"first I would ask you are you giving them the tools they need for the extra sales"
It is always a little scary when Brevik makes a logical, useful and non-nasty and/or non-sarcastic post. Hopefully this trend will continue ... naaaah, not a chance.
I couldn't agree more with T. (I can't believe I am writing this.) Everybody talks about (and screams at) their employees not up-selling more. But no one ever DOES anything about it.
I am still amazed that owners do not give their employees large bonuses for up-sell items. I lay this challenge out to every
SFS class:
Raise your Scotchgard prices by at least 25%. For example, if you are charging .15 per foot (which is probably on the industry high side already) raise it to .20. (If your people use the
SFS tools I refer to below in my PS none of your customers will even notice.)
Now at least DOUBLE your protector up-sell commission. If you have been paying 15% (which again is probably high average) with great hoop-la raise it to 30% AND give your people SG sales training along with it. At these commission rates if your tech averages just 1200 feet per day (which is easy IF the employee is trained and motivated!) in up-sells he adds 72.00 per day or 360.00 per week to his paycheck!
So what about you? You are shelling out 360 bucks weekly in commission plus maybe another 300.00 in material and application costs (.05 which is generous) for a total of 660 dollars. Financial ruin looms! EXCEPT that you are grossing 1,200.00 of which 540.00 is pure profit and that is a 45% net return! (Remember that all of your general and administrative overhead, including the cost to get to the job, has been taken care of with the basic cleaning.)
These very conservative returns show that this strategy will easily add 27,000 bucks per year per technician in pure profit to your bottom line. What could you do with another 27K per employee per year? PLUS your employees are now happier because they are in charge of their "bonus". (The beauty of this approach is now your people won't bug you for a "raise". IF they just add-on 1200 feet per day of SG they are already making $18,000.00 more per year. Want more? Simple- just sell more. Everyone wins here.)
NOTE: Your numbers may vary. Many of our
SFS members that have implemented this strategy have done even better than what I profile above.
Martin Sutley "skip to the bottom" line section:
"Quit being stingy with your employees on up-sell bonuses. Just structure them so you BOTH make money and everyone will be happy."
Steve Toburen CR
Director of Training
Jon-Don's
Strategies for Success
PS Now other than appealing to your employee's sense of greed (Nothing wrong with that. After all, why did you go into business?) I have neglected Terry's point about giving your people the "tools". If anyone would like to know what they are anyone (except John Burris and Hoodlebrink due to their catty posts that wounded my tender feelings) can write me at
stoburen@homefrontsuccess.com for my FREE "Up-selling on the Home Front" Special E-Report. Include your mailing address if you want the free companion DVD.
NOTE: I will mention that the above topic of "Up-sells" is one that I will go into great detail on in the ICS/Jon-Don "Secrets of Building Your Business to Retire Wealthy" seminar January 10 and 11 in Houston, TX. In addition, I will share a HUGE new method of getting retailers excitedly vying to recommend your business AND sell Scotchgard for you. Up till now you had to invest five days in attending
SFS to get this strategy. I will include this free of charge in the over 150 pages of information I am giving away in my "Retiring Wealthy" sessions.
