How To Hire A Salesman

 
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Old 02-17-2008, 12:00 PM   #1
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How To Hire A Salesman


Hello, I have a fairly new remodeling business. It will be 2 yrs old Sept. 2008. Last year I had about 250K in sales and this year i project my sales to be about 50% higher. I am currently the sales man and project manager/head carpenter/ anything else i need to be. I'm doing too many things and don't have enough time. I am thinking of hiring a sales person this year, any ideas on what to look for in a sales person and how to train them and how to compensate them? Any ideas or advise will be helpful, thanks.

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Old 02-17-2008, 01:18 PM   #2
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Re: How To Hire A Salesman


At the $250K to $500K level you are better off developing a good installation team with a capable Project Manager that keeps you out of the field and keep doing the Sales yourself. Mike
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Old 02-17-2008, 01:40 PM   #3
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Re: How To Hire A Salesman


Quote:
Originally Posted by Tao_Rider View Post
At the $250K to $500K level you are better off developing a good installation team with a capable Project Manager that keeps you out of the field and keep doing the Sales yourself. Mike

I second that. A working project manager that makes a loop and spends a couple of ours at the site laying out and working a few hours on each project
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Old 02-17-2008, 09:17 PM   #4
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Re: How To Hire A Salesman


wouldn't it be more cost effective to hire a sales guy that gets commission only, and I can make sure that the quality of the product does not decline? I get on average 5-10 good lead per week and at least half of them go unanswered because of lack of time
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Old 02-17-2008, 09:23 PM   #5
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Re: How To Hire A Salesman


With only 5 to 10 leads a week, you cannot afford a good salesman. - He will get bored. If he is really good, he will be gone soon.
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Old 02-17-2008, 09:28 PM   #6
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Re: How To Hire A Salesman


Beleive me, at the size you are you don't need a salesman. What you need is a competent office person to handle all the daily stuff you don't have time for. Much cheaper, and needs much less training and supervisiosn.
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Old 02-17-2008, 10:16 PM   #7
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Re: How To Hire A Salesman


the 5 - 10 leads per week are for big jobs usually $25K + if the sales guy can close 1-2 of those per week then he would be doing ok. also if i get a sales guy i can increase my advertising therefore increasing my lead count. i am currently targeting about half a county and the potential here is virtually limitless.
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Old 02-18-2008, 02:19 PM   #8
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Re: How To Hire A Salesman


Quote:
Originally Posted by vital151 View Post
wouldn't it be more cost effective to hire a sales guy that gets commission only, and I can make sure that the quality of the product does not decline? I get on average 5-10 good lead per week and at least half of them go unanswered because of lack of time
Do what you enjoy and what you do well, hire others to compensate for your flaws.

I ask you do you do better in sales or in production management? To which ever you are better at and hire/promote for the other.
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Old 02-18-2008, 07:25 PM   #9
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Re: How To Hire A Salesman


Grumpy hit it right on the head. I am angry lately because I am doing to much. Managning jobs and telling people what to do and not to do and riding subs to show up. I wont miss this part if I get a project manager. I will miss the oppurtunity to sell jobs if I had a salesman. I want to hire a lead carpenter/project manager.

Some guys are uncomforable selling or dont like it.

It depends on the person.
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Old 02-19-2008, 01:21 PM   #10
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Re: How To Hire A Salesman


Hiring great salespeople is one of the biggest business challenges around. Sometimes you are lucky and hit the jackpot; but usually you will go through pain and frustration as you learn the ropes. Reason: Out of work salespeople are usually out of work because of something wrong with them! (Great salespeople rarely move; companies keep them loyal wherever possible; and it takes a special set of circumstances for someone with real talent to be looking for work (possibly a family move, or maybe horrible management at the previous firm.) And of course if you are lucky you can find someone without experience and train them.
It took a while, but this is my model. Not everyone will agree this is the best way, but it works for me.
1. Offer a competitive, substantial salary. Yes, commission may be appealing, and most people who will respond to salary offers are absolutely unsuitable; but you'll get a better response overall. NOTE: I am not advocating hiring anyone who would not be good on a pure commission level -- just use the salary as a point of entry.
2. Advertise appropriately, using job boards, listings, etc. Automatically respond to everyone who sends a resume with a questionnaire asking them some vital questions. (I'll email you a sample of my questionnaire if you wish). Most people don't bother responding; that is good, don't waste time on them.
3. Read the resumes ONLY of people who answer the questionnaire, check for inconsistencies, bad responses, etc. See if the candidates initiates communication with you by phoning or emailing. Then have a brief phone interview.
4. Administer an online sales apptitude test (the one I use costs about $35.00 each; so I only do this when I think the person may be good). Have minimum passing scores for "prospecting" and "closing". If they don't pass, don't take it further.
5. For candidates who pass the test, give them a trial working assignment.
6. Check references thoroughly.
7. Offer employment with a legally drafted employment contract.

Lots of steps, but the system works. We don't waste time on BS, and candidates who are good, make it through. Sure there is some salary cost risk, but it is low because of the screening standards. I've replicated the success several times in the past year so know the system works.
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Old 02-19-2008, 01:57 PM   #11
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Re: How To Hire A Salesman


Publisher,

I would be interested in the pre-qualifying questionairre and also the web site for the online sales aptitude test. I do believe that you inferred that it was an online test. $ 35.00 seems reasonable for the final qualified candidates.

I have been all over the board on my sales hiring decisions. What criteria do you want to look for. Enthusiasm and other attributes can be easily faked during the steps of the interview process.

Sales order taker or sales closer or dead weight. What traits are observable that would provide some insight into their psyche?

Ed
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Old 02-19-2008, 08:29 PM   #12
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Re: How To Hire A Salesman


Take a deep breath and repeat after me,woman are great for our business!
We have 20 design consultants and half are woman and they most of the time out sell the men and there paper work is always perfect!

They are by far better with time management and client relations.Yes I understand this is a mans world[construction] but just give it a chance.

And hey I am in a senior market and that may make a difference but it's what works for us.

I have one 40 something that works with contractors only and makes $150,000 year every year and they all love this girl.

So keep an open mind and try it.
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Old 02-19-2008, 08:56 PM   #13
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Re: How To Hire A Salesman


thanks for the advice, you're right i do love sales and i am good at it. after all who's going to look out for your business better then yourself. I will try to find a good job manager and take it that route.

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Old 02-20-2008, 06:01 AM   #14
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Re: How To Hire A Salesman


If you do want to hire a salesman I recommend the "How to Hire and train a salesman" by Richard kaller available through the Certainteed website. www.certainteed.com/edge
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Old 02-20-2008, 08:57 AM   #15
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Re: How To Hire A Salesman


For about 15 years I made a living with home renovations, then I started a business which sold smart heating systems. The experiences that I had hiring salespeople led me to write a book called "How to hire a good technical salesman". The single most important characteristic of a good salesperson is high motivation, everything else can be taught.

Hiring is not easy because there are many idndividuals who talk a good sale but unfortunately are more skilled at selling themselves into a job rather than doing the work needed to bring in business.

Robert
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Old 02-20-2008, 02:58 PM   #16
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Re: How To Hire A Salesman


Sales man have to be based in how much money you are willing to spend (no invest) I think you really don't need a sales man at this point, why?- because you already have enough jobs which mean that you are doing something right, why would you pay to find (jobs) somethig that you already have (you said more than enough)?- What I suggest to you its you should concentrate in develop a system istead, a system that can make you bus. work with or without you.
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Old 02-20-2008, 10:19 PM   #17
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Re: How To Hire A Salesman


Ed, the questionnaire goes with a cover letter (which I will email to you) that explains our recruiting process and invites the candidate to contact me by phone or email with any inquiries. This is a sales job, after all, and I welcome applicants to make some effort to 'sell' themselves.

1. One or two question s assesses the potential rep's general 'grasp' of the business and how he/she would go about finding new clients. This is one you need to customize for your own business.

The other questions I use are below:

3. References are important and will be verified before we make any job offer. Can you provide verifiable references from your immediate supervisors at all places of employment for the past 10 years (or since you started working)? If not, please explain the reasons now.

(This question helps screen out people you would never hire. One person openly admitted he was fired from his previous job because he stole money from his employer!)

4. Our evaluation process (for finalist candidates) requires a one day to one week paid assignment. (The assignment length depends on the work to be done and your circumstances). Are you available for the trial assignment?

(Everyone who responds says yes to this one.)

5. Please describe your most satisfying work-related experience, and your biggest work-related frustration (and how you overcame the problem).

(This is a standard 'interview' question. It helps a little in understanding the prospective employee's mind-set.)

With the questionnaire, you can quickly tell the literacy level of the applicant, and tell if they've had some help in completing the questionnaire. Also, the simple requirement to do this bit of work seems to 'scare off' most people who just like to send out resumes -- and I don't think these are the people you want to hire. You can also check for consistency between the resume and questionnaire.

for the online test, I use salestestonoline.com. The challenge with this service is you have to buy the tests in blocks of 25; so it costs a bit initially -- but it is a powerfully effective tool in screening down candidates. The algorithms of the test give specific scores for things like prospecting and closing, and they have proved surprisingly valid in practical testing. As well, the test result becomes a great inducement and good-will builder when you find a candidate who you wish to hire: The test validates their competence, and enhances their willingness to take the working test. The test is so quick to take no one 'games' it so you don't have to supervise the actual testing process.

The working test after the online test is vital. Some people score well on the sales test; but you really can only see the character and ability when they go to work -- and usually the working test pays off with some real business for us (so the net cost is low, indeed.)

Right now we've got three sales reps who have gone through this process; all are really good, and the bottom-line is looking better each month.
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Old 04-18-2011, 12:25 AM   #18
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Re: How To Hire A Salesman


I have found that there are pros and cons to have a salesman be strictly commission and one be salary. I have several of both and they all do a extremely good job for me. But I find that the salesman that I have that is strictly commission outsales my other three salesman. I find money is a good motivator.
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Old 04-19-2011, 09:13 PM   #19
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Re: How To Hire A Salesman


The tactic I use when interviewing a salesman (after basic Q&A) is I tell them to role play with me and sell me on a fence. (or whatever service you provide).

This will show you what there current sales ability is (as any good sales person does not have to know EVERYTHING about your company to sell your service) and also give you a solid idea if they will be good or not for your company.

This has worked out great for us.

Regards,
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Old 04-22-2011, 09:51 PM   #20
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Re: How To Hire A Salesman


I'm looking for a salesman for my Safety-QC Company can anybody help out.
patrickp@safety-qc.com
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