Salesmen Commision?

What do you pay your sales people? Do you pay them off gross or net or flat rate?

10% of gross. Sometimes we do a "par" for those unusual instances where the salesman gets more than our normal charge. We don't encourage them to charge more than normal but we offer NO discounts to insurance companies and if they want to pay $150/SQR more than we usually charge...

Example of par is lets say we normally charge $300/SQR for a spec. If the salesman gets $400 then he gets 10% + 50% of the amount over our base rate. So the salesman gets 10% + $50/SQR.

That would be me, and I keep whatever is left.

Roofguy Said:

Example of par is lets say we normally charge $300/SQR for a spec. If the salesman gets $400 then he gets 10% + 50% of the amount over our base rate. So the salesman gets 10% + $50/SQR.

Where is the line between a fair price and price gouging? Commercial work may be different, but in residential work, so much of the job is just based on trust. I once knew a salesman who would feel out the prospect, gain their trust, then jack up the price if he felt he could get it. I know this may be standard capitalist practice, but I never thought it was right or fair. I never could do it.

If we do work for $300/SQR and an adjuster pays $400, the 2 options available to me are to help the insured break the law by doing the work for $300, or doing it for $400.

Roofguy Said: If we do work for $300/SQR and an adjuster pays $400, the 2 options available to me are to help the insured break the law by doing the work for $300, or doing it for $400.

That's why I said "helping the uninsured break the law."

There is no uniformity in commercial claims like you are suggesting. There is so much supposition, prices are all over the ballpark. Way more often than not, if I'm involved on a claim I can make a $100,000 difference on a $500,000 claim. Yes I know, I can't negotiate with adjusters, but the law allows me to defend my estimate - which I do.

The issue is that most adjusters are very poorly trained in adjusting commercial hail claims.

natty Said:

Roofguy Said:

Example of par is lets say we normally charge $300/SQR for a spec. If the salesman gets $400 then he gets 10% + 50% of the amount over our base rate. So the salesman gets 10% + $50/SQR.

Where is the line between a fair price and price gouging? Commercial work may be different, but in residential work, so much of the job is just based on trust. I once knew a salesman who would feel out the prospect, gain their trust, then jack up the price if he felt he could get it. I know this may be standard capitalist practice, but I never thought it was right or fair. I never could do it.

There is no line. It is up to the individual contractor to determine what he charges for his work. Much like it is up to the owner to determine how much he'll pay.

I get what you are saying but, imagine if it wasn't like this.... Would you really want your competition to determine what you can charge...? Or worse yet... the government...? I think not.

There is no line. It is up to the individual contractor to determine what he charges for his work. Much like it is up to the owner to determine how much hell pay.

I get what you are saying but, imagine if it wasnt like this.... Would you really want your competition to determine what you can charge...? Or worse yet... the government...? I think not.

I believe there is a line between a fair and profitable price and price gouging. What roofguy was stating is clearly gouging. He said that he would split any upcharge 50/50 with his salesman if he could get it.

LOL! Natty, you're an idiot.

You read what you wanted to read. I'm not even going to waste time explaining it to you.

Roofguy Said: You read what you wanted to read.

So you are suggesting I be greedy by taking it all myself?

Evidently you have little experience with commercial roof claims if you think there is anything resembling uniformity in the process. Adjusters often pay way less than they should, but every once in awhile they pay more than they should. Sometimes they pay more than we ask them to pay. This is especially true of independent adjusters who get paid a percentage of the claim.

Roofguy Said: So you are suggesting I be greedy by taking it all myself?

No, I am trying to get you to explain how taking an upcharge then splitting it 50/50 with your salesman is not price gouging the client whether or not insurance is involved. Seems to me that 10% is plenty to pay a salesman especially since you apparently treat him as an independent contractor.

All I know is that after job costing, I hope I've made a profit.

After a few years of doing this, I know that no matter how many profitable jobs I complete, there is always a train wreck coming up that is going eat up some profit from the other jobs.

Of course I'm managing some things wrong, but my point is...I don't feel like I ever over profit on any one particular job.

The profit that concerns is me year end.... the aggregate

natty Said:

Roofguy Said: So you are suggesting I be greedy by taking it all myself?

No, I am trying to get you to explain how taking an upcharge then splitting it 50/50 with your salesman is not price gouging the client whether or not insurance is involved. Seems to me that 10% is plenty to pay a salesman especially since you apparently treat him as an independent contractor.

Let me type slowly: I-t I-s n-o-t a-n u-p-c-h-a-r-g-e. Getting it yet?

It's a straw horse and unless you're simple beyond belief, you know that.

But I'm happy to see that you've decided what is fair compensation for all roofing salesmen. :-)

If you really run your business the way you say, then you should get on your knees everyday and thank the Lord, because it is a veritable miracle.

twill59 Said: All I know is that after job costing, I hope Ive made a profit.

After a few years of doing this, I know that no matter how many profitable jobs I complete, there is always a train wreck coming up that is going eat up some profit from the other jobs.

Of course Im managing some things wrong, but my point is...I dont feel like I ever over profit on any one particular job.

The profit that concerns is me year end.... the aggregate

Well that's exactly right. It is foolish to suggest that there is one fair price to charge for roofing, as Natty suggests. Every company has a different cost/overhead structure. What he talks about is akin to price fixing.