What the plan really pays.
The same period, priced two ways: a share of revenue, and a share of the gross margin that actually protects the shop. Compare before you promise either.
The period
The revenue the plan pays on.
The margin alternative
Revenue minus materials and direct labor.
Usually higher than the revenue rate, on a smaller base.
Commission on revenue
$5,000
The simple plan. Below it, what the same period pays when the plan is tied to gross margin instead.
- Gross margin base$22,500
- Commission on margin$4,500
- Difference$500
Your inputs, your arithmetic. The dials are yours.
Read carefully
The math is easy. The assumptions are the work.
Revenue commission rewards revenue
Including the discounted job, the callback, and the sale that never collects. A percentage of sales is simple to explain, and simple to game.
Margin commission rewards the shop
Paying on gross margin ties the incentive to work that was priced right and done once. The rate looks higher on paper; the behavior it buys is better.
Define earned, adjusted, and paid
When is commission earned: at sale, at completion, or at collection? What happens on a refund? A plan without those three words defined is a future argument.
The plan should survive an audit by the crew
If a tech cannot recompute their own check from numbers they can see, the plan breeds suspicion no bonus repairs. Pay the team on numbers everyone can trust.
Start
Pay on numbers everyone can see.
A plan is only fair if it is checkable. On the record, the jobs, the tickets, and what collected are the same numbers the commission is computed from.
Coming from a suite? We’ll extract your records.
Rather talk first? Email the team.