dispensing optician compensation

[Gretchen]

We are trying to determine a fair commission for a dispensing optician in an ophthalmology office. We currently pay an hourly salary as well, but want to reward high sales with a percentage of net profit. Anyone else doing that in SC?

[Fezz]

Gretchen,

Welcome to Optiboard!

You may get a better response posting this in the general forum. This place is mainly occupied by obsessive optical nerds who are trying to cure the world of ill-fitting eyewear!!!


:cheers::cheers::cheers:

[Gretchen]

Thanks for the tip ... I have already ventured into that area, awaiting replies!

[NgCognito]

Everywhere that I worked the commission was based on the percentage of sales. Ie... over 70% ar, 2nd pair sales, sunglasses and things like that. Back when I lived off of salary plus commission, I made about $5-9 an hour in commission as well as my salary. I would look at what you want to drive up. Do you want all over sales to go up and/or specific items to be sold more. You would want some goals to be realistic and attainable and some they have to work hard for.

:cheers:

[Gretchen]

We are actually trying to increase our optician's pay but tying it directly to sales. If you were making above average salary, what percentage of profit did you get?

[NgCognito]

It has never been tied directly to total profits in terms of a percentage. My current office does this: We look at the average for the current month over the past three years. The goal is 7-9 % over that depending on the expected growth. If we meet that goal, each employee working towards that goal gets $100 plus (this is where the math gets tricky) 5% of the total exceeded goes into a pool and then divided between the staff.

My last job did this: They kept track of which optician sold what. If your total sales where over $2000 we got a $20 bonus. $3000 got a $30 bonus.

The one before that was the most difficult to track if you are not computerized. Each item sold was worth a spiff. They would add them up at the end of the pay period. Such as
uv $1
AR $2
Prog $5
Super scratch coat $1
Polarized $2
2nd pair $5

I would consult other optometrists and ophthalmogists in the area to see what programs they offer.

I currently am working on with my Dr a program where we will have the special of the month. Sell this dead frame get a $10 bonus, get 80% AR for the month get $50 bonus. If you mix up the specials month to month it keeps the job more interesting and helps the opticians learn different facets of selling. Some won't push things because they don't understand it such as polarized. Give them an incentive to learn it and your practice will grow.

[AdmiralKnight]

The only commission system I've worked under worked like this: Any sale uder $250 netted you 2% of that sale. Anything over $250 got you 3%. I think this works better than spiffs based on what you sell, but of course, you can play with those numbers.

[EyeFitWell]

I've worked under several systems:
1. Goal for the week is $xxx, if you make goal, you get 1%, if you exceed goal by $XX, you get 2%, etc. or something to that effect.
2. $X for AR
$X for Transitions
$X for High Index
etc. Usually a buck or two a piece that adds up quickly if your sales are good.
3. (By FAR the most motivating for me) Any sale above $XX (high sale but attainable) gives you a $X bonus.
For me it was $700 sale got me $25. I tried HARD to make those sales!! :-)

[sharpstick777]

Every office that I have worked in that had a high commission resulted in a drop in customer service, increased employee friction, and more unhappy patients (why did my wife get Transitions in her readers?).

I use small rotating spiffs on the extras only ($5 -$20 for A/R, transitions, 2nd pairs, etc) to keep it fun and remind us to OFFER (not push) everything we should.

Sales are good, but more importantly patients are happy. In many cases in the past we have gotten the sale but lost the patient.

Sharpstick

[specs4you]

Well Gretchen; I think firstly it is a nice gesture. I have worked under
all sorts of incentive programs. All of them make bitterness and hatred flourish within the office. Some employees have better suited hours to high sales or opportunities while some employees if it is just an equal split, never did a thing and got $$ which is totally unfair. I only have responded favorable to an employer who recognized me for working 100% to offer
every choice that pertains to the patient and pays me an hourly wage
that is fair or better. The rep who wanted increase in sales of her line
(which I hated), did fire me up as she offered a visa gift card if we sold the secret frame she put the name of in a sealed envelope in our office by a deadline. I tell you, regardless I sold her frames that period. Also I
helped her more in the future.

The % of sales from past periods made all of us mad as we couldn't see that it was honest.

[rbaker]

I do not like commissions or spiffs or anything that can place individuals within the organization in competition against one another. It is the business owner’s obligation to provide a good living wage for his employees. It is also the owner’s obligation to fire anyone who does not fully contribute to the success of the business.

That being said, how about this:

“We have had a good year. Your annual salary will be raised by $10,000.00 (or whatever) and also take an extra weeks paid vacation to spend with your family.”

Or this:

“Last years business sucked. You are fired.”

[DragonLensmanWV]

We have three dispensers. They earn spiffs on every sale, a low amount for a basic sale, and goes up with options. To avoid friction, their earnings for spiffs are evenly distributed amongst them. This way, there is no friction (two of the three have been here 20+ years) and everyone keeps up with each other. If one should slack off, they know their job is on the line so they can't "coast" and let the others do the work. But then they also have to type the jobs into the lab computer and pull tools, so they work for each job.

[specs4you]

We have three dispensers. They earn spiffs on every sale, a low amount for a basic sale, and goes up with options. To avoid friction, their earnings for spiffs are evenly distributed amongst them. This way, there is no friction (two of the three have been here 20+ years) and everyone keeps up with each other. If one should slack off, they know their job is on the line so they can't "coast" and let the others do the work. But then they also have to type the jobs into the lab computer and pull tools, so they work for each job.

Someone there for 20+ yrs perceived to slack and their job is on the line?
Harsh to say the least. I won't reply to pulling tools as I have never heard that expression.

[DragonLensmanWV]

Someone there for 20+ yrs perceived to slack and their job is on the line?
Harsh to say the least. I won't reply to pulling tools as I have never heard that expression.

Pulling tools refers to the act of actually pulling the laps out of the racks to go with the job they just typed in.

Though two of them have been here 20+ years the other also has 20+ years, just two here though.

And their jobs really aren't on the line, but if they mess up, the commission for that job is lost (no sense paying commission on an error) and I just barely pull out one fingernail. Gently.

:)

[Lee Prewitt]

We are trying to determine a fair commission for a dispensing optician in an ophthalmology office. We currently pay an hourly salary as well, but want to reward high sales with a percentage of net profit. Anyone else doing that in SC?

You've already said it...a percentage of net profit. This is the best way I think. Without profit...no extra money to pay...CS remains high...no pressure to drive sales on frivolous items...costs are keep under check.

Gross sales - lab cost- frames cost = 3-5% commission.

My .02

[Eyefish]

% over profit. This way if the economy took a dump, the owner dows not have to cut pay/lay-off if that extra earnings was put into salary. This way everyone is happy.