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Commercial roofing-pay etc.

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September 23, 2013 at 10:00 p.m.

Roof Kat

Im just getting in commercial roofing and I am wondering what do you pay your salesman if they get a big job? Some jobs i bid but I have a manger and he helps out on half the job. Ive done residential for years and I pay 40-50% on net profit on residential. Some of these jobs I'm going to get into are $200,000- up to $800,000 and I'm responsible of course if god forbid they ever leak etc. I just want to be fair and not shoot myself in the foot at the same time.

September 26, 2013 at 10:57 a.m.

Mike H

Some pay a straight commission, anywhere from 2-10%.

Personally, I would never do that. Anyone can "sell" work cheap, and leave you holding the bag.

The fairest system I've ever seen is paying them a percentage of net profit, equal to the net profit.

IOW, if the job nets 10%, they get ten percent of the profit, or 1% of the job.

If the job nets 30%, they get 30% of the profit or 9% of the total job price. I would cap it at 30 or 35%, which keeps them from getting too greedy, and rewards you for knocking it out quick, and for holding the liability.

The system rewards GOOD sales, not cheap prices.


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