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Salespeople, how to

ironchef

New Member
Morning guys n gals, was wondering if i can get directed to some good info on how to start using salespeople, how to pay them, and advice? My cousin and her husband work for us, and they already started bringing in outside jobs, and they want to do it more full time, how do sales people get paid, hourly? Plus a comission? What %? What about repeat orders? How do you organize it in legal terms? Are they subcontractors? Employees? Please advise, or link me to other past discussions, thank you kindly
 

DigiPrinter

New Member
I'm not going to get too lengthy because there are a lot of ways to go about that. My view is to pay them what you can afford to. Salespeople (most) are driven by compensation and look for the next sale cause of the $ (afterall, gotta make a living right). Pay should be based partly on what the responsibilities are. Are they just selling or do they have to Project Manage the job from start to finish? A small salary plus commission might be good (keeps some income coming in between sales). Straight commission may be the way to go as well for your sales force. A salary and commissions should be built into the jobs, so as the owner you need to determine what's fair for your market, beneficial to your sales team to keep them around and motivated, and won't put a financial strain on the company. Figure out too what the semi-annual or yearly goals of the sales force should be. See if the sales team is reaching those goals and if not find out why and make decisions from there - not enough company support, pricing structure not correct, salesperson not doing his/her job, etc.?
 

JoeBoomer

New Member
I worked at a franchise store where we were the first to hire a salesperson among all of the other stores (more than 200 stores). Needless to say, we were the model for the entire corporate structure from that point forward.

It pains me to say this but, "a good salesperson is worth their weight in gold". You want a salesperson who is going to go after businesses and good sized jobs. You most likely don't need someone drumming up "Happy Birthday" banners. Corporate accounts and other businesses should be their focus.
 

Stanton

New Member
In the San Diego market a sign salesperson is paid
a flat 8% to 10% of the original sales price.
A good salesperson will be given the perk of a car allowance.

A salesperson is expected to sniff out and woo their own clients.
They will have access to the art team for design advice and art documents.
They will get a bid price from the staff member who does that.

Basically, you don't want to see or hear from a salesperson
unless they have a signed contract in hand.


Get rid of a salesperson who spends more than 35% of the week in the office.
They want to take phone orders.
You already do that.
Get rid of a salesperson who needs to be fed leads.
Those are your commission free leads.

If a potential salesperson doesn't have a camera and a tape measure
DO NOT hire them.


Soooo much more. PM me.


-Glenn
 

Locals Find!

New Member
As a sales person I was always paid between 25-50% of a job's profit. I had to do everything from finding the client, working with the artist, scheduling the job etc..

My price list from the shop was usually set at what was offered as trade pricing to other shops. That was why I got paid a higher percentage of the profits as the shop was already making a fair amount. I was also given leads to chase after. The reason being the shop owner felt it was his job to run the shop not to do sales. If someone walked in then they were the houses job and that was that. Unless, I had already registered the lead with the shop. Showing that I was already actively working the potential sale.

I got 25% on repeat orders that came into the shop from sales I produced previously if I didn't bring the order in myself. For example, if a returning customer stopped into the shop and wanted another set of signs we just produced and found it easier to just pop in person. If I brought in the repeat order I got my full percentage. Now, if the client walked in with a brand new order that was the shops and not mine. I still kept the client just lost the commission on that particular job. Usually the owner would flip me a gift card or some cash though depending on the size and his mood that day. Not that he had to he was just a good guy like that.

I was also given an expense account for trade shows, luncheons, networking groups, and lunches with clients. I had to justify every expense in detail. I also got a stipend for Gas and my Phone. Not the entire amount I used or needed each month but, enough to offset the costs so I didn't run out of gas or get my phone turned off so I could still do my job on a slow month. I had to submit mileage logs and show the phone bill each month to get that.

I was usually paid 15 days after the final sale and final payment was received. That allowed the shop to make sure everything was right before they paid me. Just in case something came back with issues or a check didn't clear.

I was allowed to work in the shop in the back at my desk if I wanted to none of that "no more than 35% of the time" garbage. I had to a quarterly quota I had to maintain to keep my expense account and stipends. If I didn't mean that quota I had to pay the money back in the next quarter for the stipends and my expense account was cut according to the % of the quota I failed to meet.

So, the shop owners usually didn't monitor me. They knew I had a quota to meet and I knew I had to make that quota or I was gonna be paying money back. The agreement we had was if I missed my quota 2 quarters in a row I was out on my *** no second chances.

My quotas were fairly reasonable usually only about $30k in sales a quarter. It was set at enough to make a fair profit for the shop and cover the expense of maintaining me. I also wasn't an employee. I was a 10-99 subcontractor.

Which if your not familiar with IRS rules you can't tell subcontractors when to work or not work, or they become employees and it's a whole other set of rules regarding taxes withholding etc...

I had an agreement that if I quit or was fired. Any work from those clients belonged 100% to the shop and I had no claim for any future commissions whatsoever. All artwork created by the shop stayed with the shop and the clients were the shops.

Now, this was fairly standard arrangement at every print shop and sign shop I worked at. I had heard rumors about other shops that didn't pay as well. I noticed those shops usually didn't keep sales people for long as well the sales guys starved to death or jumped ship into other sales venues that actually paid enough to keep a roof over your head.

The thing to remember a salesman is only as loyal to your business as you are to them. If you don't take care of them they won't take care of you. If they are making less than your operation guys you can count on that salesman just not showing back up to work one day.
 

Stanton

New Member
I was allowed to work in the shop in the back at my desk if I wanted to, none of that "no more than 35% of the time" garbage.

You are obviously an extreme pro.
I wasn't speaking about your level of work..

The OP was thinking about hiring family.



So, the shop owners usually didn't monitor me ... The agreement we had was if I missed my quota 2 quarters in a row I was out on my *** no second chances.

I would have retained you through 'bad times'.
There is more to what you are saying here.
You know you are way off to the right on the bell curve.



The thing to remember a salesman is only as loyal to your business as you are to them. If you don't take care of them they won't take care of you. If they are making less than your operation guys you can count on that salesman just not showing back up to work one day.

I wasn't trying to be over the top.
I expect every participant in the sign process to be there and give it their full attention.

People who bring it to the table deserve to enjoy the rewards.
 

Locals Find!

New Member
Typical salesperson. :Big Laugh


So, true I have been trained to tune people out when I hear any sentence start with "my Family" or "my nephew" or the dreaded "Give me the family price".

Of course, I do have a "family" price list in any job and it's usually 30% higher than the normal price just to cover the pain in the butt part "family" can be.
 

Stanton

New Member
So, true I have been trained to tune people out when I hear any sentence start with "my Family" or "my nephew" or the dreaded "Give me the family price".

Of course, I do have a "family" price list in any job and it's usually 30% higher than the normal price just to cover the pain in the butt part "family" can be.



I sent you a PM before I read this.

:Big Laugh

I think we are simpatico.

-Glenn
 
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