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Birchdalecleaning

  • Posts: 23
Estate Agents Commission
« on: March 26, 2013, 05:09:11 pm »
Hi,

I have been subcontracted by a fairly large estate agency in my area for the last six months. I have done roughly 10 end of tenancy carpet cleans for them which has helped me out greatly during the quiet periods. However they have been deducting a 20% commission + vat out of my invoices. Just wondering if this is the norm for estate agents and whether it not it is worth me negotiating this with them as I feel it is an awful lot. Thoughts please.

Thanks
Jonathan

*Hector*

  • Posts: 9268
Re: Estate Agents Commission
« Reply #1 on: March 26, 2013, 05:18:29 pm »
Why are you letting them take an unauthorised discount??

your invoice is your price for the work, and should be paid in full.. Up your price by 20% to get your full wedge... These robbing 2@ts will be stitching up the tenant as well.
Everyday this forum slips further from God.  :'(

Mike Gwilliam

  • Posts: 1343
Re: Estate Agents Commission
« Reply #2 on: March 26, 2013, 05:29:35 pm »
If it helps you out in quiet times then thats ok.

Is it the norm? Not in my experiance....I'v only ever come accross one estate agent that takes a commission which was as you say 20%. Probably the same estate agent and I would not deal with them. In my opinion, thier taking the p!ss.

I'v worked with many estate agents and not one has asked for a commision apart from the above.

Perhaps you could slowly increase your prices with them to offset the 20%.

What £ per hour are you earning with them?

wynne jones

  • Posts: 2918
Re: Estate Agents Commission
« Reply #3 on: March 26, 2013, 05:41:32 pm »
Forget the % are you happy with what you get paid for the work you do? Say someone says they only give them 10%, what you gonna do tell them to stuff it?

I give them nothing, because I tell them to sling their hook when they ring up begging. I only work with landlords or tenants direct. 
It's not expensive, you just can't afford it.

Birchdalecleaning

  • Posts: 23
Re: Estate Agents Commission
« Reply #4 on: March 26, 2013, 06:00:28 pm »
Mike it varies really but after they take 20% + vat I probably earn between £20 and £30 per hour. I'm getting a little bit tired of dragging my airflex and oreck around for these jobs to give someone 20% for nothing i am thinking of buying a cheap second hand machine that is a lot lighter and using my sebo duo to agitate or using a rotary with a microsplitter.

Wynne I wouldn't say I am happy but I have only been in the game a year last month. It is all a big learning curve. Cash flow is all over the place £1000 one week £150 the next. So some weeks I am just happy to have an income. I can see why most successful business owners end up divorced or separated.

Steve Gunn

  • Posts: 850
Re: Estate Agents Commission
« Reply #5 on: March 26, 2013, 06:08:27 pm »
I dropped one of my biggest clients for this very reason they start charging 20%+vat then squeezed me on price,then to top if off payment was 60 days which I never agreed to and never got.I found out they were charging their tenants £25 per day for late payment of their management fee  ::)roll

Re: Estate Agents Commission
« Reply #6 on: March 26, 2013, 06:17:52 pm »
I do work for various estate agents in the chester area their fee is 10% they add on top of my price and we have an agreement that what ever work was done during the month they were issued an invoice then at the end of the month they are given a statement including all the invoices and payment is 15 days from date of statement. it works for me. But they do have to be managed. ;)

Paul Redden Countryfresh

  • Posts: 773
Re: Estate Agents Commission
« Reply #7 on: March 26, 2013, 06:30:05 pm »
I work for four estate agents and don't have this penalty  :o Tell em to poke it where the sun don't shine.
"So basically its a big vax!"

Hilton

  • Posts: 5572
Re: Estate Agents Commission
« Reply #8 on: March 26, 2013, 06:58:29 pm »
No don't.....

Build your relationship with them,even if it takes a year then ask them for meeting where you discuss your concerns in a business like manner.....At the moment you need them more than they need you, leave it a while and see how things develop.

derek west

Re: Estate Agents Commission
« Reply #9 on: March 26, 2013, 07:13:20 pm »
you get this work for free. how much do you spend on advertising?, if its more than 20% then i don't see what the problem is. i discount my prices around 10 to 20% for regular work.

Birchdalecleaning

  • Posts: 23
Re: Estate Agents Commission
« Reply #10 on: March 26, 2013, 08:11:04 pm »
Thanks for all your comments. Definitely some food for thought. At this moment in time I suppose I am not in a position to drop them as during the quite times something is better than nothing. Quite rightly it is regular work with no advertising costs. Wouldn't quite call it free work though. The maintenance manager is about 12 and useless. She asked me the other day whether or not it was essential for me to have water and electricity available at a property. I said no I've got a wind turbine and spring in my backside. Everything has a cost in life on this one its my mental health

Shaun_Ashmore

  • Posts: 11382
Re: Estate Agents Commission
« Reply #11 on: March 26, 2013, 08:18:58 pm »
If you've got plenty of work on that you can afford to risk losing their work then have it out with them.

Shaun

Griffus

  • Posts: 1942
Re: Estate Agents Commission
« Reply #12 on: March 27, 2013, 04:47:16 pm »
Just price so that you get what you want after their commision.

Basically you need to add 25%.

If you want £100 then charge £125. They will deduct £25, you get £100.

If you're not VAT registered and don' want to take the hit then add 30%.




david@zap-clean

  • Posts: 684
Re: Estate Agents Commission
« Reply #13 on: March 27, 2013, 05:10:10 pm »
I've not done any work at all for estate agents. I got asked to quote, once.  
I guess they didn't like my prices.  I didn't like the state of the job:

David @ ZapClean
www.zap-clean.com

Craigp

  • Posts: 1272
Re: Estate Agents Commission
« Reply #14 on: March 27, 2013, 05:52:27 pm »
Can I take it you mean letting agents?

Never heard of this before. I use my invoice book to tell me my turnover so there fore I would need to be paid the invoice amount.

See what i mean, otherwise I'd be paying tax for a larger figure than I'm receiving.

It would really mess up my book keeping.

Ask the letting agent to ADD 20% to the tenent instead

derek west

Re: Estate Agents Commission
« Reply #15 on: March 27, 2013, 05:55:26 pm »
I've not done any work at all for estate agents. I got asked to quote, once.  
I guess they didn't like my prices.  I didn't like the state of the job:



thats CC porn to me Dave. If ever you get a real minger up this way and you don't fancy it, give us a shout and i'll clean it for ya.

Russ Chadd

  • Posts: 1261
Re: Estate Agents Commission
« Reply #16 on: March 27, 2013, 06:20:11 pm »
And that's why i don't do any work for estate agents... all of them out to line their own pockets

COLIN BRIGHT

  • Posts: 787
Re: Estate Agents Commission
« Reply #17 on: March 27, 2013, 06:35:18 pm »
surley if an agent takes a percentage without a previous agreement this is theft, i would sue the dirty dogs

Russ Chadd

  • Posts: 1261
Re: Estate Agents Commission
« Reply #18 on: March 27, 2013, 07:01:24 pm »
I've not done any work at all for estate agents. I got asked to quote, once.  
I guess they didn't like my prices.  I didn't like the state of the job:



thats CC porn to me Dave. If ever you get a real minger up this way and you don't fancy it, give us a shout and i'll clean it for ya.

Hmmmm... filthy!!!!

Mike Gwilliam

  • Posts: 1343
Re: Estate Agents Commission
« Reply #19 on: March 27, 2013, 07:43:46 pm »
Quote
Hmmmm... filthy!!!!

Yep....leave it to the £20 per room people ::)roll