posted
I have been thinking about hiring an outside sales person. In my opinion this person needs to know as much about the sign industry as they do with public relations. Do any letterheads have experience with training a sales person and what kind of problems did you encounter?
I have thought about trying to hire someone directly out of college with a marketing type degree. I figure I would have to start from scratch with training them in what we sell.
Suggestions and comments very much wanted and appreciated.
I have a local sign competitor that I have been thinking of asking to fill this position. We have spoke in the past but I have never directly made the position available. He has mentioned if he would ever quit his own gig he would need to be 'bought out'. I look at this in two ways. One, I can get someone with experience that I think can handle the job. Two, I eliminate one of the two serious competitors I have in the area.
next dilemma: What is someone in this position going to be paid? I would prefer a commission based sales person. When they perform they get paid. When they dont, well they don't.
-------------------- Jerry VanHorn, Pres. Pure Sports Designs, LLC Pro Sign Design / United Wholesale Signs www.prosigndesign.comwww.unitedwholesalesigns.com West Liberty, OH 937-465-0595 866-942-3990 Since 1990 Posts: 925 | From: West :Liberty, OH | Registered: May 2004
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posted
I sort of did this. I hired a guy about 3 years ago whose responsibility was to sell for 1/2 day and work in the shop for 1/2 day. I gave him his notice and he will not be working here in a few weeks. The problem is that he was not nearly productive enough in the shop or on the road. The only jobs he sold were contacts that I gave him from calls into the shop.While my volume went up by about $100,000, my expenses for him were to high to justify the added volume. He would have to sell $300,000 just to net $30,000 (10% com.) It did enable me to be more productive because I wasn't handling the larger customers and jobs, but overall my income went down. Now I'm downsizing back to where I was 3 years ago, being more selective about what I do rather than taking everything that comes down the pike just to keep him busy.
Maybe if I was a better boss or if he were more self motivated, it would have worked, but after 25 years of working by myself, it was a hard adjustment to have someone else here.
-------------------- Carper's Signs 594 Union School Rd. Mount Joy, PA 17552 carpersign@earthlink.net Posts: 157 | From: Lancaster, PA, USA | Registered: Aug 1999
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I know what you mean by finding someone who is self motivated. Those people already work for themselves.
anyone else have any experience with this situation?
-------------------- Jerry VanHorn, Pres. Pure Sports Designs, LLC Pro Sign Design / United Wholesale Signs www.prosigndesign.comwww.unitedwholesalesigns.com West Liberty, OH 937-465-0595 866-942-3990 Since 1990 Posts: 925 | From: West :Liberty, OH | Registered: May 2004
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quote:Originally posted by Jerry VanHorn: I have thought about trying to hire someone directly out of college with a marketing type degree. I figure I would have to start from scratch with training them in what we sell.
Teaching an experienced sales person about the sign industry is probably going to be a lot easier (and more profitable for you) than teaching a recent grad the art of sales AND the sign business.
[ April 09, 2007, 09:09 AM: Message edited by: Paul Bierce ]
-------------------- Paul Bierce - Designer pabierce@hotmail.com www.paulbierce.com Posts: 330 | From: Dix Hills, NY | Registered: Jan 2005
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How would like 25 salesman working for you that you didn't have to pay a dime to? I'm talking real live people!
I found out how, back in 2001 right after 911. The economy was already going bad, then those events caused a lot of folks a business death blow. Not us, because I had 32 salesman working for me at that time, and it made the difference of staying in business or folding up.
www.bni.com is the answer you seek. I posted more about BNI in Lotti's post under Business Motivation.
posted
we have a BNI group in our area. I am not allowed in because one of the local shops is already a member.
-------------------- Jerry VanHorn, Pres. Pure Sports Designs, LLC Pro Sign Design / United Wholesale Signs www.prosigndesign.comwww.unitedwholesalesigns.com West Liberty, OH 937-465-0595 866-942-3990 Since 1990 Posts: 925 | From: West :Liberty, OH | Registered: May 2004
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posted
Hiya Jerry, Do you really need a salesperson or are you just looking to do some additional marketing? When working for a quickie shop, we would hire a college kid during the slow times just to go knock on doors and drop off literature. He was required to bring the contact info back to the owner so we could track his progress and follow up with these people at a later date. He was paid an hourly rate plus mileage. If you're looking for a sales person, Paul is right, it's normally easier and a lot better to hire an experienced sales person with established contacts and teach him about the sign industry. This normally results in a quicker return on your investment versus starting with a rookie with no contacts. The advantage of hiring someone without experience is that you normally pay them less and you can train them to meet your needs. I don't recall the exact compensation the sales people were given, but I do remember it was a draw, plus commission. I think the commission was around 10% and the commission was only paid if his sales quota was met. Anyway, what made me think about this was a recent visit to this link...
I'm working on my business plan and trying to figure a commission structure that will benefit the company while motivating the sales person to sell even more. It still needs work though.
Havin' fun,
Checkers
-------------------- a.k.a. Brian Born www.CheckersCustom.com Harrisburg, Pa Work Smart, Play Hard Posts: 3775 | From: Harrisburg, Pa. U.S.A. | Registered: Nov 1998
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Jerry, Be very careful about getting someone else that was in the sign business.. I tried that and boy did I get hosed.
I hired a former friendly competitor (So I thought)base pay plus percentage.
While he was out selling on my dime.. Come to find out he made two fairly decent size sales and they wrote him a deposit check. Come to find out he had them write the check to him/his new company unbeknown to me and he went out and bought another vinyl cutter. And made the signs.
Was nice that I financed his new company.. Well it all worked out. He went bankrupt in less then 3 mos anyway. (You don't screw people like that in small town it will bite you in the a$$) Live and learn.
So now if you want a salesman. It should be you. You know your business like no one else. Hire help for the shop and go do your own sales.
quote: Come to find out he had them write the check to him/his new company
Industrial Espionage, Transfer of fees..,, a very serious offense. Felony time.
-------------------- Leaper of Tall buildings.. If you find my posts divisive or otherwise snarky please ignore them. If you do not know how then PM me about it and I will demonstrate. Posts: 5274 | From: Im a nowhere man | Registered: Jul 2001
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posted
I've had some experience when I was a partner in another shop. A guy walked in looking for a job from another shop where he was a salesman, I hired him, he took all the customers he had from the other shop, worked with us for a while, then moved on, same as I did a few years later, I opened my own shop, my customers came with me, the same ones who I had for 20 years. That's the danger in salespeople, the come and go and take the customers who they built a relationship with.
I know it sounds negative but it's true.
-------------------- "Keep Positive"
SIGNS1st. Neil Butler Paradise, NF Posts: 6277 | From: St. John's NF Canada | Registered: Mar 1999
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