Sales Commission Sliding Scale - Help?

ashsmith
ServiceTitan Certified Administrator
ServiceTitan Certified Administrator

For those of you that pay HVAC salesmen their commission on a sliding percentage scale based on the amount discounted off of book price: would anyone be willing to share the details of their plan? 

Ashley Smith
Retrofit Operations Manager
Reliant Air Conditioning
3 ACCEPTED SOLUTIONS

reneem
ServiceTitan Certified Administrator
ServiceTitan Certified Administrator

We commission based on overall % of all jobs for the month. We use to do it by the job but it was just getting too much tracking. This way, if you have to close one at a lower GM% just to get it, it wont effect your commission, but if you discount ALL of them, then there is an issue and it will hurt your pay. Obviously there are a few stipulations like we can't be losing money on jobs, so each job is looked at individually still. And the Comfort Consultants know where their discount can go to to hit certain GM%.

Renee Lenox - Service Specialties Inc. | LadyTitans Board Member

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RandiThompson
ServiceTitan Certified Administrator
ServiceTitan Certified Administrator

@JessicaSmith I feel like you can answer this!

Randi Thompson
Bill Joplin's Air Conditioning & Heating

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JessicaSmith
ServiceTitan Certified Administrator
ServiceTitan Certified Administrator

We have not taken it live yet, but we're looking at reducing commission by 1% for each range: 0-5%, no reduction. 5-10%, 10-15%, 15-20%, each reduce by 1%. No commission past 20% discount.


Jessica Woodruff Smith, LadyTitans Co-Founder & Process Manager at AirWorks Solutions

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3 REPLIES 3

JessicaSmith
ServiceTitan Certified Administrator
ServiceTitan Certified Administrator

We have not taken it live yet, but we're looking at reducing commission by 1% for each range: 0-5%, no reduction. 5-10%, 10-15%, 15-20%, each reduce by 1%. No commission past 20% discount.


Jessica Woodruff Smith, LadyTitans Co-Founder & Process Manager at AirWorks Solutions

RandiThompson
ServiceTitan Certified Administrator
ServiceTitan Certified Administrator

@JessicaSmith I feel like you can answer this!

Randi Thompson
Bill Joplin's Air Conditioning & Heating

reneem
ServiceTitan Certified Administrator
ServiceTitan Certified Administrator

We commission based on overall % of all jobs for the month. We use to do it by the job but it was just getting too much tracking. This way, if you have to close one at a lower GM% just to get it, it wont effect your commission, but if you discount ALL of them, then there is an issue and it will hurt your pay. Obviously there are a few stipulations like we can't be losing money on jobs, so each job is looked at individually still. And the Comfort Consultants know where their discount can go to to hit certain GM%.

Renee Lenox - Service Specialties Inc. | LadyTitans Board Member