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sales person

Discussion in 'Lawn Mowing' started by alan roark, Feb 20, 2003.

  1. alan roark

    alan roark LawnSite Member
    Posts: 2

    We are going to add an additional sales person to make cold calls, call to our office sales, etc in addition to myself. I would like any ideas on pros and cons of having an outside rep. who is paid on commission and/or a small base plus commission. Our current idea is to have this person on a very small base pay plus a commission schedule for maintenance contracts (to be
    paid monthly as we collect, lot a lump) 5% year one, 3% year two, 2 or 1% year three and then following it becomes an in house account. Landscape design/install jobs would be paid a one time percentage of the job. Prior to a proposal/contract being sent out of our office it would have to be approved by management. We would also have either monthly or quarterly
    sales goals for this person which MUST BE MET. I feel that we have been very successful in sales and more importantly job retention, but that there is an enormous opportunity to expand.
    Please comment, critique, etc. I would greatly appreciate it.
  2. goose

    goose LawnSite Member
    Posts: 177

    One of the cons is he is paid on commision , he might sell a job a little cheaper to get the work. I dont know how big your company is but a million dollar company needs a person in sales, who can generated around $400,000 a year in sales.(industry avg) If you lose 10% a year in gross and want to grow by 10% he will need to generate $200,000 in sales to get you back to $1.1 million . That gives you a half or partime salesman.
  3. Popsicle

    Popsicle LawnSite Member
    Posts: 189

    Set a low base and paid commision based on a percentage of the net, not the sales. No bonus should be paid if the company isn't making money no matter how many service contracts are sold. Salespeople should be held accountable by requiring sales call reports be turned in for every call made. How strict you want to be on this point would be determined on how high you set the base salary. Unless you provide a company car (and gas card), you'll need to provide compensation for that as well.

    Sales can be one of your biggests assets or your worst liability. Proper checks and balances must be in place and expectations spelled out at the time of hire.

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