Anybody considered paying commision?

Discussion in 'Business Operations' started by CrappyMower, Apr 15, 2007.

  1. CrappyMower

    CrappyMower LawnSite Member
    Messages: 6

    I have come from the auto industry where everyone is on paid commission. They get away with working you 60 hours a week w/o overtime. I'm new to this and searches don't show up with commission as pay.

    If you said to the crew you get ( for example! ) 25% of what revenue you generate for the day minus repairs for damaged equipment/ customer property. It would seem to be a motivator to get a move on, do it right and not tear the crap up.

    Obviously someone has probably experimented with something similar to this and I would be interested in hearing how it went. If not give it some thought and let me know what you think. It also gives the incentive to be proffessional to possible new customers and pass leads on as more jobs actually does put more money in there pockets.

    Thanks from a seriously new guy......CrappyMower (JUST A NAME)
  2. Big M LawnnSnow

    Big M LawnnSnow LawnSite Member
    Messages: 217

    Working on a commission seems that they would do as many jobs as fast as possible in a day to make a much as possible.
    After a certain point Wouldn't't your quality of work go down as your quantity went up?
    It seems they would just blast through as many yards as possible to make more money.
    That leads to less satisfied customers and no referrals which will cost you more in the end.
    No to mention that the "Rushing" on jobs to get them done faster can lead to safety issues.
    I think people want to know what they will be paid for a days work.
  3. Darrin A.

    Darrin A. LawnSite Member
    Messages: 94

    I agree with ^^^^ , not to mention, your employees will eventually figure out what you charge per job, and then can go out on their own and do a better job than you did (they did for you).

    my 2 cents
  4. PaperCutter

    PaperCutter LawnSite Bronze Member
    Messages: 1,996

    I could see paying the lead a percentage of the weekly revenue, but giving him (or her) hourly helpers. I was in the uniform business for a few years doing the weekly service. We got 7% of the weekly revenue, a percentage of sales, and a percentage bonus on contract renewals (our incentive for keeping customers happy). We also lost money if we had accounts quit. I've toyed with something like this as a structure for lawn maintenance, but I see a lot of negatives- your guy will have all your pricing in front of him and could lose or walk with it, and how do you motivate him to jump on another crew to help out, or float over to an install project on a short day? If you get the perfect employee it could work, but I think it'd be a LOT to keep track of.

  5. bohiaa

    bohiaa LawnSite Fanatic
    Messages: 5,220

    while taking business managment in College....

    one of the 1st things I learned is NOT to depect employee against employee.

    dont make them compete against each other.... and besides I think they would be running over each other....anw with a mower or weedeater in hand that would be a very bad thing.....

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