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
Trailer tires
J.A.S.LawnService
09-01-2014 10:17 AM
Yesterday 09:57 PM
by curts lawn care
4 803
Lowballers scrubs &...
Darksteel
01-13-2014 07:35 AM
Yesterday 08:42 PM
by curts lawn care
57 6,559
new to the forum
SGlawncare
09-16-2014 11:20 PM
Yesterday 08:29 PM
by curts lawn care
3 98
Looking for feed back on...
ExtremeLawncareServices
Yesterday 08:38 AM
Yesterday 05:10 PM
by ExtremeLawncareServices
2 74
Price to apply fertilizer
SS.Lawncare
09-15-2014 11:10 AM
Yesterday 03:58 PM
by stevef1201
8 242
Help With Snow Blowing...
Robertf31
09-13-2014 10:55 PM
Yesterday 12:34 PM
by Steve
11 443
Non-Stop Summer?
SouthallMowing
09-14-2014 10:51 PM
Yesterday 10:48 AM
by stevef1201
6 250
Tribulations of working...
stevef1201
09-13-2014 08:37 AM
09-16-2014 10:43 PM
by SGL1
6 332
Poll - net income
Dan5082
11-15-2010 08:08 PM
09-16-2014 04:44 PM
by jrs.landscaping
12 3,104
Getting lowballed!
PineHillLawn
06-27-2012 07:23 AM
09-16-2014 01:25 PM
by jrs.landscaping
24 4,764
snowplowing
jshak40
09-01-2014 07:20 AM
09-16-2014 01:16 PM
by Steve
21 1,186
Compare this summer to...
Steve
09-03-2014 12:52 PM
09-16-2014 11:20 AM
by Hanks Lawn Care Services
15 990
thinking about throwing...
veteranslawncaresystems
09-09-2014 10:31 PM
09-15-2014 03:41 PM
by Steve
12 683
Hello
Robertf31
09-12-2014 10:34 PM
09-15-2014 03:17 PM
by Steve
2 302
Newbie......Again
Jibber
09-13-2014 12:17 PM
09-15-2014 02:54 PM
by Sprinkler Buddy
2 289
Replacing a Shindi T-27
Dan Tanner
09-13-2014 12:59 PM
09-15-2014 02:31 PM
by Steve
1 252
need help with starter...
GoGreenerKS
09-12-2014 04:23 PM
09-15-2014 02:25 PM
by Steve
3 308
Brake job!
kslawn
08-30-2014 07:49 AM
09-15-2014 02:16 PM
by Steve
12 1,002
Hello
jawnebgoode
08-28-2014 08:37 PM
09-15-2014 02:15 PM
by Steve
3 782
Employee uniforms
Gerardo_Landscape
01-21-2014 11:11 PM
09-15-2014 02:12 PM
by Steve
5 906
Greetings from the north
Northwoods Outdoors
09-13-2014 08:55 AM
09-15-2014 02:07 PM
by Steve
1 269
darleneh
darleneh
09-15-2014 12:33 PM
09-15-2014 02:07 PM
by Sprinkler Buddy
1 141
My 1st bid
WesleySnips
06-11-2014 03:13 PM
09-15-2014 02:05 PM
by Steve
29 1,695
New Aerator
Chaz
09-09-2014 11:43 PM
09-15-2014 01:50 PM
by Steve
9 523
Yearly contract Pricing
jrob0691
08-21-2014 08:57 AM
09-15-2014 01:23 PM
by stevef1201
8 1,170
Scag turf tiger hydrolic...
ExtremeLawncareServices
09-04-2014 10:55 PM
09-14-2014 03:06 PM
by ExtremeLawncareServices
8 692
These are the days on...
ExtremeLawncareServices
03-22-2014 09:12 AM
09-13-2014 09:14 PM
by ExtremeLawncareServices
116 7,904
getting ready to start
calebmoss
05-23-2011 09:35 PM
09-11-2014 12:21 PM
by Steve
34 11,188
Stihl pull cord replace
SGL1
09-03-2014 09:22 PM
09-10-2014 12:25 PM
by Steve
9 708
Softball field
kslawn
08-15-2014 09:28 AM
09-10-2014 12:16 PM
by Steve
18 1,431
Lawn Route Templates
Landscaper1165
08-30-2014 01:52 PM
09-09-2014 08:05 PM
by Landscaper1165
4 919
New truck and trailer...
Johnny Rocket
05-14-2012 03:41 PM
09-09-2014 07:23 PM
by Matther777
18 6,519
What gets you bad press?
Steve
09-09-2014 11:48 AM
09-09-2014 07:21 PM
by Matther777
2 415
Signs on your snow plow?
Steve
01-15-2007 01:07 AM
09-09-2014 11:42 AM
by Steve
19 6,155
Exmark Lazer Z S-Series...
BLC7
08-22-2014 10:18 AM
09-08-2014 08:08 PM
by avetslawncare
12 1,213
New to the business
flamingyouth87
09-05-2014 11:52 AM
09-08-2014 11:55 AM
by Steve
3 620
Hello from Ohio
kurtwin
08-28-2014 05:06 PM
09-08-2014 11:51 AM
by Steve
7 900
Facebook
element009
03-23-2011 08:36 AM
09-07-2014 07:35 AM
by avetslawncare
24 7,681
Help pricing cut down 7...
Bradcook21
08-26-2014 11:17 PM
09-06-2014 02:09 PM
by Bradcook21
8 981
billing matters
sbuchanan8154
09-05-2014 09:56 AM
09-05-2014 03:00 PM
by Steve
3 595
Thoughts
googus
09-05-2014 07:28 AM
09-05-2014 02:23 PM
by Steve
2 551
Backflow Tester
flowcheckllc.2014
09-03-2014 04:37 PM
09-05-2014 02:15 PM
by Steve
3 631
Collections & collection...
jscarolina
09-03-2014 04:39 PM
09-04-2014 03:14 PM
by Steve
2 651
Sod
RosalesLawnCare
08-27-2014 03:47 PM
09-04-2014 02:42 PM
by RosalesLawnCare
4 904
Lawn needs top soil What...
jymie
08-26-2014 11:01 AM
09-03-2014 12:07 PM
by Steve
7 977
Hello! New here and...
CaliforniaFriendly
08-29-2014 11:30 AM
09-03-2014 11:15 AM
by Steve
4 878
Mowing 7 acres
avetslawncare
08-31-2014 04:24 PM
09-02-2014 03:11 PM
by Steve
5 866
New to the industry-...
Lsmain
08-31-2014 10:53 AM
09-02-2014 02:58 PM
by Steve
1 787
Walk Behinds and Texas...
SGL1
08-26-2014 03:53 PM
09-01-2014 11:36 PM
by SGL1
7 984
Stihl engine isn't...
Marcintosh
08-12-2014 08:30 PM
08-28-2014 09:28 PM
by Marcintosh
12 1,284
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 12:17 AM.


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

All times are GMT -5. The time now is 12:17 AM.

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