follow up on commissions / salary inquiry 

  June 6, 2012

 

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comments regarding the May 25, 2012 article on commissions / wages
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Ken
    Thanks  for this forum and great information shared.   I would like to respond to the "Employee Payscale" and definition. You are 100% correct on how to define an employee -vs- subcontractor. Several Companies try to structure their relation as a sub-contractor... but as you stated; the Company is not allowed to manage, control time of work and set "employee based policy".  I know of a few Companies that not only got sued but also fined by the State.  As for pay or commission scale. As you mentioned depends on what package is sold. But average base is around $150.00 comm. + $25.00 if self gen. + $50.00 for TConnect Service + $25.00 manager overide. As for other systems; normal scale is 10% of selling price (excluding labor and wire). Hope that helps.
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Ken
    I have some insight on this issues, on the fair commissions that all depends on if they are getting a wage or not $100 to $300 is a fair wage, in regards to a contract you definitely have to have for a 1099 contractor and for outside sales people starting 2013 you will be required to have an agreement signed by employee (outside sales reps) to specify what the commissions are and for what.
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Ken
    We are 10% plus 3X RMR plus a modest base salary.  We do not do "free"
installs.
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Ken
    7% of install 5% of 60 month contract.   5% gets paid 1/2 at the time of sale and 1/2 at the point the job is completed---
Chargeback if the customer cancels in the 1st year--after that we assume the risk of attrition and providing great service to keep our customers
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Question
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    I would love to know what some of these tech are getting per hour out there.  Particularly fire alarm techs.  I am not above paying any one a fair salary, however when is a tech making to much.  I have a guy that has been with me for 15 years.   He started out making minimum wage plus.  After fifteen years and easy 75 k in training (paid by the company-me) I have made him into a NICET 4 tech.  He is incredibly valuable to me.  However, when is enough, enough.?  I pay him around $65 k per year, plus almost 100% of a BCBS family insurance policy, company truck, phone, computer and now he wants more.  Plus incalculable extras inside work... When has he at the top and I should say your making enough?
Anon
Kansas
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Response
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    What does an experienced tech make?  How much can that employee make for your company?  Often depends on what work you have for him, your company work ethics or practices, local standard of living expenses and comparable employment opportunities.  Anyone care to comment?