Sales Commission Sliding Scale - Help?

[ashsmith]

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? 

[reneem · Accepted solution]

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%.

[RandiThompson · Accepted solution]

@JessicaSmith I feel like you can answer this!

[jb2]

how do you guys go about setting up configurable payroll to show a sliding scale for discounts ? 

[JessicaSmith · Accepted solution]

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.

[RandiThompson · Accepted solution]

@JessicaSmith I feel like you can answer this!

[reneem · Accepted solution]

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%.