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Standard Commission on a $250k contract

Discussion in 'Commercial Snow Removal' started by tomyknee, Aug 11, 2014.

  1. tomyknee

    tomyknee Junior Member
    from PA
    Messages: 7

    I have contract that billed $250K in 2013/14. I may give to my current employer or if he is unable to another. What is a fair commission for me if I bring the contract to someone else? 10% on first $100K, 5% after $100K in billings?
     
  2. Broncslefty7

    Broncslefty7 Senior Member
    Messages: 656

    that sounds pretty fair.
     
  3. tomyknee

    tomyknee Junior Member
    from PA
    Messages: 7

    Thanks Bronc's, I thought so but ....

    ....I was hopping someone might know if the snow industry had some sort of standard?
     
  4. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,548

    A weekly pay check
     
  5. SnowGuy73

    SnowGuy73 PlowSite Fanatic
    Messages: 24,868

    Sounds a bit high. I'd say 10% on the first 50k and then maybe 3-5% thereafter.

    JMO.
     
  6. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    How is it possible that you have the contract for this when it appears you are not in a position to perform the work?

    There are standards in the industry, but a finders fee isn't standardized if that's all this is.
     
  7. tomyknee

    tomyknee Junior Member
    from PA
    Messages: 7

    Ok old dog , what would you pay someone a week who brought you the contact?
     
  8. tomyknee

    tomyknee Junior Member
    from PA
    Messages: 7

    Though not sure of your reading of the question. Did a great job in record winter of '13/'14, hence client trusts me. I can and feel ethically obligated to renew using whoever I think will serve the client best, of course, including our firm (I am not a full time employee) but nevertheless yes THE INDUSTRY STANDARD is what I am seeking.
     
  9. Broncslefty7

    Broncslefty7 Senior Member
    Messages: 656

    ive done this before and have had the same done with myself. standard for around here seems to be 5% across the board.
     
  10. tomyknee

    tomyknee Junior Member
    from PA
    Messages: 7

    Broncslefty, Thank you.
     
  11. Buswell Forest

    Buswell Forest PlowSite.com Addict
    from NH
    Messages: 1,668

    I would be asking 6%, maybe 7%. Unless there's a lot more meat on the bone?
     
  12. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Does this place know your passing it along 1st of?
     
  13. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    I read what you wrote. I'm trying to gain the understanding of how you became the liaison for this client, and how is it you are able to chose the contractor as opposed to the client doing so.

    Finders fees are negotiable.
     
  14. Defcon 5

    Defcon 5 PlowSite.com Addict
    Messages: 1,701




    If you did such a "Great" job last year....What did the contractor that actually did the "Great" job pay you???.....:rolleyes:
     
  15. 1olddogtwo

    1olddogtwo PlowSite Fanatic
    Messages: 11,548

    Old eyes..looked 1st post again.

    So I/we understand. Last season you scored a contract for a quarter million and now you are trying to sell the info to your current employmentor or competition?

    I would immediately fire you regardless.

    Now if you didn't work for said employer, and your current work did not involve snow plowing. I would pay you out as moneys collect @ a flat 10% as long as its payed within 30 after invoice, 7% on 31 to 60, 5% 61 to 90 days and nothing after 90
     
    Last edited: Aug 11, 2014
  16. djagusch

    djagusch 2000 Club Member
    from mn
    Messages: 2,071

    How much net is in the contract? Easy to say I have 250k in sales but never make a dollar.
     
  17. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    That's what my tax returns say every yearThumbs Up
     
  18. TCLA

    TCLA 2000 Club Member
    Messages: 2,699

    Yup, you read right...

    It's the only aspect of this he has been clear on. Got to read between his words and lines in order to figure out how he's positioned himself to get where he's at.

    Don't let your current part time employer find out how "ethically obligated" you are. :laughing:
     
  19. Flawless440

    Flawless440 PlowSite.com Addict
    Messages: 1,543

    % of the profit
     
  20. tomyknee

    tomyknee Junior Member
    from PA
    Messages: 7

    So despite your ill-will, you still have not answered the question. Which begs the question that you do not have salesmen. The question is how do you reward your salespeople?


    I am not a paid employee. He is a brother in Christ who I wanted to help. I did some landscaping last summer at $10 an hour. He knows my skill set so he said "can you get me snow contracts" (Yes I was paid the same rate part time for the hours it took to land this contract)

    My reward for finding, putting together the 20 page on-boarding process, securing the liability insurance, pitching the client, was. "You can be on our sidewalk crew" (Which I did all winter).

    Now if the "wise guys" who replied don't understand WHY (which they know but fear) you reward your salespeople because the client's loyalty is not to the owner/operator of Rubber tire loaders, salt trucks, dump trucks that is a commodity. The value is the relationship with the guy that made sure the job was done well and billed fairly.

    % of profit I believe is the fairest, particularly if I am project managing but you have folks in this business, I am finding, who don't really know true how to do true job costing, to come at an agreed upon net.