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Val Mac Paint
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6 Posts
Discussion Starter · #1 ·
Hi, I'm new to this site. I already introduced myself on the intro thread.

Anyway, I am looking at hiring a full time estimator. My company focuses on apartments, townhomes, dorms, hotels, etc. We are located in Dallas, TX. I have always done my own bidding for now over twenty years. I know all the standard rates for multi-family construction. But to be honest, my company has grown to a point where I really need to allocate my time elsewhere. Hence wanting to hire an estimator.Does anyone have any salary/commission/bonus guidelines that they can offer me? In other words, what kind of compensation do I offer? While I really need to know Texas area info, I welcome all suggestions.

Thanks!
 

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Are you looking for an "estimator" or a "salesperson"? I ask because there's a difference in how each one is paid. If an "estimator" is simply taking off quantities, applying the unit rates that you give him, and arriving at a price for the bid, his compensation should be salaried. If he's having to actually "sell" the work, as in meeting with clients, convincing them that your company is the right one for the job, etc, then maybe commissions come into play. Alot depends on how you procure business.
 

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Val Mac Paint
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6 Posts
Discussion Starter · #3 ·
Looking for both

Bob,

I am actually looking for both now that you mention it. However, at this time really what I need is someone to do the take-offs. That being said, ideal candidate would fulfill both positions. Let me know your thoughts.

Thanks.
 

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If right now he's doing takeoffs, he should be salary/hourly. If you then need/want him to step into an expanded role in actually "selling" work, that would be the time to talk about commissions. As a "takeoff person", he's got no control over whether you win or lose the job, so his compensation really can't be tied to that.
 

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Organic Painter
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1,008 Posts
I have hired salespeople to work...

I had a few salespeople, I will tell you right now the only way to make it work is to pay commission only!

A hungry lion will go kill.

My last salesperson worked here about a year, he was more of an estimator though and had a salary against commission and that's how it went bad.

I recommend you look around for a one call closer to come and sale for you, they will want commission only any ways and I would expect to pay around 10% of the total price of the painting project. I no longer work sales people at the moment because I learned how to one call close and I am having so much fun at it.

Edit to add:
My company focuses on apartments, townhomes, dorms, hotels, etc. We are located in Dallas, TX.
Seen you posted this about you in another thread or website, If commercial is what you do then pay the person a salary plus a 1.3% bonus of the total job price. A Salary person is the only way to go for you in that type of estimating situation.
 

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Val Mac Paint
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Discussion Starter · #7 ·
Thanks for the advise

Thank you everyone for your comments, it has been helpful.

Mike...what kind of salary would you recommend? The individual would be required to do the takeoffs, put together complete and detailed bids, follow up with the GC's, and sell/negotiate. Basically all of what I've been doing (regarding estimating/selling) except contract negotiation/review/approvals.

Thanks again.
 

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Organic Painter
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1,008 Posts
My expectations of a salesperson:

The Salesperson should not have to go out and find leads, just run them. I think you could expect 2 great leads a day and sometimes 3 from your person.

These leads should take a seasoned salesperson 1 to 3 hours each and they should close over 50% of every lead they go on in the first visit for more than needed to make money.

If a person can do that they deserve 10% of the total sale on residential re-paints. Commercial jobs are different all together. A salesperson running the same leads as most you owners will sale jobs for more money and sale more jobs per year off the same amount of leads, the problem is finding this person because I have looked all around and had to go train up on my own.
 

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10% commision only. Once you start mixing in expenses, that commision salesman just turned into an employee. Then you have a whole different deal. If you even give money for gas expense, he is no longer able to be on commision only. You can always cap his percentage if your talking about big commercial jobs that are an easy sell. We offer 15% to any leads brought in and closed by our salesman.
 

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a little late.

I am an estimator 12-16 hrs. a day. Someone hit the nail on the head earlier. Takeoffs only salary ony / fulltime position sales calls take-offs / follow up calls / site meetings and long hours = salry 50,000 plus commision. the avrage sales guy will bring in 5 to 6 times his exspence in company profit. As long as you keep your company running at 33 percent minimums. If you get an experianced sales guy he will be like me and cant spell for sh?t but is real good at math. I start off with knowing the ball park of price pr. sq. ft. of the building that I want to see, in comparison to a similar project P&L report. This is how to avoid disaster and submitting a bid that is out of control. Then I have a standard way to do the take-off make the calls and even when to and not to leave a message. This is how I close jobs.How to know if someone is hungry. I work a full time job quoting and selling, then go home and do quotes for other contractors from other states and into canada. The ones from Canada take some getting used to that whole Metric thing. Any way that is the discription of a solid sales guy.
Thank you for reading
 

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Doug
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96 Posts
I expect a Sales person to be so knowledgable about his services and products that when he/she pitches customer they simply lay down and sign because they realize that no other company coming in will ever be 1/10 as experienced as Room 2 Roof.

BTW that Salesperson should be knowledgable enough to provide profitable price quotes, as mine do because I set guidelines of how high and how low they can bid a project. I wont be known as the lowballer because I have a company to grow and family to feed but I will never be the guy people talk about behind my back for being a crook or price gouger......you have to find good people and pay them fairly and you have to be fair with your customers, when you make people happy they love to refer and that always has made my company more money than anything.

Charlotte NC Painting | Salisbury NC Painters | Residential Painting Contractor NC
 
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