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  1. #53
    Join Date
    Nov 2007
    Location
    Sherman, TX
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    9,441
    Quote Originally Posted by jeremyhall.tech.sc View Post
    john, alot of guys who never see the buisness end of the trade will not look for opritunities to upsell or sell period. they get a check , for the most part, whether the sell or not. but this industry is one where you have to look at the entire picture ..... if i dont earn money i dont eat. it really is that simple. now guys working for me , ehhh, they work hard and if they dont make money , well they can earn unemployeement and get food stamps..... im not trying to change the subject it's just that as an owner/partner you see the money trail. where as a hourly tech only sees a check.
    We seem to have gotten off down a rabbit hole....but here's the thing...If you're working for Joe's HVAC, and your truck is only generating $400 per day, Joe isn't going to keep you around long, regardless of how he's paying you.

    That's $100,000 per year sales on one truck. There are multiple threads on this forum addressing this.....$100k doesn't cut it. You'll wind up laid off, and Joe will wind up broke.

    So, if $400 per day won't cut it....What will? How do you get there? How do you encourage the employee to get there?
    Technical incompetence is NOT a sales tool....

  2. #54
    Join Date
    Feb 2006
    Location
    Phoenix,AZ
    Posts
    2,895
    I don't even like doing PM's. If it aint broke. I don't want to be there. But, if i am required to take the panel off for a look. They're at least getting something!!!

  3. #55
    Join Date
    Nov 2007
    Location
    Sherman, TX
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    9,441
    Quote Originally Posted by KB Cool View Post
    I don't even like doing PM's. If it aint broke. I don't want to be there. But, if i am required to take the panel off for a look. They're at least getting something!!!
    I'm posting in two different threads on performance pay, so it's hard to keep up with what's been posted where.....

    I firmly believe that it can be EASIER to sell repairs and upgrades on a PM, than it is a demand call.

    The type of person who buys maintenance agreements are more often the type of people who actually APPRECIATE good, preventive services and the opportunity to upgrade.

    On the other hand....those who DON'T buy maintenance agreements will let it run til it breaks.....and often see you as the enemy if you offer any preventive care or upgrades.

    When are you most receptive.....When you're taking preventive measures, or when you're back is against the wall because something's broke?
    Technical incompetence is NOT a sales tool....

  4. #56
    Join Date
    Jul 2010
    Location
    wisconsin
    Posts
    270
    Quote Originally Posted by John Markl View Post
    Your market must be different than ours. Here, tuneups are priced from $39.95 to $69.00.

    A $100.00. tune up around here would generate zilch.

    Heating tune ups? We've been doing spring A/C tune ups for the last 3 weeks
    Im from the same general area as chuckcrj, and 39 to 69 is way too cheap in sconnie. We try to do clean and checks year round, sometimes doing ac and furnace , and boilers etc allmin the same home same day. Our good clean and chaeck guys can do 6 or 8 calls in a 8 to 10 hour day depending on how close the calls are together and the age and difficulty of servicing equipment, and most importantly if the tech is organized and stocked up properly, as this is the biggest obstacle in this trade.

  5. #57
    Join Date
    Jan 2012
    Posts
    43
    @JohnMarkl, sounds like you are the type of person who is pushing your guys to be parts changers. I do own my own shop and I would never think the way you do. We do about $2.5 Million in work each year off of 10 guys. Some years more, some years less, depends. I started my shop as a 1 man show. I built this business on honest hard work. No need to push extra parts. For instance if a contactor is a little black, new ones turn that color after it makes contact 10 times, I would inform my customer and let them make the decision, write it on my ticket so it is there for their record and mine. Recommended a new condensor fan motor drawing 2.0 amps RLA was 1.8, with the proper cap in good condition. Customer declined, was back in 2 weeks and the customer was laughing because he remembered our conversation. He has been a customer of mine through 3 companies and now a customer of mine at my own shop. Honesty goes a long way, and informing your customer on what has occured or will occure will always win over the company that changes the slightly black contactor and the owner/service manager thinks it is great. Just the other day got rid of a newer employee for this exact reason. Went to a house for spring pm, told the customer they needed a new unit, $200 commission was his prize, customer called in and I went out and found that the capacitor was bad and the contactor was not making full contact. No cost to the customer for repairs that I made myself, and I now have a spare van that will probably be mine during our busy season as I don't like people, like you, that are just out to rob people because that is what they want. We keep our regular pm customers units running really well and rarely have, extra's that are needed, on our maintenance calls. Not saying my guys have never done this before, but every new guy rides with me for 2-3 weeks and show him how I want things done and what is expected. Doesn't matter to me if you have been in the field for 30 years, you ride with me for 2-3 weeks and we have an understanding of how things will be done. He and I go to customers that I have had for years and when we are done I speak to the customer and ask how their experience was with the new guy.
    Long story short, don't sell stuff that doesn't need to be replaced, do your job honestly and to the best of your ability.

    Just don't think Mr. Markl has all the answers as he sure as hell seems to think. May work for you now, but will catch up to him sooner or later. Can't continue to lie and cheat people, someone will eventually find out and then it is party over. Business degree or not, look at all the big businesses that have went under in recent years, all of which were run by big bad people with Masters and BA's in Business and look where it got them. I am not an educated person in this respect, but I do well for myself and my business, because I have class, honesty, and a heart for the people who pay me for my services.

  6. #58
    Join Date
    Nov 2007
    Location
    Sherman, TX
    Posts
    9,441
    Quote Originally Posted by Swiss78 View Post
    @JohnMarkl, sounds like you are the type of person who is pushing your guys to be parts changers.
    I've never been a "parts-changer"....I LOATHE "parts-changers"....I TREASURE technical competence.

    I run off parts-changers. Don't want them around.

    But, as you "own your own shop", let's talk some numbers.

    You said you do "$2.5 million a year with 10 guys". That's $250k per year per guy.

    If you have ten guys, doing $400 per day, per truck, that's $1,040,000.00.

    That's a far cry from $2.5 million....So, where's that other mil and a half coming from?

    Selling stuff. Obviously.
    Technical incompetence is NOT a sales tool....

  7. #59
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    Nov 2007
    Location
    Sherman, TX
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    9,441
    Quote Originally Posted by Swiss78 View Post
    I now have a spare van that will probably be mine during our busy season as I don't like people, like you, that are just out to rob people because that is what they want.
    Careful, buddy....you're WAY out of line.....
    Technical incompetence is NOT a sales tool....

  8. #60
    Join Date
    Nov 2007
    Location
    Sherman, TX
    Posts
    9,441
    Quote Originally Posted by Swiss78 View Post
    Just don't think Mr. Markl has all the answers as he sure as hell seems to think. May work for you now, but will catch up to him sooner or later. Can't continue to lie and cheat people, someone will eventually find out and then it is party over.
    You're making assumptions....and we all knows what happens when you ASSume......

    I pay hourly. The only commission I currently pay is 2% on an equipment sale.

    I was addressing the questions of the OP.....as to how a commission system may or may not work for him. Regardless of pay method, a truck delivering $400 per day in sales doesn't cut it for any legitimate business.
    Technical incompetence is NOT a sales tool....

  9. #61
    Join Date
    Dec 2003
    Posts
    2,432
    I dont think performance based pay is a good idea, but I am sure John is not looking at this to rip people off.

  10. #62
    Join Date
    May 2007
    Location
    california
    Posts
    223
    Back to the income potential ?So how difficult would it be for a tech to hit 600k annual sales?? or even 300k or 400k ??

  11. #63
    Join Date
    Jan 2012
    Posts
    43
    No I don't only do residential, I also do commercial HVAC & R. Very easy to bring your revenue up. Also were did you get $400/day. Average repair is $400-500, pm costs are low but repairs are not free. Each guy runs 10-12 hours a day in the summer and does 4-6 calls a day, from April - November. Only do residential with 1 or 2 of my guys, and myself at times. All others are mainly running commercial calls. 450 X5= $2250/day, and that is not including the supermarkets that hold 1000's of pounds of freon. So please take your business degree and calculator and put them away. I simply analizied all your posts on this thread and came up with this. If you pay hourly that wasn't received in your postings. So I appologize for my findings, just feel you come off as a real know it all on this board.

  12. #64
    Join Date
    Nov 2007
    Location
    Sherman, TX
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    9,441
    Quote Originally Posted by jmiles View Post
    Back to the income potential ?So how difficult would it be for a tech to hit 600k annual sales?? or even 300k or 400k ??
    Good Question.

    In the class I attended, there was a goal-setting session. One tech with a 17% company stated that he wanted to gross $80k this year.

    So, 80,000 divided by 17, times 100, equals $470k in sales. This is presuming that all of his income was from service tickets, and no 3% on any equipment sales.

    $470k per year, is $9k per week, or $1800 per day. That's a tall order. But then again, for a resi tech to make $80k per year is going to take more than drifting thru 4 clean and checks a day too.

    On the other hand, a purely hourly guy would have to be making $38.50 per hour, and getting 40 every week in order to gross $80k.

    How many $38.50/hr resi techs do you know? I'm betting that they are few and far between.....and you can bet that they aren't getting that kind of munny for doing 4 clean and checks a day, without extra sales.

    To make that kind of munny in this business, you're either going to have to be an extraordinary talent, or you're going to have to add sales skills to your technical skills.

    There is nothing wrong with offering folks expanded maintenance/repairs, or upgrades to their systems....as long as you are not lying to, or misleading, them in order to do so.
    Technical incompetence is NOT a sales tool....

  13. #65
    Join Date
    Nov 2007
    Location
    Sherman, TX
    Posts
    9,441
    Quote Originally Posted by Swiss78 View Post
    No I don't only do residential, I also do commercial HVAC & R. Very easy to bring your revenue up. Also were did you get $400/day. Average repair is $400-500, pm costs are low but repairs are not free. Each guy runs 10-12 hours a day in the summer and does 4-6 calls a day, from April - November. Only do residential with 1 or 2 of my guys, and myself at times. All others are mainly running commercial calls. 450 X5= $2250/day, and that is not including the supermarkets that hold 1000's of pounds of freon. So please take your business degree and calculator and put them away. I simply analizied all your posts on this thread and came up with this. If you pay hourly that wasn't received in your postings. So I appologize for my findings, just feel you come off as a real know it all on this board.
    The $400 per day came from the OP. He stated that he was expected to do 4-5 clean and checks per day, at $100. each.

    If you weren't so busy trying to snipe at me personally, you could have paid better attention to the posts and their content....like your comment about my degree....which I don't recall mentioning in this thread....that's something you pulled from another thread to try and insult me.

    And, I'm well versed in supermarket work. We did them for decades. That's how we STARTED in this business....
    Technical incompetence is NOT a sales tool....

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