Are you struggling to maximize sales and motivate your roofing sales reps? Optimizing your roofing sales commissions can revolutionize your sales efforts and propel your roofing business to new heights (drone pun intended). Let’s start with the basics before diving into common appraoches.
Roofing sales commissions are payments that salespeople earn based on the amount of sales they make. Offering commissions is an excellent way to encourage your salespeople to work harder and close more deals.
There are different ways to structure roofing sales commissions. Some common structures include:
- Flat-rate commission: This structure pays a set amount for each sale, regardless of the size of the sale. For example, a salesperson may earn $500 for each sale they make. This is a simple and easy-to-understand structure, making it ideal for small sales teams.
- Tiered commission: This structure pays a higher percentage for sales that exceed certain thresholds or goals. For example, a salesperson may earn 10% for sales up to $10,000, 15% for sales between $10,000 and $20,000, and so on. This structure protects both the customer and the roofing company from unreasonable estimates.
- Percentage-of-profit commission: This structure pays your sales team a percentage of the profit from a roofing job after you’ve paid your overhead and material costs. For example, a salesperson may earn 10% of the profit from a roofing job.
- Percentage-of-sale commission: This structure pays a percentage of the contract amount. However, this structure can encourage salespeople to inflate prices or recommend unnecessary repairs. This can be detrimental to both the customer and the roofing company.
When structuring roofing sales commissions, it is important to consider the following:
- Sales team size: The size of your sales team will affect the amount of commission you can afford to pay.
- Sales team structure: Many companies have canvassers or appointment setters work with closers, ensure both teams are appropriately compensated.
- Sales team experience: More experienced salespeople may be able to command a higher commission rate.
- Type of sales: Some types of sales, such as high-ticket items, may warrant a higher commission rate.
- Profit margin: You need to make sure that your commission structure is sustainable and that you can still make a profit on each roof sale.
Taking everything into account, you can create an ideal commission structure. The right commission structure will motivate your roofing sales team and keep your customers happy.
In addition to offering commissions, there are other things you can do to motivate your roofing sales team, such as:
- Sales training: Providing in-depth onboarding and training to ensure they are confident and competent in their role.
- Shadow teammates: Allowing new salespeople to shadow more experienced sales members and learn how the sales process works.
- Get necessary tools: Providing access to the newest tech, such as drones, to help them make a good first impression. Drones also allow you to quickly and safely inspect roofs, and improve the sales process.
- Get Certified: Ensuring your sales team is Part 107 certified, so they’ll stay off roofs, fly drones, and save you thousands in workers’ comp.
Once you have considered these factors, you can start to develop a commission structure that will motivate your sales team. Here are a few things to keep in mind:
- Make sure the commission structure is fair and transparent. This will help to build trust with your sales team and ensure that they are motivated to sell your products or services.
- Consider using a combination of commission structures. This can help to motivate your sales team to achieve different goals. For example, selling a certain number of units or generating a certain amount of revenue.
- Be flexible and willing to adjust your commission structure as needed. As your business grows and changes, you may need to adjust your commission structure to keep it effective.
There are many factors to consider when structuring roofing sales commissions. Take the time to develop a fair and transparent commission structure, and your team will be motivated to grow your business while keeping customers happy.
In addition to offering commissions, there are other things you can do to motivate your roofing sales team, such as providing in-depth onboarding and training and providing access to the newest tech, such as drone software. By providing your sales team with the tools and resources they need to succeed, you can create a motivated and productive team that will help you grow your roofing business.