What is the average sale-related bonus in luxury brand in the UK I need to come up with a proposition of a percentage I'd like to receive from sales in a luxury brand shop?

Answer 1

That would really depend on the commodity and its margins, plus the equation relating to the employee's salary.

Some luxury end stores offer their employees a 2% incentive for each and every item they sell. But there are benchmarks where their percentage can increase dramatically based upon their performance. This incentivises the employee to exercise their most creative selling skills to get repeat customers returning, international customers calling from abroad, depending upon the employee for virtually everything, rather than dealing with other merchants around the world.

So a 2% base, once they've sold say £500 or £1000 increases to 3% and the 3% increases to 4% once they've sold say £2500-3000, and the 4% increases to 5% retro to the first sale of the month (and deducting any returns, of course), and finally, offer an annual incentive for any employee who sells at the 5% commission more than 8 months out of twelve, that they receive a bonus of £1,000. This last equation helps you reduce turnover as they're constantly waiting in hopes of achieving the performance bonus.

Some haberdashers work on a base 4-9% incentive for everything sold, plus occasional incentives for item specific sales, such as a line of suits you're hoping to end and don't want any tale ends remaining, or incentives for bespoke tailoring, etc.

Restaurant staff are often helped with bonuses on the puddings or desserts sold to dining guests. Incentives can run as high as 25%, depending on the product margins.

The last methodology, which has worked the best for some of the most famous retailers in the world, is that the staff are retained as value associates, rather than simply employees and their base pay is 30% higher than the basic high-street wages. But with that higher pay comes much higher expectations which include teamwork, commitment to serve, dedication to objectives, and a professionalism unequalled. That professionalism is backed up with appropriate professional training and development.

Many stores who operate in this manner motivate staff by holding twice or quarterly, associate events, such as a posh dinner somewhere, a theatre night event, a 2 night mini-cruise, a Eurostar trip to Paris for the weekend, etc. Or a spa day at one of the many spas around the country.