{"id":107628,"date":"2024-10-22T16:54:52","date_gmt":"2024-10-22T20:54:52","guid":{"rendered":"https:\/\/\/?p=107628"},"modified":"2024-10-22T16:57:59","modified_gmt":"2024-10-22T20:57:59","slug":"how-operations-impact-solar-sales-commissions","status":"publish","type":"post","link":"https:\/\/\/2024\/10\/how-operations-impact-solar-sales-commissions\/","title":{"rendered":"How Operations Impact Solar Sales Commissions"},"content":{"rendered":"
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Takeaway:<\/strong> System design adjustments result in re-sizing, revisions, or change orders, all of which can reduce commissions. Process inefficiencies lead to project delays, repermittings, or install-day call-offs, delaying when Reps get paid. None of this makes homeowners happy either. The solution is to deploy new technology to capture perfectly accurate measurements at site survey, so Reps get paid a fair commission, on time.<\/p>\n The vast majority of revisions, true-ups, and redesigns don\u2019t just change the solar array\u2014it changes a Sales Rep\u2019s commission.<\/p>\n Further, operational slowdowns due to revisions, repermittings, missed information, or procurement mixups mean delays when the project is finished and when Reps get paid.<\/p>\n Sales Reps are put in a tough spot.<\/p>\n On the one hand, they could undersell the system so their commission is only ever revised upward<\/em>, but this \u201cconservative\u201d approach leads to reduced revenue for the Contractor and smaller Rep commissions. And if the homeowner later realizes they could have had a higher offset, they may not be happy.<\/p>\n On the other hand, Reps can sell to the best of their ability\u2014knowing they have inferior remote data<\/a> or – worse – oversell the system to juice commissions and hope the homeowner goes for it.<\/p>\n Either way, the Rep is stuck. The solution is for Sales to advocate for a less subjective operational process with a more transparent workflow. This doesn\u2019t just preserve their commission; it also makes the entire project more transparent and fair.<\/p>\n While most Reps expect some delta between initial and final designs, operational issues from remote data often cause a much bigger difference than should occur.<\/p>\n And then there\u2019s the final risk: clawbacks<\/strong>. If issues are caught before <\/em>installation, then commissions are adjusted based on the revisions or redesigns. But if issues are caught after<\/em> installation, a Rep may have some or all of their commission clawed back when the Contractor has to make it right for the homeowner.<\/p>\n Despite having little control over these operational issues, Reps typically feel the brunt of homeowner anger<\/a> and<\/em> see their commissions take a serious hit.<\/p>\n The other way that Reps can lose commission is through deal structuring.<\/p>\n Let\u2019s say, for instance, that you sell an array priced at $3.00 per watt. The deal may have a red line<\/a> agreement, which is the minimum price that must go to the Installer. If that red line is $2.50, you end up with $0.50 commission per watt on the deal. But if you can only sell it for $2.75 per watt, your commission drops\u2014the Installer gets the same fixed price.<\/p>\n Within a red line sales approach, you also have to manage \u201cadders\u201d \u2014 in some cases, changes or additions to make the project possible, such as revisions or electrical panel upgrades.<\/p>\n While larger issues, such as a roof replacement, will be forwarded to the homeowner, smaller expenses such as tree trimming, small roof repairs, or additional truck rolls to collect more data may be taken out of Rep commission. With the average revision costing<\/a> $750, you could easily lose a significant chunk of commission.<\/p>\n While operational issues are not a Rep\u2019s fault, they directly impact your ability to get paid\u2014we recommend advocating for a more transparent operations process.<\/p>\n Drones, for example, are easy to learn and fly, <\/a>and generate near-perfect accuracy every time. Or if you layer different data sources<\/a> during preliminary designs<\/a>, you get more accurate data from the start.<\/p>\n Download our free ebook<\/a> to learn how to improve close rates while eliminating change orders!<\/p><\/div>\n Leveraging technology and using a single operational platform from prelim to commissioning both preserves your commission and<\/em> helps the entire team.<\/p>\n Bringing technology into your operational process results in a smoother project that\u2019s more accurate from the start. Just ask Solar Energy Services, which cut its project timelines by 80%<\/a> when they implemented technology and new processes. Similarly, Dynamic Solar achieved a 100% fit rate<\/a> without revisions by using new tech.<\/p>\n When Sales collaborates with Operations to bring in best-in-class technology, the whole organization wins. It\u2019s not just about preserving Rep commissions or talent retention, it\u2019s about smoothing the entire project process so every<\/em> stakeholder can do their best work.<\/p>\n Sponsored Content by Scanifly<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Takeaway: System design adjustments result in re-sizing, revisions, or change orders, all of which can reduce commissions. Process inefficiencies lead to project delays, repermittings, or install-day call-offs, delaying when Reps get paid. None of this makes homeowners happy either. The solution is to deploy new technology to capture perfectly accurate measurements at site survey, so…<\/p>\n","protected":false},"author":20937,"featured_media":107654,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[5583],"tags":[5582],"class_list":{"2":"type-post","9":"entry","10":"has-post-thumbnail"},"acf":[],"yoast_head":"\n
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How Operational Errors Impact Rep Commission<\/h3>\n
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How Deal Structures Impact Commissions<\/h3>\n
How Reliable Operations Maximize Earnings<\/h3>\n
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Better Systems, More Confident Revenue<\/h3>\n
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