Question regarding how office fees are taken out...
Ok so I'm fairly new to this job and I just wanted to ask of few experienced contractors if this way of calculating an office fee is proper.
I make 40% commission with a 10% office fee taken out. Here is a sample capout:
Total contract price = 13,011.00
10% office fee - 1,301.10
= 11,709.90
then after the office fee they subtract for materials and labor and find out the profit for the company. Lets just say it came to 5,000 total profit. Now I get 40% of that......or $2,000
Is this normal to take the office fee out of the contract price? It just doesn't seem right b/c one of our sales guys got his capout on like a 6K job and the office fee was more then his commission
I make 40% commission with a 10% office fee taken out. Here is a sample capout:
Total contract price = 13,011.00
10% office fee - 1,301.10
= 11,709.90
then after the office fee they subtract for materials and labor and find out the profit for the company. Lets just say it came to 5,000 total profit. Now I get 40% of that......or $2,000
Is this normal to take the office fee out of the contract price? It just doesn't seem right b/c one of our sales guys got his capout on like a 6K job and the office fee was more then his commission
