# How do you pay your screen printing salesman?



## spyder (Dec 24, 2007)

I am looking for a salesman for my screen printing and embroidery company. I want to pay them a base plus commission. Would any of you be willing to share with me what you offer your salesman as far as a package?

I was thinking 250 a week plus a % of profit on each sale. Seem fair?

Thanks !


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## splathead (Dec 4, 2005)

Are these outside salespeople or your inside staff? Independent contractors or employees? What state are you in? 

I ask because you have to be careful you are not violating minimum wage labor laws by paying employees a base salary lower than min. wage.


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## spyder (Dec 24, 2007)

Thanks for the response Joe. These are employees. We are in PA. I have this same deal with another salesman. Do utilize in house salesman? what structure do you use? 

Thanks, MP


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## splathead (Dec 4, 2005)

No, I don't have salespersons. I do strictly internet sales.

$250 a week base is less than minimum wage in PA. I am not exactly sure how it works, but don't you have to at least guarantee them that they will make minimum wage?


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## pokerman (Nov 7, 2007)

Spyder; 250/week is "great" for the salesperson, some risk for you since you have a guaranteed out of pocket, he has a known income whether he makes a sale or not.
My pref. is 60% of gross profit. Gives them an incentive to not only sell more, but less incentive to readily discount product.
Good luck.
Smitty


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## PrintMonkey (Jul 15, 2006)

pokerman said:


> Spyder;
> My pref. is 60% of gross profit. Gives them an incentive to not only sell more, but less incentive to readily discount product.
> Good luck.
> Smitty


Can you explain what your gross profit is?

Thanks,
M


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## spyder (Dec 24, 2007)

Thanks for your feedback... At 60% of gross you are not paying any base I take it? How many people do you have working on this plan? Is it working out for both you and the salesman. I agree that 250 base is tough (no guarantees) but it is a competitive industry and it seems like working on 100% commission may be tough, I would love it though. Let me know your thoughts.

Thanks, MP


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## spudlauncher (Aug 9, 2007)

That's rather risky, if they dont make sales and sit on their bums, they would still rack up 250 dollars.


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## pokerman (Nov 7, 2007)

Spyder, no base is correct. Sales are competitive; having spent years traveling and my only income based on my sales, I learned a lot about what works and what works well. The hungry will sell. The casual salesperson will be comfortable knowing there is a guarantee even if they don't make a sale. No, they won't get rich and lot's of people will not want to work without some base/guarantee. And that's fair if they are new to your organization so give them a 250/wk base for 30 days if it makes you and them happy. But this isn't a limited distribution business. Everybody and his brother knows someone who produces or can get access to the goods....that's why we need good salespeople. Every business/school/organization is a potential customer so there is a limitless supply of customers....the neophyte salesperson should be able to stumble on sales opportunities in the first week and can make $1000/month selling only $2800 in a month at 40% gross profit and earning 60% of the profit. That's only $646/week to make $1000/month. Do you want someone working for you that's selling less than $646/week? And you're paying that person a guarantee of $250/week? Not me, thank you.


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## jeffie (Jan 30, 2008)

Hey we have a mixture one is commission only 40% of gross profit:markup =1-(cog/sell price):another gets $250/wk+$100 car alowance +cell phone +15%of gross (20% if they exceed sales goal for month):another gets $100 car+cell phone+30%grossartner gets salery only: .....jeff


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## spyder (Dec 24, 2007)

Thanks Guys... Jeff, if I may ask, out of he 3 scenerios who is you best salesman? Also, do you have a minimum profit percentage for each job? Do you set the price? Or do your sales guys set the price based on what they feel they can get? I have a price list that basically shows my contract price. I have my salesmen add that to the cost of the shirt. What ever they get above that is viewed as profit of which their percentage comes out... Does this seem right? Thanks again. MP


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## cookiesa (Feb 27, 2008)

A little bit of food for thought

I used to sell new cars and a great way (probably works best when their is a "team" rather than 1 salesman. But in your package I would suggest allowing for bonus and fast starts.

Bonus a good place to start is with a reasonable target for them to achieve. they make it they get an extra 5% (for example) Salesman to exceed budget by the most gets an additional % or a cash bonus (Obviously this needs to be fair so the targets may vary from an experienced salesperson to a new one or one with a different target that may not be as easy to exceed target on)

Fast start - great encouragement. An example might be first to write $500 in orders for the month gets a $ bonus or a dinner for partner and self somewhere etc. (This encourages sales staff to get stuck in to the new month, even if the previous one wasn't a good one it refocuses them.) It usually has a snowball effect too because sales staff have chased prospects heavily they often end up in orders anyway.\

That is why I think a combination of the two works best. fast start to kick start the month then total order write bonus to keep them focused on the end result even if they don't win the fast start. $ amounts tend to work best as it is a tangible amount they know they are going to get (versus a percent.... 5% of stuff all is.... you guessed it stuff all but $100 is a $100)

Also run a taaly board somewhere, it encourages a competative spirit.


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## jeffie (Jan 30, 2008)

Hey, The two best are artner:250+car+phone+15/20%....I like the idea of incentive that cookie uses called fast start...how do you keep salesman from "holding"orders till next month....by the way naa i'll ask this on a new thread....jeff


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## cookiesa (Feb 27, 2008)

That can be a hard one..... being a salesman there were times when you do....  

Often the fast starts where I worked both varied from month to month and also not every month. this way you don't know what to expect. A bonus for achieving over target helps encourage the sales team to fess up and write it in the current month too!

This also means you can be a bit crative in the bonus area. We had things like winner gets a sat off (we worked 6 days) as well as perhaps a sports version demo for the weekend and dinner for yourself and partner with accomodation. Sometimes this can also help you "encourage" a particular salesperson who you think could be doing better by offering an incentive that especially appeals to them.


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## TWTshirts (Jun 13, 2009)

I was wondering alot on this also. We are a 2 1/2 person shop. (1 guy is part-time printer)

I would love to get a salesman out in the field, I don't have the time to do it myself. And I'm sure the days of customers just falling in my lap my eventually dry up.

I'm a tad lost on the paying them a % of gross profit though. We also offer promotional products and my profit on those are slim. Wouldn't I be better off offering a % of net profit?

Any advice would be greatly appreciated.


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## pokerman (Nov 7, 2007)

% net profit is great for you assuming you treat the salespeople correctly and they trust you. I used to work for a man who wanted me to work on net yet he charged groceries to the company, yard work, family trips, etc. so the net was at his total control....not realistic. Changed to gross and everyone was happy because sales increased and so did the profit of both parties.
Net profit is wonderful as long as the salesperson is willing to do it on a fair basis. Also, consider if that salesperson has the ability to adjust client pricing...they are less likely if they recognize their income will decrease dramatically.


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## dsmithhi (Aug 18, 2010)

pokerman said:


> Spyder, no base is correct. Sales are competitive; having spent years traveling and my only income based on my sales, I learned a lot about what works and what works well. The hungry will sell. The casual salesperson will be comfortable knowing there is a guarantee even if they don't make a sale. No, they won't get rich and lot's of people will not want to work without some base/guarantee. And that's fair if they are new to your organization so give them a 250/wk base for 30 days if it makes you and them happy. But this isn't a limited distribution business. Everybody and his brother knows someone who produces or can get access to the goods....that's why we need good salespeople. Every business/school/organization is a potential customer so there is a limitless supply of customers....the neophyte salesperson should be able to stumble on sales opportunities in the first week and can make $1000/month selling only $2800 in a month at 40% gross profit and earning 60% of the profit. That's only $646/week to make $1000/month. Do you want someone working for you that's selling less than $646/week? And you're paying that person a guarantee of $250/week? Not me, thank you.


 
THIS WAS AN OLD QUOTE BUT THOUGHT I'D ASK Do you still follow this line of thinking. I was also in sales and worked salary plus comission. Mostly focused on the comission as it was the bread and butter (industrial engineering). What my question is as of here 1/2011 is what are the ratios. What is meant by gross profit (Sale-Shirt & Ink?) What net profit do you the proprietor end up with? 5%, 10%. What % is shop cost? (now getting out of realm of question).

Thanks!


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