Understanding the Standard Commission Structure for Furniture Sales

by liuqiyue

What is typical commission for furniture sales?

In the furniture industry, sales professionals often earn a commission as a significant portion of their income. The typical commission for furniture sales can vary widely depending on several factors, including the type of furniture, the size of the business, and the region in which it operates. Understanding the average commission rate can help salespeople set realistic goals and businesses determine fair compensation structures.

Factors Influencing Commission Rates

1. Type of Furniture: The type of furniture being sold can greatly impact the commission rate. High-end, custom furniture typically commands a higher commission rate compared to mass-produced items. For instance, a salesperson selling luxury sofas or custom cabinets might earn a commission of 15-20%, while those selling everyday items like dining tables and chairs might earn a commission of 5-10%.

2. Size of the Business: Larger furniture stores or retailers often have higher commission rates to incentivize their sales staff. These businesses might offer a commission rate of 10-15% for furniture sales, while smaller independent stores might offer a lower rate of 5-10%.

3. Location: The region in which the furniture store operates can also affect commission rates. In high-cost-of-living areas, salespeople may expect higher commission rates to compensate for the higher cost of living. Conversely, in lower-cost-of-living areas, commission rates might be lower.

4. Sales Performance: Some businesses may offer tiered commission structures, where salespeople earn higher rates as they reach certain sales milestones. For example, a salesperson might earn a base commission of 10% but could earn an additional 2% for every $10,000 in sales above a certain threshold.

Other Compensation Factors

In addition to commission, furniture sales professionals may also receive other forms of compensation, such as base salary, bonuses, and incentives. Some companies offer performance bonuses, while others provide health insurance or retirement plans as part of their compensation packages.

Conclusion

The typical commission for furniture sales can vary significantly, with rates ranging from 5-20% depending on the factors mentioned above. Salespeople should consider these factors when negotiating their compensation and businesses should ensure they offer competitive rates to attract and retain top talent. By understanding the average commission rates, both parties can create a mutually beneficial arrangement that drives success in the furniture industry.

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