Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 06-24-2014, 12:19 AM
Marine03112 Marine03112 is offline
LawnSite Member
 
Join Date: Apr 2012
Posts: 11
what do you pay your lawn fertilizing technician?

I live in north eastern pa and I started my guy at 12. 23 year old kid. He is going to train with me this year. Then next season I will give him a route and a raise. I also give 10 percent sales commission on all new and additional sales. All sales are verified for adtional sales. New sales are remeasured and verifed to be in line with company pricing. All new customers are told that the field manager reviews the property and price. Then we call the sale and give them a yes to the price or a readjustment is made. If they dont agree then we dont do the work. Anyway what is the prevailing wage for entry level lawn tech these days elsewhere.
Reply With Quote
  #2  
Old 06-24-2014, 06:51 PM
Marine03112 Marine03112 is offline
LawnSite Member
 
Join Date: Apr 2012
Posts: 11
Bump just giving it a little bump. Looking for some feedback.
Reply With Quote
  #3  
Old 06-29-2014, 01:34 PM
TPendagast's Avatar
TPendagast TPendagast is offline
LawnSite Gold Member
 
Join Date: May 2008
Location: Wasilla, AK
Posts: 3,513
he's 23?

you're not going to give him a raise for a year? after what, laying him off over the winter?

Can you live off 12/hr for part of the year?
Why should he?

12/hr is a middle supervisor at target or walmart or mcdonalds.

Year round jobs, 35ish hours a week, with benefits like PTO, minor medical, 401k etc.
They don't destroy their own clothes.
they don't need work boots in excess of $150 sometimes twice per year.
They don't have to drive very far to get to these places to be employed.
they don't have to lose hours due to rain.
etc etc.

the list of why those jobs are better than what you are offering goes on…


The question isn't what are other guys paying lawn monkey's/landscapers.
The question is why does no one worthwhile want to DO these jobs.

Everything mentioned above and only $10-$12/hr.

Anyone worth while is going to grab that job just long enough until they can climb the ladder. Get something better, then poof gone.


10% sales commission?
On your best day your Net is around 20%… but most companies are 10% or lower net on average…so you want to give any profit away and a bonus or incentive to bring it what? Zero profit?


Typical sales commission is 2.5 to 5%.

So for example.
In may I sold a 71,000 maintenance contract. It's a 3 year contract with option to re-up twice each for one year.

So technically, thats a 350,000$ plus sale.
or $8750 to $17500 worth of sales commission.

Buuuut. how do you pay out that commission?

you can't pay it all at once. you would owe all that money before you made any.
you can't pay it at the end, 5 years later? the salesman might not even be with the company anymore.

best way to pay the commission is through installments as payments come in.
This is called……

PROFIT SHARING.

Profit sharing is based on many things, not simply sales.
Production, efficiency, limitation of waste, referring other employees that are worth while.

You supply profit sharing for your main people, people you 'invite into the fold', not just mere employees.

so back to some concepts of numbers.

lets say you do 300k of business.

Your net is 30k

That might equate to a $2500 profit share (i.e. bonus) to a key employee.
Now over the course of a season, where he's probably worked 1200 hours, that's an extra 2 bucks an hour.

compare that to a sales commission of 2.5% of a $40 lawn sale.

Lets say in that case he brought in 20 additional lawns he "sold"
that's 800 bucks a week times 30 weeks or $24,000 in revenue.

That's $600 bonus (sales commission at 2.5%) or $1200 bonus (at 5%) or the way you were doing it $2400 (10%).

The problem with a sales commission is all it does it ensure sales are happening, not profit being made.

With profit sharing if you aren't making money, at least you aren't handing out extra money to not make money.
Reply With Quote
  #4  
Old 07-01-2014, 09:34 PM
Marine03112 Marine03112 is offline
LawnSite Member
 
Join Date: Apr 2012
Posts: 11
Sorry I dont cut grass. My profit margin is much better than you describe. I failed to mention that. Also he lives at home atm. He is also one of my soldiers in my Platoon. We are in the PA National Guard. His medical and dental are taken care of via tri care. Small co pay etc. I gross 800 to 1200 a day. Total expense for the day is 250 to 300. Also 10 percent is normal for small additional sales. Payment isnt dispersed till the end of the round application.
Reply With Quote
  #5  
Old 07-01-2014, 10:57 PM
GreenI.A.'s Avatar
GreenI.A. GreenI.A. is offline
LawnSite Silver Member
 
Join Date: Jul 2010
Location: North East
Posts: 2,055
I have two techs. One is a supervisor and the other is just a tech. I don't like putting all my numbers on here, but I'll say my laborers spreading loom are paid more than $12/hr so you can bet my techs are two. They are paid a flat commission per sale, about 7.5% on fert programs and exterior pest control. The commission is devided by the number of treatments and is paid in the next check after the treatment is completed. For example a lawn that's $100 an app five apps. The tech that sold it gets $7.50 after each app is completed. They get 10% on any ad on services they sell during a lawn treatment, such as an aeration and over seeding. I also throw them extra when they get us in for extra services, such as getting us in for the irrigation service or tree work.
__________________
Why do people not respect us as they do other tradesmen? Because every Tom, Dick, and Harry doesn't think he can be a plumber or electrician!
Reply With Quote
  #6  
Old 07-03-2014, 09:40 AM
andersman02's Avatar
andersman02 andersman02 is offline
LawnSite Senior Member
 
Join Date: Jan 2012
Location: Snowy MN
Posts: 417
Our techs get paid flat $10/hour for training without commission. Once they are ready for their own (usually after a week or two of training) they start getting salary plus commission based off jobs completed. The LEAST someone would make per week would end up being $12.5/hour. Thats assuming they completed enough for the first commission. Most everyone can reach this. This is also assuming they worked 40 hours. If they completed this in less then 40 hours then since its salary they'd be making more per hour.

Our best techs are making $20+/hr weekly, many times more if they get a cake route week.
Reply With Quote
  #7  
Old 07-03-2014, 03:57 PM
Marine03112 Marine03112 is offline
LawnSite Member
 
Join Date: Apr 2012
Posts: 11
Thanks folks for the feedback.
Posted via Mobile Device
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.com™ - Moose River Media
All times are GMT -4. The time now is 10:34 AM.

Page generated in 0.06516 seconds with 9 queries