Getting Started Need Advice.

 
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Old 12-23-2015, 03:21 PM   #1
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Getting Started Need Advice.


I'm kicking off the new year by opening up my own gutter business.

Here's a little back round on me. I've spent the last 20 years in sales at various Fortune 500 companies. 2 years ago a buddy of mine hired me to do some sales consulting for his roofing company. A few months into the consulting and he hired me as his full time sales manager.

I applied a lot of the sales techniques I've acquired over the years and grew his business from chuck in a truck (256k in annual sales) to just under 2.8 million this year. I niaviely thought I was going to be "taken care off" but it didn't work out that way.

On my way out the door I negotiated a non compete and a decent settlement to stay out of the roofing business for 2 years. As a by product of the roofing business I sold a ton of gutters. Gutters are not covered under my non compete so I'm opening up a seamless gutter business.

I have always been the sales/marketing guy never the skilled labor. I would appreciate some insight as to go about hiring my production guy.

My thought is to pay a base salary and a bonus after the 1st 6 months. I have enough money to pay a lead guy $15 an hour and guarantee him 40 hours a week. I plan on paying his helper $10 an hour with the same hours guaranteed.

In this area it is the norm to pay gutter installers by the foot with no base and no workers comp but I feel that is wrong.

I want to run a first class operation.

Thoughts and ideas are welcome.

Thanks in advance.
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Old 12-23-2015, 03:58 PM   #2
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Re: Getting Started Need Advice.


Where are you located ?


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Old 12-23-2015, 04:01 PM   #3
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Re: Getting Started Need Advice.


Florida
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Old 12-23-2015, 04:13 PM   #4
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Re: Getting Started Need Advice.


$15 an hour sounds low to be a lead, run a crew, and attract the type of person you would want to represent your business. $15 here would be a helper with some experience.

My friend has a similar business to mine (one crew) and he sends out 3 guys. Lead guy I think gets$25. The 3rd is prob a $10 an hour guy though


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Old 12-23-2015, 04:19 PM   #5
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Re: Getting Started Need Advice.


I'd like to pay more than 15 but I'm getting smacked with 25% on the workers comp.

How much are you paying in comp? Sorry if that comes off as prying.
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Old 12-23-2015, 04:22 PM   #6
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My brother and I are 2 of the 3 man crew. We are both exempt. Have comp on the other guy. Think it's 18% Haven't looked in a while


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Old 12-23-2015, 04:29 PM   #7
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Re: Getting Started Need Advice.


18% is a lot nicer than 25%.

I think I'm just going to sell the fact that I'll consistently give them 40 hours a week.

I've already set up 1300 ft of work to be installed. I gave that work away to some people I'm close to. It's really important to me that sales and production be on point as far as quality and the process.
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Old 12-23-2015, 04:36 PM   #8
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Re: Getting Started Need Advice.


To keep one crew busy for 40hours and have them doing the volume to make you nice money too you'll need to keep schedule full at all times. 1300 is a nice start but they'll burn through that quick. Plan on needing 40-50 houses a month for them to get 40 hours or they are milking it.


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Old 12-23-2015, 04:40 PM   #9
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Re: Getting Started Need Advice.


My initial goal for the first 6 months is going to be 1000 ft per week. After the kinks are worked out I'm making the goal 1500 per week.
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Old 12-23-2015, 04:43 PM   #10
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Re: Getting Started Need Advice.


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My initial goal for the first 6 months is going to be 1000 ft per week. After the kinks are worked out I'm making the goal 1500 per week.

That gutter and leader combined? You guys do mostly 6" dosnt there right ?
1000 a week would be fine for you and a helper but you have another guy that will require comp too. Be a tough go at first

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Old 12-23-2015, 04:44 PM   #11
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Re: Getting Started Need Advice.


Do you think having an expectation of 1500 a week is realistic.

From the sales side I'm going to push 30 white will make scheduling and stocking easier.
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Old 12-23-2015, 04:48 PM   #12
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Re: Getting Started Need Advice.


That gutter and leader combined? You guys do mostly 6" dosnt there right ? Sent from my iPhone using Tapatalk

Those goals are for gutters only leaders are not being considered into that count.

We will only be selling 6" seamless. No market down here for 5" unless I wanted to go after the builders market ( which I don't)
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Old 12-23-2015, 04:48 PM   #13
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Re: Getting Started Need Advice.


You mean should 2 guys be able to hang 1500 feet of gutter and spout in a 40 hour week?


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Old 12-23-2015, 04:53 PM   #14
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Re: Getting Started Need Advice.


After the 1st 6 months my goal is going to be 1500 per week.

I think that is an ambitious goal but I think nailing down the logistics and filling the sales pipeline we can get there.
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Old 12-23-2015, 04:59 PM   #15
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Re: Getting Started Need Advice.


I don't have a foot goal I have a total gross goal. Up here 6" is an up sell and I'm able to get 35% more per foot so I push mostly 6"

Not sure if start is start a business doing gutters in my area. It's so saturated. Everyone has a machine. I've been at it a while so have a decent amount of guys I regularly install plus homeowners so we are always pretty loaded up schedule wise

Good luck with it


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Old 12-23-2015, 05:18 PM   #16
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Re: Getting Started Need Advice.


I have revenue goals but I think a better long term strategy for me is to focus on production.

Only 6" get sold down here retail.

This market is pretty saturated as well but most of the competition is chuck in a truck.
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Old 12-23-2015, 06:10 PM   #17
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Re: Getting Started Need Advice.


Salesman- Do you have a rig? I mean box truck or truck and trailer with a machine and all equipment?
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Old 12-23-2015, 06:22 PM   #18
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Re: Getting Started Need Advice.


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I have revenue goals but I think a better long term strategy for me is to focus on production.

Only 6" get sold down here retail.

This market is pretty saturated as well but most of the competition is chuck in a truck.
Don't sell your competition too short. While you are out selling they might be receiving phone calls from people to set up installs. All said and done they might be installing just as much gutter at the same price but with less overhead.

There are both kinds of set ups in my town. I usually contract with what you call "chuck in a truck". The price is the same but in that instance the owner who I talk to is on sight, while in the other instances I might get a $15 an hour guy who isn't as knowledgeable.
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Old 12-23-2015, 07:12 PM   #19
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Re: Getting Started Need Advice.


Quote:
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Salesman- Do you have a rig? I mean box truck or truck and trailer with a machine and all equipment?
I don't have the rig yet. I plan on getting an ntm with the gutter art.

That gutter art is the bomb. I think it will really help me at the shows.
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Old 12-23-2015, 07:21 PM   #20
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Re: Getting Started Need Advice.


Quote:
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I don't have the rig yet. I plan on getting an ntm with the gutter art.

That gutter art is the bomb. I think it will really help me at the shows.
Have never seen gutter art on a single home in my area. That stuff popular down there?

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