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  #1  
Old 07-29-2014, 08:39 PM
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AEL AEL is offline
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Questions about estimators/ sales persons

Hey guys, looking at having myself focus on more important things and hiring an estimator and a mulch sales person. For the guys who currently have a estimator or sales person on staff what type of pay and commissions are you paying? Do you see any advantages or dis advantages of how you structure this persons income? I am thinking of offering a base salary , as well as fuel in there vehicle paid for ( and a company vehicle if they perform as expected after a few months) plus a commission on every sale that they make. ( We are going after more garden centres and landscapers who purchase decent volumes each order instead of home owners.

Thanks in Advance!
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  #2  
Old 07-30-2014, 10:20 AM
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TPendagast TPendagast is online now
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Quote:
Originally Posted by AEL View Post
Hey guys, looking at having myself focus on more important things and hiring an estimator and a mulch sales person. For the guys who currently have a estimator or sales person on staff what type of pay and commissions are you paying? Do you see any advantages or dis advantages of how you structure this persons income? I am thinking of offering a base salary , as well as fuel in there vehicle paid for ( and a company vehicle if they perform as expected after a few months) plus a commission on every sale that they make. ( We are going after more garden centres and landscapers who purchase decent volumes each order instead of home owners.

Thanks in Advance!
so
#1) Mulch sales man? That's weird, you want him to sell ONLY mulch?
#2) Company truck, ONLY a company truck. You don't want a guy riding around doing your business without a marked vehicle.
He can come to work like any normal person, get in the truck do the work, come back to the shop, and drive home, like a normal person.
If you want to give him a perk after a few months, then you can let him use the vehicle for commuting.
#3) You'll never get anyone decent at all (or as I say worth a $*^&!) without paying a steady living wage. Doesn't matter "what the work is worth", it matters how much the guy can live off of or he's not working for you. That answer is typically going to be $36k on the low end and $60k on the high end.
What mix of salary and incentive you want to give someone varies widely.

Be aware however the successful salesman will often earn north of 75k to 100k after getting rooted, AND their motivation os NOT your best interest, it's simply MORE sales; because you have structured it that way.


I recall TruGreen never giving a bonus for client retention, so, it became standard practice for certain salesmen, to under bid a contract , just to get the sales commission, and let another one they had go, because there was no incentive to keep it, when they could bid on it and get it again in 2-3 years when it came back up for bid.
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Old 07-30-2014, 07:17 PM
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AEL AEL is offline
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Originally Posted by TPendagast View Post
so
#1) Mulch sales man? That's weird, you want him to sell ONLY mulch?
#2) Company truck, ONLY a company truck. You don't want a guy riding around doing your business without a marked vehicle.
He can come to work like any normal person, get in the truck do the work, come back to the shop, and drive home, like a normal person.
If you want to give him a perk after a few months, then you can let him use the vehicle for commuting.
#3) You'll never get anyone decent at all (or as I say worth a $*^&!) without paying a steady living wage. Doesn't matter "what the work is worth", it matters how much the guy can live off of or he's not working for you. That answer is typically going to be $36k on the low end and $60k on the high end.
What mix of salary and incentive you want to give someone varies widely.

Be aware however the successful salesman will often earn north of 75k to 100k after getting rooted, AND their motivation os NOT your best interest, it's simply MORE sales; because you have structured it that way.


I recall TruGreen never giving a bonus for client retention, so, it became standard practice for certain salesmen, to under bid a contract , just to get the sales commission, and let another one they had go, because there was no incentive to keep it, when they could bid on it and get it again in 2-3 years when it came back up for bid.
Thank you for the information.

I am looking for a person for mulch only because we are not a landscape company we do excavation, land clearing and produce mulch . I would like to start selling quite a bit more then we currently do .

Not looking to hire a guy and pay him peanuts , all my employees are on salary and make an excellent living . I was worried if I strictly paid them a salary it would not be enough motivation to keep selling more . We have our numbers in place for what we sell and can produce a cubic yard for , so I wouldn't be worried about them trying to undercut on sales. I apologize that I didn't make it clear that it was for landscape product sales .
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Old 07-30-2014, 08:34 PM
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TPendagast TPendagast is online now
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Quote:
Originally Posted by AEL View Post
Thank you for the information.

I am looking for a person for mulch only because we are not a landscape company we do excavation, land clearing and produce mulch . I would like to start selling quite a bit more then we currently do .

Not looking to hire a guy and pay him peanuts , all my employees are on salary and make an excellent living . I was worried if I strictly paid them a salary it would not be enough motivation to keep selling more . We have our numbers in place for what we sell and can produce a cubic yard for , so I wouldn't be worried about them trying to undercut on sales. I apologize that I didn't make it clear that it was for landscape product sales .
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so does he travel for work?
cold call?
do telemarketing?
Not sure what this guys work is.

When I buy mulch, no one sells to me, I go there (or rather send my rube with a truck) and get mulch.

So assume you do land clearing and have a tub that turns the spoils into mulch?

IMO if you really want to push mulch? Get a mulch blower truck, put a wrap on the side. Get a lady that markets via phone to all the area landscapers and hire a crew to run your mulch truck, the thing will never sit still and you'll barely be able to keep up.
all the landscapers will call you.

Mulch mule, bark blower…there several types of them out there.

since your doing big clearing and have something expensive like a grinder… the price of the mulch mule shouldn't scare you (too much)

IF we had a large market for mulch around here, I would already have TWO mulch mules , but sadly, the winds are so high here, your mulch becomes your neighbors mulch , so gravel in the beds is so much more common.
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  #5  
Old 07-30-2014, 08:56 PM
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94gt331 94gt331 is offline
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[QUOTE=TPendagast;5085496]so does he travel for work?
cold call?
do telemarketing?
Not sure what this guys work is.

When I buy mulch, no one sells to me, I go there (or rather send my rube with a truck) and get mulch.

So assume you do land clearing and have a tub that turns the spoils into mulch?

IMO if you really want to push mulch? Get a mulch blower truck, put a wrap on the side. Get a lady that markets via phone to all the area landscapers and hire a crew to run your mulch truck, the thing will never sit still and you'll barely be able to keep up.
all the landscapers will call you.

Mulch mule, bark blower…there several types of them out there.

since your doing big clearing and have something expensive like a grinder… the price of the mulch mule shouldn't scare you (too much)

IF we had a large market for mulch around here, I would already have TWO mulch mules , but sadly, the winds are so high here, your mulch becomes your neighbors mulch , so gravel in the beds is so much more common.[/QUO
TP I seen this guys thread, he has a mulch grinder and produces his own mulch. He's talking about selling mulch in a bulk quantity to other buyers, probaly landscape centers, landscapers, etc in a larger bulk delivery, he's not talking about installing the mulch etc.
I know a couple outfits here that make there own mulch etc. One is a escavator company that has a landscape center etc, he does very well it seems selling mulch and topsoil and dyed mulch to many landscape centers and nurserys, I buy some bulk loads that he brings to our shop for our use. Seems like a good buisiness to me, good luck with your estimator guy, I'm sure that will help free up alot of your time so you can just concentrate on what you do best as keep the money coming in with your jobs.
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