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  1. #14
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    Nov 2007
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    Sherman, TX
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    Quote Originally Posted by jmiles View Post
    How difficult would it be to make a decent paycheck at a large national residential company that pays on commission only.?? I have a job offer from them.. They say some of their techs make 100k if they sell maintenance plans and things like that.. Then some only make 40k. I mean to make a 100k that means you would have to produce 600k annual sales. Is this realistic? They run about 10 guys and up to 20 in the busy season. Kinda hard to determine true income potential..
    We're discussing this topic in house right now.

    How many calls can you run a day? What is an average ticket?

    If you run 4 calls a day, with a $500 average ticket, you're practically there, without even discussing equipment comissions or maintenance agreements.

    Here's the deal. Some will say, that commission-based pay "causes" unethical selling.

    Does it?

    How does a one-man shop operate? You got it....commission-based pay (practically speaking).

    Are all one-man shops unethical? Are one-man shops any more unethical than bigger shops?

    Not hardly.

    Commission-based pay doesn't make you unethical, any more than a flat-rate book does.

    An ethical man is an ethical man......and a thief is a thief....period.
    Technical incompetence is NOT a sales tool....

  2. #15
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    Feb 2010
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    In a boiler room
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    7,068
    $500 average ticket is really hard to get in residential. There is always lots of maintenance calls and that drags down the average. Unless you don't do maintenance agreements.

  3. #16
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    Nov 2007
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    Quote Originally Posted by jmiles View Post
    If an average call is $200 that is $34 in my pocket with drive time could be 3 hours roundtrip if on call and had to leave and return back home .
    If your average ticket is $200 in a market like Chicagoland, it's too low. Unless you're running 10 gas-n-go's a day....

    A $69 diagnostic, plus a contactor and 5-2-1 add-on will blow the doors off of that.

    A $69 diagnostic, plus a condenser fan motor will blow the doors off of that.

    A $69 diagnostic, plus a few pounds of R-22 will cover that.

    It's a matter of understanding the HVAC system, AND understanding the customer's wants, needs, and fears.
    Technical incompetence is NOT a sales tool....

  4. #17
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    Nov 2007
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    Sherman, TX
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    Quote Originally Posted by chuckcrj View Post
    $500 average ticket is really hard to get in residential. There is always lots of maintenance calls and that drags down the average. Unless you don't do maintenance agreements.
    I'd somewhat disagree.

    If you're there on a maintenance agreement, it can be EASIER to sell repairs.

    You're there because they're already "your" customer, and they trust you to make sure their system is in top condition.

    If you take your wife's car to the mechanic and tell him: "We're going on vacation next week....make sure everything is in order".....and they call you back and say it's all ready to go, and it didn't need anything....How comfortable would you be?

    If I take my wife's car in for a pre-trip checkup, I EXPECT them to call me with some things that need to be taken care of.

    On the other hand, when you go on a demand call, upselling can be a little more difficult....many will just want it patched up and running....and may see any upsell opportunities as "gold digging"....

    Technical incompetence is NOT a sales tool....

  5. #18
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    Feb 2010
    Location
    In a boiler room
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    Realistically, on a basic residential system that has maintenance every year, how can you average anywhere close to $500 worth of repairs per year??

  6. #19
    Join Date
    May 2006
    Location
    Philadelphia, PA
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    1,380
    Quote Originally Posted by John Markl View Post
    .....

    Here's the deal. Some will say, that commission-based pay "causes" unethical selling.

    Does it?

    How does a one-man shop operate? You got it....commission-based pay (practically speaking).

    Are all one-man shops unethical? Are one-man shops any more unethical than bigger shops?

    Not hardly.

    Commission-based pay doesn't make you unethical, any more than a flat-rate book does.

    An ethical man is an ethical man......and a thief is a thief....period.
    One difference is the one man shop has his own name on the shingle. In a multi-tech shop I can see one bad seed spoiling the entire crop.

    How are callbacks handled in this system? Does the customer wait until the tech that originally performed the service is available?

    In my opinion putting together a bonus system that rewards quality (low call backs) with moderate to high production would allow the owner to attract and retain the best techs.
    Climate Control Solutions for your Home or Office

    Serving Northeast Philadelphia and Surrounding Areas

  7. #20
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    Nov 2007
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    Sherman, TX
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    Quote Originally Posted by chuckcrj View Post
    Realistically, on a basic residential system that has maintenance every year, how can you average anywhere close to $500 worth of repairs per year??
    Statistically, every system represents $750-900 per year in sales, depending on who you're listening to.

    That being said....We don't shoot for $500 average tickets. That was a number I threw out for discussion because the OP is in Chicago.

    I'm in North Texas. The cost of living is vastly different. Nobody in their right mind would expect to make $100k a year as an HVAC tech in this part of the country. I have had guys who made almost $60k.

    So, if we used $60k as a baseline...That's about $350k per year in sales at 17%.

    That's about $6800 per week...or $1360 per day....divided by 4 calls per day, which equals $340 per call average. You already get $65-75 of that just for showing up and diagnosing the problem....leaving $270 to get in repairs or upgrades.....not that hard to accomplish....with what we're getting now for contactors, run caps, motors, hard-starts, and R-22.......
    Technical incompetence is NOT a sales tool....

  8. #21
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    Nov 2007
    Location
    Sherman, TX
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    Quote Originally Posted by comfortdoc View Post
    One difference is the one man shop has his own name on the shingle. In a multi-tech shop I can see one bad seed spoiling the entire crop.

    How are callbacks handled in this system? Does the customer wait until the tech that originally performed the service is available?

    In my opinion putting together a bonus system that rewards quality (low call backs) with moderate to high production would allow the owner to attract and retain the best techs.
    In the systems that I've observed...the callbacks are on the backs of the original tech, at no additional pay.....if another tech has to run it, the callback is charged back to the original tech.
    Technical incompetence is NOT a sales tool....

  9. #22
    Join Date
    May 2007
    Location
    california
    Posts
    223
    If each system represents $900. .. You might as well save your money and buy a new system every 5 years..

  10. #23
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    Nov 2007
    Location
    Sherman, TX
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    Quote Originally Posted by jmiles View Post
    If each system represents $900. .. You might as well save your money and buy a new system every 5 years..
    $4500 won't buy much of a system

    You sound like you've already made up your mind.

    As for me personally, I dig the concept of more work/sales = more munny.

    It's called "entreprenurial spirit"......good stuff....
    Technical incompetence is NOT a sales tool....

  11. #24
    Join Date
    Oct 2003
    Location
    las vegas
    Posts
    1,505
    paid by performance for many years. the way we paid was 20%
    & after the truck had generated 5k it went up to 25%
    no commission on any sales except for total installs.
    pay them well enough to keep them in debt & they will stay around.
    pay too much you will have more competition next season

  12. #25
    Join Date
    May 2007
    Location
    california
    Posts
    223
    If it makes any difference the company is ARS /rescue rooter..

  13. #26
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    Nov 2007
    Location
    Sherman, TX
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    Let's be candid. To make $60-100k per year in ANY job....you have to be a performer. The question is, how hard are you (or anyone else) willing to work to bring in that kind of bread?
    Technical incompetence is NOT a sales tool....

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