Questions about estimators/ sales persons

Discussion in 'Business Operations' started by AEL, Jul 29, 2014.

  1. AEL

    AEL LawnSite Bronze Member
    Posts: 1,724

    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!
     
  2. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Posts: 7,521

    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.
     
  3. AEL

    AEL LawnSite Bronze Member
    Posts: 1,724

    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 .
    Posted via Mobile Device
     
  4. TPendagast

    TPendagast LawnSite Fanatic
    Male
    Posts: 7,521

    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 :laugh::laugh:, but sadly, the winds are so high here, your mulch becomes your neighbors mulch :cry:, so gravel in the beds is so much more common.
     
  5. 94gt331

    94gt331 LawnSite Bronze Member
    Male
    Posts: 1,692

     

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