Standard commission rate in Alberta

[OzSome]

I've been checking the internet for the standard commission rate for Alberta and couldn't find one. If anyone here work in a commission or know of someone, what is the standard commission rate here in Alberta? Is it 4%, 5% or ??.

Here's the situation, we hired a licensed mechanic at our place. He gets paid on a bi-weekly basis even if he doesn't have any customers or income. The deal is he will get his regular paycheque and also gets a commission on the NET INCOME (Sales - (parts he used, bank charges, labour)). We are trying to figure out the percentage of the commission to give him.

So, i really appreciate it if I can get some input on the standard rate. He does bring in customers and income plus he takes care of our vehicles as well.

[bluck]

5% is the standard as far as I know

[taco.vidal]

Wouldn't it vary by industry?

[WCan_Kid]

I know people with rates anywhere from 5-10% of net profit, smaller percentages of gross. Sometimes different amounts between people in the same office.

[OzSome]

Like I mentioned earlier, he's getting regular paycheque as well so it's like the commission is an extra incentive. 5% sounds good I guess but I just want to make sure. Thanks for all the input so far.

[GreatWhiteEbola]

2% gmd

[CaptainCrunch]

I don't think there's a standard commission, it depends on the industry, the company and what he might have negotiated.

[OzSome]

Originally Posted by CaptainCrunch

I don't think there's a standard commission, it depends on the industry, the company and what he might have negotiated.

I know it varies on the type of work a person does. One of the problem is the owner didn't really have the specific percentage with this mechanic. He started off giving him 30% commission rate but no regular paycheque but now the mechanic is getting a regular paycheque, it wouldn't be fair to still give him 30%. The mechanic understand and now i have the task to figure out the commission rate to give him. I thought 4 to 5% is fair but what do i know...i never work on commission before. This is the reason why I am checking with my CP buddies for advice.

[Eric Vail]

Wouldn't it make sense to estimate what you feel his total salary would be worth, say $70,000. Then you look at the base salary he makes, maybe $50,000. Then look at what an average number of sales would be in a year and set the commission so that he could make up the extra $20,000 in an average year. If he is able to generate more business, he gets more than the $70,000. If he doesn't then he is less than the $70,000.

[worth]

^^ much too logical