working on an hourly wage
do not apply to this discussion. They usually make minimum wage and work at big box stores
like Best Buy
or Future Shop
But the all-mighty commission sales
person... The profit potential is boundless!
Every item in a store has a price tag
. A percentage of that price goes to the salesperson when you buy it. This is sometimes as high as 15%, more often 10%, and most often by far in the 1-5% range. Warranties
and other non-tangible
add-on items are usually pegged around 10-30%.
Case in point. A salesperson makes one sale - a $10K Sony Plasma TV
with $500 stand, plus a $2K warranty.
3% of the TV is $300.
4% of the TV Stand is $20.
20% of the Warranty is $400.
For spending around an hour with you, this salesperson has just made themselves $780. That's one hell of an hourly wage.
This is of course balanced with the extreme opposite, spending 2 hours with a customer
that buys a $50 VCR making you 50 cents.
Smart salesmen spot you and your fancy new shoes
and know how to upsell. "You don't want that $50 VCR, you want an $80 VCR! Honestly!" It's all in the sales pitch
What is more curious, however, is that supervisors over the salespeople
usually get a small percentage. 0.5% plus a monthly salary, for example. The store manager
s will get a larger salary plus a big bonus structure. Regional managers are well rewarded for the amount of volume their region ships. But when you get down to brass tacks
, they are all salesmen at heart. The only people not making a boat of money
at a retail store
is the customer service reps
and the warehouse guys
Yet another nodesave! I'm on a roll.