PDA

View Full Version : Salesman?


NCL
01-18-2012, 05:42 PM
Do any of you guys have salesman? If so how do you pay them? By the hour or a percentage of sales?

McCord L & I
01-19-2012, 12:16 AM
Great question! Looking at doing the same thing, interested in hearing the response!

I have a brother in law in hardwood sales, and a best friend in pharmaceutical sales, both said that they would do it in their off time for a percentage of sales.........contemplating taking them up on the offers.

NCL
01-19-2012, 02:22 PM
I have a friend that lost his job,so he is willing and able to do sales calls, not sure what the percent would be?

Bunton Guy
01-19-2012, 08:24 PM
A few years ago I gave my last sales guy a starting salary of around $35K + 7% commision on a 3-2-1 format so that he was also responsible to keep up with the clients satisfaction level. If we lost the client....he lost his commision for the rest of the year on that client. It was paid monthly based on that percent spread over a year.

Dr.NewEarth
01-19-2012, 08:31 PM
How come you don't do sales and hire another laborer?

No-body around here would do sales for just a commission.

cpllawncare
01-20-2012, 05:31 PM
If a sales guy has a large base salary what incentive is there to sale? Just curious? I would want my salesman to make their money on the amount of sales they create not a base salary.

DiscoDave
01-21-2012, 05:22 PM
I am a salesman. Based on my experience, a fair salary plus a commission will produce the best results from a good salesman if the commission is based on profitability.

For example:

Job goes for $5000.00
Job costs = $4000.00
Job profit = $1000.00
15% Commission = $150.00 paid to salesman.

No commission paid for any job less than 10% profit.
After salesman sells $200,000.00 for the year raise his percentage to 20%.
Pay an extra 5% for leads he generates himeself.

The higher the profitability, the more the salesman makes.... the more you make. This removes his temptation to sell high volume but low profit if he gets a flat rate or % of gross sale price.

Bunton Guy
01-22-2012, 07:30 PM
How many of the leads does the sales men NOT generate himself? I always expect a sales men to generate at least 90% of the leads on his own.

DiscoDave
02-02-2012, 12:11 AM
How many of the leads does the sales men NOT generate himself? I always expect a sales men to generate at least 90% of the leads on his own.

That will vary from company to company and also depends on the services being offered. I have worked for a company that had so many calls coming in, the salespeople barely kept up.

Some companies may not invest much in marketing and advertising (or are not very good at it) and the salesman will have to be aggressive at lead generation. Expect to pay a higher salary and commission rate if you want to attract and keep a good salesperson if your phones aern't ringing.

Last year, I generated about 50% of my leads. The other 50% were the result of prospects responding to advertising and referrals. When I did not have leads coming in... I went out to get them.

I am working for a different company this year where I need to generate more of my own leads. Will propably be close to 75%.

Bunton Guy
02-02-2012, 05:21 PM
Dave what made you transition from the last company you spoke highly of? Were their expectations to high? Bad management? Last we spoke through PM's you gave me super good selling tips. :weightlifter:

IF my phone was ringing off the hook I would have no reason to hire a salesman. Our advertisement isn't working like it should in our market. I THINK we have tried what should be most effective and have gotten little response. That is the ONLY reason why I would want to hire a sales associate. If I can't bring the leads in myself through our advertisement & word of mouth I need to find another outlet.

I screen all the calls coming through the pipeline and can tell if the client fits our desired "niche" if not we pass them along as a referral to another company that might fit their needs better. With doing this Iím able to close on 80% of our estimates. But if Iím only getting 4-5 calls a month and only two of those fit what we are looking for :hammerhead:

DiscoDave
02-03-2012, 12:24 AM
Bunton Guy... I'm glad you were able to benefit from what we talked about.

I don't want to say anything negative about my former employer. I will just say, I am much happier where I am now.

There are three of us in sales including the owner and landscape designer at this company (by the way, we are hiring a new landscape designer if you know anyone). I also work with the owner on all of our advertising and marketing. I do more lead generation for the company I am with now until the new marketing efforts begin to click.

It is very difficult to find a good salesman that really knows this business well, will properly represent your company and is good at prospecting and lead generation as well as closing sales. Former business owners tend to be able to do all of the above but they are a rare find unless you buy someone out. When you do find a good salesman, treat them well. They will take good care of you if you take good care of them.

Bunton Guy
02-03-2012, 09:40 PM
Since we aren't competition would you mind going into any detail about what a company of that size uses for advertisment/marketing? feel free to PM me if this isn't public info.

DiscoDave
02-04-2012, 12:55 PM
None of what I can share is uncommon. I will try to list them in order of effectiveness.

1. Truck lettering
We have 18 trucks so we get a lot of exposure.
2. Literature to existing clients
Constantly reminding existing clients of all the services we offer.
3. Mailers
Seasonal mailers with special offers for new customers.
4. Networking
Participating in various professional associations etc.
5. BBB
We get a lot of calls from The Better Business Bureau site.
6. Internet
People stumpling across our website
7. Yellow Pages
We are in 6 categories. Very expensive... alomost not worth the return.

There are a few other things we do but I will not be able to share them out of respect for the owner.

lawnlandscape
02-05-2012, 11:58 AM
Once you get big enough to need a salesman.. it gets scary (for me as a business owner). I can't tell you how many times I have been burned by salesmen over the years.

This has to be a person you have COMPLETE trust in. It cant be just anyone. I have had 2 salesmen. One I found out was sharing our numbers with another company so they were able to undercut us, and the other started his own company, and then stole 40% of our lawn care customers because he knew all our numbers.

I no longer use salesmen.. and never will.

cpllawncare
02-05-2012, 03:31 PM
Never ever share your numbers with anyone other than the accountant or lawyer!!!!!!!!!! I never let anyone in my quickbooks account period!!! I just had a friend that just got burned by, you guessed it, one of his salesman, which is in jail now for extorsion (sp)

wbw
02-05-2012, 05:34 PM
Once you get big enough to need a salesman.. it gets scary (for me as a business owner). I can't tell you how many times I have been burned by salesmen over the years.

This has to be a person you have COMPLETE trust in. It cant be just anyone. I have had 2 salesmen. One I found out was sharing our numbers with another company so they were able to undercut us, and the other started his own company, and then stole 40% of our lawn care customers because he knew all our numbers.

I no longer use salesmen.. and never will.

Who writes your employment contracts?

lawnlandscape
02-05-2012, 05:52 PM
Who writes your employment contracts?

The first would have costed more to prosecute then what I would've gained from prosecution.

The second person was distantly related to me.
Posted via Mobile Device

jlbf0786
02-07-2012, 02:29 PM
You need to have alot of physical presence, wrap those trucks! if you want to get noticed, pull the same advertising technique as Killingsworth.. man those
guys even have flashing caution lights on their trucks now, hell of an idea if you ask me! Its a different type of service, but the technique is GOLD!
_________________________________________________________________

Dave what made you transition from the last company you spoke highly of? Were their expectations to high? Bad management? Last we spoke through PM's you gave me super good selling tips. :weightlifter:

IF my phone was ringing off the hook I would have no reason to hire a salesman. Our advertisement isn't working like it should in our market. I THINK we have tried what should be most effective and have gotten little response. That is the ONLY reason why I would want to hire a sales associate. If I can't bring the leads in myself through our advertisement & word of mouth I need to find another outlet.

I screen all the calls coming through the pipeline and can tell if the client fits our desired "niche" if not we pass them along as a referral to another company that might fit their needs better. With doing this Iím able to close on 80% of our estimates. But if Iím only getting 4-5 calls a month and only two of those fit what we are looking for :hammerhead: