Sales Strategy
Jimmy DeGroot: If the Pay Structure’s Wrong, No Incentive Will Make It Right October 30, 2025 (0 comments)
Appleton, WI--This week on the Slow Growth Business Podcast, Kyle and I discussed pay and incentives and why it’s important for every store owner to see the reality in their business.
We get more questions about pay and “what incentives work” than just about anything else. Our take: you can’t out-incentivize a bad pay structure. If your base pay doesn’t meet a living wage, no spiff, contest or commission plan will fix culture, performance, or retention.
Money, by itself, is a weak motivator. In jewelry, where trust, guidance and experience win, commission often creates the wrong behaviors and a brittle culture. We’re fans of profit sharing tied to store health, not individual elbowing. Years ago, our team hit a milestone, and everyone earned a Hawaii trip. Why did it work? It was shared, equitable, and memorable. The teamwork this incentive created was amazing.
Before you sketch a bonus plan, run a pay audit. Use your county’s cost-of-living numbers. Ask three honest questions: Are good people leaving for slightly better pay? Are folks juggling second jobs just to make ends meet? Do you hear constant murmuring about basic costs? If you walk around your parking lot, are the cars in good shape and the kind you’re willing to drive? These are warning lights. Owners often respond, “How can I afford higher base pay?” Flip it: “How can we grow to afford it?” Tighten inventory turns, protect margin (stop default discounting), raise average ticket through training, and measure against the 10X rule (a salesperson should sell ~10x their pay).
Incentives still matter—when they reinforce team and tradition. Celebrate wins with shared experiences: close an hour early and share a wonderful meal; set milestone goals with a clear “why” and an equitable reward. Keep the speeches short and the gratitude genuine.
Key takeaways:
- First fix base pay; then layer simple, shared incentives.
- Replace commission with profit sharing tied to store results.
- Watch the warning lights: turnover, side jobs, financial stress.
- Celebrate as a team; build traditions that bond people.
- Protect margin by delivering problem-solving and hospitality that customers will gladly pay for.
If you want the step-by-step of building this, that’s what we do every week at Train Retail. Let’s get you there.
James (Jimmy) DeGroot is a professional jewelry sales and operations trainer from the jeweler’s side of the counter. Having been in management and the jewelry business for over 20 years, Jimmy offers weekly training to jewelers nationwide via the Train Retail website. Jimmy and his partner Kyle Bullock help jewelry stores grow their profits and their people to fulfill their greater purpose! We do it through one-on-one business coaching, sales training, and leadership development. Contact Jimmy at jimmy@trainretail.com or call 920-492-1191.