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General Business Discussions A place to talk about general business discussions.

What's a standard commission for new jobs?


General Business Discussions

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  #1  
Old 02-06-2009, 07:01 PM
abby
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Default What's a standard commission for new jobs?

Does anyone have an idea of a normal lead fee for say a new lawn care contract would be? Also what % would you consider to be fair on a one time job?
Thanks for your comments.
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  #2  
Old 02-06-2009, 09:17 PM
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Hi Abby,

Welcome to our forum.

Would you be paying this to a sales person? An employee? Another contractor?

Can you give us a little insight as to what your situation is?


Here is a quote from an article in my blog "It ranges between 2 and 4% of the total job not including tax. So if its a $10,000 job, he can stand to make up to $400.00. Not bad huh?? And its all factored in to the numbers of the estimate so it doesnt cost me a dime. For lawn estimates, they get the amount of the first cut as a bonus. Lawn care employee bonuses to help get them to sell more.
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Old 02-07-2009, 04:22 PM
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Hi thanks Steve for the response, I think regarding a mow contract giving the cost of the first cut is a good rate.

Basically I had a employee during the busy time last year, I was going to hire her to go door to door and drop off flyer/letters to home owners in certain areas mostly close to home where I want more customers. I would pay her a flat rate for this. Given that production is met.

She often has good leads through people/extensive family she knows which
I quote and get the job with out argument on the price. Anyways the jobs are usually just general hedge trimming and pruning etc. 200-400 type thing. I think no more than 20% should be paid but she is asking for more which I don't think is fair.
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Old 02-07-2009, 04:47 PM
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I just happened to make another post on paying customer reps. There was an ad in craiglist that went like this.

Quote:
We are seeking high-energy, out-going people with excellent communication and people skills. Come work in a fun and competitive environment. Earn $8/hr plus bonus opportunities. This is an outside door knocking position that requires you to be on your feet and active from 5PM 9PM (Monday Thursday) and 9AM 1:00PM (Saturday). Excellent job for high school and college students. No selling involved, experience not required, will train.
What do you think of that situation? Would a flat fee per hour for marketing your business be a better deal for you?
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Old 02-08-2009, 06:46 PM
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Ya I think it is a good idea and probably what I will do, however my thoughts are to hire someone you know, because there's a good chance a random $8/hour person may either be unproductive and or toss your fliers in the dumpster. I would tend to pay more to someone I knew and could trust.

Another option I think which may be cheaper in the long run is a mass mail out with the post office. I don't know the exact cost at this time how ever you can target specific areas. Another is to catch the paper boy and give them a few extra bucks to hand em out on their route.
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Old 02-08-2009, 07:53 PM
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Those are great ideas! Let us know which you decide to go with!
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