Discussion in 'Business Operations' started by SprinklerGuy, Dec 20, 2001.

  1. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    For those who install landscaping, not maintenance. Do any of you have a guy or girl who just does sales? If you do, how do you pay them? I have a buddy who pays a strict 10% commision on the gross.

    I have a guy who I want to put on as a salesman but having trouble deciding on a pay schedule. In the past we have been guessing. I would like to set it in stone.

    Do the salesman usually get mad if the leads they get are cold or do they do their own "qualifying". I have never had a salesman so forgive the silly questions. I think I would like to lean in this direction if possible.
  2. turfman99

    turfman99 LawnSite Member
    Messages: 212


    A salesperson at your size is not cost effective. You are much better off to work on your operational process, hire a forperson to handle all the technical and supervisory issues and you yourself focus on sales, management and planning, and customer service and public relations.

    10% of the gross??? Thats crazy. Why pay 10% of the gross ?? You are paying them for materials, your equipment and anything else that is figured into your company hourly billable rate. You don't get to keep all the gross, so why pay a sales person part of the gross ??

    In the landscape business, I feel it is best to pay a straight salary, have some quality control process's that that person is responsible for and overall customer satisfaction. A commission based compensation plan does not lead to those types of process.

    Just because they are a sales person does not mean they are required to be paid on some type of commisson base.

    For 10 % of the gross, I'll come sell for you during the week and make enough to fly home on the weekends.

    $ 500,000 in sales and pay the sales person $ 50,000 plus labor burden and vehicle expenses ?? I don't think so.
  3. SprinklerGuy

    SprinklerGuy LawnSite Bronze Member
    Messages: 1,778

    The problem with handling all the sales/management/public and customer relations is that it is too full time of a job. I want to see my family too just like you do turfman. If I sell the job I feel the need to supervise it to a certain extent to make sure my vision for the job is being fulfilled. Right?

    also, I like the customer relations and the routing/scheduling and all thenumber crunching and I don't really like the sales/followup. I don't mind the supervision but at the number s I want to do, I wouldn't be able to supervise it all anyway.

    Maybe a sales/foreman? Someone who gets paid 50k or so to sell and supervise? If he sells 500k worth of stuff that would be worth it. For that matter if he sells 250k it would be worth it. Plus I am out of that loop for the most part and I can concentrate on the part I like.
  4. kris

    kris LawnSite Bronze Member
    from nowhere
    Messages: 1,578


    The more I read your posts I am getting a feel(i think) for what you want from your business. I see a guy that wants to grow but wants to put in minimal time to do so .... nothing wrong with that...your quality of life(after hours) seems important to you. If I am wrong ..well Im wrong.

    If I am correct than you need to find some really qualified people to take alot of the responsibility for jobs from start to finish.

    Back to your origanal question ... In our company there is a designer than is paid hourly. If they would like it built, then it is estimted and sold. We also have a LA that does sub work for us.
    Although the designer does not do the actual selling they are the front line. If they make a bad impression you can forget the sale.

    You can't do it all what you do best and deligate responsibility for the rest.

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