A per-person or per-tan average commission is one where the average amount of money spent by all clients is divided by the number of people who tanned. It is used to increase product sales and room surcharge upgrades for tanning client. SalonTouch calls this type of commission a Per-person average because you can have the average based on the number of clients making purchases divided by the total sales for the salon, or a certain segment of transactions.
First create the Per-person Average Commission.
- Click Setup
- Click Commission (PPA) on the left side.
- Click Add Local PPA Profile
- Click Blank Record unless you already have another profile you want to use as a template.
- Give the Profile a name.
- For the Use $ Per Average: section you will want to select what is being used for the average.
- The For will be the "Person" side of the average. You have the following options to choose from:
- Client_Served - Number of clients served at the salon.
- Purchase_Client - Number of clients who made a purchase.
- Sale_Transaction - Number of sales transactions made.
- Tan_Client - Number of clients who tanned.
- The Of section will the the dollar amounts you want to use for the average. You have a number of options to choose from. The ones such as Hair Products and Tan Services are based on the Report Track assigned to those products and services.
- Total Other - All items that are not products or services.
- Total Products - All products in all Report Track categories.
- Total Services - All services in all Report Track categories.
- Total Surcharges - Only surcharge upgrades applied to Room Use.
- Totals (Products, Services, Surcharges, and Other) - Total sales revenue for all categories.
- In the example below we take the number of Salon Totals and divide it by the number of Tanning Clients.
Select either Calculate Commission based off Highest Matching Commission Step or Calculate Commission based on All Commission Steps. The example buttons give an explanation repeated at the bottom of the page.
- Click Save.
Next Assign the Commission Steps to the Commission Profile
- On the right column we have series of steps that will determine the commission that the employees will receive.
- We will setup series of commission steps that will control how much commission our employees make on sales.
- From PPA: This is the Per-person Average dollar amount that the commission will begin calculating.
- To PPA: This is the Per-person Average dollar amount that the commission rate ends at (Note: a dollar amount must be entered in this field; it can not be infinite). You can put in a dollar amount that you will never be reached such as $100,000.
- From Dollars Sold: This is the dollar amount that the commission will begin calculating.
- To Dollars Sold: This is the dollar amount that the commission rate ends at (Note: a dollar amount must be entered in this field; it can not be infinite). You can put in a dollar amount that you will never be reached such as $100,000.
- Comm. $: This gives the employee a flat amount for getting to that step. It can be used as bonuses for reaching stretch goals.
- Comm. %:This gives the employee a percentage of their total sales.
- Click Save a repeat for the next step.
Examples of how commission steps are calculated.
The image below gives an example of PPA commission steps. The employees do not receive a commission unless their PPA reaches $20.00. At that point they will receive a 10.00% commission of items sold. If they reach $40.00 PPA with over $300 in sales, they will receive a 30.00% commission.
You can also choose to have the the steps to be calculated on all steps. In the example below the employee hasa PPA of 43.50 and total qualifying sales of $250.00. They would receive 20.00% of the first $100.00 in sales, plus 25% of the remaining $150.00. The employee would earn a total of 57.50.