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DECEMBER 13,
1924
THE MUSIC TRADE
REVIEW
13
Making the Sales Organization a Unit—(Continued from page 11)
men in closing deals when co-operating should
be based fundamentally on who has accom-
plished the most in bringing the transaction to
a successful conclusion. That would necessi-
tate judging each transaction on its merits so
as to apportion the compensation justly. This
assumes, of course, that both are working on
a commission basis. Floor men in piano ware-
rooms are as a rule highly developed selling
specialists who have reached their position
through a process of advancement as a result
of successful work and are employed usually on
a salary basis. Their duties include giving help-
ful support to the outside men who are usually
employed on a commission basis, and it is my
opinion that a fixed salary to the floor man
commensurate with his proven ability and a
liberal commission to the outside man furnishes
a standard of co-operation which experience
has shown to produce very good results."
How the Cotter Piano Co. Does It
Here are the views of John L. (otter, of
the John L. Cotter Piano Co., of Boston: "An
equitable plan is for the floor salesman to re-
ceive 2 per cent on the net amount of the
sale when the outside salesman brings the cus-
tomer to the store, the house to pay the com-
mission. When the floor salesman goes out
with the outside salesman to help close a sale
his commission should be 4 per cent, half
of which is taken out of the outside salesman's
commission.
This penalty of 2 per cent
makes the outside salesman work harder to
bring his customers to the store."
Salary Plus Bonus or Commission Is
Found Most Satisfactory in Milwaukee
*T*HE necessity of co-operation between the
floorman and outside salesman has been the
cause of many stores trying various plans of
compensation. However, after going into the
question carefully, the majority of Milwaukee
stores seem to agree that a salary plus a small
bonus or commission for all deals closed by
the floorman is the best method of securing
co-operation from salesmen who work in the
store. The outside man is given his full com-
mission for deals he may close outside or that
he sends to the store to be closed by the floor-
man. Likewise, the floorman receives his com-
mission or, bonus on sales which he closes
without regard as to whether the customer was
sent in by the outside man or came in as a
drop-in. In this way, the floorman has no cause
to discriminate against or in favor of the cus-
tomer whom the outside man brings to the
store, and the outside man is content to re-
main outside. In some cases a straight salary
for the floorman is favored and this plan has
the same advantages of the other, although the
extra commission might act as a stimulus to
greater effort.
Full Compensation to Outside Salesman
Edward Herzog, sales manager of Edmund
Gram, Inc., believes in giving the outside man
every advantage in order to keep him outside.
If a floorman closes a deal on which the out-
side man has been working, the outside man
gets his full commission. However, Gram's of-
fer a bonus to the floor salesman for a certain
number of sales closed on the floor, in this way
increasing his interest in closing as many deals
as possible.
A similar plan is followed at the Carberry-
Parker Co. At this store, the floor salesman
receives a certain commission on his sales re-
gardless of who may bring in the customer.
Several plans have been tried out at this store
but this has proved most successful. It elimi-
nates any hard feeling between salesmen and
does away with any tendency to discriminate
when customers come into the store.
"I believe in having the floorman on a salary
with a small commission, like one per cent, on
deals they close, or on a straight salary, but
I prefer the salary and commission," stated
Hugh M. Holmes, manager of the J. B. Brad-
ford Piano Co.
Salary Plus Commission Favored
A straight salary for the floor salesman and
salary and commission for the outside man is
the plan of compensation followed at the Flan-
ner-Hafsoos Music House, Inc. "The outside
man should keep the floorman as fully informed
as possible regarding his prospects, and the
floorman should act in good faith with the out-
side man and not emphasize his own importance
in case a sale is made," said John B. DeSwarte,
of Flanner-Hafsoos.
Los Angeles Music Merchants' Methods
Vary With Practically All the Houses
U O R M S of compensation to piano floor sales-
men and outside salesmen vary considerably
among the different houses. Consequently the
point of view in regard to the form of com-
pensation which serves best to enlist the full
co-operation of the floor salesman with the
outside man in closing deals, is not altogether
in accord.
A great deal depends, of course, upon the
policy of the house in regard to outside sales-
men. Some salesmanagers cultivate the out-
side field persistently and consistently; some
divide their salesmen's time between floor and
outside, while others almost neglect the outside
entirely, relying altogether upon the customer's
return and making no attempt to go after him.
The sales manager who has a number of out-
side men is usually inclined to favor them in
regard to any splitting of commissions with
the floor salesmen when a deal has to be finally
closed by the latter. In order to avoid paying
a double commission he generally cuts the in-
side man's commission in two and gives the
outside man most, if not all, of his compensa-
tion. This, in the opinion of many, does not
enlist the full co-operation of the floor sales-
man. It makes him indifferent or sore and he
does not take a full interest in such deals.
On the other hand where a house has adopted
the policy of paying the floor salesman full
commission on deals which have been dug up
or sent in by the outside man and has de-
ducted a part of the latter's commission, a sim-
ilar effect has been produced on him as in the
case of the floor salesman where the policy
was reversed. A few experiences of this kind
generally lead to the end of the outside man's
services; it produces extreme dissatisfaction and
quickly disheartens a man who has a rough row
to hoe from the start. This is particularly so
where the house's policy insists on an outside
man staying out and requiring all inside closing
to be done by the floor salesmen and done by
them alone.
Again the Salary and Commission
Perhaps the fairest and most encouraging
plan with a house that occupies a favorable
location and has a large drop-in and visiting
trade is to pay the outside man or two who
are employed, a fair salary together with a
small commission payable on sales completed
by himself outside or finished on the flAor by
one of the inside men, who also receives his
full commission. This plan may appear to in-
volve a double commission but the point of
view or idea of the house should be that their
outside men are employed partly as service men,
to visit customers and see that they are satis-
fied and partly as appraisers and valuers of
pianos which customers desire to exchange as
well as other duties. Outside salesmen of this
kind receiving a fair salary will naturally be
on their mettle and try to close deals independ-
ently outside but they can also view the closing
of their sales by the floor salesmen without
heart-burnings, while the latter render the full-
est co-operation in their desire when called on
to consummate such sales.
Quota Finds Favor With
Cincinnati Merchants
"What form of compensation serves best to
enlist the full co-operation of the floor sales-
man with the outside man in closing sales?"
The foregoing question was asked of execu-
tives of several Cincinnati piano houses, and in
every case except one it was stated in reply
that as an incentive the floor salesman is given
specific extra compensation for closing deals
for the outside men. In some cases the replies
were to all intents and purposes duplicates of
each other, and therefore these are only given
once. There were fourteen interviews in all,
with houses that have outside men.
Operating on the Quota Plan
The one house that docs not give specific
extra compensation to floor men for closing
deals for outside men, as an incentive to make
their best effort, bases its inside salesmen's
compensation on a given amount of sales, and it al-
lows him extra compensation in case he exceeds
the amount. As all sales that a man makes arc in-
cluded, sales made for outside men help him as
much as sales to his own customers. In cither case,
he is compensated for all sales that he may
make. In this way he has an incentive to help
the outside men.
Several firms require the outside man to give
a part of his commission to the floor man in
case the latter makes a sale. This is regarded
by users as a just and equitable method, be-
cause the floor man performs a service for the
outside man. It is also regarded as a suffi-
cient incentive to the floor man. Only a cer-
tain percentage can be allowed for selling, it
is pointed out, and if it takes two people to
make a sale, each must be satisfied with his
share.
One house gives specific extra compensation
to floor men for disposing of used instruments
and slow-sellers, whether an outside man brings
in the customer or not. For instance, the in-
side man may be allowed $5 above the usual
commission for disposing of a piano that has
been taken as part payment on another and
which is hard to dispose of. The salesmen are
told what premium will be paid for the sale of
each instrument that the firm is anxious to dis-
pose of, and this extra incentive is very ef-
fective.
The "Crem" Plan
One large firm puts a floor man in charge of
closing the sales for several outside men, and
he gets a share of the commission. That is,
men in one outside group bring their customers
direct to a specific salesman and always work
with and under him. He directs the members
of the group to a large extent, and "keeps
them on their toes." There are several of these
groups.
The remainder of the firms pay the outside
men a stated commission on all sides, and in-
side men receive a larger commission for sales
to their own customers than they do for selling
to custcgners of outside men. Rut the commis-
sion for making sales to customers of outside
men is large enough to be an incentive. Those
who use this plan state that it brings about
excellent team work for all concerned and it is
regarded as fair to everybody in the entire or-
ganization.