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what is a good commission to pay a local sales person marketing printing services?

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Old October 31st, 2014 Oct 31, 2014 10:43:23 AM -   #31 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

Quote:
Originally Posted by customapparelpro
Mind letting me know why not profit?
Even though this thread was initially started in 2008 I will chime in on a recent question. Another reason not to pay on profit is your sales rep then knows what your cost and profit is for those jobs. My sister did some part time sales for us on profit through her own business. I knew she would never be a competitor and didn't mind her knowing the cost and profit of a job. Someone just hiring on that I don't know? I don't want them knowing my cost and profit.
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Old October 31st, 2014 Oct 31, 2014 11:46:49 AM -   #32 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

I would start from 10%.
 
Old December 9th, 2014 Dec 9, 2014 7:52:25 PM -   #33 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

5% on referrals and 10% on actual sales.
 
 
Old December 11th, 2014 Dec 11, 2014 1:34:17 AM -   #34 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

When I have a sales person I usually start at 10% on total sale before taxes. I don't penalize on repeat business as they make the world go around.

There are 4 things I normally do to incentivize the position ...

1. if they hit a minimum of sales for (week, month, whatever) I would add 5% to their sales after that ... so if they sold $2000 in sales for that period I would pop them up to 12.5% commission on sales after that. Usually mine was for every couple of weeks (like a pay period), but I had a few part time sales peeps that I let them do it for the month.

2. if they could up sell the order (On shirts, that results in a lower price for qty, for example) and it affected the price ... I would give them a pro rated commission ... so if the shirts go from $20 each down to $14 each, I would probably give him a commission on $17 each.

3. Repeat customers get locked into that sales person while that sales rep is with me. That way if the customer just calls up and wants something done, the process can get started with follow up and commission paid to the sales rep.

4. occasionally I would make an item an added commission item. usually it was something like hoodies in that Aug. to Sept. months or tanks in Feb. .. you know ... early seasonal stuff to get the jump on sales for that. the added commission varied, but on average it was an added 2% or what have you.

Since your sales people are feet on the pavement most of the time ... I sometimes throw in a gas allowance on their commission check if they were constantly bringing in work. they wouldn't always get it, or know they were gonna get it until they look at their check ... but it was just a little 'thanks' I could do. ... now with gas as high as it is ... it would be a nicer thing to do.

When I still had my screen shop in Florida .. it worked out well. I had about 3 sales people who would hustle like demons ... 2 of which were hot stay at home moms so when they needed flow they would go sell me some swag. Nothing says sales like hotties on a mission. I mean, it's not bad when you have one job that can net out around $2.5k for shirts and that person ends up getting a check cut for around $350-400 bucks from it after one sale. My profit on something like that after man hours and overhead was worth that cut of commission since the sales rep usually did 90% of the work landing the sale.

Sign work isn't as easy so I've never had the same success with sales people and signs ... so find out what works for you.
 
Old December 17th, 2014 Dec 17, 2014 1:27:11 PM -   #35 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

Quote:
Originally Posted by atomicaxe
Nothing says sales like hotties on a mission.
Haha, I Heard that!
 
Old May 1st, 2015 May 1, 2015 6:23:43 PM -   #36 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

I am going to start using the following scale:

Monthly Sales:
Tier 1 > $0-$4999 = 10% (up to $499 commission paid)
Tier 2 > $5000-$9999 = 12.5% (up to $1250 commission paid)
Tier 3 > $10000-$14999 = 15% (up to $2250 commission paid
Tier 4 > $15000-$19999 = 17.5% (up to $3500 commission paid)
Tier 5 > $20000+ = 20% (up to $4000 commission paid)

This includes dealing with customer and arranging art files to be sent to me and dealing essentially with any one on one contact with the customers. We have a $75 an hour rate on artwork for anything that exceeds 15 minutes (I am pretty lenient on this) and if they sell this service they get 25% of that. I also add a little kick on top of the commission if I give them a suggested price of $10 per shirt and they sell them to the customer for $11 each we split that $1 50/50.

I also have a program for referrals which is 5% of anything over $1000 in a calendar month. I don't let people get this if they are referring their employer or team because I see that as a conflict of interest and not very ethical.

Essentially, a sales rep selling $15000 a month brings home $3500 in commission a month which is a decent living of $42000/year. I would say the first 3 tiers would be a part-time person up to 25 hours a week and the upper two tiers would be more of a full-time sales person.

No expenses paid.
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Old May 9th, 2015 May 9, 2015 9:44:00 AM -   #37 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

Think about how the salesman feels. You want them to be motivated to make calls non stop because you are going to make them rich. The manufacturing side is always focused on reducing costs to improve bottom line profits. It is natural you want to drive down the sales cost and pay the minimum. After all, you beat up your suppliers all the time.

But the sales guys are all about driving the top line sales. They have to talk to a bunch of folks before they make a sale. Looking rejection in the eye all the time. Think about it, what is your reaction when a new sales guy walks in the door to sell YOU something.

So your mindset has to change when thinking of compensation for your sales guy. They are bringing you revenue and work. If they do a good job, they will lower your cost per garment as you will be using your overhead more effectively and improve your buying power.

I have always rewarded my sales team and my creatives as they will both drive the top line. Save money on overhead and inventory, reward to the best of your ability your sales team. That is the winning combination in my humble opinion...
 
Old June 18th, 2015 Jun 18, 2015 2:12:11 AM -   #38 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

Commission on each one sold is the best route at the start
 
Old June 24th, 2015 Jun 24, 2015 9:57:40 AM -   #39 (permalink)
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Lightbulb Re: what is a good commission to pay a local sales person marketing printing services?

I was thinking about doing this and am so glad I read your questions. I have a someone who wants to market/sell for me. I was going to give her 30% for each new account she landed and 25% for reorders. but after reading this that may be too much. What I may offer is 20% for each new accounts 1st order and then 5% or even 10% on reorders that go through her. This will encourage her to go after the new clients to keep new business coming in as well as make it worth her time. I would not want to pay so little that she is not motivated to do the job. In fact with that thought I may stick to my original 30%. I was thinking of a % like the reps for pampered chef and other mlm companies use... what do y'all think of that?
 
Old March 26th, 2017 Mar 26, 2017 7:14:08 PM -   #40 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

Quote:
Originally Posted by SnapGraphics
I am going to start using the following scale:

Monthly Sales:
Tier 1 > $0-$4999 = 10% (up to $499 commission paid)
Tier 2 > $5000-$9999 = 12.5% (up to $1250 commission paid)
Tier 3 > $10000-$14999 = 15% (up to $2250 commission paid
Tier 4 > $15000-$19999 = 17.5% (up to $3500 commission paid)
Tier 5 > $20000+ = 20% (up to $4000 commission paid)

This includes dealing with customer and arranging art files to be sent to me and dealing essentially with any one on one contact with the customers. We have a $75 an hour rate on artwork for anything that exceeds 15 minutes (I am pretty lenient on this) and if they sell this service they get 25% of that. I also add a little kick on top of the commission if I give them a suggested price of $10 per shirt and they sell them to the customer for $11 each we split that $1 50/50.

I also have a program for referrals which is 5% of anything over $1000 in a calendar month. I don't let people get this if they are referring their employer or team because I see that as a conflict of interest and not very ethical.

Essentially, a sales rep selling $15000 a month brings home $3500 in commission a month which is a decent living of $42000/year. I would say the first 3 tiers would be a part-time person up to 25 hours a week and the upper two tiers would be more of a full-time sales person.

No expenses paid.
Derek - Thanks for this breakdown. Super interested to hear how this approach worked out for you?

Also, to confirm, this was for a commission based rep. only, yes?
 
Old 5 Days Ago Jun 26, 2020 12:07:28 PM -   #41 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

How much should the commission be in addition to a base pay for an in-house salesperson (who sells to existing customers and finds prospects)? Several posts say pay 10% of sales. Is this 10 % in addition to a base pay of $20/hour? I have offered base pay of $20/hr plus commission. Thank all of you for net ideas.
(I have a small shop doing custom printing and our line of wildlife designs. We have one auto and 2 manuals, but during the Covid pandemic, we have only 1 or 2 printers.)
 
Old 5 Days Ago Jun 26, 2020 3:23:59 PM -   #42 (permalink)
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No you are nuts. This wasnt a salesperson, this was a referral from someone. If a company refers a business to you do you pay them commission? Not to mention NOTHING was agreed on in the beginning. Bad communication is also why business fail.
 
Old 2 Days Ago Jun 29, 2020 12:55:58 PM -   #43 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

Should the commission be in addition to base pay?
Binki wrote pay 10 %, and Royster13 wrote 15-20% of the wholesale price for a line of designs. He also wrote that for custom 20 to 25% of the selling price or up to 65% of the net.
I want the sales person to work with existing, lapsed, and prospective customers. Thank you for advising that bad communication needs to be avoided.
 
Old 2 Days Ago Jun 29, 2020 12:58:36 PM -   #44 (permalink)
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Default Re: what is a good commission to pay a local sales person marketing printing services?

Is this 10 % in addition to base pay? I have offered base pay of $20/hr plus commission. Thank you.
 






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