Rules For Split Sales

From Epicure, 10/3/2014  7:56 AM

Thanks for the question.  Here are some replies  from our editorial contributor Joe Capillo on this topic.

Also check out this article.

http://222.furninfo.com/Furniture%20World%20Archives/4006

I hope this helps.

Regards,
Russell

From Joe Capillo responding to question about re-selection: There are two rules that, to me, are inviolable: 1. The customer's experience must be seamless regardless of who serves them, and 2. whoever works with them gets paid. If a re-selection happens prior to delivery, just split the sale. If after delivery and commission has already been paid it can become more complicated, but the first order has to be cancelled anyway which in most systems would reverse the commission, then the new order will carry both names.

Whatever are the causes for the re-selection, I would want to know that the original salesperson made an effort to contact the customer and make an appointment to help them with the re-selection, but we know we can't control what customers do, so I would always want to honor my commitment to pay for work done. Hope this helps, but if you need more - just email me please.

Joe Capillo
Top Line Strategies
267-374-9127
joefcap@gmail.com


Posted By CONNIE, 3/29/2011

I am working on how to handle commissions with sales people when two customers come in, then split up and one ends up purchasing something from the other sales person. Does that sale get a split commission. Here is an example: A husband and wife come into my showroom to look at bar stools. The husband gets bored and comes over to the counter where the other salesperson is working and needs some accessories for his pool table at home, and makes a purchase. Who gets the commission for that sale? Is it split? Here is another scenario: The husband and wife come in together to look at bar stools. The husband gets bored and makes contact with the other salesperson in the showroom and starts telling them how some day he would like to have a pool table. So the sales person starts engaging him in the product and educating him. The customer comes back six months later and buys the pool table from the second sales person that he actually worked with. Who gets the commission? Is it split? I am trying to come up with a manual/rules on commissions and would appreciate anyone elses input on other items that I might want to list. Thank you! Connie M


From Joe Capillo, 3/30/2011  1:58 PM Reply to Connie
Connie,

This is simple. He (she) who does the work, gets the money. There can be no ownership of customers by salespeople simply because the customer may have passed through the salesperson's auora, and certainly not because someone else served his wife, or cousin, or friend's mother-in-law....It's not up top salespeople to manage interpersonal relationships - just to serve customers.

Use common sense. If you feel a split is in order, than do it. Yes, you need rules, but these situations are always in flux and you should not always have hard-and-fast rules to go to. YOU decide as needed.