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08-31-2006, 09:20 PM
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Acorn
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Join Date: May 2006
USDA
Posts: 6
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Commisions of a Designer
My question is, what is the going rate for a Landscape Designer, well experienced nontheless, payed by commision per job? Thanks in advance.
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08-31-2006, 09:36 PM
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Gold Oak Member
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Join Date: Feb 2003
USDA
Posts: 939
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what do you mean by commision?
and what is this designers duties? Design only? Design and sales? Design, sales, job super? Design, sales, job super, foreman? Design, sales, job super, foreman, truck driver?
If anything, think you need to be planning for around 55k+ for a seasoned designer.
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08-31-2006, 09:40 PM
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Acorn
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Join Date: May 2006
USDA
Posts: 6
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My designer / architect meets with the customer originally, draws the plans, has another meeting with the customer and then hands the plans over to me. I then put numbers to the plan and submit it back to the customer. If the customer agrees, I and business partner then do the installation. The designer / architects only other duty is to occasionally lay out the materials. Don't get me wrong, these jobs are high $$ on high profile homes and the designs are usually phenomenal.
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08-31-2006, 09:42 PM
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Acorn
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Join Date: May 2006
USDA
Posts: 6
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The designer / architect then is deemed a percentage of the job total of which I'm in question of. I'm not sure if what we have agreed on is too much considering what our profit is.
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08-31-2006, 10:03 PM
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Gold Oak Member
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Join Date: Dec 2005
Location: South East Pa
USDA Zone 7
Posts: 391
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Are you talking salary and commision, or commision alone? How large of designs? What kind of business development is involved with there job, or is the leads all generated by you? Architect or Designer only? On staff or subcontract work? What kind of benis are you offering? Alot of variables here, I don't think somebody could just shoot out a percentage and be fair to either party without getting some additional info.
__________________
Matt
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08-31-2006, 10:09 PM
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Acorn
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Join Date: May 2006
USDA
Posts: 6
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Commision only. The designs range from 6k spruce-ups to 200k new high-end construction. The leads are typically the same builders that the designer has worked with for years, some are new based on word-of-mouth of the designer, and some are leads from our sources. It is all subcontract work.
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08-31-2006, 10:45 PM
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Gold Oak Member
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Join Date: Feb 2003
Location: Cape Cod
USDA Zone 6
Posts: 1,324
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It sounds like you are happy getting the work. It sounds like the designer is happy to do the work. If it ain't broke, don't fix it.
Is the designer looking to change the terms of the contract?
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08-31-2006, 10:52 PM
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Acorn
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Join Date: May 2006
USDA
Posts: 6
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Nope. And broke is in question. I actually am questioning if its too much of a commision. I've seen were guys are paying LA's 1k for designs whereas my designer makes about 30% of the job as a fee.
Last edited by flcipres : 08-31-2006 at 11:31 PM.
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08-31-2006, 11:28 PM
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Administrator
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Join Date: Jan 2003
Location: Wisconsin
USDA Zone 4
Posts: 7,564
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Your labor to install the project probably shouldn't be that high, let alone the cost of the designer.
Is the designer generating leads and closing sales (handling entire sales process except for bidding)?
Lanelle might have some good input on this topic as well.
From my limited perspective, $50K is pretty rich compensation.
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08-31-2006, 11:37 PM
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Acorn
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Join Date: May 2006
USDA
Posts: 6
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Actually, the number I quoted for my labor was before my overhead. That was numbers based stricktly on basic materials costs and the designers fee. My actual gains on this job are yet to be determined. Nevertheless I question what a typical fee may be or how to determine that fee.
The designer has generated a few leads but mostly it is all return business. Yes, the sales process is handled mostly by the designer or than the actual bidding process.
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08-31-2006, 11:56 PM
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Ranger
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Join Date: Feb 2003
Location: Northern VA
USDA Zone 7
Posts: 1,239
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It seems to me that 30% of the sale total is a lot to add to your overhead for the job but if you are tied in with the builder and can put that much extra on to your ticket, OK.
In this area there is a large landscape company that hires designers to work exclusively for them, totally commission paid. The company does the advertising ,distributes the leads and provides the pricing for plants and hardscapes so the designer can write an estimate on the spot. The designer provides own vehicle. I think their designers are paid about 12% of the sale. Their may be a bonus structure once the designer sells beyond some $$ threshold, but I don't know those details.
In your situation, I will assume that the designer is providing the majority of the leads, using their own vehicle and office space, paying for their own cell phone and other business expenses.
That would indicate to me that the designer might be worth more than 12-15%. If you are starting to feel a price squeeze from the clients, maybe you can negotiate a discounted fee on a case-by-case basis. I think the smaller jobs would warrant a lower commission rate than larger, complex projects.
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09-01-2006, 12:04 AM
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Gold Oak Member
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Join Date: Feb 2003
Location: Cape Cod
USDA Zone 6
Posts: 1,324
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A good landscape architect can get 20% of a job when working for the client as his agent - project management. That means hiring the contractors, quality control, accepting that work is completed correctly and releasing the funds. It is a lot of responsibilty and a lot of heat from all sides. The money is usually well earned.
It sounds like your guy is getting more than that and doing far less for it. But, I must say that if he can get you or anyone else to pay him that much, someone thinks he is worth it ... or at least thought he was.
It comes down to two things. Are you better off committing your resources, which are limited like everyone else's, to doing his work, or doing other jobs that you can get? Is he willing to work for less?
If his designs are selling much more product than you can otherwise sell in the same time period and you are building up your reputation and portfolio, it just may be worth it.
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09-02-2006, 02:57 AM
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Sapling
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Join Date: Nov 2005
USDA
Posts: 206
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Your not paying the designer the customer is. If your paying the bill welp your paying to work. Seems to me how your job costing program works. Look at the numbers from last jobs and go from there.
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