Paying a roofing salesman


#1

i am considering hiring a salesman to help me keep up on the leads this year. what are some of the guidelines for pay. ive always done all the sales myself…but its getting to be too much to do in a reasonable amount of time.


#2

Well there are a few way to go about this. First on the list is what will his or her pay plan be, 10% - 10% with a 50/50 split - 50% of profit. Then do you pay 5% upon contract signings or not. There are about 100 ways to go about this. If it was not the holidays marshall i would say give me a call and i could answer all of your questions but i have family in town and have no clue what is going on other than tonight. The 26th i can chat about this. Email your number and i will call on the 26th. GTP


#3

Common practice is a set % of the profit (i.e. 40% to start then after your 25th roof sold, bumps up to 45%, then MAYBE to 50% @ the 100th) + a chargeback for office fees of about 1 - 2% of the total sale.

**Example: **

Total sale = 10,000.00, Profit 5,000.00 after all expenses have been tallied.

40% Commission = 2,000.00 Pays back 100.00 to cover office expenses (phones, secretary, photocopy machine, 'lectrickity, etc).

Final commission = $ 1,900.00.


Other co’s might pay a set % of the total sale, i.e. from the front # however I don’t like that from a management side.

If someone decides to cut the sales price to get the job, then there is every possibility they will make the company LOSE money because they have a guarantee off the sales figure vs. a % based on the co. profit.


#4

I would want a minimum allowance, not a draw on commissions, per week, plus 10 % of the sales amount based on the list price and then 33 % to 50 % of anything sold above list price.

I would never work for commission based on the company profit, even though Ranches example looks tempting, but I have no control over the quality control and productivity issues.

I think after the 3 day right to rescind has gone by, then 1/2 of my commission amount should be due and the other half when the job starts or finishes. I would not want to have to wait 3 months if the schedule isa backed up, none to my control, so if I sold it, I want to get paid for it.

Each salesman will have their own perspective, but the best would want to earn more from their better efforts.

Ed


#5

Ed, in my mind that’s what differentiates a salesperson from a roofer.

Even when I worked for another co. on their commission schedule, I can only think of 3 times where I wasn’t onsite the entire time the work was performed. Those occasions were out of my control; once I left to head to Florida for hurricane clean up work, 2nd time I left Florida to come back to Texas for the birth of my daughter & the 3rd was a job I bid out & 4 months after I’d finally left Florida for good, the customer bit on the proposal.

As for not being in control of QC, part of the performance is in what products are selected by the customer. If they are offered ridge vents @ an increased price point, as a salesperson you will probably have an added margin built in there. In my market, Ice & Water isn’t a common product & if someone wants the added benefit of an I&W on the areas of a roof that are more common, i.e. hip tips, tips of ridges, valley bases, etc. then they should expect to pay for the product as well as a little bit extra for the labor to install it.

That’s my take.


#6

10 per cent of the total,50 percent split over the listed prices,with gas and repair expenses—with ed`s payment schedule would be good


#7

Someday I may hire a salesman to take the burden off of me,but we seem to have a large amount of our work just fall on our lap beacause its a case where they know of us from somewhere and its not really that hard to sell it. Although I would like to increase the amount of residential roofs we do but I would then have to also get more men to meet the demand and I will not put my name on a sub or immigrant crews work.
I will turn work away before I cheapen our good name.
So its slow growth and the outlook for the next year is bleak,Harvey Industries just layed off a large percentage of there people I just heard.


#8

As a florida residential salesman i will add this:

I get 10% of the gross sale, unless I go below
"par". Then it goes down.

I supply my own vehicle, my own laptop, digi cam, navi system, gas, etc.

They supply all leads. I am the only salesman.

The company does 600-1000 K a year.

In as much I only get five to ten leads a week, some are only for repairs. Therfore this is not a forty hour work week.

James


#9

[quote=“JamesFL”]As a florida residential salesman i will add this:

I get 10% of the gross sale, unless I go below
"par". Then it goes down.

I supply my own vehicle, my own laptop, digi cam, navi system, gas, etc.

They supply all leads. I am the only salesman.

The company does 600-1000 K a year.

In as much I only get five to ten leads a week, some are only for repairs. Therfore this is not a forty hour work week.

James[/quote]

are you happy or content?