Commission Cuts in HA Effective Sun 8/10

Joined: 02 Jan 2004 Posts: 141

We got a notice yesterday at the store about this little change.

Effective Sun 8/10, commissions will be changed in Divisions 22,26,42, and 46. Anything made by Whirlpool (Whirlpool, KitchenAid, Jenn-Air, Amana, Maytag) will have their commissions *significantly* reduced. The rate of reduction is based on how often the item is sold. The more commonly the item is sold, the greater the reduction in commission. To compensate, some items are getting commission increases, such as Kenmore Pro, Bosch, LG, and Fridigaire/Electrolux. Increases are based on the same guidelines as the Whirlpool commission reductions. The more obscure the item, the higher the commission increase.

Since the "potential" for commissions has not changed, this is *not* a pay cut for appliance salepeople... Doh!

You just have to sell only Kenmore Pro and EasyOrder models now and not whats on your salesfloor.... right.... Rolling Eyes

The new commission sheets are supposed to be loaded on the Compensation link on the Intranet as of today, 8/8. I encourage everyone that can to request a copy of the commisson changes in HA, as the Action Planner note my store got is probably the only communication on the change that is going to released by corporate.

Joined: 02 Jan 2004 Posts: 141

As food for thought, I find it curious and a bit more than a coincidence that the brands that are getting commission increases are the ones that make the vast majority of Kenmore products now (LG and Frigidaire). A change on the scale of this magnitude has to be purposely designed to force the appliance salespeople to sell these brands at the expense of everything else.

Is LG and Frigidaire pressuring Sears to push their name brands in the stores, and not just Kenmore anymore? Is Sears required to make a certain sales quota with LG and Bosch in order to keep access to those brands? If so, are they running well behind these quotas?

The way they wrote the note in corporatese (and its english translation), just screams that there is something major going down with Sears and their appliance vendors that the stores aren't being informed about.

Joined: 10 Jul 2008 Posts: 62

These companies have proved time and time again that they (frigidaire, samsung, electrolux, lg) rely on shady business tactics and cheaper prices where whirlpool relies on quality. Now the smart sales people who are looking out for the customer are even being forced to sell out. I think i'd rather just go work for another company who has more integrity, not like Sears.

Joined: 06 Jul 2003 Posts: 6742 Location: Central CA

Joined: 09 Feb 2008 Posts: 1292 Location: Brand Central

Just in time for F&F night!

So.... by changing the commission structure to favor the crappy product, they are then encouraging us to sell more of what will break... must be a great way to encourage sales of PAs... or maybe Service is in need of more calls. Wonder how

er... :doh

*shrug* OK. Screw the customer, sell the Frigidaire front loaders because they pay better.

Customers for Life just got shot in the back of the head.

Joined: 08 Jul 2003 Posts: 4793

Xylian-the 'potential' for commission is there

Sums it up well,the 'potential' for commission is there.But that's what they do NOT get in particular markets.It could be the demographics,geography or building codes of a particular area which make the sale of a particular item darn near impossible.

I was always told Kenmore has a higher margin;probably because of the quanity in which they are produced.The company is probably begining to see a backlog of many of the Kenmore products.That could be why they increased the incentive to sell them,might not be in the company's best interest but they have inventory they want to get rid of.Alot of the other stuff is bought in smaller quanities or is special order which could mean lesser margins.It won't be until they get enough complaint that fix defects and design flaws.

This all is just another symptom of how poorly SHLD is doing because the Kenmore still should be selling if the name was still carrying the weight of years past.

Joined: 06 Jul 2003 Posts: 6742 Location: Central CA

Joined: 10 May 2005 Posts: 7

At my store they are telling us we will soon have a completely open floor and that there will be no more division of the employees by departments - div 22, 26, and 46. Anyone else hearing this or has it been implemented at your store?
I guess that by opening up the floor there is more opportunity to sell more so there should be no problem reducing commission. - All salespeople now fighting over fewer customers and less commission = BIG FAT PAYCHECKS - BIG FAT LIE!!!

Joined: 08 Aug 2005 Posts: 479

This is brilliant. Who thought this up? Give all the executives a bonus. Seriously though, it's a wonder every employee isn't pregnant, the way this company screws them.

Joined: 20 Apr 2005 Posts: 1050

Joined: 09 Feb 2008 Posts: 1292 Location: Brand Central

I checked the d/26 and d/46 commission reports Friday

They were both last updated last July 27th & 28th, 2008

I will check my printouts tomorrow against any changes and compare to see what changes.

Joined: 10 Jul 2008 Posts: 62

I've yet to recieve the notice on commission changes. How can i confirm this? I have heard talk about how there's going to be an open floor soon. Is this happening for all the stores?

Joined: 09 Feb 2008 Posts: 1292 Location: Brand Central

My BC manager has had no notice on this change.

I'll check it today and report back this evening.

Joined: 28 Apr 2005 Posts: 1640

Joined: 09 Feb 2008 Posts: 1292 Location: Brand Central

The July 27/28 commission report is still up as the current version

As far as I can tell nothing changed from Friday to today.

Joined: 24 Feb 2005 Posts: 457

I didn't check the commission reports., but I did read the e-mail sent to all BC managers. There is a change in commission today (it was supposed to be up in the reports) and the BC managers were required to share this info with their associates. Our manager gave us the heads up two days ago.

Alot of the reporting systems are down right now., so the commission reports might be one of them. They have been down since the nationwide "Hoffman" problem Thurs.

Joined: 09 Feb 2008 Posts: 1292 Location: Brand Central

well, that sucks.

i was hoping it was a bad rumor.

Joined: 08 Jul 2003 Posts: 4793

Sell more of the cheap stuff and sametime they are talking about open floors.I tell you,base pay based commission is coming to HA.

ihatepink-can't get pregnant taking it up the butt-lol !

That describes life at Sears in a nutshell.

Joined: 31 Aug 2006 Posts: 150

Just remember that the president of Sears appliances came from Circuit City and he is getting us track to what he did to CC, lower commissions=lower sales=no appliances at Sears. You know what they say about history!

Joined: 09 Feb 2008 Posts: 1292 Location: Brand Central

As of yesterday a new commission report dated 8/11 is up, and in comparing them on basic stuff (Kenmore washers & dryers, KM fridges) I could find no major changes

And my BC manager has gotten no big email announcement on this big change.... I'll check more stuff next time I'm working

Joined: 08 Jul 2003 Posts: 4793

If it's not an experiment or regional thing it could be the commission book/system wasn't updated yet.Watch the paycheck like a hawk.

Joined: 09 Feb 2008 Posts: 1292 Location: Brand Central

Joined: 08 Sep 2003 Posts: 331

Joined: 08 Jul 2003 Posts: 4793

Right now it sounds like they want to 'manage' inventory.But if they want to 'change' the inventory that's when the trouble will start.

Best bet go to Sears intranet and check the memoes or news yourself.

Joined: 06 Jul 2003 Posts: 6742 Location: Central CA

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