[rob_s]

I have just approached an industrial laundry firm.  They supply and clean overalls to factories, bed-linen to hotels, tablecloths to restaurants, etc, and have many contacts.

The firm has agreed to set up appointments for me with their clients with a view to taking on carpet and upholstery cleaning work, in exchange for a commission on any work undertaken.

Any ideas on what percentage is a fair commission?

Regards rob-s

[Dynafoam]

Rob,

Think of the commision as an advertising cost - if you are currently spending X% of sales as the cost of getting work, then that would be a starting point for the commision percentage.

You may wish to add to this if you feel that the overall value to your business of antisipated extra sales warrants the cost.

On the other hand they will be looking for the best cut they can get, so the final figure will be the result of negotiation.

John.

[Derek]

Rob

During the negotiations make sure that you instill into them that you have a minumum call-out charge per job.

It has been known that some companies will have you 'on a piece of string' to 'pop in and do a stain removal job expecting to pay very little.

Derek

[Mike Halliday]

give a 20% but put up your prices by 10%    or give a 30% 'finders fee' on the first clean they have, then all further work is commission free.

only give commission on jobs when they pay


Mike