CE Pro February 2023 - 31

up 1% from the previous
year. Meanwhile, 31% of
dealers reported they used
independent contractors
for installations, while
27% employed an outside
programmer. With so many
control systems much easier
to design and deploy than
a decade ago, the need for
outside programming has
continued to diminish.
Sales Compensation
& Bonuses
On the sales side, CE pros
report an array of ways they
pay their sales teams. Most
(61%) pay a combination of
salary plus commission. The
average commission rate
is 8%. Less than one-infive
integration companies
(20%) pay base salary only
with no commissions. Based
on questions from CE Pro
readers to last year's survey,
the survey this year asked
for specifics regarding low
or high base salaries. Nearly
twice as many dealers (37%)
How Company Owners Are
Paid
2022 Employee Bonus Value
pay a low base salary with
a higher commission rate
compared to those (20%)
that pay a higher base salary
and lower commission rate.
Only 9% of integrators
compensate their sales team
solely via commission. In
many cases, the company
owners handle all sales
transactions and therefore
they have zero sales commission
payouts.
Commissions are paid to
sales staffs in various ways
and times. There really is
no dominant methodology
in place in the industry for
when to pay commissions.
Throughout the lifecycle
of the project is the most
common timing (35% of the
time), while 24% pay at project
completion, 14% pay on
a calendar-based schedule
(i.e., quarterly or monthly),
while 5% pay when the
contract is signed. More
than one in five dealers have
a hybrid sales commission
payment process in place.
When Are Sales Commissions Paid?
wners Are
When contract
is signed/
deposit paid
When Are Sales Commissions
Paid?
2022 Labor Rate Change
Other
21%
Based on
calendar
schedule
(i.e., quarterly)
14%
24%
At project
completion
Bonus Value
" Other " includes upon product delivery to the client, when the
dealer is paid by the client, a split commission based on the
down payment from the client and the final payment, and a split
commission based on date of contract signing and end of project.
2022 Installation Labor Rates
Charged
cepro.com
35%
6%
2022 Labor Profitability
Throughout
life of project
as project
payments are
made
19%
16%
15%
IT/Network Management
Service
System Design/CAD
No change 26%
Increased by 1% to 5% 27%
Increased by 6% to 10% 15%
Increased 11% to 15% 11%
Increased by 16% to 20% 6%
Increased by 31% to 30% 10%
Increased by 31%+ 6%
Using independent contractors for pre-wires is the most
common outsourced labor element.
When Are Sales Commissions
Paid?
2022 Labor Profitability
2022 Labor Profitability
profit 2%
100% profit or more
76%-99%
5%
51%-75%
profit
16%
41%-50%
profit
31%-40%
profit
14%
14%
16%
21%-30%
profit
2022 Installation Labor Rates
Charged
The average profit margin from labor in 2022 was 35%, up
from 28% last year. Integrators that report subsidizing their
labor or breaking even are likely security-based providers
offering entry-level smart home systems with long-term
monitoring contracts.
2022 Pre-Wire Labor Rates
Charged
2022 Outsourced Labor Usage
(Percentage of Integrators that Use Independent
Contractors for:)
37%
31%
27%
Pre-Wires
Installation
Programming
8%
9%
12%
1%-10%
profit
11%-20%
profit
Lose money
on labor 4%
Breakeven
2022 Pre-Wire Labor Rates
Charged
February 2023 CE Pro | 31
DEAGREEZ/STOCK.ADOBE.COM
http://www.cepro.com
CE Pro February 2023

Table of Contents for the Digital Edition of CE Pro February 2023
