Venting About Non-Commissionable Sales on My New PC Business - Insights Wanted!

[brendaziz]

I'm new PC and I love everything about the business, but I must say i was disappointed today when i made a realization upon submitting my 3rd show.
Why does a half priced item or host special not count towards commissionable sales??? It doesnt seem to make any sense. I thought i must be wrong but kept clicking/unclicking the 50% off item and it was very sad to see my sales drop drastically w/ the click of a button. I obviously expected the 50% off but not 100%!
Just venting.
Anyone have any insite as to why this is?? I'm curious.
Thanks!

 

[leslieprichett]

I know how you feel. I could see if they only gave us like 10% on those things, because I know they are at a discount already...but the way I see it is, if I didnt make that contact to hold that show, that sale wouldn't have been made.

 

[leftymac]

Because the half-price item is designed as a thank you gift from PC for helping you generate commissionable sales through other guests' orders (and the other items the host orders). If PC took 50% off, then gave you another 20% off, they'd be making no money. They are a business and they reward us generously.

 

[babywings76]

The ability for a host to earn things at half price and also get a monthly host special, are what entices them to book. The company is giving the host a great reward for hosting, it's their thank you to them. With so much money that they don't earn from the host getting things at such a deal, I'm not surprised that we don't also get a commission on it. They have to make money. I'm just glad that we don't have to pay for the host's stuff like some other DS companies have their consultants do.

 

[raebates]

It's because they can't make enough profit from something that's 50% or 60% off to pay a commission on it. Those host benefits are a small part of most of our sales. I look at this as a positive thing for 2 reasons. First, I don't have to pay for the host benefits out of my own pocket like the consultants for so many other DS companies have to do. Second, our products are priced economically. The markup on our products would have to be pretty large to be able to make a profit from something sold at 60% off.

 

[raebates]

Amanda, your clearly starting to think like me. You should be frightened.

 

[babywings76]

Amanda, your clearly starting to think like me. You should be frightened.

 

[ChefMary412]

I thought the same thing when I first started... I think after you have experienced a full year, with seasonal changeovers, sell-a-thons, earning bonus, various monthly "giveaways" to earn... it is more clear that we do get so much, that not earning commission on a host special doesnt seem to matter. I did feel the burn once when the host and past host got a full 7-piece cookware set... .oh well!
I believe it does go towards show total though, so that is a good thing.

 

[wadesgirl]

Could be worse! Alot of other companies make their consultants pay for part of their host benefits!

 

[brendaziz]

Thanks for explaining a bit. It definitely makes sense to me now- still was just disappointing to see at first.
Honestly, I really don't care if I get commission off it ( i know, weird huh?) but I was really hoping it would count towards Maui points

Makes sense though.
And I DEF agree other companies screw their consultants. One of the main reasons I was sold on Pampered Chef!
I agree it's a great company. Wasn't trying to be super negative or anything.
WAs just surprised and confused.

I love these boards for helpful answers

 

[raebates]

You're always welcome to ask questions here. Glad we could help you see this from another angle.

 

[pampered1224]

You will other things or rules that do not make sense or will be totally absurd to you at first but you will see why these rules are in place as you work your business. And yes, you will get answers here so if you are unsure of something you are about to do, post it here somewhere and you will get advice. If in doubt, ask before you act though! We would hate for you to get hate mail from HO for something you did not understand.

 

[NooraK]

Although it seems you've already gotten a good answer, another thing to remember is that it's not only you making commission on your sales. Your recruiter, your director, her director possibly a couple of levels up makes a few percent on your sales too.

 

[Jules711]

I understand the commission deal. However, they really should let it count towards points. After all, you just helped someone spend a lot of money possibly b/c of the wonderful job that you did selling them on it. So give us the incentive points at least!

 

[mountainmama74]

I was thinking, when a hostess chose a 7 piece cookware earlier as her half price, that I don't want the commission... but I sure would LOVE to have the points!! LOL!

 

[pclinskie]

they occasionly will give us points for things sold like pots and pans

 

[quiverfull7]

What I found very quickly, along with loving that I don't have to pay for our Host's free things, is that it completely removes me for any vested interest in what they choose. If they want a free rub at 1/2 off, wonderful, if they want a set of cookware, wonderful, I tell my hosts that once the order taking is complete and I , my job is to get them the most for her/him for the least cost and I tell them I don't make commission off those 1/2 price items so that they feel free to choose what they wish without feeling any pressure. I love that the company gives us that freedom.

 

[ChefMary412]

I just realized recently that other ds companies have to pay for their own hostess specials!!
It is so nice to not have to do that. I like to know that what I make in commission is mine.. and all mine.. well, and the mortgage company. haha

 

[JAE]

What I found very quickly, along with loving that I don't have to pay for our Host's free things, is that it completely removes me for any vested interest in what they choose. If they want a free rub at 1/2 off, wonderful, if they want a set of cookware, wonderful, I tell my hosts that once the order taking is complete and I , my job is to get them the most for her/him for the least cost and I tell them I don't make commission off those 1/2 price items so that they feel free to choose what they wish without feeling any pressure. I love that the company gives us that freedom.

That's exactly what I was thinking. Glad I didn't have to type it.

 

[pampered1224]

You know that has come in handy for me. When I get a host who does not have a lot of money, I make sure they know I do not make anything on their order. It makes it less of a burden to them if they feel free then to whether not they use the half priced or 60% off deals at all or it to order a citrus peeler if that is what they really want. I mean seriously? Do we really want to have to pressure sell our hosts to get more points??? (You know that is what would happen!) We need to be grateful we got them as a host! And hopefully by treating them right, we get them back as a host again, and again, and again. Geez, if they wanted pressure sales - they may as well walk into a car dealership!

 

[leslieprichett]

I know I personally would NEVER pressure sell anyone. I don't think anyone here would. All that was meant is that it would be nice to get points or something at least for their orders. I just had a hostess receive $265 in free products in January AND used her 1/2 price items for a cookware set, a full knife block set AND a DCB.

 

[quiverfull7]

I think that I'm overly sensitive ( in a good way) about the host special thing. Years ago, I had hosted a party with a ds company and really wanted a particular 1/2 off item. I was led with a fairly heavy hand to look at other items... was I SURE I wanted to spend that much... it's an expensive item... well... the whole reason I hosted that show was for that item at 1/2 off so I truly did not understand why I was being pushed away from it. NOW I do... because she had to pay the other 50% out of her commission and it wiped out all she made and then some! I am thankful to have had that experience for two reasons. 1. It helps me think only about the host and 2. When someone is looking at the business and mentions other DS Co.'s higher commissions, I immediately talk about the fact that, as mentioned earlier, I get to keep all my commission instead of paying for host extras. I do try and go over this with my new consultants so that they don't go through the frustrations that you have though. I totally understand your questions since you weren't expecting this. I don't worry about the points... I'm just always excited for my hosts to get these great deals because I know they will tell their friends!

 

[Sheila]

I agree, a happy host means a repeat host/customer AND positive comments to the friends & family which could lead to MORE hosts & customers. It's a big snowball rolling down hill and you want it to be GOOD comments, not bad ones! Sorry that you didn't understand the details up front. I can see how you would be disappointed if you thought you would earn double incentive points off the host purchasing some cookware!

 

[raebates]

Leslie, please don't take the musings posted here as an assumption that you'd pressure anyone to do anything. We're just pointing out the aspects of the host program/commission details that appeal to us.

 

[quiverfull7]

Leslie, please don't take the musings posted here as an assumption that you'd pressure anyone to do anything. We're just pointing out the aspects of the host program/commission details that appeal to us.

Oh yes... absolutely! Don't take any of this the wrong way! What is great here is that we can share where we have been, what we are feeling and what we are learning... Thanks Rae for making sure on this... none of our answers are reflective on your personally Leslie or anyone else! Tomorrow, it will be you helping me! That's CS!!!!!

 

[Intrepid_Chef]

As stated .... they can't pay commission on something that's that deeply discounted.

HOWEVER ... I have often wished that they would at least give us SOMETHING for it. For instance, the company I used to work with also didn't give us commission on half price items. However, they did count them as NON COMMISSIONABLE SALES and those totals gave us trip points and credit towards things like Sell-a-thon. Had my non-commissionable sales counted during my first year, I probably would have earned the $1500 level of sell-a-thon.

Something you may not know ... a 20 percent off item, purchased by a host with another 20 percent off, IS commmissionable! So ask them about sell-a-thon!

 

[NooraK]

This is how I look at it:

The incentive program is just that: an incentive the company gives us to encourage actions that make money for the company. After all, we are a for-profit company. With that in mind, PC gives us points for things that make them money (because, in the end, they are paying for that trip you earn): sales that they still make a certain profit margin on and recruiting consultants which is duplicating your efforts. Each point you earn is figured into that profit margin, just like commissions and overrides and such. And at 50 or 60% off, there isn't much room to make money after product costs and other overhead. If PC were to give us points for the host bonus and half-priced items, I'm sure the number of points we'd have to earn would be even higher.

Just my $0.02

 

[leslieprichett]

As stated .... they can't pay commission on something that's that deeply discounted.

HOWEVER ... I have often wished that they would at least give us SOMETHING for it. For instance, the company I used to work with also didn't give us commission on half price items. However, they did count them as NON COMMISSIONABLE SALES and those totals gave us trip points and credit towards things like Sell-a-thon. Had my non-commissionable sales counted during my first year, I probably would have earned the $1500 level of sell-a-thon.

Something you may not know ... a 20 percent off item, purchased by a host with another 20 percent off, IS commmissionable! So ask them about sell-a-thon!

Thank you Di, that's what my only point was, and you put it well.
I know however that this is not the way it is, which I understand, but was only voicing my opinion

To everyone else, yes, at first John's post did rub me the wrong way, but I am not upset at all.