fair commission rates

Roof Roof Roof

Hello all,

The company I work for specializing in storm damage, insurance claims. We offer customers full roof replacement for fair market value and/or for the scope of damage. In other words, what the insurance company will pay. Depending on the job, we sometimes can reduce the customer's deductible by offering a sign allowance.

I have now been in the position of project manager for five weeks. I have a few things on my mind. First, my responsibilities include the following:

Cold Calls
Knocking the doors
Securing a contract with the customers, meeting with the adjuster, selecting the shingles and completing the work order for the customer. I then, supervise the crew on the day of the build.

My starting pay is 7% of the gross profit. I have sold 10 roofs during my first five weeks and capped only one. Another to be capped soon.

It has been a steep learning curve, but I feel that I am doing well.

I receive one hundred dollars advance on each signed contract and receive payment of commission upon the receipt of the final check.

I feel based on the number of miles driven and gas expenses that I need a higher commission rate.

A few questions.

Does this sound like a fair starting wage and at what point should I ask for a raise?

I would like to know what is a good sales average for a residential project manager with my duties to sell per month.

Thanks for your response,

Sincerely,

Roof Roof Roof

RemStar

I think that you are being overworked and underpaid. I believe being a salesperson is a full time job on its own and it will be hard to hit a level of success if you are having to micro manage crews at the same time.

Do you feel like your making enough money for what your doing?

There are a couple other posts on this forum about salesperson commission, Check them out.

Roof Roof Roof

I feel i am under paid and i am in a steep learning curve but i almost have it down! Thanks for the input.

Roof Roof Roof

Roof Roof Roof

I noticed that 10 other members have viewse this thread. Thanks for the interest.
I would like to ask that a senior sale person or owner of a roofing company respond to my questions!!

Thanks in advance for your wise advice.

Regards,

Roof Roof Roof

Grumpy

Where are you from?

Storm chasers, and that's who you work for, make money by cheating. They cheat the customer by cutting corners, they cheat the sub contractor by paying peanute, they cheat the sales rep by underpaying as well, and when the storm is all gone they cheat the supplier by stiffing them with a couple months of unpaid bills. That's the racket you are engaged with.

7% is not a-typical from many of the storm chasers around here. No offense to you, but it doesn't really take alot of roofing education to be a storm chaser. I am not sure what your experience is and am making an assumption that you are a skilled salesman but not a roofer.

I really don't like storm chasers so I am not going to offer any real advice other than to get a real job. Sorry.

__________________
-Grumpy
Chicago Gutters Chicago Roofing

Grumpy

I'll add that in another thread in this forum about sales commission I gave a rather lengthy explination as to determine the worth of a sales rep and determine a commission structure. You may take a look at that.

__________________
-Grumpy
Chicago Gutters Chicago Roofing

JWH

You should get atleast 50% of profit.

vtroofing

7% of Profit?

If they are Stormer's and they/ you sell roof alone- no three trades 10/10 there is no Profit and No Overhead. Xactimate numbers are low down South so after the Office gets a cut, then you get a cut of a cut, and you make no mistakes in your Scope you see something- probably not much more than that $100 and how far does that get? Full tank of gas and drive thru breakfast.

It is a sad scenario. All that sun and warm weather yet no money.

vtroofing

Yes. And if you are a Salesman- and a Project Manager why not just find a crew and start your own thing?

qejustin

From my experience, you are not getting paid anywhere near what is the norm. We do a lot of insurance restoration work but locally; we dont chase storms. Our sales people/project managers have a similar job description as you do. They handle the job from sale to install. We feel that this is best for the customer as they have 1 point of contact through the entire process.

With that being said we pay our salesman between 40-50% of the profit. I know some roofing companys pay 60% but we give our sales people a lot of leads and they get a lot of office support.

Example:
10,000 Job
-7.5% Office Overhead
= 9,250.00
Material/Labor cost $5,000.00
Profit = 4,250
Rep gets 2,125