Siding-windows-roofing sales commission ??? - Contractor Talk - Professional Construction and Remodeling Forum

thermax · 08-29-2009, 01:58 PM

this has been discussed a bit already but want some feed back from those in the industry..
1)if for example i make 5k profit after material and labor..how much percentage usually goes to a salesman(average)?

2) do most of you guys have a limit or floor as to how low a salesman can price a job? in other words,the compant needs to make a certain amount of profit before any sales commission? lets say 300 per window as an example before the salesman can make any commssion...

W-Tinc · 08-29-2009, 04:31 PM

Not sure how well paying a percentage based on your profit would work.

Seems like that would require some extra info sharing from me and extra trust from the salesman.

In the past I have set the sales prices and paid a percentage of the whole sale (8%-12%) as long as the job was sold within price guidelines.

Haven't seen this in awhile but some companies used to call the sales price the par price, if you sold at par you get X percent. Then they would make you a much bigger split for anything over par, one paid 40%.

I have never seen a system where the saleman would still get paid if he sold the job too low.

**Ed the Roofer** · 08-29-2009, 04:41 PM

Quote:

Originally Posted by W-Tinc

I have never seen a system where the saleman would still get paid if he sold the job too low.

If that is ever a possibility, then you better add a clause to the contract that it is not valid until approved by the manager/owner/president, whatever or whoever they may be.

Ed

Framer53 · 08-29-2009, 05:05 PM

Quote:

Originally Posted by thermax

this has been discussed a bit already but want some feed back from those in the industry..
1)if for example i make 5k profit after material and labor..how much percentage usually goes to a salesman(average)?

2) do most of you guys have a limit or floor as to how low a salesman can price a job? in other words,the compant needs to make a certain amount of profit before any sales commission? lets say 300 per window as an example before the salesman can make any commssion...

I used to in the old days sell roofing and siding. In fact I ran a sales crew!
The normal comission for a company generated lead was 10%. If the salesperson generated the lead, he or she earned an extra 5%. For every doller below list price a salesperson lost an equal percentage. At anything below 5% off, you were required to call the office. The salesman never lost the lead generation %!
If the manager, me in most cases, approved a sales below the 5%off, the salesman got a max of 5%.
We also set it up that a salesman made minimum wage in addition. to any commission. The sales comission went into a seperate fund on paper and they were paid 1/4 of the account each week, in addition to the min. wage
This kept the company ahead enough that if they quit, there would be money available to charge a comm. back if there was a need.
Most salespeople had a self imposed maximun to be paid each week which covered a salesperson in a slow period!

**Ed the Roofer** · 08-29-2009, 06:03 PM

Quote:

Originally Posted by Framer53

I used to in the old days sell roofing and siding. In fact I ran a sales crew!
The normal comission for a company generated lead was 10%. If the salesperson generated the lead, he or she earned an extra 5%. For every doller below list price a salesperson lost an equal percentage. At anything below 5% off, you were required to call the office. The salesman never lost the lead generation %!
If the manager, me in most cases, approved a sales below the 5%off, the salesman got a max of 5%.
We also set it up that a salesman made minimum wage in addition. to any commission. The sales comission went into a seperate fund on paper and they were paid 1/4 of the account each week, in addition to the min. wage
This kept the company ahead enough that if they quit, there would be money available to charge a comm. back if there was a need.
Most salespeople had a self imposed maximun to be paid each week which covered a salesperson in a slow period!

That sounds like a very simple, yet non-cumbersone verion, rather than so many that just willy-nilly have no policy in effect what-so-ever, with the exception of a fixed percentage amount.

Ed

Framer53 · 08-29-2009, 06:07 PM

Quote:

Originally Posted by Ed the Roofer

That sounds like a very simple, yet non-cumbersone verion, rather than so many that just willy-nilly have no policy in effect what-so-ever, with the exception of a fixed percentage amount.

Ed

I will tell you what Ed, I wish they hadn't gone out of business. Actually they didn't, just moved and I didn't go!

advanced_energy · 08-30-2009, 11:47 AM

i have one sales guy myself and pay him 10 %. If i make 3k i pay him 300.
he has a full time job so this is perfect for him.

Framer53 · 08-30-2009, 12:08 PM

Quote:

Originally Posted by advanced_energy

i have one sales guy myself and pay him 10 %. If i make 3k i pay him 300.
he has a full time job so this is perfect for him.

Do you pay on the gross or net? If it is net and you are paying 10%, he is working cheap!