has anyone offered their technicians something like this before?

Discussion in 'Pesticide & Herbicide Application' started by rkk95, Sep 18, 2013.

  1. rkk95

    rkk95 LawnSite Member
    from west PA
    Posts: 165

    I am considering offering my technicians 2% of their routs next year. Now they get a production bonus and a sales bonus for new customers that sign up for a minimum of five treatments per season. We have been trying to get them to upsell more to existing customers such as aeration, lime, fungicide, perimeter pest control and a few other things. Im thinking about eliminating the production bonus and sales bonus and giving 2% of their route plus the hourly rate. I'm just wanting to hear Some thoughts on this.
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  2. Green Acres

    Green Acres LawnSite Senior Member
    Posts: 316

    Would it be based on profit or total sales? A guy told me once he does a certain percentage for new customers than a smaller percentage for existing customers after the first year. Maybe like 5% for new jobs/customers than 2% for existing and maintaining existing customers
     
  3. Skipster

    Skipster LawnSite Bronze Member
    Posts: 1,074

    Is there a problem with paying a straight hourly rate, then paying a commission on sales?
     
  4. rkk95

    rkk95 LawnSite Member
    from west PA
    Posts: 165

    It would be based on total sales not profit. We know our profit and would be fine with 2%. As far as the question isthere something wrong with paying straight hourly rate and a commission for sales... No I don't think so, but is there something wrong with trying to give the technicians a little more of a reason to build that route because every time they sell something we both make more money and it is not just a one time thing. Why should they just get paid once instead of each time we do the job? Don't you think that would give more motivation to sell and build a route rather than one time commission?
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  5. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,536

    so you are offering them $1.20 for a $60 lawn? Id roll my eyes and tell you how little I give a crap if i was a tech for you.
     
  6. Ric

    Ric LawnSite Fanatic
    Posts: 11,946

    Here in Florida the Big boys start a spray tech at $ 8.50 an hour plus a 10 to 17% commission on Sales & Production. The Idea is to make that tech feel like his route is his own little business without the risk of actually being in Business for themselves. Of course they have some charge backs just like being in Business. As they work hard and build a good route, they MAKE more money and have Job security. If an other Tech leaves, That route is open to the next Highest producing tech if he wants it. The average Big Box Spray tech should be making $ 35 K his first year. However he will have to run hard to produce and keep his job.

    BTW This U tube might explain my point better

    http://www.youtube.com/watch?v=GoE_6ncwESM

    .
     
  7. Efficiency

    Efficiency LawnSite Bronze Member
    from zone 6
    Posts: 1,536

    10-17% is real money. 2% is pittance.
     
  8. RigglePLC

    RigglePLC LawnSite Fanatic
    Posts: 11,904

    Good video, Ric. The point is well-taken.
    Also, the quicker the reward--the stronger is the reinforcement of improved behavior. If you can write the reward check the same day as the new sale is booked--it works better than--more money in a week or two. And outstanding results should always be accompanied with generous, flattering praise from you. Never disrespect your employees. And outstanding effort should always be reinforced with recognition in front of the other workers...a plaque, a trophy, a new spreader. It may not be the Stanley Cup, but recognition of accomplishment is essential. Be sure to include a hug, (from your office girl). (Picture the NASCAR Winners Circle).
    Maybe your outstanding employee should now be driving the newest truck. Maybe he can be rewarded with the best route. Be sure to offer whatever advancement you have available if he keeps up the good work.
     
  9. rkk95

    rkk95 LawnSite Member
    from west PA
    Posts: 165

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  10. rkk95

    rkk95 LawnSite Member
    from west PA
    Posts: 165

    I don't think that you guys understand what I am asking. Maybe I am wording it wrong. We pay our guys 16-18 dollars per hour, they will keep that and continue to get raises plus overtime. What I am wondering is about offering 2% of total production done per day for each guys route. Each individual tech averages $2000-$2500 per day, but that doest not count grub control, aeration, fungicides, lime, perimeter peat control, tick control and tree and shrub control that may also be done in the same route. They would also be getting 2% of that. Everything done in that route would pay them 2% payable at the end of each month. They would continue to get the normal paycheck. Is that more clear?
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