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Salesman Moving On...

 
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Old 06-23-2012, 10:45 AM   #1
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Salesman Moving On...


My sales guy told me yesterday that he has an interview at another exterior remodeling company on Monday. I am familiar with the company, they mostly sub everything out. They aren't terrible but they aren't excellent either.

Anyway, main reason for him wanting to leave is money. Thing is he makes great money on commissions but I don't pay base. This other company pays a base and a low commission rate. I don't want to do that because just two weeks ago sales guy said he is taking a week off and I wasn't able to get in touch with him much at all until he finally showed back up. I think he will have a hard time adjusting as I provided leads to him and this place makes you knock doors all day.

Anyway, my biggest concern is my information being given to this company. I know there is really nothing I can do to stop it and I do trust him to not share information but you never know.

I have actually only come across this company once while bidding on a project but still, anything anyone can think of that is enforceable?
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Old 06-23-2012, 10:52 AM   #2
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Re: Salesman Moving On...


I doubt there's anything enforceable and you should pretty much count on all your sales/co. info becoming common knowledge at his new place of employment...either instantly, or over time.

Just how it works in this business.

I would think any good salesperson would favor your situation (no base/but higher commissions) than the new situation.

So, either your guy's not a good/great salesperson or there are some other issues which led him to the "promised land".

Either way, don't lose too much sleep over it...life goes on.

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Old 06-23-2012, 10:56 AM   #3
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Re: Salesman Moving On...


If he is worth anything, up his commission. If he is disposable, let him walk. It stinks right now because you had a system that worked with him but you will move on if he decides to leave.

You can't really enforce anything unless he signed a contract stating that he could not disclose your companies info with any competitor (which I am sure you probably already knew that).

Good luck Bamm.
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Old 06-23-2012, 11:19 AM   #4
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Re: Salesman Moving On...


Rough situation.

Too late now but for future consideration when hiring salespeople have them sign a non-compete agreement. We have this at my workplace so that if anyone leaves for a competitor then they are legally barred from chasing after our existing accounts for an 18 month period.

Also, this guy shouldn't have told you that he is going on an interview unless he is trying to poker-bluff you into giving him a better offer. If possible, you should try to limit his access to your company's intel so that he can't copy client files, leads, pricing, etc. to take with him if he does actually go for this other job. Once you find out that he is actually leaving, it is too late. He's already done all the copying that he wanted.

At best, you can try to explain to him why your pay structure is actually the better deal. Also, if your company offers a benefit plan, that is worth alot of money. Employees often forget the value of an employer-provided medical benefits plan, especially if they have a family with children, so a few $ more on another employer's base pay may not be a good deal if now they have to pay all their drugs, dental, vision, etc. on their own. Bring up other perks as well such as year-end bonuses, vehicle expense reimbursement, etc.

I agree with JF re good salespeople wanting 100% commission. At our place, only the newbies get a base pay plus partial commission until they've learned the ropes.
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Old 06-23-2012, 11:50 AM   #5
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Re: Salesman Moving On...


Bam- From some of the posts ive read, this guy is going to come back to you begging for his job back. Lower commission rates, and he has to produce the leads..that is not optimal for him if he can sell. He is attracted by a base which in all honesty doesnt draw the best reps anyway because they want a security buffer in case they cant sell which just means they know they cant. Sales is 100% a mentality.

If i was you, i would start looking for a new guy. Theres not alot in this industry that is too secretive.

Best of luck
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Old 06-23-2012, 01:52 PM   #6
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Re: Salesman Moving On...


Bamm, I know this sounds harsh, but let him go immediately. You need to lock up your files if he has access to them and give him his check. I've seen this more than a few times. He WILL take your info, even if it is just a few names. You need to limit his access.

If he has access to the files, he will grab more. Nothing like showing up to a new job with a list of your recent bids to bid against.

He most likely will have access to any notebooks he keeps and you should try and get those as well, making your next salesman aware that his notebooks are company property.

Get his cellphone if it is company property as well. Those contacts are his ticket to his next job.

You can't do much about him knowing your pricing structure though. That is just the way it goes.

You may want to talk to him and ask him if money is the only reason. He may feel slighted and you don't even know it. I realize we on the outside don't know your relationship.

Good business would dictate protecting your internal info. It is up to you to decide how much at risk it might be.
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Old 06-23-2012, 09:10 PM   #7
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Re: Salesman Moving On...


I have had it happen 20 times....It used to make me nervous.

First we dont have any secrets. anything you do, you took the idea from someone else...He cant steal anything other then a few leads at best.

Second i have yet to not replace a sales guy with someone better...If he has been around a bit hes gotten lazy. You will be more strict with the next guy,

Third he doesnt want to leave..He told you he has an interview? Who the hell does that...Just ignore it and put out an ad....

Also what does he make a year? if hes no makeing 80k + you might want to change something...
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Old 06-23-2012, 09:53 PM   #8
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Re: Salesman Moving On...


Hopefully he is honest.


Bam, purely out of curiosity, does this guy do all of your sales currently?

If so that would be pretty cool, frees your time up to set up jobs, order materials and do QC. Be pretty hard to go back to chasing down leads all the time, I'd try and find a new sales guy if I was in your model.
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Old 06-23-2012, 10:28 PM   #9
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Re: Salesman Moving On...


Thanks for the replies guys. I'm not really that concerned with things. He doesn't know his appointments until the day of so that isn't a concern.

I believe he is compensated very well. He doesn't have an expensive lifestyle so one commission check was good for awhile. The other place pays commission on gross sale, i was on gross profit (always figured it did me no good to he him sell the lowest price)This other job is closer to his house and also doesn't expect the things I do. With me, he had more responsibility. If materials were short, he had to get them and so on.

Jaws - He ran about %75 of the leads. My father is nearly 60 and has been working hard his whole life. He was in construction before I was around but got out for a more reliable job. He currently works 3 days a week and I am thinking about training him. He is such a people person and straight shooter I see no reason why he couldn't sell without very much recent hands on experience. Other than thy, not too sure if I'll bring another guy on.
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Old 06-24-2012, 06:54 AM   #10
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Re: Salesman Moving On...


Quote:
Originally Posted by BamBamm5144 View Post
Thanks for the replies guys. I'm not really that concerned with things. He doesn't know his appointments until the day of so that isn't a concern.

I believe he is compensated very well. He doesn't have an expensive lifestyle so one commission check was good for awhile. The other place pays commission on gross sale, i was on gross profit (always figured it did me no good to he him sell the lowest price)This other job is closer to his house and also doesn't expect the things I do. With me, he had more responsibility. If materials were short, he had to get them and so on.

Jaws - He ran about %75 of the leads. My father is nearly 60 and has been working hard his whole life. He was in construction before I was around but got out for a more reliable job. He currently works 3 days a week and I am thinking about training him. He is such a people person and straight shooter I see no reason why he couldn't sell without very much recent hands on experience. Other than thy, not too sure if I'll bring another guy on.
Sounds like the salesman got a much better deal.
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Old 06-24-2012, 07:07 AM   #11
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Re: Salesman Moving On...


Quote:
Originally Posted by slowsol

Sounds like the salesman got a much better deal.
Oh well. I make guys work for the money. He will definitely be making less money at 6% of gross sale but the base may help.

The last job he sold was 10800. After taxes he took home over $1100.

Edit - I also provided all leads whereas this other place makes you knock doors.

Last edited by BamBamm5144; 06-24-2012 at 07:11 AM.
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Old 06-24-2012, 07:27 AM   #12
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Re: Salesman Moving On...


I wouldnt give him anymore leads period. When he starts his new job and gets tired of door knocking, your leads will make him look good on day 1.
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Old 06-24-2012, 07:43 AM   #13
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Re: Salesman Moving On...


Seems like his telling you about the interview was a way to test the waters try get a better deal with you. If you trust him and want to keep him around, then I would sit down and see precisely what he wants. Perhaps you can negotiate a mutually beneficial deal.

If you don't trust him you need to terminate employment asap.
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Old 06-24-2012, 07:47 AM   #14
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Re: Salesman Moving On...


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Old 06-24-2012, 07:51 AM   #15
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Re: Salesman Moving On...


screw him and get your Dad,he gives a sh*t about you and your company

i would have done this a looong time ago

and give him lots of money and time off..and beer at the end of the day...and don't call him all the time...and paid vacation starting next week..and a tool allowance..company vehicle that he likes..good looking office manager would be a plus
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Old 06-24-2012, 09:17 AM   #16
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Re: Salesman Moving On...


turn the tables on him....then let him go.

tell him- "wow thats a big relief, I was trying to find a way to save money on commisions, and was going to offer you exactly the same deal, I thought for sure you would never go for a deal like that, since it is going to cost you commisions. But, Hey, if it works for you, go get it."
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Old 06-24-2012, 11:20 AM   #17
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Re: Salesman Moving On...


Quote:
Originally Posted by carolinahandyma View Post
If you don't trust him you need to terminate employment asap.
Bam.... as soon as he said "I have an interview with another company," I would have asked him to come into the office first thing in the morning to pick up his leads. I would have then had him unload his car of samples, paperwork, literature etc. thank him for his time with the company and inform him his services are no longer needed.

Keeping him around now, with his head somewhere else (even remotely) is asking for a half hearted effort on his part. He's either 100% on board and all in.... or he's not and should be terminated immediately.

Just my $0.02, IMHO, FWIW, YMMV and all that.

BTW.... using your Dad is a great idea.
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Old 06-24-2012, 07:32 PM   #18
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Re: Salesman Moving On...


Bam, I currently have 25 sales guys I look after. Some of the questions I had when reading the post is wondering if you conducted a little question and answer session with the guy and found out some things. I've found most of the time a guy leaves it has more to do with something personal that is screwing with his mindset at work....you might be able to address some of those if the guy is worth having around. As far as taking your info this industry is incestuous which isn't a bad thing because we've all probably benefitted ourselves in one way or another. If you're business is solid all around you won't even notice a ripple. I' d caution hiring your Dad. While it'd be great to work with pops and give him fun money is your decision driven by losing a trusted member of your team and you have a subconscious desire to surround yourself with people that you feel safest with or is this a calculated business move because your dad provides greater value and experience than any other option? Just some things to think about...

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