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Good Advice Please

Discussion in 'Business Operations' started by QUALITY LAWNCUTS, Apr 1, 2003.

  1. QUALITY LAWNCUTS

    QUALITY LAWNCUTS LawnSite Member
    Posts: 38

    Alright guys just wandering what yere thoughts were on this one. I have invested about 9k this year on equipment and I am having a hard time getting the clientel to my goals. A good friend of mine that I work with at my regular job would love to come work with me he worked with one of the biggest LCO's for a couple years and he is really good at lawn care. My concern is if I bring him on he will definetly need to be compensated well because his old boss is willing to give up some prime commercial accts. due to downsizing. I guess my questions is should maybe I come up a % to pay him on contracts that he gets maybe like 35% on yearly contracts ( more/less) any ideas?
     
  2. dforbes

    dforbes LawnSite Member
    Posts: 195

    well I almost hate to answer this but yu asked so, I THINK YOUR OUT OF YOUR MIND. Is he going to pay for 35% of your overhead. You could hire an excelent sales person for a fraction of this. I have almost 20 years experiance in landscaping, irrigation, and landscape managment and I'll come to work for you for 35% of sales. What if you pay him 35% and he underbids a few contracts. I would think 5 to 10% would br more realistic.
    Take some time and think this over.
    Dennis
     
  3. QUALITY LAWNCUTS

    QUALITY LAWNCUTS LawnSite Member
    Posts: 38

    Well you make a very good point I was just thinking if it is accounts that I would know nothing about without him it just seems like he would be worthy of a healthy cut. But maybe then again I could pay him 10-12$ per hour on days where we do accounts he pulled in.
     
  4. adrianvbarrera

    adrianvbarrera LawnSite Member
    Posts: 163

    Let see if I have this right.


    A friend of yours will come to work with you and bring his own accounts?
    And you want to give him 30-40% of gross of those accounts?
    For that much I will go work for you.

    If you want the accounts buy them from him, the accounts might NOT follow him. Then hire him as an employee. People will say a lot of things with no concrete proof. He can say yeah I'm sure they will come with me but really has never talked to the client about switching over with him. That is just human nature....people just do things like that and really have no bad intentions.

    If you bring him in for the accounts...what happens if he decides to go off on his own. You will be back to square one.


    Just a thought.

    Adrian
     
  5. Groundcover Solutions

    Groundcover Solutions LawnSite Bronze Member
    Posts: 1,254

    I agree with the last posts. We have sales people that bring in accounts and we range from paying them 5-10% commission, deppending on the account type and visibility. 35% is alot, even if this guy is your friend and is helping start out you should still not pay this much. you can definatly finde some one that will work for 5-10%.
     
  6. QUALITY LAWNCUTS

    QUALITY LAWNCUTS LawnSite Member
    Posts: 38

    The situation is that this friend of mine used to work for the LCO his is going to give up some accounts he is willing give him the accounts that he used to service. Ok 35% is too much but how can I compensate him for getting these contracts signed to my business. I am not worried about him going out on his own. He is about to go work for the state, and that is what he really wants to do. It is just that he will have free time to do his second choice(lawn care). So in your opinion how should he be compensated you guys are saying 5-10% but if he got me a comm. worth 7000K for the next 7 months his share would be 350$ for 30 or so servicings while mine would be $6,650 trust me I'm not complaining I would love to make that sort of cut. I just don't know if he will go for it being I would not have if without him plus he would be doing half the work.
     
  7. adrianvbarrera

    adrianvbarrera LawnSite Member
    Posts: 163

    Why not give him 10-15 of the accounts for a short time only but still pay him his hourly wage. Kind of buying him out but paying for them as you work them.

    You will be compensating him for the accounts and also for the manual labor that he will be doing for you.

    One more thing 10% of 7000 is 700. Pay him this much not 5%.

    I think that you are trying to bundle this whole deal into one transaction. He must get paid for bringing the accounts but he must get paid for manual labor also. Two different transactions.
    Look at it that way....it will make more sense and confuse you less.

    Just a thought.
    Adrian
     
  8. QUALITY LAWNCUTS

    QUALITY LAWNCUTS LawnSite Member
    Posts: 38

    Thakyou for all the advice.
     
  9. GREEN DRAGON LM

    GREEN DRAGON LM LawnSite Member
    Posts: 12

    5 to 10% tops, he isnt going to pay the extra overhead. Personally I wouldn't touch this deal. keep grinding out on your own!
     
  10. LawnLad

    LawnLad LawnSite Senior Member
    Posts: 738

    I'm not sure I understand what you're asking... or maybe you're asking several questions.

    1) He's a good landscaper - so hire him for his landscaping
    2) Is he good at sales? This is different than landscaping. You do the sales - let him do the landscaping.
    3) Is he brining accounts? Then offer to buy them from him based on a % of return from the customer. Back load the deal so that the first 3 mos is the lowest %, more at 6 or 9 months and more yet a 1 year. This will encourage good customer relations as it will reward your friend in the pocket for good referrals and working with you to make sure the relationships are stable for the long term.
     

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