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Roto rooter has been running ads for months around here for plumbers. They are offering a $2,500 sign on bonus but yet still can't seem to find help. They never revile the company name when you call either they use a cell number to have people call about the job. I got sucked into going for an interview when I pulled up and saw the Roto Rooter sign I kept going. They have a class action suit against them here in Mass for requiring there guys to buy their own trucks and not reimbursing for mileage.
 
RR used to make the techs buy their own cables for the obvious reason you will take care of your own equipment. This may have changed.
 
It doesn't matter what they do, your integrity is in your hands. The concept that working commission makes you a crook is the same thing as saying everyone who owns their own business is a crook. No matter where you work if you are good and honest you will build a customer base.
I worked for them for 4 yrs I learned loads about the business of plumbing( thanks to being on commission) I also took every chance they gave me to learn new things most 1 man shops don't have, pipe bursting, lining, hydro excavation, point lining, ect.

Take the chance to learn what you can, don't worry about their reputation, make each customer think they are a great company by your actions.

I have seen scumbags from every side of plumbing huge corporate to one man shops, roto doesn't have the option of changing names so they keep the stigma of every bad apple who has ever worked there.

ETA: Hearing all your customers sing that stupid song does drive you nuts.

just my .02
 
Nice companies to work at usually don't settle $14.27M Class Action Lawsuits with their employees for not paying minimum wages and overtime premiums, unlawful wage deductions and kickbacks in violation of the Fair Labor Standards Act and state wage-and-hour laws....;)
 
They told the elderly couple they needed a $9,500 sewer liner because the sewer was broken.

I know it's not roto rooter's policy but be careful if they put too much emphasis on you selling a sewer repair on every main line call.
Every time I get a call seeking a second opinion from me about Roto Rooter sewer repairs and recommendations I hear this same story from the client. Stunningly in my area of Minnesota evidently every sewer Roto Rooter inspects is collapsed and needs to be replaced or repaired. What are the odds? From a business standpoint that is great luck for them. Fortunately for my clients upon further inspection almost all of the sewer lines have miraculously repaired themselves after the Roto Rooter inspection. Makes you go "hmm".

I only have experience in my own franchise area and do not have any idea about other areas.
 
Every time I get a call seeking a second opinion from me about Roto Rooter sewer repairs and recommendations I hear this same story from the client. Stunningly in my area of Minnesota evidently every sewer Roto Rooter inspects is collapsed and needs to be replaced or repaired. What are the odds? From a business standpoint that is great luck for them. Fortunately for my clients upon further inspection almost all of the sewer lines have miraculously repaired themselves after the Roto Rooter inspection. Makes you go "hmm".

I only have experience in my own franchise area and do not have any idea about other areas.
this reminds me of 1 hour heating franchise in my area. everyone had cracked heat exchangers on their furnaces. they would turn off the gas to it in winter and say that it needed to be fixed immediatly. my bro and my sis both had it happen the same day. we were having fun with it. i worked for a plumbing and heating company at the time and our guys checked it out ahead of time. they were fine and it gave my company fire power when those idiots came in for a second opinion after we did a clean and check for regular customers. 4 years later and their trucks arent around any more. i wonder where they went?:blink:
 
That name has been drug thru the mud so bad here for decades. Such a bad name around here that it's almost good for business.
Almost good for business??? Lol!! You mean IS good for business! I just went to a job today for a leaky tub line with an old drum trap. Roto Rooter quoted $15,000! Said the tub HAD to come out.:laughing: I sh!t you not!!
 
Almost good for business??? Lol!! You mean IS good for business! I just went to a job today for a leaky tub line with an old drum trap. Roto Rooter quoted $15,000! Said the tub HAD to come out.:laughing: I sh!t you not!!
Damn... I thought I was expensive... :laughing:
Let me guess the tub was over an unfinished basement or crawlspace...:laughing:

But hey I'm not creative enough to invoice changing out a tub for $15K even if for some wild reason it had to come out... :laughing:
 
That low low commission percentage forces you to rip people off.

David
No one forces anyone to do anything. No pay structure out there can keep a person honest. If a company encourages unethical behavior than quit and go elsewhere. Our trade has so many job opportunities its ridiculous. Get that license and you can go pretty much anywhere...or start your own honest plumbing company.
 
No one forces anyone to do anything. No pay structure out there can keep a person honest. If a company encourages unethical behavior than quit and go elsewhere. Our trade has so many job opportunities its ridiculous. Get that license and you can go pretty much anywhere...or start your own honest plumbing company.
So I should have worded it better. The commission plumbing companies in Atlanta are paying 19% - 23%, based upon info I received from current or ex commission based plumbers. The materials are marked up 30% and deducted from the commission as well as a fuel charge and a phone answering fee are deducted.

That's $85 or so for the plumber on a $1000 water heater install (approximate numbers, didn't break out a calculator). So IF you happen to work for a commission based plumbing company, to earn a living (and stay employed) you have to charge exorbitant amounts.

David
 
So I should have worded it better. The commission plumbing companies in Atlanta are paying 19% - 23%, based upon info I received from current or ex commission based plumbers. The materials are marked up 30% and deducted from the commission as well as a fuel charge and a phone answering fee are deducted.

That's $85 or so for the plumber on a $1000 water heater install (approximate numbers, didn't break out a calculator). So IF you happen to work for a commission based plumbing company, to earn a living (and stay employed) you have to charge exorbitant amounts.

David

Commission is usually only paid on labor, sometimes you get a small chuck of the mark-up.

So lets say the rate is 20%, very low I think for the industry,(I was at 29% at RR and roughly the same here at billable hour). You put in a WH for a grand $400 is labor, you get 80, not bad for 2-3 hours of work.

As I said above commission is a great way of learning the business of plumbing. Bottom line does not equal profit, a trip to the supply house on flat rate pricing costs the plumber, your bid can make or break you.

If any plumber worth a damn is making less than he thinks he should it's time to move on, a good plumber will always have a job.
 
I've never worked on commission so I don't know anything about what's a win win situation but, wouldn't 10% commission on a $1500 or $1800 water heater install be good for both?
If you're one of the higher priced companies, paying 10% commission on the whole ticket including material would be attractive to both the tech and company wouldn't it?
 
When I worked on commission with all the different companies .. I always negotiated 20% commission of the subtotal before tax ... the companies were alwayse lery. but they alwayse hired me at that price ...
 
Thats why I liked the company I worked for before starting my company. They paid 20% off the total job before tax. So a $1500 water heater install got us $300 as the plumber who sold and did the job. I didn't have to be unethical to make money. If a company charges you fuel fees, parts, dispatch fees, etc, then quit. There are better companies out there. Or start your own company.
 
I worked commission for a company in south FL years ago. My cut was 22% of the whole ticket; labor, parts and the whole {9} yards. So on a $ 1000 job, I got $ 220 period. No juggling of the numbers. And the company paid for phones, trucks, fuel and uniforms. On an avg. day I'd gross around $200.
 
I own a few Roto-Rooter franchises here in NJ. Here is the true story behind the company. Approximately Half of the country is franchise owned and half the country is corporate owned. The franchise's are NOT commission based and employees are paid salairies. The corporate RR are commission based and yes some employees I'm sure are unethical in their pricing and selling practices. But, I have three plumbing companies just off the top of my head in my area that screw people everyday on prices and shooty workmanship. In fact there is a great thread in the zone about the "$99 drain cleaning special" Thats a true scam. RR is the largest plumbing and drain cleaning company in the country so yes there will always be negatives especially from competitors. But I've owned my franchise for 38 years and my employees are strictly salaried and we work on a fixed price system. In fact I've been know in the area to have the cheaper pricing then most of my competitors.
 
Excellent points 1277. However, the franchise in my location does pay strictly commission. It sounds like corporate gives the franchisee the freedom to choose what they want to do.

Regarding the commission, the pay structure has nothing to do with a person's lack of ethics.
 
I worked commission for a company in south FL years ago. My cut was 22% of the whole ticket; labor, parts and the whole {9} yards. So on a $ 1000 job, I got $ 220 period. No juggling of the numbers. And the company paid for phones, trucks, fuel and uniforms. On an avg. day I'd gross around $200.
Tommy, sounds like we both worked for a very similar company. It was so easy to do the paperwork at the end of the week because of the pay structure. A lot of companies create very complex systems for paying their plumbers and thus the plumbers often times did the math wrong or don't make the kind of money they should because they don't understand the system properly. I think some pay systems are designed with the intent of being confusing
 
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