Is your pay plan relevant to customers?

Ron Henson
Do customers care if their sales consultant is paid on commission or on salary?
mark rask
I think so .....I would like to see some studies on this
Tony Wood
I haven't done in depth research on the subject, but I've seen it have an effect personally. I've had customers ask me straight out if I'm paid on commission, and I told them yes. I've seen that open up the wallet of some customers. Normally the ones asking were in some sort of sales position themselves previously and are typically older/successful (Again, my personal experience). I have a friend that works at a dealership that pays flats and they use it as a selling tool. Basically telling the customer not to worry about whether or not they'll get the best deal possible, they work on flats and it doesn't matter to them how cheap they get their car/truck/SUV. He said when they let people know that you can see them visibly relax.
Michael Crain
@Tony.... I can not say that I have ever discussed my salary with a customer. If they ask me " folks I work 70 hours per week, I make between $10 and $12 per hour. Which is a lie but they coluldn't handle the truth....(lol)
Lauren Moses
I think Tony has a good point. You can definitely tell the customer who have worked in sales before. They understand the time and effort needed to make sales and therefore money. I have had customers ask me and I tell them straight out that I'm hourly so the price doesn't effect me. Just like Tony said, they do visibly relax a little. One of my customers who has honestly become a friend told me that they would gladly pay the little extra to make sure that I got commission. You also have customers, like one of our guys had yesterday, that paid him $20 for taking 10 minutes to show the customer 3 vehicles. When our salesman tried to give it back, the customer responded "time is money, and you took your time to help me. Take it. You earned it"
Tony Wood
@Michael: There's a big difference between telling someone your salary and just telling them that you earn your pay on a commission basis or that you get paid by flats. I'm not recommending putting a dollar to the number by any means! haha

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