| Post 1 made on Thursday March 6, 2003 at 11:56 |
Keith Murrey Long Time Member |
Joined:
Posts: | August 2002
28 |
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Do any of you have sales people?
How do you pay them - by commission + salary or straight commission?
What percentage of the sale do they get? From the top or after profits?
Thanks.
Keith
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| Post 2 made on Thursday March 6, 2003 at 15:33 |
Thon Founding Member |
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Posts: | November 2001
726 |
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Can't wait to see this. I do most of the sales myself so I just keep what's left over after everyone gets paid, but I am looking for a full time person. I went to a class at CES by Media Systems where they recommended a sliding scale. The basis was a percentage of gross but the kicker was that it went up for higher priced systems, ie 1% for a 50k job, 2% for 100k or more, and 3% for 500k or more. The idea is to incentivise sales people to push the higher end.
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How hard can this be? |
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| OP | Post 3 made on Thursday March 6, 2003 at 16:04 |
Keith Murrey Long Time Member |
Joined:
Posts: | August 2002
28 |
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I am not in a market that supports anything above $50k for a system. Most are $15-30k. Do you think 1% is still feasible?
I mean $300 off of one system seems hard to make a living off of....
If I had a sales person sell a $30k system - I'd gladly pay about $2k.
Keith
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| Post 4 made on Thursday March 6, 2003 at 22:07 |
CustomWired Long Time Member |
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Posts: | January 2003
73 |
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15-30% of the profit dollars is pretty fair.
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| Post 5 made on Friday March 7, 2003 at 11:10 |
Thon Founding Member |
Joined:
Posts: | November 2001
726 |
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Assuming net profit of 10%, 15-30% would be the same as 1-3% of gross.
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How hard can this be? |
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| Post 6 made on Friday March 7, 2003 at 20:27 |
vts1134 Founding Member |
Joined:
Posts: | February 2002
305 |
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I do sales as well as installations and 2% of the sale is what we get and it is miniscule. I certainly wouldn't want to make a living out of it.
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| Post 7 made on Friday March 7, 2003 at 22:44 |
mho Founding Member |
Joined:
Posts: | April 2002
26 |
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I used to be a salesman, and I got 19% to 21% of gross profit. Depending on how much I sold in a month.
Which usually ends up being around 8% of net sales, depending on my margin.
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