ColumnistsMay 21, 2025
Edahn’s Take: Analyzing the 2025 ‘$100 Million Supersellers’ List ColumnistsJun 17, 2025
Peter Smith: Is Your Comp Plan a Hiring Hindrance?
If you want to attract good salespeople and generate a stream of “sleeping money” for your jewelry store, then you are going to have to pay.
Peter Smith is an industry consultant, speaker, sales trainer, and author. He can be reached via email at TheRetailSmiths@gmail.com.
I’ve had a few conversations lately with retailers who have become exasperated at their inability to attract quality sales talent.
While the frustration is not new, what struck me was how, in these cases, the challenges were obvious, self-inflicted, and eminently fixable.
Some might prefer to believe otherwise, but sales is a competitive sport. It doesn’t have to be a “contact” sport, but it is competitive.
Failure to acknowledge that doesn’t make it any less so, but it often serves as a detriment to attracting (and retaining) talented salespeople.
Why some business owners choose to ignore the competitive nature of sales and choose to pay a base salary or hourly wage is not always clear, but one of the oft-cited excuses is they want to protect their culture.
“I don’t want my customers to be pressured into buying when they come in.”
OK, that’s an interesting one, but unless you are a not-for-profit entity, your business relies on customers making buying decisions.
Given the psychological research on how little we as humans know about our own motivations and drivers (it’s widely believed that our subconscious generates about 95 percent of our thoughts), we need talented salespeople to positively influence and inspire buying behavior.
Related stories will be right here …
While the frustration is not new, what struck me was how, in these cases, the challenges were obvious, self-inflicted, and eminently fixable.
Some might prefer to believe otherwise, but sales is a competitive sport. It doesn’t have to be a “contact” sport, but it is competitive.
Failure to acknowledge that doesn’t make it any less so, but it often serves as a detriment to attracting (and retaining) talented salespeople.
Why some business owners choose to ignore the competitive nature of sales and choose to pay a base salary or hourly wage is not always clear, but one of the oft-cited excuses is they want to protect their culture.
“I don’t want my customers to be pressured into buying when they come in.”
OK, that’s an interesting one, but unless you are a not-for-profit entity, your business relies on customers making buying decisions.
Given the psychological research on how little we as humans know about our own motivations and drivers (it’s widely believed that our subconscious generates about 95 percent of our thoughts), we need talented salespeople to positively influence and inspire buying behavior.
I’ve also heard, “I don’t want an environment where people are climbing over each other to get to the customer.”
Again, interesting, but sort of like a global pandemic, that happens, but rarely.
If you have established a culture of respect and support for your team and customers, there is absolutely no reason you should have that kind of mayhem, regardless of the compensation plan you deploy.
If you do, that’s a management issue, not a comp issue.
We can all agree that there is absolutely no excuse for salespeople fighting with each other to get to the customer first. Again, not quite as rare as a pandemic, but not the sort of thing one often sees in retail environments, and easily stamped out if witnessed.
Refusing to have a compensation plan that is not commission and/or bonus based is like cutting your head off to avoid a toothache. It definitely fixes one problem, but at what cost?
“Instead of advertising an hourly wage, advertise that successful candidates will have an opportunity to earn six figures.”— Peter Smith
However much we want to believe otherwise, sales is a meritocracy and the best salespeople, those folks who wake up in the morning already thinking about what opportunities they are going to make happen that day, need to be paid accordingly.
That means they know what the scorecard looks like, they know exactly what they need to accomplish to be successful, and they have confidence that no one is putting a finger on the scale to curtail their success or pandering to their less motivated colleagues by having a comp plan that has mediocrity, not meritocracy, as its high watermark.
Instead of advertising an hourly wage, advertise that successful candidates will have an opportunity to earn six figures. Doing so is not a guarantee that they will make six figures, but it tells them that there will be a clear path to getting there if their performance merits.
Make sure the commission or bonuses align with the company’s best interests.
Pay for profitable dollars, not gross sales. That is important in all business, but critical in stores where discounting is permitted, or where an important brand is delivering short margins.
There’s an old chestnut in sales that says the best kind of business is when you have “sleeping money,” meaning subscription services, insurance, annuities, or any other streams of revenue that deliver repeat sales without you having to be present.
In retail, the best kind of “sleeping money” is top sales talent. When you and/or others are consumed with other aspects of the business, they’re making things happen. It’s how they are wired.
Hire that and compensate accordingly.
Happy retailing!
That means they know what the scorecard looks like, they know exactly what they need to accomplish to be successful, and they have confidence that no one is putting a finger on the scale to curtail their success or pandering to their less motivated colleagues by having a comp plan that has mediocrity, not meritocracy, as its high watermark.
Instead of advertising an hourly wage, advertise that successful candidates will have an opportunity to earn six figures. Doing so is not a guarantee that they will make six figures, but it tells them that there will be a clear path to getting there if their performance merits.
Make sure the commission or bonuses align with the company’s best interests.
Pay for profitable dollars, not gross sales. That is important in all business, but critical in stores where discounting is permitted, or where an important brand is delivering short margins.
There’s an old chestnut in sales that says the best kind of business is when you have “sleeping money,” meaning subscription services, insurance, annuities, or any other streams of revenue that deliver repeat sales without you having to be present.
In retail, the best kind of “sleeping money” is top sales talent. When you and/or others are consumed with other aspects of the business, they’re making things happen. It’s how they are wired.
Hire that and compensate accordingly.
Happy retailing!
Editors' Picks
Sponsored by
More on Columnists
The Latest
MajorsJun 16, 2026
5 Things to Know About the 2026 NBA Championship TrophyThe New York Knicks took home the Larry O'Brien Trophy crafted by Tiffany & Co.
TrendsJun 16, 2026
Post-Vegas Jewelry Trend Report: Big Beads, Western Flair, White MetalsAssociate Editor Natalie Francisco lists the trends she spotted during Jewelry Market Week that will dominate the second half of 2026.
SourcingJun 16, 2026
GemGuide Updates Ruby PricesIts app now reflects increased prices for Mozambique ruby, as well as changes to its Burma ruby charts.
Brought to you by
Building the Future of Jewelry Retail: DCA Expands Education, Leadership Development, and Workforce SolutionsDCA is preparing the next generation of professionals by supporting workforce development, leadership growth, and career advancement.
MajorsJun 16, 2026
Sasha Primak Hires New Design DirectorThe manufacturer has tapped Alicia Arnold, the former director of custom design at Tiny Jewel Box.
Weekly QuizJun 11, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsJun 15, 2026
DeBoulle Diamond & Jewelry to Renovate Dallas FlagshipThe revamped, elevated space will feature a two-story Patek Philippe atelier and a rooftop patio for parties.
WatchesJun 15, 2026
G-Shock, Coca-Cola Partner on Bottle-Inspired WatchThe special-edition piece marks the 140th anniversary of the iconic beverage brand.
Brought to you by
All Eyes on Gold Prices. Alternatives to Look For. And What to BEWARE of in VegasAs gold prices rise, today’s retailers are looking for alternatives at prices that will appeal to wider audiences.
TrendsJun 15, 2026
Amanda’s Style File: Tiny Charms Are TrendingHere are 13 small charms to inspire your layered looks this summer.
AuctionsJun 12, 2026
16th-Century ‘Hogback’ Diamond Ring Going Up for Auction in LondonFound by a metal detectorist, the ring likely belonged to a wealthy, possibly royal, owner, said Noonans.
CollectionsJun 12, 2026
Chouette Designs To Launch Collection Celebrating All Types of LoveOur Pride Month Piece of the Week, the “Margaux” ring, is part of the wife-and-wife team’s new “Lovestoned” collection.
Events & AwardsJun 12, 2026
CBG Announces Plans for Phoenix ShowThe group has named the keynote speaker and announced a new pavilion for its next event, which is slated for September.
EditorsJun 11, 2026
This Was the Best Animal Jewelry in Las Vegas From lions and hippos to snails and fish, Senior Editor Lenore Fedow wrangles her picks for cutest jewelry critters in Las Vegas.
SourcingJun 11, 2026
Grandview Klein, London Jewelers Partner To Cut 63-Carat RoughThe big stone will be fashioned into a 20.26-carat diamond in celebration of the retailer’s 100th anniversary this year.
MajorsJun 11, 2026
Former Cartier Creative Director To Head Chanel’s Jewelry Creation StudioMarie-Laure Cérède will join Chanel as the new director of its jewelry creation studio, starting in October.
Lab-GrownJun 11, 2026
Smiling Rocks’ ‘Wish Jar’ Generates 100+ Wishes in Las Vegas At the JCK show, the lab-grown diamond brand teamed up with Jewelers for Children to support Make-A-Wish India.
SourcingJun 11, 2026
Signet Jewelers Exec Joins Diamonds Do Good BoardIlana McCabe is Signet’s vice president of public relations and brand communications.
AuctionsJun 10, 2026
31.62-Carat ‘Azure Blue’ Diamond Sells For $8M+ at Christie’sIt was a banner day for blue gemstones, with another blue diamond topping $8 million and a 41-carat sapphire going for $2.3 million.
MajorsJun 10, 2026
Saks Global Receives Bankruptcy Court Approval for ReorganizationThe approval means the retailer is on track to exit bankruptcy proceedings this summer.
CrimeJun 10, 2026
2 Suspects Arrested in Texas Jewelry Store RobberyThe men are believed to be part of the group of several masked suspects that robbed Marc Robinson Jewelers in April.
CollectionsJun 10, 2026
Sylvie Debuts ‘Elevated’ Bridal Collection Inspired By Designer’s RingThe bridal-focused brand is also launching its Custom Atelier this summer, a digital custom design tool for its authorized retailers.
EditorsJun 09, 2026
Q&A: Al Cook on the Lab-Grown ‘Bubble,’ Dwindling Diamond Supply The De Beers Group CEO also discussed tariffs, Desert Diamonds, and the pending sale of De Beers in an interview with Michelle Graff.
MajorsJun 09, 2026
Wilkerson's Russ Whitehouse RetiresThe industry veteran is bringing his 56-year run in the fine jewelry sector to an end.
Events & AwardsJun 09, 2026
Pride Month Panel to Highlight LGBTQ+ Jewelry VoicesThe panel discussion will feature LGBTQ+ leaders across the jewelry, luxury, and creative industries.
CollectionsJun 09, 2026
Marie Lichtenberg’s New Capsule Collection Is a Smash, LiterallyInspired by a locket that got run over, the “Smash” capsule collection reimagines the shape of Lichtenberg’s signature style.
MajorsJun 09, 2026
Frederick Goldman Names Director of Sales for SoutheastThe company has promoted Katherine Whitacre to the role.
MajorsJun 08, 2026
Stuller Expands Selection of Lab-Grown Diamonds, Demi-Fine JewelryThe jewelry manufacturer has added Taylor Swift-esque diamond shapes, and more silver, gold vermeil, and gold-plated jewelry.
