How much should I be spending on sales salaries?  Sales salaries are one of the most debated areas of the retail landscape because different types of music dealers (full-line, combo/MI, school music, keyboard and print only) in different parts of the country find it difficult to determine appropriate compensation for sales staff.  It’s not unusual to find salespeople feeling underpaid while the business owner (and many times the accountant) suggests that sales staff are either fairly, or typically, over-compensated.
 
One beneficial aspect of sales salaries is that they can be tied directly to sales performance. Other areas of the business might include employees who deliver intangible benefits where measurement of appropriate compensation can be somewhat challenging. That said, fair compensation for your sales staff will help keep them motivated to sell more and prevent them from increasing their compensation by various inventory-disappearing techniques.
 
Watch this video to learn more about establishing a healthy compensation plan for both the employer and sales employee.