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Old 11-29-2012, 03:43 PM   #1
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Commission


I am currently in the process of taking over my fathers Home Remodeling company and I would like to convert the company from hourly to commission. I have ran lots of numbers by and I am having trouble of making the commission fair to everyone in the company. There are some jobs we do that make great money and other jobs we do that actually lose money (but we still do because we have good customers that keep us in business). Does anyone have any suggesstions on how to start the commission process to make it fair to everyone or have a website that has information on the topic? My biggest concern is that the workers will start refusing to do jobs that don't pay and only want to do the jobs that do pay.
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Old 11-29-2012, 04:09 PM   #2
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Re: Commission


why ?? I have never heard of construction workers that work for commision
peace work maybe for certain trades but they are not salesman are they ?
Good luck getting guys to work on commision
I understand you want them to work hard but i dont see it !
why not pay salary plus bonuses if projects come in under estimated time frame they would certainly have a reason to hussle at work but man
I dont get it
but hey best of luck if you can make it work its your company lol

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Old 11-29-2012, 04:32 PM   #3
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Re: Commission


This is not legal in most areas. Some places allow piece work payments, but in remodeling those get hard to quantify.
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Old 11-29-2012, 04:39 PM   #4
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Re: Commission


When I say commission I am referring to piece work. We have painters that like to strectch project out so that they get more money and in return we lose work because it is taking to long. I have tried to explain this to the workers, but they either don't understand or don't care. That is the main reason I want to change to piece work.
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Old 11-29-2012, 05:13 PM   #5
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Re: Commission


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Originally Posted by et85219 View Post
When I say commission I am referring to piece work. We have painters that like to strectch project out so that they get more money and in return we lose work because it is taking to long. I have tried to explain this to the workers, but they either don't understand or don't care. That is the main reason I want to change to piece work.
That is an entirely different story
why not ask a couple local painters to bid your next job ? you shoulsd already have a good idea how long these guys milk a job so you know their numbers already
make them bid the next one or better yet give it to someone else that usually lights a fire under a subs arse when they realize they can be replaced you may see a change in their attitudes
Personally i would tell them to take a hike if i was sure they were milking me

ps welcome ! you should post an introduction in the intro forum
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Old 11-29-2012, 05:22 PM   #6
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Re: Commission


A good employee knows that if everyone doesn't pull thier own weight, then you will all be out in the cold. If they aren't producing, give them one warning, then find someone who will.
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Old 11-29-2012, 05:31 PM   #7
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Re: Commission


"My biggest concern is that the workers will start refusing to do jobs that don't pay and only want to do the jobs that do pay. "

Can you blame them? How would you expect anybody working for free? Your spread sheets have you confused with the real world.

Pay a fair wage and get rid of those that don't produce and reward those that do, and as mentioned above bring in subs to do the work that your guys can't do efficiently.

Commission is for car sales people not hard working people sucking dust all day.
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Old 11-29-2012, 05:40 PM   #8
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Re: Commission


I second the motion for subbing it out. Then you have proof of you foot draggers or a realistic pay schedule for your employees.
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Old 11-29-2012, 11:48 PM   #9
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Re: Commission


Quote:
Originally Posted by ranteso View Post
.

Commission is for car sales people not hard working people sucking dust all day.
Any sales job that pays anything has commissions. Some of the best ones are straight commission.
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Old 11-30-2012, 12:12 AM   #10
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Re: Commission


Welcome to the adults table. Your a contractor, its your job to bid jobs to make money. Liability and risk is your job, not theirs.

If your crew sucks, fire the bad apples. Might help if you step in and show them how its done.
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Old 11-30-2012, 12:15 AM   #11
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Re: Commission


Didn't your dad's way work out?
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Old 11-30-2012, 02:31 AM   #12
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Re: Commission


Bonus for completion under time alloted for normal profit?
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Old 11-30-2012, 09:16 AM   #13
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Re: Commission


Put me on payroll.
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Old 11-30-2012, 09:30 AM   #14
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Re: Commission


That's what I try to do, under time completion bonuses.
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Old 11-30-2012, 05:11 PM   #15
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Re: Commission


Be careful with the distinction between "employee" and "sub-contractor". A real sub-contractor furnishes their own insurance and gets a 1099. I believe in most states if you tell them when and where to work they are employees no matter what kind of arrangement you make with them and could come back later for overtime or file an injury claim on your workman's comp. I'm not trying to sound like Scrooge but you do need to make sure any arrangement you make is kosher with state and federal labor laws because any agreement you make would have to take a back seat to the labor laws.

I've had a similar issue with employees taking their time on some installs and have started using a sub for some projects. He provides his own vehicle, insurance, etc. I provide plans and walk the project with him and he gives me an install price. If we "make medicine" at that point he's in the same boat I am with my customer. If he comes in under his time estimate he makes more if not he makes less - but we're both grown ups who entered that agreement. I don't get profit guarantees from my customers so I can't afford to give them to sub-contractors either. Good luck.
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Old 11-30-2012, 05:19 PM   #16
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Re: Commission


why the sudden change because dad's out? was he losing too much money? or was it working.
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Old 12-03-2012, 12:54 AM   #17
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Re: Commission


Quote:
Originally Posted by et85219 View Post
There are some jobs we do that make great money and other jobs we do that actually lose money (but we still do because we have good customers that keep us in business).
How does this practice keep you in business?

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