Retail Commission Profile drop-down.