Many retailers reward Store Managers and Sales Associates for achieving their targets. And that’s great! But why stop at 100% of target? Offering incentives and rewards for going above and beyond can be very beneficial.
Matt Parmaks, a Senior Consultant here at DMSRetail, tells a great story about how he once designed a compensation plan that rewarded Store Managers for achieving at several levels above 100%. For example, if you offer $500 for achieving 100%, then offer $750 for achieving 110%, $1,000 for achieving 120%, etc. You have to work out the numbers but, if your targets are set properly, then much of the added sales volume goes straight to the bottom line. You can afford to be generous if you’re getting the results.
Matt inspired a group of approximately 80 Store Managers with this plan and they produced 30% sales increases in two consecutive years.
Something to think about when you’re designing next years’ compensation plan, or even something to try for your holiday incentives.
All the Success!!
Dianne Miethner
DMSRetail Inc.
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