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!
More on Columnists
The Latest
Events & AwardsMay 26, 2026
12 JCK Talks Sessions to Add to Your Las Vegas ScheduleThe trade show’s education series returns, with sessions on retail trends, AI, watches, marketing, corporate responsibility, and more.
Events & AwardsMay 26, 2026
CBG Brings Its Curated Designer Project to Las Vegas ShowThe Curated Designer Project has expanded to highlight eight independent jewelry designers during CBG’s Las Vegas show.
TrendsMay 26, 2026
Amanda’s Style File: A Cooldown Is ComingBring a cool tone to your summer jewelry with these white metal pieces.
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.
Events & AwardsMay 22, 2026
Instore Buys JA New York ShowThe deal closed this week, which means Instore will produce the JA NY show slated to take place this fall.
Weekly QuizMay 21, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
FinancialsMay 22, 2026
Richemont’s Jewelry Brands Lead the Charge in Q4The company’s jewelry sales were up in Q4 and the fiscal year, with Richemont raising prices in part because of the cost of gold.
CollectionsMay 22, 2026
Leigh Maxwell Celebrates 5 Years at Couture With ‘Bauble’ CollectionThe “Bauble” capsule collection of colorful one-of-a-kinds includes our Piece of the Week, the “Bauble” earrings, featuring rose zircon.
Brought to you by
How Modern Training Is Becoming a Competitive Advantage for Jewelry RetailersWith the trade and customer trust in mind, GIA® developed NextGem™ – on-demand training designed specifically for retail.
MajorsMay 22, 2026
Stuller’s New Packaging, Display Catalog Is Out The updated catalog has a newly dedicated section for gift wrapping.
PodcastsMay 21, 2026
Episode 5: Sotheby’s Frank Everett Puts the Auction Market in PerspectiveEverett covers colored stones’ surging popularity, the mellow return of the “Mellon Blue,” and his “The Devil Wears Prada” doppelgänger.
IndependentsMay 21, 2026
Springer’s Jewelers’ New Flagship Will Serve Next-Gen Luxury ShoppersFourth-generation CEO Lilly Mullen wants to emphasize experience, connection, and personalized service.
Events & AwardsMay 21, 2026
JA Announces Nina Pugliese Memorial ScholarshipThe new award, created in partnership with Henne Jewelers, honors the late designer’s legacy through supporting jewelry education.
SourcingMay 21, 2026
Botswana, Angola Join WFDBThe addition of the diamond-producing countries as nation affiliated members broadens the federation’s global representation, WFDB said.
CrimeMay 20, 2026
NYPD Warns of Jewelry Swap Scams Targeting SeniorsThe NYPD is warning elderly New Yorkers to keep their jewelry hidden when walking outside to avoid being a target.
IndependentsMay 20, 2026
Adornment & Theory’s New Store Feels Like Home Designer Viviana Langhoff has realized her dream of owning a space for her Chicago jewelry store that looks and feels like her brand.
Events & AwardsMay 20, 2026
Here Is Couture’s 2026 Education Lineup The sessions will run from Friday, May 29, to Sunday, May 31, with one being a live taping of an episode of Couture’s podcast.
Lab-GrownMay 20, 2026
Savannah Friedkin Jewelry Names New CEOFormer Stephanie Gottlieb Fine Jewelry executive Morgan P. Richardson is joining the lab-grown diamond jewelry brand.
WatchesMay 19, 2026
Here’s the AP x Swatch Pocket Watch That Caused PandemoniumThe $400 pocket watch is a blend of Audemars Piguet’s iconic eight-sided Royal Oak and Swatch’s unserious Pop watches from the ‘80s.
CollectionsMay 19, 2026
Chris Ploof’s New Collection Makes an Ancient Metal ModernWith gold prices on the rise, the “Modern Electrum” collection uses an alternative, non-tarnishing metal alloy composed of gold and silver.
IndependentsMay 19, 2026
Ellen and Michael Fruchtman Retire, Sell Marketing Agency Fruchtman Marketing has new owners, Erin Moyer-Carballea and Manuel Carballea, and will relocate to Miami.
ColumnistsMay 18, 2026
Edahn Golan: What a K-Shaped Economy Means for Fine JewelryIn a column for the 2026 State of the Majors issue, Golan spells out how the growing economic divide in the U.S. is reshaping the market.
CollectionsMay 18, 2026
Foundrae’s New Collection Taps Into JoyThe “Limitless Expansion of Joy and Hope” collection evokes summer through colored gemstones and motifs of butterflies and florals.
CollectionsMay 18, 2026
Hancocks London Acquires Historic ‘Inchiquin’ EmeraldThe jewel, circa 1890, is from the late Victorian era and was owned by descendants of the last high king of Ireland.
Events & AwardsMay 18, 2026
Here Are the 2026 JCK Industry Fund Grant Recipients This is what the nine recipients plan to do with the funds.
AuctionsMay 15, 2026
American Collector Ponies Up Almost $17K for John Wayne’s RingThe Western star’s 14-karat gold signet ring sold for six times its low estimate following a bidding war at U.K. auction house Elmwood’s.
Events & AwardsMay 15, 2026
JA, MJSA To Sponsor Roundtable at TJSThe discussion, "Rebuilding the Jewelry Workforce," will take place on Saturday, May 16, in Troy, Michigan.
SourcingMay 15, 2026
State of Diamonds: The Way Forward for Natural DiamondsThe jewelry industry is reassessing its positioning as Gen Z reshapes the retail landscape and lab grown continues to gain market share.
