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Stony Creek Furniture

By Home Furnishings Business in on October 2012

A no-hassle shopping atmosphere and a focus on personnel development have made Stoney Creek Furniture a longtime standout among Canadian furniture retailers. Along with building a name for offering exclusive products, Stoney Creek adopted a non-commission pay policy for salespeople fairly early on.

€œOur awareness and reputation grew,€ said Jim Fee, vice president and co-owner along with President Dennis Novosel. €œWe were delivering unique, quality furniture and selling it in a non-commissioned selling environment. ... Our success has come from trying to offer the customers a unique shopping environment€”product, visual display, and non commission selling€”and providing strong back end and delivery support.€

The no-commission approach dates back Stoney Creek€™s experience at its original location.

€œIt started when we were a small store and had two or three salespeople, and dealing with the bullcrap of €˜that€™s my customer€™ and €˜you stole my customer,€™€ Fee noted. €œWhen we moved (to the current location) we were going to 10 to 12 salespeople, and said we weren€™t going to deal with that anymore.

€œWe wanted an environment that wasn€™t me-focused for a salesperson. There obviously are a lot of people who make it work, but with commission, that salesperson has to sell to put food on the table. It€™s €˜I might not sell you what you need, but I€™m selling something to you.€™€

Fee said the policy fosters better teamwork at Stoney Creek, as well.

€œSay Jim€™s off today and a customer walks in asking for him; the customer starts to look around, and next thing, Mary€™s helping the customer,€ Fee said. €œJim comes back and tells Mary she stole his customer. Well, the customer might have asked at the door for Jim, but he didn€™t ask Mary if Jim was around. The pressure that environment creates is felt by the customer.€

Stoney Creek offers salespeople an hourly rate, but also offers incentives, such as commission for add-ons such as warranties, fabric protection or mattress pads. The store also takes a percentage of monthly sales, puts it in a pool and divides it by total number of hours worked. That fosters an attitude of €œwe€™re in this together.€

€œIf I€™m not busy, it€™s in my best interest to go over help Mary make that sale,€ Fee noted. The pay scale is fairly simple€”yet still offers incentives for better performance. €œI break it down to sales per hour€”if you sell between A and B, your earn between A and B; if you sell between C and D, your earn between C and D,€ Fee said. €œNow there are other parts of the job beyond selling€”follow up phone calls, thank-you cards, maintenance of the showroom display, playing nice by putting up samples. If you€™re selling at the top of the D range, but you€™re not doing your share of the team things, you might get C plus 50 percent.€

The store also conducts periodic and discretionary reviews, and might grant a discretionary bonus for selling beyond the sales rate.

€œThere€™s incentive to sell more, but it€™s not immediate€”it€™s not this week, this month,€ Fee said. He added that while good salesperson works well, is hungry to sell, in any environment, those with average motivation might coast on Stoney Creek€™s system€”but only for a while. €œWe monitor that through minimum acceptable standards,€ Fee explained. €œIf they can€™t meet those, it€™s time for them to move on.€
Whatever the challenges of non-commission pay, Stoney Creek€™s low-pressure shopping atmosphere is worth it.
€œIt€™s one of the biggest complements our customers give us,€ Fee said.



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