What kind of commission do apple store employees make?

[jbg232]

I've been to the apple store a few times and one of the first things they always say is "We don't work on commission." I accept that they don't work on commission in the standard sense of the word, but what is their incentive for making a sale at all?

I ask this because when we bought 2 imacs from one employee who was helping us earlier in the day and then let us browse while another one came up the second one seemed pretty upset that he didn't get the sale. Do they work on a point system for raises (like sell 50 computers in a month and get a raise or sell 100 computers and get a free ipod?) What is their incentive because it has to be something or they wouldn't seem so pushy (which I feel some of them are from time to time).....

 

[tngisaga]

The employees don't make commission off sales they make such as computers and iPods. However, I think all store employees gets a bonus if they reach a goal for selling .mac and Applecare.

 

[GSMiller]

I think that's generally how all people in sales act. I went to SamGoody last summer to buy a CD and after I decided not to buy it because they wouldn't accept my debit card the guy acted differently. Oh well

 

[jnc]

They might be rewarded for maintaining a Units per Transaction (UPT) score... rather than a percentage commission of the overall price, that's how it worked at my old job.

Didn't matter what you sold, as long as you managed to run some add-ons through the till at the same time (apparently accessories are where the biggest profit margin lies). the "ideal" UPT was 3 items per transaction.. with a computer (especially a first buy) there are a lot of accessories you can suggest to a customer

Just a guess

 

[26139]

Incentives

Stores get bonuses for selling a certain number of .Mac or Applecare packages and occasionally have computer goals as well.

Some of us receive recognition if we've sold the most .Mac or Applecare boxes, but it was never a bonus type of thing.

We did keep track of overall sales and items per transaction, but Apple never offered rewards for that type of thing. They encouraged it and pushed it, but it was never a "Sell this x many Applecares or y amount of .Macs", more of general guidelines.

Apple stores employees do their jobs because they LOVE Apple products (well, it used to be that way, nowadays it seems they work they to try and be cool). A trained salesperson would never work there, the rewards for selling the most amount wouldn't be worth it.

That answer questions?

 

[kkat69]

they wouldn't seem so pushy (which I feel some of them are from time to time).....

I have the exact opposite feeling. Every Apple store I've been into here in Atlanta they have not been pushy at all.

They ask the basic greeting stuff, I say "Just looking" and they leave me alone. I pull one aside and ask questions and when I'm done I say "Ok thanks for your time" and they walk away.

They way I feel, as long as at least ONE of them comes up to me, I feel better. If I walked in and NONE of them came up to me and I was there for a while, then I'd get aggitated. It's happened before (I've posted my salesman experience on another thread) and as long as one takes the time to greet me and whether or not I turn them away, I feel better about coming to someone saying "ok I'm ready to buy."

 

[Android Rocks]

Apple Store employees must receive some sort of incentive (money in some form or another) because I was there to purchase a Macbook and he went on and on about how I need to purchase Apple Care. I told him I don't want to purchase it and again he went on preaching about Apple Care and how Consumer Reports recommends it. He failed to mention the fact that you can buy Apple Care within the first year of making a purchase and that there is a 1 year warranty that comes with the Macbook anyway. So it's not a 3 year warranty that you are paying for with Apple Care but instead a 2 year warranty for $249. Either the Apple employee is very uninformed or he had some other motives. I have nothing against them getting rewarded for making the sale. Just don't tell me you are not on "commission" when I walk into your store.

 

[Matthew9559]

^^ Yeah, I have never gotten why they push Apple Care right away. You get a year more of service if you wait since the 1 year is included already. Just not a full year of phone support. oh noes

 

[maclaptop]

The overall sales experience I've had at several different Apple stores in my region is quite good.

That said, it's now coming out, that the good majority of Apple Store employees are unhappy with how they are paid and treated.

They are making a very serious effort to unionize.

 

[nhcowboy1]

Interesting, 'cause on my most recent trip to a local store, I actually asked the salesperson if she would lose her commission if we postponed buying until another day. Her response? "We don't earn commissions . . . I'd sure be working a lot harder if we did!"

 

[aristobrat]

Apple Store employees must receive some sort of incentive (money in some form or another) because I was there to purchase a Macbook and he went on and on about how I need to purchase Apple Care. I told him I don't want to purchase it and again he went on preaching about Apple Care and how Consumer Reports recommends it. He failed to mention the fact that you can buy Apple Care within the first year of making a purchase and that there is a 1 year warranty that comes with the Macbook anyway. So it's not a 3 year warranty that you are paying for with Apple Care but instead a 2 year warranty for $249. Either the Apple employee is very uninformed or he had some other motives. I have nothing against them getting rewarded for making the sale. Just don't tell me you are not on "commission" when I walk into your store.

Employees get no monetary incentive for anything that they sell. They are expected to sell a certain percentage of AppleCare and One-to-Ones, though. If they don't meet the goal, they may get coached, but when I worked there, the goals were so low, you didn't have to worry about people who said no, so long as you still covered the benefits of both services with them.

FWIW, the included one-year warranty doesnt give you the same services as if you also bought AppleCare. Specifically, free telephone support ends after 90 days with the included warranty. Also, delaying the purchase of AppleCare until later doesn't result in getting more coverage. It's amazing how many people think AppleCare is 2 more years of coverage from the day they purchase it, when it's actually adds the 2 years to the original purchase date of the Mac. That, and if its not purchased and registered within the year, you're SOL. There's nothing the store can do. You'd be surprised at the number of people who guess their purchase date wrong and get burned like that. Like I said, my experience working there was that I
couldn't care less if you bought or not, but I'm going to explain that all to you regardless so you won't be trotting back in a year later all pissed off, which does happen.

 

[r0k]

I have gotten my money's worth from 1 to 1 as well as Applecare. I don't buy AC on every Apple product but I do buy it from time to time and I've always been happy with it. Over the years, I've bought it about half the time.

Here is a brief (approximate) history of my AC purchase and usage...

- = never used, +=used a lot

Mac Mini G4 yes +
Macbook yes +
Mac Minis Intel (3) no, no, no
Time Capsule no
AEBS no
AE no
Macbook Pro yes +
iPod Touch's (3) no, no, no
iPad 1 yes -
iPhone 4 yes -

It turns out for my two most recent AC purchases I haven't had to use my AC but I don't mind having it.

 

[ratzzo]

It would seem weird that they get commission in my opinion. Mainly because if you're set on going to the Apple Store tomorrow to buy a MBP, whoever bills your purchase didn't quite do anything other than charge you for it.. at least that's how I see it

 

[aristobrat]

It would seem weird that they get commission in my opinion. Mainly because if you're set on going to the Apple Store tomorrow to buy a MBP, whoever bills your purchase didn't quite do anything other than charge you for it.. at least that's how I see it

True. The counter could be that a huge amount of people that go into the Apple Store go for purchasing advice (more than half have never purchased an Apple before) and can easily spend over an hour working with the same sales person.

 

[GGJstudios]

^^ Yeah, I have never gotten why they push Apple Care right away. You get a year more of service if you wait since the 1 year is included already. Just not a full year of phone support. oh noes

You don't get any additional coverage if you buy AppleCare at time of purchase, or wait until just before your warranty expires. AppleCare extends the warranty coverage from 1 year to 3 years, measured from the date of the Mac purchase. It also extends the phone support from 90 days to 3 years.

 

[Jason S.]

I don't know how it is at the Apple Store, because I don't work there. I do work at Best Buy, however, and we are not on commission either -- not on the actual products or even when we sell services and attachments to a sale. No bonuses either... but I still get disappointed if I have a bad sale or if someone else takes a sale from me where I spent quite a while with the customers. I guess I feel that either I did not do my job well, or in the other case if someone else takes a sale, I spent all the time with those customers that I should at least get the credit for the sale, even though it doesn't affect my pay at all. This may probably be how the Apple employee in your story felt as well. Some people really do like their jobs in retail, and want to perform well, even if there is no monetary incentive involved, believe it or not.

 

[iStudentUK]

The employees don't make commission off sales they make such as computers and iPods. However, I think all store employees gets a bonus if they reach a goal for selling .mac and Applecare.

Lots of computer store employees used to work on commission and extended warranties would have high yields. Under UK law you have the right in law to return an extended warranty in the first 45 days if you buy it in store. So some employees used to tell you to buy it, then they would give you a discount on the computer, and return the warranty a week later.

Unfortunately, due to hard selling putting people off many electronics stores here don't run on commission anymore. I have a high tolerance to sales people and used to enjoy the leverage buying the warranty would give!

 

[discounteggroll]

coming from an apple retail store (ARS) a couple years ago as a mac specialist (sales), employees made a bonus if the sold over a certain $ amount each quarter (I would rather not share numbers) but were also "encouraged" to have a certain number of computers they sold have attach rates for applecare, .Mac and procare (60%/30%/30%). Let's just say I sold the ***** out of all 3

The bonus thing I believe was dependent on management's decision to take it out of their own quarterly bonus that they got from apple corporate. they revamped the system recently and I believe it is still based on management, but bonuses are spread to all employees based on overall store metrics, and whether you are full or part time

 

[aristobrat]

Hmmm. About two or three years ago, all of the stores in the region I worked in gave the employees a bit of a raise and did away with the bonus system. Only the managers get that.

 

[The.Truth]

your answer

Apple Store employees must receive some sort of incentive (money in some form or another) because I was there to purchase a Macbook and he went on and on about how I need to purchase Apple Care........ So it's not a 3 year warranty that you are paying for with Apple Care but instead a 2 year warranty for $249. Either the Apple employee is very uninformed or he had some other motives. I have nothing against them getting rewarded for making the sale. Just don't tell me you are not on "commission" when I walk into your store.

1.They don't make commission...just bragging rights and a pat on the back.
2.you still can get charged $50 per phone call in the first year. applecare avoids that.
3.no one is on commission. People are just competitive with each other.
hope that helps

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You don't get any additional coverage if you buy AppleCare at time of purchase, or wait until just before your warranty expires. AppleCare extends the warranty coverage from 1 year to 3 years, measured from the date of the Mac purchase. It also extends the phone support from 90 days to 3 years.

its 1 call in the 90 days and its $50 per call in the 1st year. sucks if you dont live near a store. people forget to add it and then something happens and then they are stuck with a stupid bill.

 

[CaptainChunk]

Apple Store employees must receive some sort of incentive (money in some form or another) because I was there to purchase a Macbook and he went on and on about how I need to purchase Apple Care. I told him I don't want to purchase it and again he went on preaching about Apple Care and how Consumer Reports recommends it. He failed to mention the fact that you can buy Apple Care within the first year of making a purchase and that there is a 1 year warranty that comes with the Macbook anyway. So it's not a 3 year warranty that you are paying for with Apple Care but instead a 2 year warranty for $249. Either the Apple employee is very uninformed or he had some other motives. I have nothing against them getting rewarded for making the sale. Just don't tell me you are not on "commission" when I walk into your store.

I can't speak for the Apple Store (never worked there), but I do know it's a non-commissioned environment and most these environments don't offer monetary incentives for selling more value-added products (accessories and extended warranties, for example). Rather, a store isn't doing its job (in the company's eyes) when it fails to reach certain goals.

This was certainly the case at Best Buy when I worked there during college almost a decade ago. No commission and no monetary incentives - the company even forbade participation in manufacturer SPIFF programs. But the pressure to attach value-added products was still very much a reality. Corporate would set daily goals for accessory and extended warranty attachments. The incentive? Managers got quarterly bonuses for meeting or exceeding goals. Salespeople's incentives came in the form of job security. Poor performance equaled cut hours, and at worst, layoffs. Outstanding performance meant that you may be considered for a paltry raise after a yearly review (yay!). In fact the only bonus us "minions" got was this thing called the "70/30 Plan", which awarded an evenly distributed gift-taxable bonus to each store employee on a yearly basis for keeping shrink (theft and vandalism) under control.

Many non-commissioned stores love to praise the fact that they offer a pressure-free shopping experience when in reality, that isn't always the case. Don't think for one minute they do it on moral ground. They're doing it because they deal in volume, have high workforce turnaround (mostly teenagers and young adults with limited training), and it's a heck of a lot cheaper to pay flat wages.

I've also worked in commissioned environments (high-end audio/video) and it was a very different experience for me (in a positive way). Because I dealt in a niche market, knowing my products well was a must. I made a lot more money doing that and my customers were always happy (I knew my stuff). I also didn't have a supervisor holding a clipboard looming in the background judging my every move. I reached my goals pretty easily and in the rare times I didn't, it wasn't a big deal.