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 you're 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.
Ron Roberts, The Contractor's Business Coach, teaches contractors how to turn their business into a profit spewing machine. To receive Ron's FREE Contractor Best Practices Newsletter visit www.FilthyRichContractor.com.