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
EditorsJan 16, 2026
Remembering Pete Yantzer for His Contributions and His Kindness Pete’s boundless curiosity extended beyond diamond cut and he was always eager to share his knowledge with others, no matter the topic.
FinancialsJan 16, 2026
Richemont’s Jewelry Brands Shine in Q3Cartier, Van Cleef & Arpels, Buccellati, and Vhernier had another successful holiday season, Richemont reported this week.
TrendsJan 16, 2026
Diane Lane's Brooch Buzzes at the 2026 Golden GlobesOur Piece of the Week is Lagos’ “Bee” brooch that was seen on the red carpet for the first time on Sunday.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
CrimeJan 15, 2026
D.C. Rapper ‘Taliban Glizzy’ Sentenced to 18+ Years for Jewelry Store RobberiesTrevor Jonathan Wright led a crew in a string of armed robberies targeting South Asian-owned jewelry stores on the East Coast.
Weekly QuizJan 15, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Events & AwardsJan 15, 2026
Jewelers of Americas’ ‘20 Under 40’ Nominations Now OpenThe program recognizes rising professionals in the jewelry industry.
Events & AwardsJan 15, 2026
Registration for JCK Las Vegas 2026 Is Now OpenA new lifestyle section and a watch showcase have been added to this year’s event.
Brought to you by
Impacting Tomorrow TodayHow Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.
TrendsJan 15, 2026
Don’t Double-Dip With This Golden ChipAvocados From Mexico is celebrating those who love to double-dip in game day guacamole with a 14-karat yellow gold tortilla chip necklace.
SourcingJan 15, 2026
Nearly 42-Carat Blue Diamond Discovered in South AfricaPetra Diamonds unearthed the 41.82-carat, Type IIb blue diamond at the Cullinan Mine.
CollectionsJan 14, 2026
Marie Lichtenberg Lassos Leather for New BraceletsThe brand is trading its colorful fabric cords for Italian leather in its “Lasso” baby locket bracelets.
TechnologyJan 14, 2026
“My Next Question” Enters Its Podcast Era National Jeweler and Jewelers of America’s popular webinar series is evolving in 2026.
MajorsJan 14, 2026
Saks Files for Bankruptcy, Names New CEOThe department store chain owes millions to creditors like David Yurman, Roberto Coin, Kering, and LVMH.
CollectionsJan 14, 2026
Boucheron Names Colman Domingo as Brand AmbassadorThe award-winning actor’s visionary approach and creativity echo the spirit of Boucheron, the brand said.
IndependentsJan 14, 2026
Kansas Jeweler Wins 2025 ‘Wag’ AwardEdge Retail Academy honored Burnell’s Fine Jewelry in Wichita, Kansas, with its annual award for business excellence.
IndependentsJan 13, 2026
Orr’s Jewelers Opens New Location in Pittsburgh’s Strip DistrictThe family-owned jeweler’s new space is in a former wholesale produce market.
CrimeJan 13, 2026
Alleged Getaway Driver Charged in Florida Jewelry Store RobberyIvel Sanchez Rivera, 52, has been arrested and charged in connection with the armed robbery of Tio Jewelers in Cape Coral, Florida.
SourcingJan 13, 2026
Rio Grande To Offer Calibrated Diamond MeleeThe supplier’s online program allows customers to search and buy calibrated natural and lab-grown diamond melee, including in fancy shapes.
Events & AwardsJan 13, 2026
NYC Jewelry, Antique, & Object Show Announces Winter EventThe new show will take place Jan. 23-25, 2026.
PodcastsJan 12, 2026
Introducing My Next Question, the PodcastA monthly podcast series for jewelry professionals
EditorsJan 12, 2026
Platinum, White Gold Rule the 2026 Golden GlobesAssociate Editor Natalie Francisco highlights her favorite jewelry moments from the Golden Globes, and they are (mostly) white hot.
GradingJan 12, 2026
Peter Yantzer, Former Executive Director of AGS Labs, Dies at 77 Yantzer is remembered for the profound influence he had on diamond cut grading as well as his contagious smile and quick wit.
MajorsJan 12, 2026
These 14 Macy’s Locations Will Close This YearThe store closures are part of the retailer’s “Bold New Chapter” turnaround plan.
MajorsJan 12, 2026
Jewelers Mutual Acquires AI-Powered Event Insurance ProgramThrough EventGuard, the company will offer event liability and cancellation insurance, including wedding coverage.
MajorsJan 09, 2026
Kendra Scott Taps Activewear Exec as CEO Chris Blakeslee has experience at Athleta and Alo Yoga. Kendra Scott will remain on board as executive chair and chief visionary officer.
SurveysJan 09, 2026
U.S. Holiday Retail Sales Up 4%, Visa, Mastercard SayThe credit card companies’ surveys examined where consumers shopped, what they bought, and what they valued this holiday season.
AuctionsJan 09, 2026
Christie’s Names New Global Managing Director for LuxuryKimberly Miller has been promoted to the role.
