Posted 2010-05-03 1:34 PM (#119663) Subject: what to charge?
Member
Posts: 39 Location: Randolph, Utah
A guy in town is having me find him a living quarter trailer. He wants to spend between $30,000-50,000. How do I do the comission? I work at a car dealership and one of the salesmen told me to charge him 25% of whatever he buys, a $50,000 trailer would be $12,500 I would LOVE that kind of money but I don't think that is right to charge that much. Or they also suggested finding a $45,000 trailer and charging him $50,000 for it. but I wouldn't be the one buying it just finding it for him, and I don't know if I would go pick it up or what would happen there.
I've never done anything like this and didn't think he was serious until he called me again today to see what I've found.
Posted 2010-05-03 2:10 PM (#119665 - in reply to #119663) Subject: RE: what to charge?
Veteran
Posts: 197 Location: MT
I would think 10% would be more of a realistic figure because 25% seems high. And if you do have to go pick it up, I would charge him all the fuel, food, and over night stays if that was involved. The biggest thing is you have to remember what your time worth is.
Posted 2010-05-03 2:37 PM (#119666 - in reply to #119663) Subject: RE: what to charge?
Expert
Posts: 2453 Location: Northern Utah
A full service realtor charges 6% and that includes both the listing and selling agents commission. And we all belly ache about paying that much.
I think most car dealers pay 25% of the Profit not the total price. So if the dealer makes $4000, the salesman makes $1000.
If you charge more, you will be expected to provide more. Are you going to provide the warranty? Are you going to service? Are you going to drive 600 miles to pick it up and bring it back to him? Are you going to throughly clean and spend an hour showing the new owner how to use everything?
Decide what services you will provide and set a commission that is appropraite for the amount of effort you spend.
I strongly suggest you do discuss this with the potential buyer and make sure what services you expect to provide meet his expectation of what a seller should provide. I see nothing wrong with him knowing how much you will earn in the deal, as long as he knows how much effort you put into the deal.
Too often individuals think they can make as much money as a dealer does, but they don't provide any of the services. This is unfair to both the consumer and competing dealers who do offer full services.
Posted 2010-05-03 3:06 PM (#119667 - in reply to #119663) Subject: RE: what to charge?
Expert
Posts: 1351 Location: Decatur, Texas
Originally written by JcNhEmI on 2010-05-03 1:34 PM
A guy in town is having me find him a living quarter trailer. He wants to spend between $30,000-50,000. How do I do the comission? I work at a car dealership and one of the salesmen told me to charge him 25% of whatever he buys, a $50,000 trailer would be $12,500 I would LOVE that kind of money but I don't think that is right to charge that much. Or they also suggested finding a $45,000 trailer and charging him $50,000 for it. but I wouldn't be the one buying it just finding it for him, and I don't know if I would go pick it up or what would happen there.
I've never done anything like this and didn't think he was serious until he called me again today to see what I've found.
WOW, I would love to make 1/2 of that..... When I was doing this last year I would only charge $500.00 to $1000.00 depending on the cost of the trailer and they would pay me up front when the trailer was bought, so I would have nothing out of pocket money other than my time.
Posted 2010-05-03 7:19 PM (#119671 - in reply to #119663) Subject: RE: what to charge?
Location: KY
In our area, real estate commissions run 7 to 10% depending on the type of property. Personally I think you could charge an hourly "shopper" fee, or a sliding commission....10% on the first 30k, 5% over that. Best thing is to work out a written agreement stating the terms and the agreement. Good luck to you.
Posted 2010-05-03 8:01 PM (#119673 - in reply to #119671) Subject: RE: what to charge?
Member
Posts: 39 Location: Randolph, Utah
Originally written by rose on 2010-05-03 6:19 PM
In our area, real estate commissions run 7 to 10% depending on the type of property. Personally I think you could charge an hourly "shopper" fee, or a sliding commission....10% on the first 30k, 5% over that. Best thing is to work out a written agreement stating the terms and the agreement. Good luck to you.
Can you explain the hourly shopper rate?Like today I spent an hour looking over ads and emailing him ones that I thought were what he wanted? Some are out of state but others are within a few hours and driving distance. Should I charge to go look at them?Also I like the idea of the sliding commission, so say he buys one for 45K the 1st 30K would be at 10% =$3,000 and the other 15K would be at 5%= $750 so a total of $3,750?He has an appointment where I work for Thursday so I can run this by him then. I like the idea of sliding commission more than the hourly shopper after I think about it. but maybe I am just money hungry! LOL
Posted 2010-05-04 8:03 AM (#119692 - in reply to #119663) Subject: RE: what to charge?
Extreme Veteran
Posts: 447 Location: cedar rapids iowa
If you are paid hourly you get paid regardless if he buys. Of course you should charge to go look at them, who has that much time and gas money to drive around looking at trailers?
what to charge?
