Hi Jay,
Sure. Happy to clarify. We define gross margin as the difference between bill rate and COGS for the temps only (pay rate and payroll taxes). For us gross profit include all COGS (staff salaries, recruiting, marketing, overhead, etc.).
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SueAnn Naso
President
Staffing Solutions Enterprises Inc.
Mayfield Heights OH
(440) 684-7222
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Original Message:
Sent: 07-12-2022 10:13
From: Jay Mattern
Subject: Temporary Staffing Commission Structure
SueAnn -- Can you clarify how you define "gross margin" here? Gross profit is the difference between revenue and COGS in dollars, and gross margin is gross profit expressed as a percent of revenue.
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Jay Mattern
CEO
TerraFirma Marketing
South Bend IN
(574) 213-3855
Original Message:
Sent: 07-07-2022 08:19
From: SueAnn Naso
Subject: Temporary Staffing Commission Structure
Hi Gary,
We did a similar review a couple of years ago and found more firms going with a % of gross margin vs % of gross profit so moved in that direction. We do 5% of quarterly GM, 2% goes to the Manager and 3% to the team split between # of reps.
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SueAnn Naso
President
Staffing Solutions Enterprises Inc.
Mayfield Heights OH
(440) 684-7222
Original Message:
Sent: 07-06-2022 16:56
From: Gary Matura
Subject: Temporary Staffing Commission Structure
I'm doing a check and balance of our commission plan for our temporary staffing recruiters. I've done some search and it appears many plans are 8-10% of the gross profit. Does this seem to be the average? Can people share what they believe is a good commission structure? If you would like to contact me directly please email me at gary@matfar.com. I appreciate any advice. Thank you
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Gary Matura
Owner
Matura Farrington Staffing Services Inc.
Los Angeles CA
(213) 553-8451
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