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  #11  
Old 04-16-2011, 02:53 PM
djagusch djagusch is online now
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Quote:
Originally Posted by jmkr02 View Post
What are the total sales to provide compensation at those levels? And what is the sales goal for the salesman individually to remain employed and what resources are at their disposal.
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He will respond but if I remember right he added 600k in a yr. It was for an existing landscape company or something like that.
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  #12  
Old 04-16-2011, 03:42 PM
DiscoDave DiscoDave is offline
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Originally Posted by jmkr02 View Post
What are the total sales to provide compensation at those levels? And what is the sales goal for the salesman individually to remain employed and what resources are at their disposal.
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In my opinion, you would want your salesmans goal to be at least $400,000.00.

Regarding resources:
Company phone.
Company vehicle.
Staffed office.
Sales literature.
Advertising budget of at least 5% of total sales.
Small expense account for "entertaining" prospective and existing clients.
etc.
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  #13  
Old 04-16-2011, 04:04 PM
DiscoDave DiscoDave is offline
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Originally Posted by djagusch View Post
He will respond but if I remember right he added 600k in a yr. It was for an existing landscape company or something like that.
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You are close... good memory though.
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  #14  
Old 04-16-2011, 04:21 PM
djagusch djagusch is online now
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Originally Posted by DiscoDave View Post
You are close... good memory though.
What did you end up getting for the year? For pay was it a estimated profit or actually at the end of the season? Did the production manager give you pricing/numbers and you sold it? Or did you do the estimating and he checked it? Also any non compete? And for how long?
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  #15  
Old 04-16-2011, 08:19 PM
DiscoDave DiscoDave is offline
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Quote:
Originally Posted by djagusch View Post
What did you end up getting for the year? For pay was it a estimated profit or actually at the end of the season? Did the production manager give you pricing/numbers and you sold it? Or did you do the estimating and he checked it? Also any non compete? And for how long?
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I ended up with $650,000.00.

I am not on the pay plan I described. I am not happy with my pay plan and I have been exploring other options. The plan I am on is a salary plus a flat percentage of gross sale no matter how large the profit margin.

The plan I described is a good average of the plans I have recently been offered by other owners.

I set all prices based on my projected direct costs + overhead + target profit margin. Our accountant (in house) job costs every job after completion to determine profitability.
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  #16  
Old 04-16-2011, 08:47 PM
wiselandscaping wiselandscaping is offline
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Join Date: Apr 2011
Location: New Carlisle, Oh
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Quote:
Originally Posted by forestfireguy View Post
Hey Wise......

Doesn't seem you've been around long enough for PMs yet......

And I disagree with Bagher's advice. A marketing rep and a salesperson are very different. At least in my mind.

See if you can PM me, if so I'll share answer whatever I can.

But important to the point here. Establish a very clear job description, outline the hours they're expected to work, whether or not the company vehicle is a take home deal. If it is who pays for fuel on the commute. Company mobile phone, laptop, do you have a CAD program to design with or will they be drafting plans and drawings by hand, benefits, salary and commision structure. Basically make it black and white, inlcude every eventuality that is realistic. Have an attorney draft a sales covenant/non compete agreement, anyone with half a brain will demand that their following is exmept from the this, and thats OK, it's just fair.........O grey area is the desired effect. Be careful to review their references, ask for personal and business references. Be sure to have your attorney review any existing or past non compete any potnetial hires have. Run your ad for at least 2-3 weeks, lots of folks are out of work DO NOT rush your decision, and ABSOLUTELY DO NOT excced your budget for the salary end of the compensation, if you have to negotiate do it on the commision/benefits side, some people may place a great value on a take home vehicle, other may or may not need health benefits due to the spouse/partner. In closing best thing you can do is think it through with a "global perspective.
Quote:
Originally Posted by DiscoDave View Post
Wise, I am a salesman at a company close to you.

I agree with going with a base pay plus commission. An example of a pay plan that would result in a win win for you and your salesman (in our area) would be:

Salary of $35,000.00 to $40,000.00 plus commissions of....
2% of gross sales on profit margins of 5%-9%
3% of gross sales on profit margins of 10%-15%
5% of gross sales on profit margins of 16%-20%
10% of gross sales on profit margins of 21%-25%
15% of gross sales on profit margins greater than 25%.

Pay 2% of residuals for ongoing maintenance after the first year.
Use above example for addon sales to existing clients.
Establish a minimum amount to pay for small one time services that are profitable.

Having someone else oversee and manage the work is to your advantage as well. That person should report to the salesman and also benefit from an incentive program based on profitability. Keeping your salesman focused 100% on sales and marketing and not having to worry about directly managing production employees and logistical issues keeps him happy and efficiently selling (equals more money for everyone).
Dave, I like this. We're just shopping right now. Our company focuses mainly on the maintenance end of Landscaping, and we are trying to get more into the design build aspect of the industry. I also know where you work...I think
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  #17  
Old 04-16-2011, 08:50 PM
djagusch djagusch is online now
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Join Date: Mar 2006
Location: MN
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Quote:
Originally Posted by DiscoDave View Post
I ended up with $650,000.00.

I am not on the pay plan I described. I am not happy with my pay plan and I have been exploring other options. The plan I am on is a salary plus a flat percentage of gross sale no matter how large the profit margin.

The plan I described is a good average of the plans I have recently been offered by other owners.

I set all prices based on my projected direct costs + overhead + target profit margin. Our accountant (in house) job costs every job after completion to determine profitability.
Any non compete?
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  #18  
Old 04-16-2011, 09:04 PM
DiscoDave DiscoDave is offline
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Quote:
Originally Posted by wiselandscaping View Post
Dave, I like this. We're just shopping right now. Our company focuses mainly on the maintenance end of Landscaping, and we are trying to get more into the design build aspect of the industry. I also know where you work...I think
Can you PM yet?

Please please please do not mention the company name in the thread.
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  #19  
Old 04-16-2011, 09:50 PM
wiselandscaping wiselandscaping is offline
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Location: New Carlisle, Oh
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Dave, I can't PM, and I would never.
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