The pieces of a payout
Every roofing company sets its own plan, but most start from the same pieces: the contract amount, an overhead share, the job costs, and what is left to split.
- Contract: what the customer agreed to pay.
- Overhead: a fixed share of the contract that covers running the company.
- Costs: materials, labor, dumpsters, permits and anything else spent on the job.
- Remainder: what is left, split between the rep and the company.
A worked example
This example uses made up numbers. Say the contract is $20,000 and the company charges 10 percent overhead, which is $2,000. Job costs come to $11,000.
That leaves $20,000 minus $2,000 minus $11,000, or $7,000. With a 50/50 split, the rep side is $3,500 and the company side is $3,500.
When the job changes
Supplements and extra charges change the contract amount, and late costs change the remainder. The payout should be worked out again whenever either one moves, otherwise reps argue with the office about stale numbers.
Who sees what
Reps should see their own jobs and their own money. Owners and office managers see everything. Showing an estimate before the invoice exists, clearly marked as still being worked out, helps reps plan without promising a number.
Hodos works the payout out for every job and keeps reps to their own numbers.