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Salesman / Commercial Accounts

Discussion in 'Business Operations' started by quietone, Oct 5, 2007.

  1. quietone

    quietone LawnSite Member
    Posts: 39

    :drinkup: We are trying to expand into commercial maintenance. Fliers were sent out to all of the property managers in our region and no response. How have you guys had success doing this? Is hiring a salesman or going from business to business the best way to go? What time of year is the best for trying to get these accounts? Any help would be great.
  2. hoskm01

    hoskm01 LawnSite Fanatic
    Posts: 5,690

    How about a personalized letter to a few choice businesses to start with. Offer to come out for free and give them an estimate. Same for property managers. They want to think you just want thier property, not every other one in town also.
  3. jcthorne

    jcthorne LawnSite Member
    Posts: 208

    I have a retired gentleman who used to work for a Fortune 500 that sales for me part-time. I pay him commission only and it works out very well for both of us. He works when he wants too and his income is based on how much he works. Over the years he made a lot of great connections in the business world and he's used them to our advantage. I don't depend on him for my business and consider what he brings to the table as a little extra gravy.

    Sales is the key to growing and there are many different ways to do it. Every scenario will be different but it all boils down to how good you are at selling yourself to the prospective client.
  4. All_Toro_4ME

    All_Toro_4ME LawnSite Bronze Member
    Posts: 1,578

    You want to start in the early Spring. A lot of guys on here will advertise year round, but the methods are different. Fliers have a pretty low return. Try the letter approach, it gives a more one-on-one rapport, follow up with a phone call three days after you mail it, just as you would if you were applying for a job in the corp world. Close with a Thank you letter rather you get the job or not. Its just good business to do so. Good for your name as well.
  5. nlminc

    nlminc LawnSite Bronze Member
    from GA
    Posts: 1,671

    What kind of commission did he earn? I'm thinking about trying the same idea here.
  6. jcthorne

    jcthorne LawnSite Member
    Posts: 208

    I built a pricing matrix for him to use. His commission is dependent on the size of the account and which pricing tier he signs up a client on.

    Everything is done by $'s per square foot. We only do commercial work on at least a 1 year contract so it works out well. He gets paid commission only once on a specific customer and it can not be greater than the price of 1 month's billing.
  7. carcrz

    carcrz LawnSite Silver Member
    Posts: 2,085

    does he get a commission check just for the initial sale or is it a percentage of each month's bill?
  8. jcthorne

    jcthorne LawnSite Member
    Posts: 208

    He gets a one time check.

    For example......

    100k yearly contract/12 months=$8333.33 per month

    He can not exceed $8,333.33 one time commission. Depending on the price matrix per sq ft. His commission can range from $8333.33 x.5 which =$4166.65 on the lowest end based on the pricing matrix.

    If he hit's the top of the scale it can be as high as $8,333.33. He can only make a commission on new business. I'm not in the insurance business.......there is no RESIDUAL income.

    If you can find the right retired person who wants something to do a few days a week this can be a sweet deal for both parties involved. It sure beats being a greeter at Wal-Mart and it gives a retired professional an avenue to stay connected in the business world and visit his old contacts.

    This will require some investment as far as your time goes to train the right person how to bid and understand the needs of the potential customer. If you don't have time to help the person it's probably not worth the effort, but I'm at a point where I don't involve myself with any grunt work. That's what I have employees for. If you're still out in the field or a one man show you need to concentrate on getting out of the field before you think about investing your money and time into a sales rep.

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