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Paying For Performance - In Practice

Dear Friend,

In a recent update, I talked about the importance of paying your staff for performance...

Not just paying for sales with commissions.  But identifying each and EVERY area of performance that you want from your staff... and paying them for each area... separately and distinctly.

When you pay your staff more completely for their performance... they tend to perform better... which usually leads to your cart doing better.

***
Now, most cart or kiosk owners easily get how you'd pay for sales with commissions. But to identify each and every area of performance you want, measure that performance, and then compensate your staff for each of those areas...

Well, sometimes that requires an element of creativity.

Today I thought I'd share with you a specific example of how I compensated my staff for performance, and got the result I wanted.

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The first product I sold on a mall cart was a line of reusable heat packs sold by demonstration.

The demonstration was about five minutes long. For that demonstration, we used a script that was about five pages long.

One of my challenges was to get my sales people up and going on that script. 

They were pretty inconsistent in learning the script at first. So instead of hoping and praying they'd learn the script, I devised a way of motivating them to learn it... by paying them for learning it.

***
During an interview with a new sales rep, I would show them the script, and go over it with them. I'd emphasize how important it was that they learn it 'word for word.'

Because the script was five pages long, it felt fairly imposing to learn it at first. So here's what I'd do:

Before I'd move on in the interview, I'd pull out this stack of cash from my pocket that was two or three inches thick. I'd set the stack of cash in between us on the bench we were sitting on, and watch their eyes light up.

Then I'd tell them I didn't expect them to learn the script based upon some outdated notion of work ethic.  I would pay them for learning it. And if they learned it well, they could that entire stack of cash sitting there.

***
I showed them how each paragraph in the script had a dollar amount associated with it... listed in parenthesis... with amounts that ranged from $1 to $10. The longer the paragraph, the higher the dollar amount. 

When they came back for their first day, I'd test them on how well they knew the script. They'd write it out once.  Then they'd say it out loud once.

For every paragraph they got right, word for word, they'd earn the dollar amount associated with that paragraph.

How much they'd earn would depend on how well they learned the script... word for word. $1 for this paragraph. $5 for that one. $10 for that one. If they got the whole script right, word for word... they could earn that whole stack... which was about $200. 

Not bad for a little study time.

***
The reality was that I didn't really need them know the whole five pages by their first day. It took a week to ten days for them to really get up to speed on the script no matter what.

My goal was for them to at least have the first page learned.

And a familiarity with the rest of it.

***
My incoming staff did much better at initially learning the script once I implemented this program.

It didn't really cost me very much either. That's because no matter how much they studied, they'd usually trip up on the word for word requirement. I don't think I ever had to pay out more than ten bucks to any individual.

For a few extra bucks, I got the result I wanted. It made things easier for them.  And easier for me. Often they'd sell well enough to earn me back the few bucks I paid them for learning the script within their first hour or so of selling!

***
When you come up with ways like this to motivate your staff for performing the ways you want, your cart tends to perform better. And it tends to make you more money.

Paying for performance is one of my secrets for doing really well with my cart business. Now it's your turn!

Got the idea? Now it's your turn!

***
Best,

Brady Flower
612-605-1115

P.S. Want more ideas on how to operate your mall cart or kiosk better?  Register for my Mall Kiosk Success Training Call Series:

http://www.kioskexpert.com/cmd.asp?ad=457679


 



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