Hiring a pest control sales representative what you should know.
David Ward Technician at Rentokil Initial
Green Pest Services
@GreenPestServ Responsible Pest Control Port St Lucie, FL GreenPestServicesFL.com
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Sales Magic: The New Technology of Power Selling by: Kerry L. Johnson
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Hiring your first pest control sales representative what you should know.
One thing you will have to accept there is no such thing as the perfect compensation plan for salespeople.
What is your goal, well duh Frank to make more money sell more, what about your company culture, vision, mission. You can’t build these things with mercenaries. Are you willing to sacrifice the long term health of your business for short term gains.
On average a pest control sales person makes 30 to 50 percent more than techs. You will have to deal with that. Sales people are among the highest paid people in most companies and with good reason.
The hiring of an associate is a serious matter.
Things to consider before you hire.
If what you do is so specialized that you would have to perform the services and the training of a tech would be too time consuming then hiring a sales person might make sense.
If your techs cannot sell or are not willing to sell
Either because there route is so full they can’t stop to talk to anyone, then you might consider adding a route to allow them to sell and part of their income would be from sales or add one.
This will allow you to add new customers.
Cons to this is they get a temporary pay cut until they build their routs up this can lead to low moral.
At minimum techs should be clover leafing 3 homes on every stop that takes 1 minutes extra per stop and offer a commission for every call on their route.
Everywhere they stop they should be dropping off marketing materials, when pumping gas or eating at a restaurant.
Your techs should be your biggest fans if they are not you have a more serious problem on your hands. It’s called unbelief. And it’s your job to change it.
What are you selling
One time roach services for 125 x 25% is 31.25 to 100 sales per month make $3000
One tentless termite at 1600 services at 25% commission is $400 per sale you only need 8 sales.
Or 5,000 mosquito misting systems at 10%. That’s $500 per sale.
Is your pricing adequate to hire a sales person
If you have a $65 product in order to pay a 25% commission you might have to mark it up 35% $87 in order to cover the cost of selling it.
You might need to start raising your prices now to afford a staff in the future.
Will you be paying
Straight commission 20% to 30%
Salary plus commission 36,000 per year plus 3%
Hourly plus commission 8 to 9 plus 6% and pay overtime plus bonuses.
Paying a bonus of $500 for every one that exceeds quotas. If they are selling PC only contracts at 25% an the quota is 75 contacts per month one more could mean a big pay day.
Will it be on total sales $30 to $50k.
Deals closed 75 to 100 contracts if you only sell one service.
Will you provide a company vehicle will you reimburse for mileage or will the percentage you pay cover both.
What do your state laws say
Can your sales people be 1099 sub contractors or must they be w2 exempt employees
The cost difference between payroll administration, taxes and Workmans comp can add another 15% to the cost so 25% is actually costing you 28.75%
Is the sales person captive or is he an independent rep. Can he sell for other people other products like satellite dishes or alarms?
If they come from a competitor do they have a non compete.
Are you hiring experience pest control sales person with a book of business and everyone he’s sold a termite job to since 1970. Trying to teach an old dog new tricks is hard.
Or will you have to train.
How many products do they need to know?
Do they have to crawl under homes or do they just have to pitch.
Is it seasonal sales, could you hire college student to only sell annual pest control contract.
Do you have the ability to train, motivate and compensate a summer sales force.
Frontline In VA http://frontlinepest.com/wp-content/uploads/2015/10/2016-Frontline.pdf
Orange Pest in California http://ocpest.net/summer-salesprogram/
Alterra in Utah http://summersales.org/splash_assets/AlterraRecruiting2015.pdf
Moxie Pest Control in NC http://yourmoxiefuture.com/wp-content/uploads/2014/09/Moxie-Recruiting-Packet-Final-2015.pdf
California Pest Board DOOR-TO-DOOR SALES Door-to-door sales of pest control services by unlicensed individuals are not permissible. Any individuals going doorto-door may only leave flyers or set up appointments. Every licensee is issued a license. Consumers should ask to see it.
How long will it take to train them, will you pay them while they are training.
One of my sales manager would split his commission with me while I was training on the road.
Can you train a person to sell, do you have a professional presentation with a pitch book that you will sit there and go over it a dozen times until they can regurgitate it on demand.
No one is good enough for my little girl. Pride will prevent you from growing. You will have to learn to
let go, lead and manage if you want to grow.
How will I pay myself if I have to pay someone 25% to sell and 25% to do the work. You have to make up on volume. Lots of volume.
The simpler the business model the easier it is to train and get going.
Mosquito misting systems.
Pest Control Service.
Will you have quotas what can be reasonably sold in a month I your market.
Are you willing to expand your market, product or services because it limits their ability to produce an income.
Will you have to raise your prices and can you.
Will you provide leads or will it be all prospecting or a combination.
Do you have an advertising budget to provide enough leads.
Do you have brand recognition 3 year old company with one truck or a 30 year with 10 trucks.
How much can the persons your hiring expect to realistically make.
Will you be paying
On one time services is there a difference tiered structure for one time vs contract.
Pay requiring, that’s what makes insurance so attractive.
Off the value of the annual contract if the customer cancels will that be deducted from commissions?
Are you competitive in your compensation?
What and how is everyone in your area doing. What works in Atlanta won’t work in Miami. Good luck getting a company to pay you 25% production commission plus 25% sales commission in Miami.
What is the cost of acquiring a lead. Is it better to pay more than your competitors for a guaranteed sale.
If it cost you $125 in advertising to get a lead, to get the phone to ring. And then 25% in a sales commission. If you give that to a sales rep would you have a more motivated rep. Considering you have no real brand recognition.
How much work will the sales rep have to do
Will you cap the commission.
Use an escalating commission:
10 percent for one service
12 percent for pest and termite combined
15 percent on the second service
20 percent on the third service
Will it be on first year sales only,
Potential pit falls
Reducing your commission rates because you feel the rep is earning more than he should.
Having different deals with different reps will reduce employee moral.