posted
I'm am looking into managing a new sign division for an existing screen printing and embroidering business. They have a Shopbot router and a Gerber plotter among other sign related tools. They need someone to come in, take it over and run with it. The owner has said that I will be "running the show" and that he will check in once in a while and help whenever needed. He would like to pay me a smaller wage with a commission. Now we need to determine an hourly wage and a commission percentage.
I have 4 1/2 years experience worlking with a Gereber 408 Sabre, Gerber plotter and a wide variety of other sign tools.
I would appreciate any suggestions on a fair pay structure. What has worked and what hasn't?
Thank you.
-------------------- John Louden III Louden Sign Studio Macomb, IL Posts: 1 | From: Macomb, IL | Registered: Oct 2002
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Are you going to do production too? I think production is a job that should be paid based on experience. If someone sells enough work to make enough commission to speak of , then that's going to be too much work to do all the production alone. Maybe this is not what you're up against, but as a one-man shop, I know it can be done alone, but if you have to sell & produce, it better be some good steady pay, or you might as well lease some equipment & do it for yourself. If you are just doing the sales & managing other people, are they already trained employee's that can keep these machines humming along.
The other fear I'll mention based on previous experience is that you are more valuable to them right now then you will be later. To add this new department they need someone with the experience you have to get things rolling. Once you create a department that operates like a well oiled machine, then there will be more time to sell & more commission to make, but also it would be a time when they could take over managing it, or get someone else without the ability to raise a sign department out of chaos, but possibly cheaper to simply run it. Anyway I'd go for a fat salery now on a 3 month basis with you making some committments as to what you will acomplish in that time. The fat salary keeps you motivated to put in thetime when it's toughest, in the begginning. Afterwards if you impress the hell out of them & create a good start to a profitable new department for them, they may have less fear about committing a decent salary, or you most certinely will have a better understanding of the work-flow & how well you could do on a comission basis. Besides, you mentioned experience with equipment, but not with sales. Did you have your own shop? Do you want to do sales?
posted
Here's another question that you might consider asking: Since the proposal is for you to take a "smaller" salary, and work against a commission, what happens in the event of an equipment breakdown, computer malfunction etc.? Such an event would adversly affect your ability to earn that commission that you'd be dependant upon, would it not? If said equipment was down for a week or so, (printhead replacement) etc. that might mean a rather lean week for you, earnings wise. What if you manage to increase business to the point that additional equipment might be needed to keep up with production? Will the owner's reluctance to purchase that additional equipment also hold you back toward earning a larger comission?
It sounds like the present owner is asking you to take on a larger share of what would ordinarily be their entrepreneurial risk. The flip side of that coin is that where there's an element of risk, there's also opportunity. Cut the right deal, get it "in writing", and perhaps you can help this owner grow and prosper....and you along with them.
-------------------- Ken Henry Henry & Henry Signs London, Ontario Canada (519) 439-1881 e-mail: kjmlhenry@rogers.com
Why do I get all those on-line offers to sell me Viagara, when the only thing hardening is my arteries ? Posts: 2690 | From: London,Ontario, Canada | Registered: Feb 1999
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If the owner has made you a job offer (ie is serious about having you on board to MANAGE this division of his business), he should be willing to discuss the company's current signage sales volume, operating costs, gross profit, etc. You need to find out was his goals are for the business....one, three, five -- maybe more -- years out. Based on your experience, these goals should be realistic and achievable. Assuming that you are confident in your ability to "deliver the goods", you are in an excellent position to negotiate your salary and commission structure.
Don't under-sell yourself. Your salary should not be less than (as stated above) what you feel you are truly worth (based on your experience) and can afford you the lifestyle you are accustomed to. Commission structure should be based on achieving the owner's goals -- with bonuses paid on exceeding them.
Having this sort of discussion and the confidence to negotiate based on your experience and ability to deliver should give your new employer added confidence that he has selected the right man to manage his company's sign division.
One last thought: How about BENEFITS?
Good luck!
[ October 29, 2002, 07:27 AM: Message edited by: Jon Aston ]
-------------------- Jon Aston MARKETING PARTNERS "Strategy, Marketing and Business Development" Tel 705-719-9209 Posts: 1724 | From: Barrie, ON, CANADA | Registered: Sep 2000
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Speaking from experience........with a similar situation, that me and my wife BOTH got involved in a few years ago...... "GET IN IN WRITING. IN THE FORM OF A CONTRACT. WRITTEN BY A LAWYER. !!!!!!! PERIOD !!!! WE FOUND OUT THE HARD WAY...RIGHT AFTER WE SOLD OUR HOUSE AND PROPERTY , MOVED 300 MILES , AND SIGNED A 3 YEAR LEASE ON A HOUSE.....THE A** H*** CLOSED THE BUSINESS WITH NO WARNING......We had operated the "Branch Office" for over 6 months and was showing a profit !!!!! With good prospects lined up for more sales !
GET IT IN WRITING !!!!!!!
Shep'
-------------------- Arvil Shep' Shepherd Art by Shep' -------- " Those who dance are thought to be mad by those who cannot hear the music " Posts: 1281 | From: Mt Airy NC | Registered: Mar 2001
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-------------------- Jon Aston MARKETING PARTNERS "Strategy, Marketing and Business Development" Tel 705-719-9209 Posts: 1724 | From: Barrie, ON, CANADA | Registered: Sep 2000
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