AD sales person commission?

[nagano2125]

Anyone know how and if the Sale-Person at an AD works off of commission? If so any guess as to how much? Just curious because I am looking to make a purchase, and was wondering if and when they offer a discount if it is coming out of their pocket. If it is probably part of the reason why they are far and few, besides Rolex's rules etc.
I am guessing this is probably store dependent but still if anyone knows pass it along, helpful when trying to argue over price etc.

[SWISSAHOLICS]

From what I know, sales reps at AD do work on commission. Their commission is based on the purchase price before taxes. So the higher the discount, the lower their commission. But that usually does not stop them from discounting because in the end, their goal is to sell and meet their quota at the end of the month.

[lja1821]

Id be hard pressed to think that the salesperson is not getting some type of commission. If so ,that is an employee cost ,which gets absorbed by the ad. Im sure thats priced in on the merchandise.

[77T]

Each AD has its own policies. Owners have the option to pay very good salaries and then award bonuses for performance - either for the whole team, or individual performance. Or they can go with a lower salary and a regular unit commission on each individual sale.

If they use individual sales commissions there are other factors affecting the amount. If they pay something like 10% for a sale at MSRP, any discounting can have a compound impact. For example, sales at 95% of MSRP may only be paid at 9%; 90% of MSRP paid at 7%; etc. So the value dips and the commission % shrinks to encourage selling as close to MSRP as possible.

At some price point, the sale could approach the store's cost + overhead level, then the sale could be coded as a "mini-deal". And then a flat $100 is paid.

You might wonder why any commissioned rep would do a mini-deal? Well in such a model, each person has volume commitments (aka sales objectives) and the deal value might help them make quota near the end of the measurement period. Also, sometimes sales contests may be underway and that deal may put the seller over the top and the prize could be much more than an individual deal's commission value.

Finally, in a full-commission model (mostly for the more tenured associates), the manager really must approve all deals or the store might not build enough profit over time to replace inventory and cover reinvestment in the business...

Hope that helps!

[The GMT Master]

I didn't see a penny's commission when I worked at an AD. Depends entirely on the AD. There are pros and cons to having commission and not having it

[MonBK]

Originally Posted by The GMT Master

I didn't see a penny's commission when I worked at an AD. Depends entirely on the AD. There are pros and cons to having commission and not having it

You have to actually sell a watch to get a commission Chris.

[The GMT Master]

Originally Posted by MonBK

You have to actually sell a watch to get a commission Chris.

[cop414]

Originally Posted by MonBK

You have to actually sell a watch to get a commission Chris.

Yeeeooouuuccchhh!!!

[77T]

Mon still feeling his oats

[Art 1]

5% and drops to 1% if any discount is given.

[scottIN]

When you walk into an AD, you should be able to tell if they're on commission or not. Just watch them. Do they rush up to stake their claim on you? Do you talk to the person at the counter and then they give you to the next 'up'? Or if they just walk by you and don't take any interest, they're salary.

Last AD I went to, the guard asked me what I wanted to look at, then looked at a card he had palmed and called someone over to help me. Definitely commission.

Ever been to the Buckle? First time I walked in there, I knew they were on commission.

[MonBK]

Originally Posted by 77T

Mon still feeling his oats

I do and will be switching to Corn Flakes tomorrow.

[Brenngun]

I never concern myself with the salesperson's commission. That's between them and their employer. Only thing I'm concerned about is if they hit the number that takes it out their case and puts it on my wrist. If they can't then I walk. There is always options.

[theloxmyth]

At one of our ADs, my sales associate said they did not work on commission.

Their manager (owner?) gave a "larger than the sales tax" discount to me.

[MilgaussMan1]

they work commission and their super duper goal is for you to sign up w. the company credit card and finance the watch. but they get pad'd on the back if they sell you a watch.

rather buy online from a trusted grey area man

[SUBversive]

Originally Posted by MonBK

I do and will be switching to Corn Flakes tomorrow.

Too much cheese. ...

[BlondeNV]

Hello!

One boutique offered me 10% if I brought somebody in who made a purchase. Paperwork and all official.

[Kingair]

Originally Posted by SUBversive

Too much cheese. ...

HAGOne

[livenonthewater]

my first rolex came from an ad ben bridges in San-Diego Ca and i belive they were on comm. they wanted me to open up store cc but i said that if wanted it id write a check smiles all around lol.

[Adam.]

Originally Posted by Brenngun

I never concern myself with the salesperson's commission. That's between them and their employer. Only thing I'm concerned about is if they hit the number that takes it out their case and puts it on my wrist. If they can't then I walk. There is always options.

I agree. I like to think they get paid well to sell, but it comes down to price and discount.