Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
DECEMBER 13,
1924
THE MUSIC TRADE
REVIEW
11
Making the Sales Organization a Unit—(Continued from page 9)
prospect is induced to buy, full credit is given
to the outside man. The floor man as well
gets his usual per cent on the sale and/ thus
gives as much effort as though it was his own
customer. In giving the floor man his percent-
age on the sale, the house assumes this cost
and feels that it can well afford to since it
promotes the fullest co-operation between the
outside salesman and the floor man. All sales-
men schooled in this system are confident that
they will get full co-operation and compensa-
tion. This plan is followed in a general way
by the Rapp & Lennox Piano Co., reports A.
T. Rapp, though, in this case, while the out-
side man receives his regular percentage the
floor man only gets a certain stipulated per-
centage for his share.
*
How the Christena-Teague Co. Operates
At the Christena-Teague Piano Co. the out-
side man receives the full credit of the sale
even though it was made by the floor man.
The floor man gets the good will of the outside
salesman even though no compensation. Mr.
Teague reports this plan as very satisfactory
at this store since each salesman has one after-
noon a week at the store and gives to every
customer the same selling service. Thus every
salesman knows that he will receive full co-
operation from the others and has the full back-
ing of the store. This plan is likewise followed
by the Starr Piano Co. store, according to H.
G. Hook, manager. Each man takes his reg-
ular turn on the floor and gives the fullest
co-operation to the outside man, knowing thai
he will receive the same support when he him-
self is in the field.
Working on a Salary Basis
The Indianapolis Music House follows the
plan of giving the outside salesman his full
credit on the sale that the floor man makes for
him. The floor man at this store is on a salary
basis and recognizes as his duty the taking
care of all customers. Hence the outside sales-
man is fully protected. This plan, according
to Hal P. Shearer, president of this company,
has proven very satisfactory.
The Carlin Music Co., one of the oldest and
foremost stores in the piano and small instru-
ment trade in Indianapolis varies somewhat
from the above plans. All the outside salesmen
and floor men are on a regular salary with no
commission.
Who Receives Credit
If, however, the floor man does consummate
a sale for the outside man, the outside sales-
man, as a matter of record, receives the credit
for that particular sale. From a standpoint of
compensation, however, the sale does not mat-
ter. This method, states Frank Carlin, has
proven very satisfactory and workable.
Straight Salary Basis for Inside Men
General Rule With Toledo Dealers
I T IS generally conceded by music merchants
•* in this market that what can be called the best
form of compensation to enlist the full co-oper-
ation of the floor salesman with the outside
man in closing deals, is close working together
of the two for the good of the house.
That is to say outside men are paid as a
rule either a salary or a salary and commission.
Some few work on a straight commission basis
but they are the exception. Many have drawing
accounts, but to be sure, they must earn the
amount permitted to be drawn else the account
does not mean a thing to the salesman. The
floor salesman usually works on a straight
salary basis, therefore, there should be no ar-
rangement between him and the outside man
as to remuneration for closing sales. It is his
duty to sell customers who come to the store,
no matter who drove them in or what instinct
or impulse enticed them to the shop. In this
territory every house has a record of the pros-
pects each salesman is working with and if any
one of the possible customers of any salesman
comes in and purchases a piano, talking ma-
chine or other instrument, the outside man is
given full credit for the deal, regardless of how
much effort the inside man had to exert or
use up in order to close the sale. He is there
for the purpose of getting business from the
persons coming into the house and to give
complete co-operation to the fellow on the out-
side.
Such is the plan followed by such long-estab-
lished and successful houses as the J. W. Greene
Co., Grinnell Bros., the Goosman Piano Co.,
the Cable Piano Co. and others. The rule is
held so strict with most enterprises that if a
floor salesman were found violating the policy
of doing his full share towards closing a deal
or if he demand a share of the commission
from an outside man he would be dismissed
without ceremony. The way of the outside man
is hard enough without having him harassed
still more from inside the house.
Wide Variety of Methods in Use Among
Music Merchants in Baltimore Trade
A
CANVASS of the trade here shows that
quite a number of music stores have elimi-
nated the practice of having an outside and in-
side sales force and find that they get better
results from just a floor force who follow up
prospects on the outside when the occasion
arises. The consensus of opinion here among
the houses which use outside and inside sales
forces is that there must be an incentive for the
inside man to work to close a sale for an out-
side salesman unless there exists perfect har-
mony among the two forces.
One plan which has proved quite successful
here is that of putting the inside salesmen on
a salary and commission and the outside sales-
men on a small salary and commission, al-
though some of the houses have very valuable
outside salesmen who insist on having a draw-
ing account and straight commission.
Taking Care of the Closer
One firm which has made quite a success of
both outside and inside salesmen allows the
outside man a salary of $20 and $25 a week
and a commission of two per cent on all sales
of pianos, whether closed outside or by an in-
side salesman. In the latter event the man
closing the sale is also given "something" for
his trouble, as the proprietor put it.
"I find this system works to the satisfaction
of all," he said, "and I believe that it is the
only satisfactory method than can be employed
when working the two forces. If an outside
man works up a sale and the prospect comes
to the store to select the instrument and close
the deal while he is not there the outside man
certainly is entitled to full commission for his
part in the sale. On the other hand, the in-
side man takes up considerable of his time with
the prospect in finally closing the deal and ac-
cordingly is entitled to something for his part
of the sale.
"It is practically impossible to get perfect
harmony between the two forces, that is, to the
extent that one force will close a deal for
another force where both are working on salary
and commission. The only way that I see to
overcome this is to give both of them part,
of the commission.
"In the final analysis it's the sale of the piano
or player piano that the house wants and in
order to get the business you must have a
satisfied and contented sales force and the only
way to have such is to pay them for their work
in making sales' whether made inside or outside
of the store."
Believes in Straight Commission Basis
Several other firms believe in keeping the
outside sales force on a strictly commission
basis and a drawing account regulated by the
amount of business brought into the house.
Said one dealer:
"If a man is working on salary and com-
mission he will, in many cases, lay down on
the job. For instance he has an engagement
to see a prospect to-night and the weather turns
bad or he makes another engagement for a
pleasure trip. In 99 cases out of a hundred he
will not go to see the prospect but will say,
'I have $20 or $25 coming this week anyway,
so I will see the prospect next week,' and passes
up the possibility of a sale, which may be lost
when he gets there 'next week.' If he is work-
ing entirely on commission he will see that
prospect in spite of everything and probably
close the sale that night."
Summed up the situation here resolves itself
into one that each firm must regulate according
to its own business and the class of custom
catered to.
Opinions Differ Widely
With Twin City Dealers
Opinions vary a bit in the Twin Cities as
to the best way of insuring the co-operation
of floor salesmen and outside men. Conse-
quently the methods employed by different
firms are varied.
The Stone Piano Co. finds an efficient method
is to allow a bonus not only to the outside
man, but also to the floor salesman as well,
according to Arthur E. Monson, manager,
Edward R. Dyer, of the Metropolitan Music
Co., said, "I am very emphatic in believing that
the commission should be divided among the
men who are instrumental in making the sale.
The firm should not be expected to pay a series
of bonuses for the same service, that is if two
men or three men all have part in making a
sale, they should share equally in the commis-
sion, which would be divided into halves or
thirds as the case required."
Webb R. Raudenbush said that his firm of
S. W. Raudenbush & Sons for the 25 or 30
years which they had been in business had
changed their methods at times but believe that
their latest idea of allowing an outside man
a small commission while keeping their inside
man on an adequate salary was the best.
Closing Credit Used With
Boston Dealer's Salesmen
As to the form of compensation that serves
best to enlist the full co-operation of the
floor salesman with the outside salesman in
closing deals the practice is, at the C. C. Harvey
Co., that the floor sales staff receives a closing
credit, which is applied to their benefit on a
pro rata basis according to the value of the
sale. Two distinctive credits are allowed its
salesmen: first, sales credit; second, closing
credit. The sales credit is for the one origi-
nating the prospect, the closing credit is the
one allowed for topping off the sale. The clos-
ing credit equals one-half the value of the sales
credit.
Giving Credit Where Credit Is Due
The views of Walter J. Gillis, of the Boylston
street company, bearing his name, has this to
say on the question of compensation: "The
compensation to both outside and floor sales-
(Continued on page 13)