Clean It Up

UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: Birchdalecleaning on March 26, 2013, 05:09:11 pm

Title: Estate Agents Commission
Post by: Birchdalecleaning on March 26, 2013, 05:09:11 pm
Hi,

I have been subcontracted by a fairly large estate agency in my area for the last six months. I have done roughly 10 end of tenancy carpet cleans for them which has helped me out greatly during the quiet periods. However they have been deducting a 20% commission + vat out of my invoices. Just wondering if this is the norm for estate agents and whether it not it is worth me negotiating this with them as I feel it is an awful lot. Thoughts please.

Thanks
Jonathan
Title: Re: Estate Agents Commission
Post by: *Hector* on March 26, 2013, 05:18:29 pm
Why are you letting them take an unauthorised discount??

your invoice is your price for the work, and should be paid in full.. Up your price by 20% to get your full wedge... These robbing 2@ts will be stitching up the tenant as well.
Title: Re: Estate Agents Commission
Post by: Mike Gwilliam on March 26, 2013, 05:29:35 pm
If it helps you out in quiet times then thats ok.

Is it the norm? Not in my experiance....I'v only ever come accross one estate agent that takes a commission which was as you say 20%. Probably the same estate agent and I would not deal with them. In my opinion, thier taking the p!ss.

I'v worked with many estate agents and not one has asked for a commision apart from the above.

Perhaps you could slowly increase your prices with them to offset the 20%.

What £ per hour are you earning with them?
Title: Re: Estate Agents Commission
Post by: wynne jones on March 26, 2013, 05:41:32 pm
Forget the % are you happy with what you get paid for the work you do? Say someone says they only give them 10%, what you gonna do tell them to stuff it?

I give them nothing, because I tell them to sling their hook when they ring up begging. I only work with landlords or tenants direct. 
Title: Re: Estate Agents Commission
Post by: Birchdalecleaning on March 26, 2013, 06:00:28 pm
Mike it varies really but after they take 20% + vat I probably earn between £20 and £30 per hour. I'm getting a little bit tired of dragging my airflex and oreck around for these jobs to give someone 20% for nothing i am thinking of buying a cheap second hand machine that is a lot lighter and using my sebo duo to agitate or using a rotary with a microsplitter.

Wynne I wouldn't say I am happy but I have only been in the game a year last month. It is all a big learning curve. Cash flow is all over the place £1000 one week £150 the next. So some weeks I am just happy to have an income. I can see why most successful business owners end up divorced or separated.
Title: Re: Estate Agents Commission
Post by: Steve Gunn on March 26, 2013, 06:08:27 pm
I dropped one of my biggest clients for this very reason they start charging 20%+vat then squeezed me on price,then to top if off payment was 60 days which I never agreed to and never got.I found out they were charging their tenants £25 per day for late payment of their management fee  ::)roll
Title: Re: Estate Agents Commission
Post by: William Sharpe on March 26, 2013, 06:17:52 pm
I do work for various estate agents in the chester area their fee is 10% they add on top of my price and we have an agreement that what ever work was done during the month they were issued an invoice then at the end of the month they are given a statement including all the invoices and payment is 15 days from date of statement. it works for me. But they do have to be managed. ;)
Title: Re: Estate Agents Commission
Post by: Paul Redden Countryfresh on March 26, 2013, 06:30:05 pm
I work for four estate agents and don't have this penalty  :o Tell em to poke it where the sun don't shine.
Title: Re: Estate Agents Commission
Post by: Hilton on March 26, 2013, 06:58:29 pm
No don't.....

Build your relationship with them,even if it takes a year then ask them for meeting where you discuss your concerns in a business like manner.....At the moment you need them more than they need you, leave it a while and see how things develop.
Title: Re: Estate Agents Commission
Post by: derek west on March 26, 2013, 07:13:20 pm
you get this work for free. how much do you spend on advertising?, if its more than 20% then i don't see what the problem is. i discount my prices around 10 to 20% for regular work.
Title: Re: Estate Agents Commission
Post by: Birchdalecleaning on March 26, 2013, 08:11:04 pm
Thanks for all your comments. Definitely some food for thought. At this moment in time I suppose I am not in a position to drop them as during the quite times something is better than nothing. Quite rightly it is regular work with no advertising costs. Wouldn't quite call it free work though. The maintenance manager is about 12 and useless. She asked me the other day whether or not it was essential for me to have water and electricity available at a property. I said no I've got a wind turbine and spring in my backside. Everything has a cost in life on this one its my mental health
Title: Re: Estate Agents Commission
Post by: Shaun_Ashmore on March 26, 2013, 08:18:58 pm
If you've got plenty of work on that you can afford to risk losing their work then have it out with them.

Shaun
Title: Re: Estate Agents Commission
Post by: Griffus on March 27, 2013, 04:47:16 pm
Just price so that you get what you want after their commision.

Basically you need to add 25%.

If you want £100 then charge £125. They will deduct £25, you get £100.

If you're not VAT registered and don' want to take the hit then add 30%.



Title: Re: Estate Agents Commission
Post by: david@zap-clean on March 27, 2013, 05:10:10 pm
I've not done any work at all for estate agents. I got asked to quote, once.  
I guess they didn't like my prices.  I didn't like the state of the job:

(http://www.cleanitup.co.uk/smf/1364404414_Cheshire East-20120921-00027_1024px.jpg)
Title: Re: Estate Agents Commission
Post by: Craigp on March 27, 2013, 05:52:27 pm
Can I take it you mean letting agents?

Never heard of this before. I use my invoice book to tell me my turnover so there fore I would need to be paid the invoice amount.

See what i mean, otherwise I'd be paying tax for a larger figure than I'm receiving.

It would really mess up my book keeping.

Ask the letting agent to ADD 20% to the tenent instead
Title: Re: Estate Agents Commission
Post by: derek west on March 27, 2013, 05:55:26 pm
I've not done any work at all for estate agents. I got asked to quote, once.  
I guess they didn't like my prices.  I didn't like the state of the job:

(http://www.cleanitup.co.uk/smf/1364404414_Cheshire East-20120921-00027_1024px.jpg)

thats CC porn to me Dave. If ever you get a real minger up this way and you don't fancy it, give us a shout and i'll clean it for ya.
Title: Re: Estate Agents Commission
Post by: Russ Chadd on March 27, 2013, 06:20:11 pm
And that's why i don't do any work for estate agents... all of them out to line their own pockets
Title: Re: Estate Agents Commission
Post by: COLIN BRIGHT on March 27, 2013, 06:35:18 pm
surley if an agent takes a percentage without a previous agreement this is theft, i would sue the dirty dogs
Title: Re: Estate Agents Commission
Post by: Russ Chadd on March 27, 2013, 07:01:24 pm
I've not done any work at all for estate agents. I got asked to quote, once.  
I guess they didn't like my prices.  I didn't like the state of the job:

(http://www.cleanitup.co.uk/smf/1364404414_Cheshire East-20120921-00027_1024px.jpg)

thats CC porn to me Dave. If ever you get a real minger up this way and you don't fancy it, give us a shout and i'll clean it for ya.

Hmmmm... filthy!!!!
Title: Re: Estate Agents Commission
Post by: Mike Gwilliam on March 27, 2013, 07:43:46 pm
Quote
Hmmmm... filthy!!!!

Yep....leave it to the £20 per room people ::)roll
Title: Re: Estate Agents Commission
Post by: Carpet Dawg on March 27, 2013, 08:07:16 pm
David.

Is that the worse picture you had of that EOT??

Bring it on I say. That carpet cleas up real easy, the skirting boards look dusty as f**k but a brush or vaccing would sort that out no bother.

Would have made for good before and after pics aswell as potentialy a good regular suplly of work.

To the OP.

Yeah tell them to stick it dude!!  ;D  I had one like that not long ago. They took 10% off from two jobs. They said I agreed with it which I didn't as they had not mentined it. I didn't like thier sneeky way of doing it otherwise I would of kept them and just made the ticket higher in future.

But like everyone said, just stick on 20% on to the invoice from now on if you want to keep them.
Title: Re: Estate Agents Commission
Post by: The Great One on March 27, 2013, 08:40:06 pm
I only had one LA that charged 10%

But I found out last year that as well as charging me 10%, they were also charging the tenant £35 per contractor and they were charging £100 per person to clean the property, paying me around £180.00, giving he landlord a back hander and pocketing the rest and on a 5 bed HMO they were earning a fortune, one month I did 66 jobs for them.

I'm trying to get away from LA's now, one minute your the mutts nuts, the next they don't know your name and if you count on them it can leave you in the proverbial.

Martin  8)
Title: Re: Estate Agents Commission
Post by: Birchdalecleaning on March 27, 2013, 09:46:23 pm
Cc porn hahaha! Love it. I've been getting worse than that from this lettings agent. I had one today a living room. Left the airflex in the van presprayed with a microsplitter agitated with oreck black bristle the used a micro fibre pad to bonnet. 25 mins £45.00. And that's after the 20%. If u can't beat them join them is my new philosophy.
Title: Re: Estate Agents Commission
Post by: Mark Blazey on March 27, 2013, 10:38:56 pm
We work for letting companies, we cleaned 50 properties last summer, we don't pay commission.

I know some that add to your invoice when passing onto their clients but not deduct from the invoice.
Have you signed a contract agreeing to it?

Title: Re: Estate Agents Commission
Post by: Birchdalecleaning on March 27, 2013, 10:51:46 pm
Haven't signed anything. Apparently they charge all there contractors 20% + vat. My referrals and repeat work are increasing slowly but surely. When the time is right I will cut ties with these crooks. Means to an ends!
Title: Re: Estate Agents Commission
Post by: Griffus on March 27, 2013, 11:13:31 pm
It'll be in their T&C's.

It is the norm from my experience, taken off our price rather than added on. As mentioned earlier we just price higher.

When it comes to paying the invoice on the books just show it as a discount.

Title: Re: Estate Agents Commission
Post by: david@zap-clean on March 28, 2013, 07:21:55 am
David.

Is that the worse picture you had of that EOT??

Bring it on I say. That carpet cleas up real easy, the skirting boards look dusty as f**k but a brush or vaccing would sort that out no bother.

Would have made for good before and after pics aswell as potentialy a good regular suplly of work.

To the OP.

Yeah tell them to stick it dude!!  ;D  I had one like that not long ago. They took 10% off from two jobs. They said I agreed with it which I didn't as they had not mentined it. I didn't like thier sneeky way of doing it otherwise I would of kept them and just made the ticket higher in future.

But like everyone said, just stick on 20% on to the invoice from now on if you want to keep them.

Worst pic...It's the only EOT pic I have. I went in with a low enough quote - thinking that other work would follow.  I just wish I knew who took it on, and for how much.

I'll just have to make do with the other sources of work  ;)
Title: Re: Estate Agents Commission
Post by: Phil @ Extreme Clean on March 28, 2013, 08:38:21 am
ive got a right minger when they've painted said i'l do 2 beds and H-S-L the lounge is fckd but i said i will give it a go to get the job i'l take some pics when i go to do it absolute rank but a good way to learn and test.
Title: Re: Estate Agents Commission
Post by: garry22 on March 28, 2013, 08:48:16 am
Add 20% to your invoice.

Itemise the bill.

Clearly label it "Landlord's agent commission"
Title: Re: Estate Agents Commission
Post by: qginsburg on March 29, 2013, 08:26:32 pm
Hi
Guys I have four Letting agents in my town feeding me work , so far so good with no hidden fees.
Although I am in talks with one guy who has mentioned 10% at this moment in time I would take it.
Title: Re: Estate Agents Commission
Post by: Mark_Jubb on March 29, 2013, 10:11:00 pm
I had an agency who I've done sporadic work for over a number of years query a cost the other week.
She said "is that after our 10% or before".    what 10% ? I replied.
"Are you not in our scheme then" she said. "No, but your in my scheme" I replied."
"What scheme is that?" she says.   "I give you a fair price, to do a good job, you say "yay or nay" if you say yay, then that's what you pay, if you say nay, you find someone else to do the job" It's quite simple really.