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Commission - Referrals


#1

Hi Again Stephanie et al:

Just another aside on the issue of commissions. Our sales people
typically get 5% commission on a sale. (Often whittled down with
excuses like “I can’t pay you full commission because we don’t make
anything on big diamonds. . .”). I get 3% commission on all custom
work I do (with the same sort of excuses occaissionally). In these
cases, commissions usually only serve to drive production/sales and
keep fixed costs down, since there are so many ways for the employer
to fudge them. They don’t function as incentives, which is how the
idea is sold to perspective employees. Such is the pattern
developing in merchandise oriented retail (as opposed to
manufacturing retail, which is the future, in my opinion.)

David L. Huffman