Some businesses may want to award an additional service commission incentive that’s linked to retail sale. For example, on selling $75 of retail, a business may want to award an additional 2% commission on service sales. For example, if $800 of service sales and $75 of retail sales is done by a stylist, instead of 45%, 45+2=47% commission may be given. In such cases, businesses may not award commission for retail sale separately.

Some businesses may also have a stretch service commission incentive: That is, on selling $50 additional retail (over and above $75 mentioned above), stylist is given an additional 1% commission on service sale. So in the above example, if $125 retail sale is done, stylist gets 48% commission on $800.

Important: To turn on this setting for your business, reach out to Zenoti Support.

Configuring service commission incentive for retail sale involves the following steps:

  • Step 1: Configure org level setting to allow service commission incentive for retail sale.
  • Step 2: Configure job level setting to state that all employees with a particular job are eligible to win service commission incentive for retail sales so long as they can meet the product revenue threshold set.
  • Step 3: Configure employee level setting (if you wish to override the incentive defined at the job level). You can use the employee-level setting to offer any additional incentive to employees over and above the incentives set at the job level. You can use this option to reward a few employees as exceptions.

Important: Employee level configurations take precedence over job-level configurations when Zenoti calculates commissions.

Step 1: To configure a service commission incentive based on retail sale (org level setting):

Important: This setting is not versioned; Zenoti considers the configurations that are enabled when payroll is run (and ignores the settings when invoices are closed.

  1. Ensure you are at the organization level.
  2. Go to Admin > Organization > Organizations > Name of the organization > Settings > Expand Employee section.
  3. For the setting, Product Sales commission is based on, select the option Consider product revenue only for service commission incentive.
    Important: The above setting works only if you select the Calculate using highest qualified commission level option for the setting, Employee Commission Income.
  4. Click Save.
    You have configured service commission incentive based on retail sale for your organization.

Step 2: To configure service commission incentive based on retail sale (job level setting):

  1. Ensure you are at the center level.
  2. Go to Employee > Employee > Jobs > Commissions tab.
  3. In the Define product revenue threshold and service commission incentive section, define the following:
    a) Product revenue threshold for service commission incentive: Set the revenue threshold that the employee with this job must reach to qualify for this service commission incentive based on retail sale. For example, say you set this field to $150.

b) Service commission incentive: Specify the percentage of product revenue sale you’d like to award as commission. For example, 2%. This means that an employee with this job can earn 2% commission on product sale of $150 (that’s a commission of $3).

c) Product revenue multiple (beyond threshold amount) for additional service commission incentive: If you want to give additional incentive, specify an amount here, say, $75. This means, if an employee with this job, sells products worth $150+$75 = $225, then award an additional service commission incentive (defined in the next field).

d) Additional service commission incentive: Following from our example, if you define say, 1% here, it means that if an employee with this job makes a product sale of $225, she stands to earn 3% of $225 as commission (that’s $6.75).

4. Click Save.
You have configured service commission incentive based on retail sale at the job level.

Step 3: To configure service commission incentive based on retail sale (employee level setting):

  1. Ensure you are at the center level.
  2. Go to Employee > Employee > Name of the employee > Commissions tab.
  3. In the Define product revenue threshold and service commission incentive section, define the following:
    a) Product revenue threshold for service commission incentive: Set the revenue threshold that the employee must reach to qualify for this service commission incentive based on retail sale. For example, say you set this field to $150.

b) Service commission incentive: Specify the percentage of product revenue sale you’d like to award as commission. For example, 5%. This means that an employee can earn 5% commission on product sale of $150 (that’s a commission of $7.5).

c) Product revenue multiple (beyond threshold amount) for additional service commission incentive: If you want to give additional incentive, specify an amount here, say, $75. This means, if an employee with this job, sells products worth $150+$75 = $225, then award an additional service commission incentive (defined in the next field).

d) Additional service commission incentive: Following from our example, if you define say, 1% here, it means that if an employee makes a product sale of $225, she stands to earn 6% of $225 as commission (that’s $13.5).

4. Click Save.

You have configured service commission incentives based on retail sale at the job level.


See Also

Understand Overtime Pay Exemption for Commissioned Employees

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