Bath Remodel Sales Commission Calculator
Bath sits between the one-call-close trades and full remodelling, and pay plans get borrowed from both. Enter your average bath, your margin, and your rate to see what the plan really costs as a share of the profit on the job.
Same money, different-looking plan: 10.0% of the sale price is the same cheque as 28.6% of gross profit, at a 35% margin.
Gross profit here is revenue less direct job cost, before overhead. Commission is priced against what the job earns, not against what the company costs to run. Figures are your inputs, calculated exactly — the seeded defaults are planning estimates, not industry pay data.
A worked example: a $16,000 bath remodel job
At a 35% gross margin, a $16,000 job earns $5,600 before overhead. Here is what a 10% commission costs on each basis — the same headline rate, two very different pay plans.
| 10% of the sale | 10% of gross profit | |
|---|---|---|
| Rep earns | $1,600 | $560 |
| You keep on the job | $4,000 | $5,040 |
| Share of the gross profit | 28.6% | 10.0% |
| Across 3 jobs a month | $4,800 | $1,680 |
Written as “10%”, the first plan costs 28.6% of the gross profit on every bath remodel job — the same cheque a gross-profit plan would have to write as 28.6%. One of those two numbers gets negotiated; the other gets signed. Turn the question round and it sharpens: to keep 70% of the gross profit on this job you can afford 10.5% of the sale price, or $1,680 per job in the rep’s pocket.
Two different businesses, one pay plan
Bath remodelling covers two quite different sales motions. A one-day tub-to-shower conversion is sold in the home, in a single visit, at a price the rep can discount on the spot. A full bathroom renovation is sold over weeks with selections and trades. They have different cycle lengths, different margins, and different amounts of rep influence over the final price — and they very often share a pay plan, because the company grew from one into the other without revisiting it.
The risk sits with the one-call-close side. When a rep can discount to close tonight, a revenue-basis commission still pays them a percentage of the discounted price, so their cheque falls by the discount rate while your gross profit falls by much more — the discount comes out of margin, not out of cost. Run it in the calculator: drop the job value ten percent and watch the rep’s commission fall by ten percent while your net falls by roughly a third.
That asymmetry is the single strongest argument for a profit basis in any trade where the salesperson holds discounting authority. It does not remove their ability to discount; it just means they feel it in the same proportion you do.
Common questions about bath remodel commission
- How do I stop reps from discounting to close?
- Price the discount into the pay plan rather than banning it. On a profit-basis commission a discount reduces the rep’s cheque proportionally to the damage it does, which is a far more reliable control than an approval policy. Use the calculator to show them the two scenarios side by side — most reps have never seen the second one.
- Should the one-day and full-remodel sides share a plan?
- Only if their margins are close. If they are not, one side is subsidising the other inside a single rate. Run each through the calculator with its own average job value and margin; if the affordable rates come out more than a couple of points apart, they need separate plans.
- Does this include overhead?
- No — the calculator works in gross profit, before overhead. Commission is a job-level cost and overhead is a company-level one, so mixing them hides which of the two is actually the problem when a month comes in short.
Next
A pay plan decides what a job is worth once you have won it. If the constraint is that there are not enough jobs to pay commission on, see how we generate bath remodel leads — or run the revenue and ROI calculator to size the pipeline first.