Sales Commission on Industrial Equipment

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  • Sales Commission on Industrial Equipment
  • Premier Icon mikewsmith
    Subscriber

    Margins, deals, negotiations, etc. etc. you buying or looking for a job

    Premier Icon cb
    Subscriber

    Obvious answer is whatever was agreed beforehand. Otherwise perhaps 2.5% of sales cost, reduced by whatever the salesman haggled. Fixed maximum per year or wave the max to get the guy (you) continuing to sell in that fashion.

    EDIT – also depends on how generous base

    b r
    Member

    Could be nothing (salaried with car etc) or a lot (minimum-wage pay and own car etc).

    Won’t be enough to make difference to the end price though.

    bland
    Member

    It would be for bringing a company in on an overseas bid, there would be no tender it would just be a realistic commission that we could charge for including one company over another. They would do nothing other than be included on our package and get the work if it goes our way

    Premier Icon jam bo
    Subscriber

    we give our overseas representatives between 10-20% discount on the list price.

    Premier Icon footflaps
    Subscriber

    All depends on how valuable they think that person is.

    A Channel partner might get 10-20%. A Sales person maybe 0.5% to 10% depending on how special they were (as in could someone else just do the same job, or do they have unique connections).

    Premier Icon brant
    Subscriber

    The least I would hope a salesperson could do every year was sell enough stuff for the company to make in a year.

    nealglover
    Member

    The least I would hope a salesperson could do every year was sell enough stuff for the company to make in a year.

    That’s not going to work out too well for delivery times if you have 20 salespeople 🙂

    bland
    Member

    What kind of commission might a sales person selling industrial equipment work on?

    Value wise, £300K per unit, total sales order £10M, enough to keep a company busy producing said item for 1 year at least.

    Any ideas?

    konabunny
    Member

    It would be for bringing a company in on an overseas bid, there would be no tender it would just be a realistic commission that we could charge for including one company over another. They would do nothing other than be included on our package and get the work if it goes our way

    It sounds like you’re saying the other company would be a subcontractor to you (or possibly a partner). Doesn’t that make the sales agent’s commission their problem and not yours? Are you just curious how well the person could do out of it?

    nealglover
    Member

    … Or working out what size brown envelope to be asking for ?

    bland
    Member

    Its not really a brown envelope, we need to deliver a project and utilise a company to aid in doing so which will land them a big order. Basically we will act as a sales person for them so dont see it unfair to see a commission for doing so. were not tied to one company.

    It would need to be legit, basically we would be doing a job of sales man they employ, kind of

    andyrm
    Member

    It would be for bringing a company in on an overseas bid, there would be no tender it would just be a realistic commission that we could charge for including one company over another. They would do nothing other than be included on our package and get the work if it goes our way

    Sounds to me more like a “buy in” to a larger project. In which case, you need to have a bit of an open book conversation with them & the financials round the deal and I’d suggest somewhere in the region of a 10% of GM to buy in with you.

    konabunny
    Member

    you need to be a little bit careful that your obligations to the client don’t conflict with your interest in making a commission from the “supplier”.

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