This is a 1099 contract position. We’re going to try and offer W9 positions as soon as we are able to.
Locksmithing jobs are paid on commission from profit. The dispatch software we use is very very good at calculating commissions and referral rates.
Current contractor rates for locksmith jobs:
60/40 Split of Profit. 60% to the worker, 40% to company.
Example A: Lockout flat rate is $100. 100 * .6 = $60 to contractor
Example B: Final invoice for a job is $200. The cost of the lock was $25. The lock was sold at $50, sales tax was $4.
-$25 material cost
= $171 Profit.
171 * .6 = 102.60 to contractor
The minimum service call is $85. at 60% commission the base rate for showing up to any job is $51.
We (begrudgingly) work with a number of lead generation companies. They charge anywhere from 35%-40% profit. That means that Lock Alchemy makes 0-5% on a lot of jobs. We do this to offer work to technicians so they can make money and stay as busy as they want to.
As a rule, anything over $1000 is switched to hourly. Hourly rates start at $25 an hour. For example, an apartment building needs 20 commercial lever handle locks switched out. That job would be sold at $1500 and would yield $800 profit. The commission would be at $25. If it would take a technician 6 hours they’d be compensated at a day rate of $200 (25 *8 = 200). If it would take them 10 hours, $25 * 10 = $250. Approximately 40% of our jobs are from lead sources that charge 35-40% so this helps us stay profitable and still compensates technicians well. These types of jobs are not that common, maybe we have 1-2 a month.
Job Referral Commission
You can make a referral commission by finding jobs through your own personal network or by offering services at a jobs. As of yet, no one has really done this.
For larger jobs like camera jobs (over $1000), commission is 15% of profit.
Example: You find a business interested in security cameras. 10k invoice and material costs were 4k, yielding 6k profit. $900 referral bonus.
Alarm Referrals for Residential: $75 after they are active for 6 months
Alarm Referrals for Business: $150 after they are active for 6 months
Call backs to fix something at a job site are the responsibility of the contractor. If the call back includes additional requested work, the invoice for the additional work is treated like any regular job.
The length of time required to complete a job is extremely valuable information. It helps determine if we are charging enough and helps determine which jobs are the most profitable. An estimate of time on the job site +/- 15 minutes is extremely helpful.
Contractors create their own schedule. They can decide to take or not take a job they are presented with. If you know you’re going to be out for a day or a week etc. 2-3 heads up would be appreciated.