Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum

» Welcome to the Gopher Lawn Care Business Forum
View Single Post
  #4  
Old 02-16-2013, 05:26 PM
dpld dpld is offline
new member
 
Join Date: Jan 2012
Location: nj
Posts: 885
Rep Power: 0
dpld is on a distinguished road
Default

most sales reps get 10% commission but in essence they get a weekly salary which is a draw off their commission of 10%.

depending on the size of your business and sales potential you would establish a territory and a realistic sales target number.

lets just say for example you hire a sales rep and give him a territory and you start him out on a salary of 30k.
he would have to bring in 300k in sales to break even on his salary and if he exceeds 300k in sales then he would recieve a additional 10% of what that amount would be.

so lets say he sold 375k for the year, he would already be getting a salary which is considered a draw for the first 300k and then he would get a additional 7,500.00 in salary.
the 7,500.00 would come as he sold each job and it was completed, billed and paid for as well as if the numbers worked out.

if he sold a job and it bombed he would not get any additional money.

when you hire a sales rep it is a very complex system that you have to follow in order to ensure he is getting paid properly and you are making money.
if he sold a 2,000 dollar job and the numbers did not jive he would not get a dime in commission.

there are a lot of things you have to establish first because you don't just give someone a commission just because he brought in a job.
the job has to make money.

depending on what you are doing and what he is selling you have to establish what the numbers are expected to be for him to see that commission.

if he sold a job and put 3 men on it and you for example need to bring in 50.00 per hour per man and the crew was on the job for 8 hrs that would work out to be 3 men x 8 hrs= 24 man hrs @ 50.00 per man hour the billable amount would be 1,200.00 plus materials and tax.

if he sold the job at say 1,000.00 and 3 men were there for 8hrs he would have a 200.00 loss for the day and he would get no additional commissions as well as would have a 200.00 negative balance on his yearly target of 300k.

you would not deduct it from his base salary because by law you can not do that but he would not receive any extra commission and at the end of the year he would not reach his target in sales.

a lot of people think you pay a sales rep a 10% commission regardless and it does not work that way and if that is how you did that you would go broke and he would just be throwing out crazy numbers just so he could get a sale and the whole process would back fire on you.

the key with having a sales rep is there has to be established ground rules and targets that he has to make. on top of that he will be responsible in not only finding the work and generating the sales by any means possible he will also be responsible for the billing, collections, supervising and directing the crews and bringing them to the job and showing the crew exactly what has to be done as well as ultimately be responsible in making sure the work is not only done to company standards but also to the customers standards.
he would also have to send out thank you's to the customers and anything else required to execute the job from start to finish.

having a sales rep can be a good thing and it is like having another owner on the job but the difference is unlike the owner, he see's nothing other then his salary if he does not execute flawlessly.
there are standard sales hiring practices available online but in order to have a sales rep you need to have every little detail spelled out and figured out.
if you are just gonna hire a sales rep because you don't want to do it and you don't have all the procedures in place it will end up being a big mistake for you and cost you a lot of money not only by way of paying a worthless salesman but also having a poorly run jobs and a very inefficiently ran operation that will also further cost you.
Reply With Quote
 
» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Business Overload
Chilehead
05-06-2016 09:27 PM
Today 06:43 PM
by Chilehead
15 716
Hello Everyone
JohnsLawnCare
06-22-2016 11:14 AM
Yesterday 09:38 AM
by SC93
9 169
Newbie
Jhoell
Yesterday 03:28 AM
Yesterday 03:28 AM
by Jhoell
0 36
Firefighter gone Lawn...
Firehouselawn@hotmail.com
03-10-2016 04:50 PM
06-24-2016 07:26 PM
by acrajchel
9 10,085
Exmark Turf Tracer
acrajchel
02-01-2014 11:34 AM
06-24-2016 07:23 PM
by acrajchel
5 2,114
Rubber mulch...
avetslawncare
06-24-2015 09:28 PM
06-24-2016 06:59 PM
by acrajchel
7 3,022
3 Applications or 5...
stansg1fresh
02-18-2013 12:02 PM
06-24-2016 06:48 PM
by acrajchel
2 1,375
Checmial Applications
acrajchel
06-24-2016 06:44 PM
06-24-2016 06:44 PM
by acrajchel
0 35
Ybravo 25 mowers
SGL1
06-11-2016 09:52 AM
06-21-2016 03:44 PM
by acrajchel
5 278
Great Arborist Ladder
SGL1
06-04-2016 09:56 AM
06-17-2016 08:46 AM
by SGL1
10 369
Help a Brother Out -...
Hedgemaster
01-23-2012 04:19 PM
06-17-2016 08:28 AM
by SGL1
94 34,428
Best Push Mower You Have...
markty
05-14-2016 03:46 PM
06-17-2016 06:08 AM
by SGL1
20 830
anyone interested in a...
GoGreenerKS
06-16-2016 01:00 PM
06-17-2016 02:58 AM
by SC93
4 162
Prolin
rmccutchan
05-21-2016 04:53 PM
06-16-2016 05:28 PM
by acrajchel
3 319
Laying new grass, Sod...
WarriorLandscapingCAN
05-23-2016 10:07 AM
06-16-2016 05:27 PM
by acrajchel
2 310
Is it too late?
Cpadgett
05-28-2016 09:10 AM
06-16-2016 05:24 PM
by acrajchel
6 423
Upgraded to a new mower
Stevenor92
05-17-2016 08:17 PM
06-16-2016 05:22 PM
by acrajchel
9 534
How can I fix my...
WarriorLandscapingCAN
06-10-2016 07:47 PM
06-16-2016 05:19 PM
by acrajchel
2 220
Need a lil help
Cpadgett
06-05-2016 09:51 AM
06-16-2016 05:17 PM
by acrajchel
5 349
help with sole...
greenbuds
03-24-2016 12:21 PM
06-16-2016 05:01 PM
by acrajchel
4 9,742
New Member from...
tiptoppmanager
06-15-2016 07:39 AM
06-15-2016 03:18 PM
by SC93
2 160
Say Hello !!!
Steve
03-19-2007 11:18 AM
06-14-2016 08:16 AM
by poppyanne
1,252 437,894
Brand new fish pond
Flynn landscaping 2016
06-12-2016 09:53 AM
06-13-2016 11:21 AM
by Steve
1 138
Whats up??
Cpadgett
05-27-2016 10:57 AM
06-06-2016 08:46 PM
by Cpadgett
11 495
New Member from Texas
NathanR
06-02-2016 06:13 PM
06-03-2016 09:17 PM
by SC93
7 317
Edging Fad...
Tree geek
05-10-2016 11:29 PM
06-03-2016 07:02 PM
by SGL1
3 487
To mow weekly or Biweekly
WarriorLandscapingCAN
05-11-2016 04:09 PM
06-03-2016 06:42 PM
by SGL1
11 766
Your Time Lawn Care
yourtimelawncare
05-31-2016 01:12 PM
06-02-2016 10:11 PM
by SC93
2 282
Read more about these lawn care business marketing categories.
General Business:
GopherHaul, Podcast
How to Estimate - Services To Offer:
Aeration, Apartment / Condo, bed edging, Color Change Plantings, Dethatching, Edging, Fall Leaf Cleanups, Foreclosed Homes, Gutter Cleaning, Hardscaping, Hedge Trimming, Home Safety Inspection, Irrigation, Landscape Project, Lawn Mower Repair, Mowing, Mulch Jobs, Outdoor decoration, Parking Lot Cleanups, Pet Waste Removal, Pressure Washing, Property Management, Snow plowing, Stump Grinding, Tree Removal
How to Estimate Jobs:
Lawn Care Business:
Barter, Bikini Lawn Care, Business Failure, Business loan, Business Plan, Debt, Debt Collection, Estimate or Proposal Form, Franchise, Fuel surcharge, How to sell, Insurance, Job Tracking, Lawn Care Contract, Lawn Care Customer Survey, Lawn Care Uniform, Lawn Care Videos, Operational Costs, Overhead Costs, Prepay, Pricing, Start up, Tiger Time Lawn Care,
Lawn Care Business Books:
Lawn Care Customers:
Buying customers, Commercial Customers, Customer Retention, How to get, Residential Customers
Lawn Care Employees:
1 Man Lawn Crew, Bonus Pay, training, Your First Employee
lawn care equipment:
bed edger, Lawn Care Truck, Leaf Sweeper, Mower, New Arrival, Trailer, UltraVac
Lawn Care Marketing:
Billboard, Brochure, Business Card, Community Projects To Promote Your Business, Coupons, Cross Promotion / Synergy, Direct Mail, Door hanger, door to door, Free Giveaway Contest, Free Lawn Care Flyer Template, Gift or Discount Cards, home show, Internet, Lawn Care Business Sales Letter, Lawn Care Logo, Lawn Care Marketing, Lawn Care Truck & Trailer Signs, Lawn Care Website, Lawn Signs, Magazine Ad, Magnets, Mailing list, Marketing on Craigslist.com, Newspaper Ads, Parade, Postcards, publicity stunt, Referrals, Review My Lawn Care Marketing Material, t-shirt, Welcoming Kit, Word Of Mouth
Seasonal Promotion Ideas:
4th of July, Armed Forces Day, Christmas, Election Day, Fall, Halloween, Memorial Day, Spring, Summer, Valentine's Day, Veteran's Day, Winter:
Software:
Estimation Software, Landscaper Software, Landscaping Business Software, Landscaping Estimate Software, Landscaping Software, Lawn Care Business Software, Lawn Care Estimating Software, Lawn Care Software, Mowing Software
Uncategorized:
Video:
Website:
Search Engine Optimization
» Lawn Care Business Discussion Categories
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 08:22 PM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 08:22 PM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy