Salespeople claim Hermès store cheats them out of commissions (2024)

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Laura Italiano

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March 12, 201612:58am

Salespeople claim Hermès store cheats them out of commissions (1)

The luxe Hermès store on Madison Avenue keeps its salespeople in the dark about how commissions are calculated, and then stiffs them, a new lawsuit charges.

“Hermès is saying take what we give you — we’re Hermès and you’re not,” Richard A. Roth, a lawyer representing two former salespeople, said Friday.
New hires are told to expect a 1.25-percent commission on most sales, according to the lawsuit.

Plaintiff Ewern Chaney, 28, of Manhattan estimated that he had generated $3.8  million in revenue but only made $60,000 total in commissions and wages from November 2012 to March 2014. He was paid a wage of $19 an hour.

Chaney and Winifred Hu are seeking unspecified damages.

A Hermès spokesperson did not respond to a request for comment.

Salespeople claim Hermès store cheats them out of commissions (2024)

FAQs

How much commission do Hermès sales people make? ›

Pooled commission 1% and 3% individual commission on some departments.

Do Hermès sales associates get commission? ›

If you sell a Birkin or anything like that, they don't incentivize that sale because they feel like it sells itself, right? You got a 3 percent commission on ready-to-wear and shoes and fashion jewelry and accessories. But it's all pooled.

What does SA mean in Hermès? ›

One can't just walk into a store and purchase a Birkin – you need to have a relationship with a great SA (Sales Associate) and a genuine love for the brand. And after having some purchase history, the SA might just offer you a bag – and even then you may not have a say in the colour, size, or leather type.

How to build a relationship with Hermès SA? ›

Open communication is the best way to navigate a relationship with Hermès and your SA. Ask as many questions as possible so you know exactly what to expect. Once you have established a relationship with one SA you will be in a better position to navigate the process and submit a wish list of bags you desire.

What is the employee discount at Hermès? ›

The regular employee discount is only 30%. The benefits and ability to grow are few. Raises average 3% no matter how well the company does. Employee turnover is exceptionally high at 20-30% per year.

Do Hermès sales associates get Birkins? ›

It's not like you can just walk into a Hermes boutique and pick up a Birkin right off the shelf. No, these bags are often hidden away “in the back” and you'll need to make a special request — a request that you can sometimes be denied if the sales associate simply doesn't like the look of you.

What are the benefits of working at Hermès? ›

In addition to fixed salaries, individual and collective bonuses and paid holidays, the group has introduced performance-related and profit-sharing schemes, depending on the country. A long-term initiative is the employee share ownership plans that have been allocated to all group employees worldwide.

Can you make money reselling Hermès? ›

Hermès bags, particularly Birkins and Kellys, are an asset class, and investors treat them as such, buying and selling Hermès bags entirely for profit. Hermès bags are considered valuable investments that have historically outperformed the stock market.

Are Louis Vuitton sales associates on commission? ›

It seems to vary but most LV employees do not make a commission on products that they sell, but instead may be involved in bonus schemes. This means that Louis Vuitton sales associates are less 'pushy' about sales as they don't make any direct profit from it.

What does pm and gm mean in Hermès? ›

The Clic H and Clic-Clac H bracelets are available in PM (Petit Model/small, 6cm diameter) and in GM (Grand Model/large, 6.5cm diameter).

Can you give your Hermès SA a gift? ›

However, Hermès has rules about what the SA's may accept. It is our understanding that you may gift your SA anything that can be consumed (as in food or drink) and shared by the employees at the boutique. This does not necessarily mean you must bring enough for everyone who works at your boutique.

Is special order Hermès more expensive? ›

Many people often assume because you're designing a special order Hermes Birkin bag that it will be more expensive than a Birkin bag you'd buy off the shelf. Contrary to popular belief, the special order (SO) Hermes bag is the exact same price as a non-special order Hermès bag.

Why is my Hermès SA ghosting me? ›

There may be a very good reason your SA is unable to respond to your request. They may be on vacation, or medical leave, or their phone has been replaced because it is being repaired. There are many possibilities. Do not give up.

Which is harder to get Kelly or Birkin? ›

Many, many people would love to be offered a Birkin 25. However, with inventory at unprecedented lows, it is very difficult to be offered any quota bag, particularly a Birkin 25. On the other hand, a mini Kelly appears to be the rarest and most coveted Hermès bag at the present time.

Is there a Hermès loyalty program? ›

Hermes successful employs surprise and delight, which has all kinds of positive psychological benefits, and is a loyalty program framework that has seen results again and again.

What is the Hermes 4000 bonus? ›

Hermès will pay a one-time year-end bonus of €4,000 (£3,552) to each of its 19,700 employees amid surging sales and profits at the family-owned French luxury house. The luxury business reported a 29% rise in revenues in the 12 months to 31 December 2022, citing strong demand across its international markets.

Do Gucci employees get a discount? ›

Gucci is a great company to work for, the store you get hired at though determines your opinion. The company came with great perks, the employee discount, awesome health benefits, work phone to keep communication with other team members and clients.

Do Versace employees make commission? ›

Amazing place to work

You can make a good money . Working on a basic salary and commission. Amazing benefits .

How much do you need to buy from Hermès to get a Birkin? ›

There is no “set amount” that you must spend to be offered a Birkin or Kelly in the US. Also, it is unlikely that an Hermes SA will tell you a specific amount that you must spend.

What is a Birkin bait? ›

Welcome to the world of the “Birkin Bait” as my husband and I call it, in other words, the items you need to be buying each semester in order to hook a Birkin.

Who has the most collection of Hermès bags? ›

The wardrobe of Jamie Chua is filled with an impressive collection of more than 200 Hermès bags. Aside from that, the wardrobe also contains 300 pairs of shoes and drawers of diamond jewellery. Chua is said to own the largest and most expensive collection of Hermès bags in the world.

How much do Hermes sales associates make in NYC? ›

Hermes Sales Salary in Bronx, NY
Annual SalaryMonthly Pay
Top Earners$107,087$8,923
75th Percentile$100,100$8,341
Average$76,943$6,411
25th Percentile$62,100$5,175

How many hours do Hermes work? ›

On average a courier works approximately 5-6 hours a day.

What should I wear to a Hermes interview? ›

What to wear for an interview depends on the role you're applying for but should be reflective of the job you're interviewing for. If in doubt, smart casual would be a good way to go. We recommend a smart/casual approach. It is a quite informal process, though it is an interview and first impressions count!

What is the best selling item at Hermès? ›

1 | The Hermès Birkin: Timeless and Most Coveted

The most coveted Hermès bag is the iconic Birkin bag.

Who is the most trusted Hermès reseller? ›

Sotheby's is the premier global destination for Hermes Kelly Bags, Birkins and other Hermes bags and accessories. We make it simple to sell your Hermes bag since we offer free estimates and market your items to our global buyers in 85 countries.

How many Hermès bags can you buy a year? ›

Customers must have a purchase history with the brand, and boutiques are only allowed to order a limited number of Birkins twice a year.

How much discount do LV employees get? ›

The employee discount at Louis Vuitton can range from 30% on regular in-store items to up to as much as 90% on out-of-style items. Employees also receive discounts on brands other than LV. Dior, Sephora, and Marc Jacobs are designer brands for which discounts are available for employees.

How much is Gucci commission? ›

Working as a sales associate for Gucci can be lucrative. Sales reps make a modest base salary plus commission(3% of your total sales alone). So depending on the store and your sales ability, a typical paycheck(given twice a month) could range from $1300, all the way to $2800 during sale season after taxes.

What is Gucci commission percentage? ›

Finally, key account managers may receive a 5% commission on their sales goals, with a maximum of $50,000 per year. The Gucci employee commission structure supports employees in contributing to the brand's success and allows them to benefit from the financial rewards of their contribution.

What is the difference between Hermes T1 and T2? ›

In speaking with the sales associate at Hermes, the old PM is between a T1 and a T2. If you are more petite and like a closer fit, you should order the T1. If you have a slightly larger wrist and or like a roomier fit, you should order the T2.

How much is the Hermes Evelyne? ›

Hermès Evelyne TPM price at auction depends on the condition and color of the bag. An older Hermès Evelyne TPM can sell for around $1,500 to $2,000 while newer bags have sold for as high as $5,000.

What does PHW mean Hermès? ›

Palladium hardware (PHW) is part of the platinum group of metals, giving a silvery finish.

Can you walk in Hermès and buy a bag? ›

You just can't walk into an Hermès boutique and buy a Birkin immediately. It must be ordered, and there is a waiting list. You also can't buy the Birkin, Kelly, or most of Hermès's more iconic styles online.

Can I pawn my Hermès bag? ›

Yes, you can. Hermes is a brand of handbag that has always had a high resale value, which helps when it comes to securing a pawn loan.

How does Hermès decide who gets a bag? ›

Essentially, Hermès invites its top customers to spend thousands on a bag they've deemed the client worthy to carry. Clients can make wishlists to give their sales associates an idea of the bags, colors, leathers, and sizes they have their eyes on, but ultimately, the associate decides what bag will be offered, if any.

What are Hermès best selling colors? ›

Gold bags routinely top the charts of the best colors for Hermès resale value. It trades the number one position with the next shade in our Hermès color guide.

What is the $2 million USD Hermes bag? ›

One of the most stunning pieces from the collection was the Sac Bijou Birkin, priced around $2 million USD. This Hermès bag is crafted from rose gold inlaid with 2,712 diamonds.

Do all Hermès bags go up in value? ›

The average Chanel or Hermès bag increases in price by around 12 per cent per year, she added, making investing in them more lucrative than other assets.

Do Hermes sales associates get commission? ›

If you sell a Birkin or anything like that, they don't incentivize that sale because they feel like it sells itself, right? You got a 3 percent commission on ready-to-wear and shoes and fashion jewelry and accessories. But it's all pooled.

What do Hermes do if you're not in? ›

Hermes will make 2 attempts to re-deliver your parcel, remember you can request a neighbour sign for the parcel, or authorise the driver to leave the parcel in a safe place via your My Hermes tracking link.

What's the problem with Hermes? ›

We sent an undercover journalist to work as a Hermes. Our investigation found that, because Hermes drivers are paid per delivery and not by the hour, this can encourage some couriers to cut corners- for example, by leaving parcels in unsafe places like wheelies bins- in order to earn a reasonable wage.

What is the most popular Hermes Kelly size? ›

Popular Hermès Kelly Sizes

The most popular Hermès Kelly bags are the Mini Kelly 20, Kelly 25 and the Kelly 28. These Kelly 25 and Kelly 28 sizes fit everyday essentials, with the Kelly 28 providing more room for necessities.

How long is the waitlist for a Birkin? ›

Hermes implement strict rules as to who is able to acquire one of their iconic bags. There are long waiting lists that can stretch up to six years. Even getting on the waiting list is a struggle, with customers ranked on previous purchases and reputation with the company.

What is the most sought after Kelly? ›

The Hermès Kelly is constructed out of thirty-six pieces of leather and six hundred and eighty stitches by a single artisan over the course of 18 to 24 hours. While there are many sizes and variations of the Kelly bag the Hermès Kelly 25 is increasingly becoming the most sought after size.

Who is Hermès target customer? ›

Hermes targets high-end luxury consumers who value quality, exclusivity, and craftsmanship. The brand's target customers are typically high-net-worth individuals who are willing to invest in high-end luxury products that are crafted with the utmost attention to detail and quality.

Does Hermès offer discount? ›

Hermes offer students a 20% discount.

Can you earn good money with Hermès? ›

It can be good money but you do work hard for it. Best to start around November and you'll get a better rate for peak.

What is the average boutique commission? ›

The average commission rate for sales sits somewhere between 20% and 30% of gross margins, but this depends on the sales structure. Some workers may earn their whole salary through 100% commission, while others earn 10% on top of a base salary.

How much do luxury salespeople make? ›

How much does a Luxury retail make in California? The average luxury retail salary in California is $39,000 per year or $18.75 per hour. Entry level positions start at $35,100 per year while most experienced workers make up to $80,000 per year.

How much do you have to spend at Hermès before you can buy a Birkin? ›

There is no “set amount” that you must spend to be offered a Birkin or Kelly in the US. Also, it is unlikely that an Hermes SA will tell you a specific amount that you must spend.

What does Hermès sell the most? ›

Hermes' most popular products are primarily luxury travel bags like the Birkin and Kelly models, named after the famous actresses Jane Birkin and Grace Kelly.

Is 15 commission good? ›

What is a typical commission? The typical commission depends on what is being sold. For manufactured goods, the commission rate tends to be around 7-15% of the sale value. The commission on services tends to be much higher, being between 20 - 50%.

How much do boutique owners make a month? ›

Boutique Owner Salary
Annual SalaryMonthly Pay
Top Earners$160,500$13,375
75th Percentile$100,500$8,375
Average$80,170$6,680
25th Percentile$32,000$2,666

Are Nordstrom salespeople on commission? ›

Nordstrom employees are paid a commission of all the sales they make — and it sometimes brings out an ugly competitiveness amongst floor associates. Many employees aggressively court customers in pricey departments of the store in hopes of hooking a customer and their commission before other colleagues.

Do attractive salespeople make more money? ›

In a perfect world, appearances don't have an impact on business, but in the real world, unfortunately, looks seem to matter. Studies have shown that people considered to be attractive earn more money and generate higher sales results.

How much is Louis Vuitton commission? ›

real person. 25% on canvas goods, 1% on leather goods, 3% on hard-sided and exotic goods, etc.) Yes, Louis Vuitton employees get a discount of 30%. If you are a client advisor or security, you work at the store and make sure that the shop is secure and the shop makes sales to high-end clients.

Do Louis Vuitton employees work on commission? ›

I enjoyed my job tremendously but I hated the long commute. Also ever year they changed our bonus program every year because we did not work on commission. Everyone was expected to do the same work but got different hourly pay.

Why is it so hard to buy Hermès? ›

The same bag in crocodile or alligator retails at three to four times that. The problem isn't only that Hermès makes it very difficult to get your hands on a Birkin, but it also limits the number of Birkins you can buy per year. This hyper-limited supply and pent-up demand have created a robust resale market.

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