Hey Contractors, Here’s A Sales Commission Plan That’ll Supercharge Your Profits}

Submitted by: Ron Roberts

What Im going to share with you today is the single most powerful trick I know for supercharging your bottom line.

At some point in time, if you are going to grow your construction business beyond $2 million, you are going to need someone working on sales full time. Now, maybe sales is your thing and you want to do that full time. Fantastic.

Its almost always best when a business owner is committed to selling. But even if you sell successfully, you may still end up wanting to add another salesman.

If sales isnt your thing, then you will definitely need to hire a salesman. Either way, you are going to be faced with a critical decision.

How should you pay your new salesman?

Draw (salary) plus commission? Bonuses for sales generated? Increased commission with increased sales volume? A higher commission for new customers? Straight salary?

All of these are commonly used approaches. Not one of them is likely to produce the profit results you seek.

If you let your salesman have his way, he will want a draw plus commission. Most will ask for a pretty stout draw and a relatively modest commission based on revenue sold. Dont agree to that!

[youtube]http://www.youtube.com/watch?v=EsVy28pDsYo[/youtube]

Draw plus commission lines the pockets of your salesman regardless of whether he is making you any money. The purpose of draw plus commission is to drive sales volume. Dont fall into the trap of thinking sales volume is important.

You need your salesman to focus on PROFITABLE work. Let your competition sell the unprofitable work. Thats work you dont want and you certainly dont want your own salesman bringing it to you.

How do you get your salesman to chase profitable work? You align his pay to profit.

Put in place a pay plan that rewards him for profitable work and punishes him for unprofitable work. Basically, make him a pseudo-partner. It is surprisingly easy to do and Im going to show you how.

1. His entire compensation should be based on commissions on gross profit (a commission rate often in the 20% range).

2. He should be guaranteed a minimum income, whether his earned commissions surpass it or not.

3. His commission rate should stay the same regardless of sales volume or profit generated.

4. If he doesnt earn his guaranteed minimum income within a reasonable time period, say 18 months, you replace him.

With this approach your salesman will be highly motivated to ask for the highest price possible. He will not leave $100 on the table, because with a 20% commission, he would be leaving $20 behind. An example will drive the point home quite clearly.

Lets say your salesman has estimated a jobs direct costs will run $10,000. Lets look at how the usual approach, draw plus commission, compares against my recommended approach for driving desired sales behavior.

The salesman being compensated with the standard salary plus 2% of sales has little incentive to risk losing a sale by raising price. If he sold the job at cost, he would earn a $200 commission. If he sold the job for $15,000, he would earn a $300 commission. He only makes an extra $100for substantially increasing the likelihood of losing the job.

He will not raise the price to $15,000 just to earn the extra $100. Of course, you lose money if he sells the job at $10,000 but he doesnt care. Its all about volume, right?

Now, lets look at my recommended approach.

Your salesman earns nothing if he sells the job at $10,000. He earns $1,000 if he sells the job for $15,000 and he earns $2,000 if he sells it for $20,000. How motivated will he be to pursue the highest price possible? Very, very motivated.

Do to the potential windfall he can earn, he will become a master at qualifying customers. He will not spend time on price sensitive customers. He will aggressively pursue the customers who value your companys superior services and are willing to pay for them.

These are exactly the customers you want him to pursue because not only are they profitable, they tend to be far more loyal, and tend to be far more willing to refer you to their friends, family, and professional associates.

Look at what you get when you are paying a 20% commission on gross profit. You pocket $4,000 for every $5,000 of gross profit your salesman generates. Sure, a great salesman will make a killing with this type of pay plan, but youre going to make an even greater killing.

You want your salesman earning $200,000 because that means he contributing $800,000 to your OH&P. Imagine having four such salesmen in your company. How well off would you be?

This is the type of pay plan that will draw top salesmen like flies. Where else in the construction industry, or any industry, are they going to have a chance to make that kind of money?

You know the difference between a $50,000 salesman and a $200,000 salesman? You go broke with the first and get rich with the second!

In summary, the best way to supercharge your bottom line is to implement a sales commission plan that rewards your sales force for generating gross profit. In doing so, you will make sure that they have your best interest in mind.

About the Author: Ron Roberts, The Contractor’s Business Coach, teaches contractors how to turn their businesses into a profit spewing machines. To receive Ron’s FREE Contractor Best Practices Newsletter visit

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Twelve injured in Washington after ride at fair topples over

Sunday, April 19, 2009

At least twelve children have been injured after a swing ride at the Puyallup, Washington Spring Fair toppled over.

The ride is called a ‘LollySwing’, which is located in Kiddyland, where the riders sit in swings while the machine spins them around. It is owned by Funtastic Traveling Shows which has been a ride provider for the fair for over 50 years. The accident happened at around 6:30 p.m. (PDT).

Injuries are being described as mostly cuts and bruises, but one child was reported to have been in a neck brace and was taken to a local hospital. Five other children were also hospitalized.

According to one witness, “it just all of a sudden topped over.” The cause is under investigation. The ride has been at the fair for the past five years. Among the seven largest operators of fair rides in Washington, from 2001 to 2007 there were only seven reports of injuries related to mechanical failures.

Cuba restores relations with European Union

Friday, February 4, 2005

Europe –The government of Cuba has re-established official contacts with all of the European Union countries. The diplomatic relationship with the EU had been limited for more than 18 months.

The EU relationship with Cuba was injured on March-June 2003 after the arrest and conviction of 75 “dissidents” by the Cuban government. In a separate case, three Cubans were executed on foot of a sentence handed down by a civil court, and confirmed on appeal by the Cuban Supreme Court, which found them guilty of hijacking a ferry and endangering the lives of its occupants. Cuba accused the dissidents of collaboration with the US and sabotage against the Cuban communist system. All 75 “dissadents” appear to have pleaded guilty of receiving illegal payments from US agents in court when confronted with the evidence. 14 of the 75 convicted mercenaries, who the US continues to insist were “dissadents”, have since been released on licience.

Cuba and the EU began to come close again after the efforts of the President of the government of Spain, José Luis Rodríguez Zapatero. At that time, the German Chancellor Gerhard Schröder didn’t agree with Zapatero about unfreezing the relationships between Cuba and the EU. Schröder believed Cuba should first show real commitment to improving the human rights conditions on the island. However, on November 25, 2004, the Cuban Chancellor Felipe Pérez Roque announced the re-establishment of official contacts with the government of Spain.

On November 30, 2004, Cuba released four political dissidents: Marcelo López, Margarito Broche, Óscar Espinosa Chepe and Raúl Rivero. The Dutch Presidency of the European Union praised the Cuban decision. Cuba said that the decision was not influenced by the Spanish government.

On December 15, 2004 the Council of the European Union for Latin America committee recommended the suspension of the diplomatic sanctions against Cuba, according to alleged Spanish diplomatic sources.

Finally, on January 10, 2005, the Cuban Foreign Minister Felipe Perez Roque told journalists:”We can say that from this moment onward Cuba has re-established government-level official contacts with all European Union countries.” On January 31, 2005, the EU council of foreign ministers agreed to a suspension of EU sanctions against Cuba. The international non-governmental organization Reporters Without Borders protested and sent a open letter to the president of the European Commission on February 1, 2005.

Jersey child abuse case ‘was not covered up’

Tuesday, February 26, 2008

Frank Walker, the chief minister of Jersey, a United Kingdom Crown dependency off the coast of Normandy, France, denies that there was a cover up after a child’s remains were found.

The allegations of a cover-up stem from statements by Stuart Syvret. Syvret, the former Minister for Health and Social Services for Jersey, said that “It’s a continuum that we see. It’s a culture of cover-up and concealment and tragically the recent evidence is just the latest manifestation of that.”

It has come to light that Edward Paisnel, a notorious pedophile, used to visit the Haut de la Garenne children’s home dressed as Father Christmas. Paisnel in 1971, was given a sentence of 30 years for 13 counts of assault, rape and sodomy.

Syvret says he was dismissed from his ministerial position after highlighting the “torture” of 11 to 16-year-olds in the island’s care homes. He claimed he was “sacked for whistleblowing”.

Police are currently investigating twenty-seven cases of child abuse on the island and recently discovered the body of one child at a care home Haut de la Garenne in St. Martin, and with a potential six sites in the area where more bodies may be located. The home was closed in 1986 and since 2003 it has served as a youth hostel.

Jersey’s deputy police chief, Lenny Harper said “Part of the inquiry will be the fact that a lot of the victims tried to report their assaults but for some reason or another they were not dealt with as they should be.”

Harper added that “no evidence of a cover-up of any Jersey government” has been found. “We are looking at allegations that a number of agencies didn’t deal with things as perhaps they should.”

Syvret has encouraged the government of the United Kingdom to assign independent judges to oversee any cases that result from the investigations.

Builders originally uncovered a body at the care home in 2003 but it was only since an operation investigate child abuse started in 2006 that progress has been made. An ex-minister of the States of Jersey, the parliament of the island, has criticised the handling of the case, stating that abuse cases were mishandled.

Walker told senators that all necessary resources would be use to find the abusers. “None of us imagined that children in Jersey could be abused and mistreated in the way that is being suggested,” the BBC have quoted him as saying. “I express my shock and horror that these things have apparently happened within our island.”

Specialist police from the United Kingdom have been investigating after an enquiry turned up 140 sources verifying the claims of abuse.

An In Depth Review On Camacho Cigars

byphineasgray

Camacho Cigars are extremely popular that were first started in the year 1961 by Simon Camacho. The cigar company is recognized around the world for its exceptional quality in handmade cigars. There are lots of cigar aficionados that consider it to be one of the best cigar brands around today.

Overview

Simon Camacho was exiled in 1961 from Cuba. He was a Cuban national and moved to the United States to open his cigar company in Miami, Florida. Camacho Cigars became an instant hit in the United States and all over Europe in no time and he had fans from all over the world, the most famous of which was Winston Churchill, the British Prime Minister. To honor him, Simon named a cigar blend after Mr. Churchill and it was around that time that Simon Camacho was making cigars that were considered to be the best in the world.

[youtube]http://www.youtube.com/watch?v=djaLf6bgFuU[/youtube]

After his death in 1995, the Camacho group was taken over by the family known as Eiroa. The most renowned cigar blend that was launched by the Camacho group and Eiroa family is the Camacho Corojo, which ensured that they would be able to join all the leading names in the cigar industry of the United States. In the year 2008, the Oettinger Davidoff Group took over the Camacho group and after signing a partnership that was under the Food Management Program of Bayer. The Camacho group also followed all the international standards for Good Manufacturing Practices and Good Agricultural Practices.

The Camacho Brands

There are lots of different premium cigar brands and blends that have been released by the Camacho group over the years and the most popular Camacho cigar brands include the following names:

1. La Fontana Consigliere2. Baccarat ‘The Game’3. LegendArio4. LegendArio Connecticut

Other premium brands by the Camacho group include the following:

1. Camacho Connecticut2. Camacho Corojo3. Room 101 San Andres4. Camacho Havana5. Camacho Coyolar Puro

The Camacho cigar group has won countless awards for making the best cigars in the United States and there is massive demand for their cigars.

The Camacho Cigar

The thing that makes the Camacho cigar standout is that the cut is supreme and the cigar smells absolutely divine fresh out of the box. There are lots of different flavors and blends of the Camacho cigars and overall profile of the cigar is quite extraordinary, which makes it standout from the rest of its competitors in the market. The Camacho cigars are extremely valuable and have often been called the bomb of the cigar industry.

Iraqi elections kept low-key, but secure, in Paris

Saturday, January 29, 2005

Fourteen countries outside of Iraq have been selected for the installation of polling stations for the Iraqi National Assembly election. Among these, Paris, capital city of France, will welcome voters from France, Belgium, and Switzerland.

While the event has not been kept secret, the French government and media have been quite discreet about it. The polling station has been installed in an unused elementary school in a calm residential neighbourhood of the XIIIe arrondissement, without fanfare. Most inhabitants are not even aware of its presence – that is, until they notice the unusual deployment of police and come across the posters written in French and Arabic. Despite the discretion, the sight of police guarding a polling station is striking in a country where elections are a calm affair on a Sunday, and polling stations, most of which are installed in schools, are only noticeable because of the official billboards carrying the candidates’ posters.

Security measures have been taken – metallic barriers prevent parking in and around the front and back entrances to the station, and CRS riot police with bulletproof vests guard the entrances.Still, overall, the security measures remain limited. Traffic flows in the street, passers-by freely walk in front of the station entrance, no display of heavy weapons. This contrasts with the use of military troops and deployments of gendarmes mobiles that France used in its Vigipirate anti-terror plan following the Islamist terror bombings that it suffered in 1995, or the typical security measures kept around possible terror targets such as the embassies of Israel and the United States of America. This time, military cars and a handful of soldiers were seen in the morning, but were gone in the afternoon.

This article features first-hand journalism by Wikinews members. See the collaboration page for more details.
This article features first-hand journalism by Wikinews members. See the collaboration page for more details.

Canada’s Don Valley East (Ward 33) city council candidates speak

This exclusive interview features first-hand journalism by a Wikinews reporter. See the collaboration page for more details.

Saturday, November 4, 2006

On November 13, Torontonians will be heading to the polls to vote for their ward’s councillor and for mayor. Among Toronto’s ridings is Don Valley East (Ward 33). One candidates responded to Wikinews’ requests for an interview. This ward’s candidates include Zane Caplan, Shelley Carroll (incumbent), Jim Conlon, Sarah Tsang-Fahey, and Anderson Tung.

For more information on the election, read Toronto municipal election, 2006.

Think About Self Storage If You Have Too Much Stuff

byAlma Abell

If you’re like many people, you have collected a lot of stuff over the years. If you are thinking about putting some of your items in a Self Storage unit, here is some advice to make the process go a bit easier.The first thing you want to do is give some thought to how much space you will really need. Though it may seem like a good idea to get a larger unit so that you have room to add more, storage units go up in price the larger they are.

[youtube]http://www.youtube.com/watch?v=P66nZH-1CuA[/youtube]

Having a larger unit than you need will waste money and also encourage you to save more stuff that you might not need.Think about how long you will need your storage unit. If you think it is something you will be needing for an extended period of time, ask the storage facility if they offer any discounts for reserving units for long term usage or for paying a certain amount of months ahead of time. Once you start moving your items into the Self Storage unit you will probably want to utilize the space as efficiently as possible.

The best way to do this is to use the same size boxes for packing all of the smaller items so they can stack easier. You can probably purchase the boxes you need right from the storage facility.Make sure you fill the boxes all the way so that they won’t collapse when other boxes are placed on top of them. Use ample packing material such as newspaper and bubble wrap to keep contents from being damaged or broken.Use a marker to label the contents of the boxes so they will be easily identifiable when you need to retrieve something from the unit later. If you don’t feel comfortable labeling the outside of the boxes, use a simple numbering system and jot the contents in a notebook that you can keep at home.

At Kuiper Brothers Self Storage & Movingthey have units of all sizes to fit all of your needs and even large units where you can store your seasonal RV vehicles such as boats and trailers. You can get all the supplies you need and they even offer moving services for getting your stuff from place to place.

PBS show asserts greenhouse gases, atmospheric pollutants dimming future

Saturday, April 22, 2006

This week, the Public Broadcasting Service aired a NOVA program titled “Dimming the Earth”, which presented research by leading scientists on the complex systems of our global climate and human activity’s effect on it. One of the largest interactions (or “inputs”) humans have with the atmosphere is the ever-increasing use of fossil fuels. Consumption has risen 2% per year for this decade.

Fossil fuels burnt in factories and automobiles send their waste into our atmosphere in two forms. The first is CO2 and other greenhouse gases, which have received substantial attention in the last few years because of the way they trap heat in the atmosphere. The second is the tiny particles of sulfur dioxide, soot and ash, which scientists call aerosols (basically smog). Research into understanding the negative health effects of air pollution has resulted in the development of catalytic converters for cars as well as devices to remove particulate solids from industrial waste before it reaches the air.

More recently, atmospheric scientists have come upon the phenomenon of the reduction of direct sunlight reaching Earth’s surface— observing a nearly a 5% decline between 1960 and 1990, with evidence of a recovery since then. This has been dubbed the “global dimming” effect, and is probably due to the way these aerosols act upon clouds. It is important to realise that this does not represent a net loss of this much sunshine to the climate system – if so, large temperature declines would have been observed. Instead, the sunshine is absorbed elsewhere in the system, with a much smaller net loss.

Clouds form when moisture gathers around airborne particles, such as pollen or dust. Clouds formed by the aerosol particles emitted by fossil fuel consumption are made of many more tiny droplets than “natural” clouds. These smog-created clouds have two notable effects: they shield sunlight from reaching Earth’s surface and, due to water’s reflective nature, the millions of tiny droplets suspended in them reflect light back into space, allowing even less light to reach Earth.

Many scientists now believe that global dimming caused by these pollutants has mitigated the temperature rises brought about by global warming. Over the last thirty years, Earth’s temperature has increased by about 0.5 oC.

In the absence of global dimming, however, the Earth might be 0.3 oC warmer than it currently is, suggesting that a “tug-of-war” exists between greenhouse gases and particulates released by burning fossil fuels. Efforts to mitigate the human health dangers of smog have allowed more heat into our atmosphere and brought about a sharper increase in global warming.

Dr. James E. Hansen, professor at Columbia University and the head of the Goddard Institute for Space Studies [1], believes that if we continue on our current pattern, this warming could be as much as five degrees in the next thirty years and ten to fourteen degrees over the course of the century. Such a temperature rise would devastate life on Earth, likely bringing on a cascade of self-reinforcing warming effects. Earth’s forests drying and burning, a steady thawing of the Greenland and arctic ice sheets, and, most dangerous of all, a release of the methane hydrates that are now frozen at the bottom of the oceans, could remake the planet into something inhospitable to human life. Dr. Hansen warns that, according to his research, man has just 10 years to reduce greenhouse gases before global warming and other responses to human activity by Earth’s climate reach a “tipping point”, becoming unstoppable.

Dead children found in car in Sussex, UK

Wednesday, January 27, 2010

The bodies of two children were found this morning in a car in Heathfield, East Sussex, in the United Kingdom. A 43-year-old woman has been arrested on suspicion of the murders.

The boy and girl were both less than five years old, and were discovered at 11:46 this morning (GMT) when Sussex police officers forced their way into the vehicle, which was parked on Mill Close in Heathfield. The woman, who has yet to be identified, had visited Heathfield police station earlier this morning to report “an incident”, and was later arrested on suspicion of murder. The police say that they have identified the bodies. The identities will be revealed when the post mortem examinations take place, which is scheduled for next Thursday.

I would like to reassure people that it is fully contained and there is no threat to anyone in the area

The woman was taken to Eastbourne District General Hospital, and has not yet been interviewed by the police. She is believed to be from Surrey but have connections with the Heathfield area. Mill Close, the road on which the incident occurred, has been closed, according to a police spokeswoman, who said, “An investigation is now under way and the area around the scene is cordoned off.” Chief Inspector Julia Pope, Wealden district policing commander, said, “This is a very tragic incident, but I would like to reassure people that it is fully contained and there is no threat to anyone in the area. We will move to restore normality and access to Mill Close as quickly as possible.” A spokesman for the South East Coast Ambulance Service said, “We sent an ambulance and two response cars but sadly two young children were pronounced dead at the scene.”