Hello Everyone, I own a roofing company outside of Chicago Illinois and I was wondering how other owners pay there salesmen salary/commissions. I'm having a hard time deciding what or how I should structure there pay. Also we do a lot of repair work and for example we will give the estimator a hour pay to put the estimate together and then usually the salesmen will make anywhere from 7-10% but what I'm finding out is the salesmen are making just as much as the company so there is obviously a problem...
Does anyone tie there % of sale commission to the current price of material?
So the going rate according to this thread is 7-10% of sale. What if shingles almost double in price again like they did in 2008?
We are not storm chasers. Used to pay 8%. Now according to the math I should offer 6%. I provide truck, gas, 401k, and approx. 25 leads per week during the busy season. A 30%/70% split for anything sold over our base prices (30% to salesman). 10% for door knocks (if they want to). 1 million a year is easy, 1.5 million should be sold, and sky's the limit after that. But I'm looking to attach the 6% to the current price of shingles. Does this seem fair?
patty cakes as a former estimator why shouldn't you reply?
Patty some of us look for new posts,your countdown makes it look like there may be something of interest again-But obviously it`s just wasting my time
3900 and rising just like the gas prices. PC :blink:
or the topic is finished
Geez 3800 now.PC
Up to 3400 now. Scardycats.
I haven't commented on this because it's just not my place. But 3300 people viewed it. They are all weenies, don't have the balls to speak up. I just grew mine. Whimps. PC
Thanks Kyle
Now Steve,you do realise everyone here is from different areas with different practices,Ottawa is is Ottawa ,(Canada),I am in NY,Kyle in P.A.,Old School hails from michigan etc.--We appreciate everything people input because the scale,and reasoning are different all over---I did notice,,You gave the worst reply to this topic,,Better luck next time :dry:
Hey what's up John. This is what I am thinking.....
% of sale commissions can be inaccurate unless all jobs are sold at the same profit margin.
Salesmen A - 1,000 dollar job that produces 250 dollars profit before overhead expenses.(25%) gross profit margin Salesmen B - 1,000 dollar job that produces 500 dollars profit before overhead expenses.(50%) gross profit Margin.
10% commissions = 100 dollars paid to salesmen on both 1,000 dollar jobs. Salesmen -A- made(100/250) or 40% of the gross profit on that job was paid to the salesmen. Salesmen -B- made (100/500) or 20% of the gross profit on that job was paid to the salesmen.
Salesmen -A- gave something for free, copper upgrade, so he could get the sale. Costing the company 250.00 of free work. Salesmen -B- sold the job without giving any service or upgrade away for free, so the company kept the 250.00 of profit.
But, both salesmen got paid 100 dollars. In this scenario it was unfair for salesmen B.
It is obvious in this scenario, but
What if in an example -Z- we say a job was sold for 11,528.23 project and another job completely different Job -X- sold for 14,269.31 Totally different projects, different materials, etc. Is 10% of the sales tickets on this job fair for both salesmen who sold these two entirely different jobs.?
There is no way to really tell unless you sell all jobs at a standard gross profit margin %. or pay your salesmen a percentage of gross profit like Sillabica does.
Ottawa_Roofer, thanks for giving the only straightforward answer on here.
I offer commission percentage based on margin per sale. It works out ok, they can make an awful lot of money that way, but it has worked well so far.
Onarooftop Said: 10% commission is extrememly different on a job that is a 40% gross profit, or a job that was sold at 30% / 50 % etc.Onarooftop
Please skip the riddles,explain what you mean Kyle (please)
10% commission is extrememly different on a job that is a 40% gross profit, or a job that was sold at 30% / 50 % etc.
Onarooftop
You know I pay my Salesmen better than anyone in this area and it seems that they get kinda lazy and seem a bit unappreciative of the fact I'm giving them more. I have no idea what it is maybe it is the south but honestly it drives me nuts and im thinking of pulling theirs down a bit to see if they shake their asses a bit more!!