Question about self worth. Retailers step inside.

First off, I'd like some serious answers here, not spam. Please and thank you.

My "friend" needs some advice.


So, to start off, "My friend John" works retail. The retail "John" does is what he plans on doing forever. Right now he's 'a' store manager, one of two. He's been doing this job for six years, and managing for about half that.

The owner of the business has found an investor willing to buy (seriously) a couple million dollar strip mall. The owner will run it, and share the profit.

He has told "John" he intends to move "John" to the new location as the store manager. They haven't talked pay yet, so "John" would like to have some ducks in a row before he does. ("John" currently corresponding with some other owners in this line to get some ideas of what they pay their store managers)

My question is, knowing the next few things I'll list, what do you think the job is worth? Pay wise.

-Currently "John" makes 30k-35k a year as 'a' store manager. (hourly, hence the range he likes being hourly, still get paid vacation and flexible shifts)
-The business generates well over $1 Million in Revenue each year
-The new store "John" would be running is well over twice the size (or will be shortly) of their current location.

Thanks in advance

Considering that he is going to have less autonomy and less flexibility and be working longer hours... 3,000 more a year is fair enough. But he may not get that right away... and he may get more. He may try to ask for 5, and get only 2... just depends on what he is giving up and what he is going to get in return, and if that is worth it too him.

Your worth to the company is how much profit you generate for them, and you have to prove that.

A time limit on re-evaluation is good to agree on upfront, as well as expectations on when and how much the increases will be.

But that can back fire as well if the store does not generate enough profit.

What the boss pulls down a year means nothing. It is not the staff's money that is at risk, or there investment. What WILL matter is how much profit the manager generates at HIS store.

If he doesn't like taking risks then a move could be bad.... store could fail... he could be out of a job, or stuck in one that expects more and does not compensate accordingly.

Bruce

As well it is good to inquire about bonuses... what is expected to get them and what the range is.

"John" generates the highest sales figures of any single employee in the store.

"John" works for a small business. It's one store currently. Single owner. Five full time employees, a handful of part time. "John" makes a lot of business decisions, makes and places orders, runs all aspects of the store with the exception of the book-keeping. He would not be easily replaced with the exception of maybe the other manager, who is slatted to stay at the current store as it's "Manager"

A friend of mine recently entirely revamped a store, doubled their profit (from 200,000 a year to 400,000), and did everything possible to make the store a force to be reckoned with...

He got a nice bonus, but only an extra two grand a year, and that was after two years of working 6 days a week and managing 10 staff.

So it may all look good on paper, but it may not be the best for the front liners. Even if they are exceptional.

Bruce

What Bruce said is very good advise. I worked retail all my life and the company I worked for did not consider managing a different store as a promotion. Therefore, no raise was given.
If it's the same type of store he is currently in, it's a possibility there would be no pay increase involved. Just a thought.

Whatever is done, get it in writing. Notarized if possible.

Perhaps a base salary with a percentage of any amount over a given figure.

Always ask for way more than you want or need. Then when you're shot down you can look defeated while smiling on the inside. It's the only way to survive in a corporate world.

manager bonuses usually are a % of store profit made over the basic amount it take to run a store... I think this friend should negotiate a high percentage when the store exceeds sale goals ...

for a store .... that's double the size I'd say go for at least 5k more a year .... that's only 2.50 more an hour!!

I used to work retail ... I know the bigger the sq foot of the store the more $$ the managers made ... and it was considered a promotion to get a bigger store because usually they made more because they carry more products.

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Originally Posted by OhBalls

What Bruce said is very good advise. I worked retail all my life and the company I worked for did not consider managing a different store as a promotion. Therefore, no raise was given.
If it's the same type of store he is currently in, it's a possibility there would be no pay increase involved. Just a thought.

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I thought about this.

Currently, the owner, and the two managers work in the single store. The owner still puts in a lot of time there.

"John" would be running the other store solo, so the job is quite different.

10% salary increase for the kind of "promotion" you are talking about isn't unreasonable for either parties. It would be easy to argue that the raise is too low or too high for various reasons, which in my opinion means that it is pretty fair.