What is a reasonable sales commission for selling hvac systems?
Asked by furnaceman.com
For years, I have been a HVAC trainer, and troubleshooter. I now have an opportunity to do sales for a contractor and am wondering what a reasonable commission would be for selling such systems. Besides finding customers and selling the systems, I would also be doing all the heat losses and gains, system design and layouts, getting quotes from suppliers for system materials, and providing technical support during the installation. So, the question is: What type of commission would be typical, assuming that this commission is my only income(no base salary)?

Best Answer:
Asking what their profit margin is. Ask for 30% of that, plus 10% over-ride for each sub-sales man that works for you. There's no hard and fast rule. Better, honestly appraise what you need to get ahead and divide that by a realistic assessment of what you will sell. Realize that as you sell more, you'll be doing more servicing, which leaves less time for selling. thats why you need to have associates under you.
MBA
Answered by Dan

As a Commission Estimator the first thing to keep in mind is that the boss will want a minimum of a 15% net return from each job. When estimating, your gross return should be around 25% to 30%. Your commission will come out of the gross profit, on average of 10.5%. For example a 5 ton gas-pak would average the end user $15,000 with a gross profit of $3750. Your commission for this one job is $393.75. This estimate should take you about 5 hours for a hourly rate of about $80 per hour. Now as an estimator your job will also be to take to your suppliers to get SPQ's, special price quotes, to be more competitive with other contractors.
Answered by stormrider