Contractor Talk - Professional Construction and Remodeling Forum banner

1 - 20 of 28 Posts

·
Registered
Joined
·
967 Posts
just the "setting up subs part of the job description would be a full time job.
When would your guy have time to sell the next job while he is running the current ones?
I think full time salesmen.
Why would someone able to do either of the job descriptions work for you rather than be their own boss?
 

·
Super Moderator
Joined
·
11,936 Posts
Why would someone able to do either of the job descriptions work for you rather than be their own boss?
Well said. If you are planning to hire someone to sell the jobs, schedule and set up the subs as well as run the projects, what is your role besides financial backing?

Most the people with the skills you are looking for are already in business for themselves.

BTW-Tree Fiddy is no longer a part of CT. It was retired.
 

·
Registered
Joined
·
967 Posts
You can't pay a sub a salary.
If they are already doing everything how do you fit into the equasion?
Sorry, I don't understand your business structure.
 

·
Registered
Joined
·
116 Posts
As an experienced sales person I would also ask for commission. Also, if you want give them some sort of incentive it will be a must. (they get what they put in, or some just may ride it out) The last year I was in contractor sales (materials now) I sold almost 4 million at an average of 28% net. Even if you just offer commission based on profit you will get more production from whoever you hire. The rest sound ok though IMO.
 

·
Registered
Joined
·
967 Posts
In this area 40k would be about 20k too low, don't know about your area.
What is the S&F on your trade description by the way?
 

·
Banned
Joined
·
337 Posts
Discussion Starter · #10 ·
Incentives will be paid based on performance 1/4ly, guess I figured it as a given. Detail I neglected to mention here.
 

·
Super Moderator
Joined
·
11,936 Posts
Managing the subs only requires a few phone calls and checking in on progress a few times a week. If subs need baby sat it will be thier last project for us.
You mentioned interior remodeling (basements & additions) in your OP. In order to avoid huge problems, you need someone on-site who is familiar with the order of operations, and can adapt and make the 1000 decisions that will need to be made, as well as handle problems and deal with the HO daily.

Perhaps windows, siding, and roofing are different in that regard. It's pretty obvious where J-channels, F-channels, I&W shield, shingles, etc. need to go and a good sub can pull that off.

However, any interior work where designs are concerned are an ENTIRELY different ball game.
 

·
Registered
Joined
·
992 Posts
Most of the companies around here do the same thing. Their "project manager/salesman. Sell the jobs and run them to completion. They usually do 2 at a time. And honestly they still have plenty of spare time. They also get bonused for brining the job in at or below budget. The pay around here same thing with benefits is about 60k
 

·
Registered
Joined
·
967 Posts
Soffit and fascia. AVG income here is less than I'm offering without the truck. 29-34k is AVG
http://zipskinny.com/index.php?zip=51534&pagetype=main
Looks like you should ask your prospect and get his reaction.
Some people would rather be an employee, I just can't go back, and my thinking is now geared to what makes people do what they do.
So if I was your prospect, I would be thinking "hey if he can afford to offer me this; why can't I just go get it myself".
Just be sure you own the guy.
 

·
Super Moderator
Joined
·
11,936 Posts
Detailed prints that include eletrical to floor coverings are provided to all subs for bidding. What rock lengths and even corner bead is called out in the prints. This won't be our first rodeo.
I just want to preface this post by saying I am only playing the "devil's advocate" for you here. I am not arguing with you, just offering some advice from my experience that you may or may not use. I wish you, as a fellow poster the best of luck in your endeavors. If this turns into anything other than a healthy debate, I am out.

I am assuming that you have personally supervised interior remodels (baths, kitchens, additions, and basements) before, and my question would be what would have happened if you were not on site to catch "this or that" potential disaster before it occured.

If the sub you have in mind is mindful and experienced in how a remodel needs to be scheduled, and can adapt to schedule changes, is good with customers, can manage bids, can help the customer make decisions, can schedule material and other deliveries, can account for and manage change orders, etc. and can actually SELL the job on top of all that, then you have a winner that is worth MUCH more than 40K annually.

Additionally, if you find that your candidate has these qualifications you will be always at risk of him going out on his own.
 

·
Banned
Joined
·
2,247 Posts
How we hire our salesmen (women included)

Just a few weeks ago, I ran an ad on Craigs List and hired a door-to-door canvasser with absolutely no experience in the plumbing business. I took him in my plumbing truck, spent a few days talking until midnight, and after 8 eight days he is one of my best sales people. Ironically, my new door canvasser has not knocked on one door during his 3 week employment because my company has so many leads he hasn't had time for knocking.

The only thing I offer my sales people is a guaranteed $12 per hour for four weeks and this is a draw against a commission. I give them an unletteredv, fill it with gas, and they do not get paid vacations. The reason I don't offer perks is because they have the ability to earn enough money to buy their own perks.

We give our sales people 10% for getting a lead plus 5% to 7.5% for closing a sale.

I continuously write new policies to make everything as clear as possible and constantly make adjustments to commissions so the commissions are fair to the employees and myself. Enclosed is a copy of our pay schedule and a portion of our company policies.


http://www.bestlineplumbing.com/Company Policies.PDF

One thing I am finding is that salespeople over 40, who are looking for jobs, seldom work out. As with all employees, the younger are more eager to learn my ways.
 

·
Super Moderator
Joined
·
11,936 Posts
I have been for some time(75+ new homes a year since '95) even then "disasters" have occured and we work though it. So has this sub, he's been here with us since '96, most of our subs have been with us for quite some time and know the ropes. As for leaving to compete it would not be in any of our subs best interest considering the majority of work comes through this office, the real estate branch or the auction and septic service. We compete to the point other GC's will walk off bids when our trucks show. Few have the resources to build streets and towns.

Keep in mind they will still be able to sub work and set schedule with the high AVG household income being $49K for a couple
It sound as though you have thought this out. If the candidate is a guy who knows the ropes, and has not ventured off on his own already then the sounds like someone I would like to hire.:laughing:

I am in an area where the income bracket is about 100K for couples. (Western Chicago suburbs)

If you make this arrangement with him, I would get a non-compete clause (for certain operations) for a standard period of years with a substantial radius. In return, you need to take care of him. Also, you need to be the guy who ultimately runs the show. If he runs everything, he will get PO'd after awhile and might grow wings.

I am a hand's-on contractor. I have noticed that my customers seem to love to see the owner there every day but there are just as many paper guys out there who, with sufficient control and communication with the HO, make a lot more money than me.

Keep us posted.
 
1 - 20 of 28 Posts
Top