Sales for another outfit/Salesman rate

burtonbc1400

burtonbc1400

Participating member
Location
Enderby, BC
Hi guys, Ive been running my company for 6 years. It's going ok, I make enough to get by. I gross 100-150k, net 40-80k and pay tax on that. During the main season I usually work 3 or 4 days a week, doing maintenance and sales the other days.
I am in a position to potentially start also doing sales casually for another company. Maybe a day a week or a day every 2 weeks.
The other outfit has been around longer and has higher call volume. At the moment, they can't make it to view all their calls.
Im cautious but optimistic. An extra day a week for pretty chill work seems fine with me.
I've heard 10% comission often, but I'm also considering a hourly or flat rate.
What are some comission or flat/hourly rates for salespeople?

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I've heard of all sorts of arrangements. Base pay plus commission on jobs that meet the $$ per hour objective seems most common.

This seems like a whack arrangement though imo. Part time sales for a competitor. It takes time to learn the crew and equipment that your bidding for and what they can/can't do. What's the plan if they have a question about the job and your busy working your main gig? What would be the plan if you went to bid for them and it was one of your clients from your company or vice versa?

Having the salesperson on-site is crucial in my mind, I know that's probably not the norm but it's important to me.

If they can't get to all of their leads that's an advantage for you, why not try to somehow funnel that work to your shop instead?
 
flushcut said:
10% is all I have ever heard or payed. Why would you want to sell for other companies instead of your own? Are you getting out?
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No, I'm doing all my own quotes and jobs, im comfortable but have a bit extra time. Casual viewing at another outfit seems like a cushy side gig off the tools.

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L3VI said:
I've heard of all sorts of arrangements. Base pay plus commission on jobs that meet the $$ per hour objective seems most common.

This seems like a whack arrangement though imo. Part time sales for a competitor. It takes time to learn the crew and equipment that your bidding for and what they can/can't do. What's the plan if they have a question about the job and your busy working your main gig? What would be the plan if you went to bid for them and it was one of your clients from your company or vice versa?

Having the salesperson on-site is crucial in my mind, I know that's probably not the norm but it's important to me.

If they can't get to all of their leads that's an advantage for you, why not try to somehow funnel that work to your shop instead?
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There might be options to split the contract/subbing, but that's once the job is landed. I'm thinking mostly about the quoting arrangements. I'm kind of into the idea of getting paid for driving around looking at work, on a part time or casual basis.

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flushcut said:
10% is all I have ever heard or payed. Why would you want to sell for other companies instead of your own? Are you getting out?
Click to expand...
Reddit said push for 13% I thought that was a bit out of reach...
What was your situation paying salespeople?

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I don't think a presumed industry standard applies when you're not in an industry standard scenario. If I understand correctly, you don't need their gig, so you're coming to them from a position of strength. In addition,
it seems as though perhaps they can't get or retain the staff they need to function (sell and fulfill) at peak efficiency. This means that you're going to be acting more as a subject matter consultant. Why settle for what they'd pay some schmo sales guy off the street, who will have to depend on that gig for their total income? Unless this competitor took a bullet for you somewhere along the line, feel free to up-charge according to the dynamics of this particular situation.
 
cerviarborist said:
I don't think a presumed industry standard applies when you're not in an industry standard scenario. If I understand correctly, you don't need their gig, so you're coming to them from a position of strength. In addition,
it seems as though perhaps they can't get or retain the staff they need to function (sell and fulfill) at peak efficiency. This means that you're going to be acting more as a subject matter consultant. Why settle for what they'd pay some schmo sales guy off the street, who will have to depend on that gig for their total income? Unless this competitor took a bullet for you somewhere along the line, feel free to up-charge according to the dynamics of this particular situation.
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Thanks for the great comment.
I do not need this extra work, they are behind not me.

I guess I do want to be fair, not gouge the situation. Keeping a decent low stress side gig longer term would be better than an super high rate short term.

I have an existing rapport with this guy already and it could lead to splitting work or some co/sub contracting.

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I once had a fantastic contract climber in my area who would help me out when needed and we became pretty good friends. As business got rolling, he would help me keep up with quotes. Our arrangement was 5% for anything $500 or under and 10% for anything over $500. Luckily he and I prune almost exactly the same and our removal game/plan is close to identical so it worked out beautifully.
Although your situation seems like it could get a little awkward, that is my experience/input.
 
burtonbc1400 said:
Then I guess I have the options

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You have options yes, but it could also be looked at as price fixing and can tarnish your reputation. I subbed for a guy for a long time and we each had our own businesses but we had a firm understanding that we would not compete for the same work.
 
Mike H said:
I'm not sure how to avoid the appearance of collusion when representing two separate companies.
Will you not bid a job if your company is called for a second opinion?
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Well so far the area ive been quoting is my less preferred area to work, but if it comes up,
Probably just be honest, say I'm quoting for the other outfit. Then give a slightly higher or lower quote depending if I want the work or not.

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If you're getting paid to do a job--no strings attached--none of your own leads--by the hour or day rate is the only way that makes sense to me. People might argue, "then you have no motivation to upsell" or "you sold a $10,000 job you should get a percentage/that guy is getting rich off of your work" etc etc etc. I would argue, if someone is paying you for your skillset for the day, aren't you going to do as good of a job as you can? or are you going to do a shit job because there's nothing extra in it for you aside from what you're worth for the day? In my experience doing things at a "day rate", I do the best I can so that someone will want to hire me again.

I think you probably should have just done your full regular day rate, but if you're both happy, that is all that matters.

I went through this with an employee, and it just doesn't make any sense to give him anything other than by the hour. I pay him well/the same for regular tree work as well as for quoting.... They're my calls that I am paying an office person to answer. I'm paying for them to be scheduled. You're showing up when and where I've paid someone else tell you where to go, and using the skillset that I pay you for to come up with a price for a client based on pricing that I lay out. I spent the time and effort to make that call exist in the first place, and put you in front of them. Why give a percent? If you sell the job, then we'll all have work to do to continue getting paid.... No one is getting rich off of anyone, we're all making money.

If you are going out on your own and getting work as a sales person, that is a different story. Getting a list of places to go for the day and come up with prices, by the hour 100%.
 
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