Straight salary and Straight commission compensation plans
A salesperson is only entitled to pay, which is a function of time worked and not performance-oriented in a straight salary. This method of wages does not include any commission but a fixed salary. One of the advantages is that it is convenient for new employees. It provides a steady income when one is still learning selling skills. It also comes in handy for experienced employees that are transferred to a new market where products are still unknown.
The second advantage is that it encourages team selling that allows for faster movement of products. The teamwork is created when a salesperson contacts the customer. The product experts are then brought in to close the deal. Straight salary also provides security as it is fixed. Due to this constant pay, one can plan and manage their finances.
Straight salary disadvantages include high turnover. Since salespersons are not rewarded for increased sales, they are less likely to make an effort to achieve them. This may force a company to use threats of firing to deliver improved sales, which is a short-term solution that will result in high turnover. This compensation can also lead to less experienced employees as It only attracts those who value security and stability more than taking advantage and opportunities through commission-based payment.
The straight commission is calculated as a percentage of the sales volume. There is no fixed salary paid, and the commission paid is a function of the performance. One of the significant advantages is a salesperson can earn unlimitedly. Salespersons are also confident of what they make upfront from the sale, encouraging them to be vigorous. This compensation method naturally encourages people to work hard as they need to convert sales to receive a paycheck.
The straight commission, on the other hand, restrict payments until a sale is confirmed. It also takes a long period to create a dependable wage as income is based on what is sold. Agency costs like phone calls and printing contracts occur whether the sale happens or not. It also requires great skill to be able to convince people to buy your product.
Straight salary, in my opinion, is the best compensation plan. This is because job security is highly essential for personal management and growth.
Training program
Building a well-rounded new employee board is vital to a company. The first step is to introduce them to the company. This helps in reducing pressure, discovering various skills and talents, and most importantly start building relationships with them. The second step is to impart the procedures and policies of the company. This information includes dress code, security, working hours, benefits, and attendance. The third step is to communicate the mission and goals of the superstore. It is crucial to project the background information to the newly hired employees to give them a picture of the past, present, and future direction of the company. Visions and missions of the firm are communicated exclusively to ensure that they understand the goals of the company. Let them know the marketing message and the target audience. The next step is staff scheduling, where working cycles at these booths are organized. Rotating the new employees on these booths will help eliminate exhaustion that may make one not openly welcome a customer. The next step is to ensure that I communicate vital prospects and clients to the employees that will help attendance to customers who usually look for a specific salesperson passing the relevant information. The next step is to carry out demonstrations, be it on a display screen or the actual product. This will help to deliver the message to the customer appropriately, which will save on time. The next step is to build teamwork by calling on daily meetings to share experiences, reinforcing the environment, and generally having fun. The sessions are short but encourage communication and feedback.
Mentoring and apprenticeship training method is the best as the experienced staff show the new employees how to give out samples to customers.
Marketing tools
Use of the samples to eliminate doubt to customers. The superstore can eliminate doubts of smooth skin as a result of the products by using free samples. The superstore can also use the free samples for lead generation in that the customers provide email and phone numbers in return. This provides a record for future sales and tracking. The superstore can also use these free samples as a surprise gift to strengthen the relationship of its customers. These samples can also be given at a high perceived value to the customer to create a high-end impression that the product is costly. The superstore can also offer samples that are part of customers’ daily lives. This will help them stay in front of their competitors for a very long time.