Subscriber Discussion

Should I Pay My Technicians A Commission For Upselling?

U
Undisclosed #1
May 04, 2017

I have this one tech who consistently talks the customers into adding something extra. Whenever I send him on a residential job, the customer ends up asking for a video doorbell or a Z-wave lock or something. Whenever he's on a commercial job, the customer ends up wanting more monitors or another camera or something.

Obviously I want to encourage this behavior. 

My question is, should I start giving him a percentage, or a bonus, or just give him a really big raise? I'd like the other technicians to start learning from his example. And I certainly don't want him going to another company. 

(1)
U
Undisclosed #2
May 04, 2017

yes.

(6)
U
Undisclosed #3
May 04, 2017
IPVMU Certified

I wouldn't encourage all techs to be actively up selling, most are not good enough to do it without coming across pushy.  Unfortunately you can not just go by sales results here: the tech that is pushy will also make some sales, what you won't know is the loss of goodwill from the ones who don't buy and don't say anything.

Any you think can do a good job should go on a couple of pre-sales calls as well (to be evaluated) and then get commission.

Taken to its extreme, the incenting of all techs to upsell leads to the security sales equivalent of "Would you like to super-size those fries?"

(3)
Avatar
David Coughlin
May 08, 2017
Protection One / ADT

I'd take this comment one step further...include sales training designed for technicians as part of every tech's onboarding and annual training. One cringe-worthy practice is tech's showing up at jobs then berating what the customer already purchased in an effort to upsell.  

(1)
UD
Undisclosed Distributor #4
May 04, 2017

I would suggest giving him a commission and make it known so that others in his position can see that an extra effort can result in a reward.  Just giving him a big raise or a bonus is great and very inspiring for him, but others probably wouldn't be able to see the incentive for them to aspire to his level of performance.

(3)
UI
Undisclosed Integrator #5
May 04, 2017

It's very true that an installer or service tech with some interpersonal skills can be recognized by the customer as the most technically savvy and companies promote that concept.  

Adding devices is a natural and rewarding for that makes sense.  We also rewarded for collecting payments at the time of service as it brought down our billing and collection costs.

Where you run a risk is having that expert counter the design of the initial sales process and ultimately cause harm to your sales team and company.

"I would have installed a (fill in blank), I don't know why the sales guy didn't tell you".  "You should consider a (fill in blank), the sales guy has one on his home".

No risk, no reward...right?

DW
Dennis Widdows
May 04, 2017

I will give an employee who upsells a job in the proper situation a bonus...not a commission...I think that can lead to bad habits and reckless conduct thru out the installer ranks...however recognizing and rewarding  a job well done and extra effort while doing your job is very important and can encourage  better and more profitable customer interaction...

 

(1)
U
Undisclosed #6
May 04, 2017

You compensate on the behaivor that you want, i say yes.

Avatar
Jon Dillabaugh
May 04, 2017
Pro Focus LLC

Short answer... DUH?

Longer answer... DUUUUHHHHHH???

Always encourage good behavior. You can decide how you want to monetize this, but I would go with a spiff per sale, as long as that isn't too hard to track. If it is easier to just give him a raise, then you will have to ensure he keeps upselling.

As far as the other techs, if they take offense, tell them to get upselling! Once they have a track record of success like employee A, they will get hooked up too. Once word gets around, who knows? You might just start making some real money! ;)

(2)
(1)
U
Undisclosed #7
May 05, 2017

Upselling by techs = sales side weakness.

If your techs are upselling, then they are seeing things that your sales people are not - or sales would sell these additional items on the front end.

Reward your tech by giving him/her more responsibility - i.e. becoming more involved in sales training - where his/her technical knowledge can help your sales people sell more effective (and complete) solutions.

As many have already stated above, incentivizing up-selling for all techs can have many potential down-sides.

Just because one tech is particularly good at this doesn't mean that all or even most of your other techs will be.  Nor should you expect them to be.

(2)
Avatar
Michael Silva
May 05, 2017
Silva Consultants

If your techs are upselling, then they are seeing things that your sales people are not - or sales would sell these additional items on the front end.

I would argue that the relationship between the tech and the customer is often more intimate than the relationship between the salesperson and the customer. The tech usually spends more time with the customer, and the customer often lets down the guard that usually comes up when dealing with any type of salesperson. In short, the tech becomes a "buddy" that can be trusted rather than an adversary. In my opinion, this gives the tech an opportunity to sell things that even a great salesperson probably couldn't.

 

(13)
(1)
U
Undisclosed #7
May 05, 2017

That makes a lot of sense Michael... and I will walk-back my bold header a bit - based on your wise words.

However, the primary concern in my reply is all the down-side potential of trying to make your techs into sales people - simply because you have one high-performing, up-selling tech.  And JD's lead comments (duuuuuuuuuuh?) seemed to ignore the potential dangers of trying to carbon copy human behaviors across different personality types.

If most quality sales people are type X - and most quality techs are type Z, then the fact that you have ONE good XZ type shouldn't automatically lead you to attempt to make all of your other quality Z types into quality X types.  For all the reasons other commenters have already mentioned.

Find as many XZs as you can, of course... but making Zs into XZs - like pimpin' - aint easy. (or everyone would be doing it) 

Incentivizing can be a tricky business.  Especially when incentives are tied to altering your people's naturally-occurring personality traits.

Understand all the bad things that could happen before you head down this path is my message.

 

Avatar
Jon Dillabaugh
May 05, 2017
Pro Focus LLC

My simple answer wasn't meant to infer a lack of contemplation. 

U
Undisclosed #7
May 05, 2017

My intent was not to diminish your capacity to think deeply.  :)

But I've seen similar things tried before many times... cross-selling, up-selling, whatever you want to call it... and I've never seen it really work like it sounded on paper.

Primarily because of the human factor that can never be excluded from the equation just because you don't mention it.

It's the same unspoken principle that ruins communism and grocery store self-checkout lines.  :) 

Avatar
Michael Silva
May 04, 2017
Silva Consultants

A project manager for a big national integrator told me in confidence that he was expected to come up with change orders equaling at least 10% of the project cost on every project. Failure to meet this goal would be considered a negative during his performance review.

As a consultant, I am always open to ideas from anyone on how a project can be improved, but don't want project managers or technicians looking for problems that don't exist just so they can write change orders or unnecessarily upsell customers in order to earn a bonus.

I'm also curious how the original salesperson feels about this arrangement. I would think that he or she would feel that they "owned" the customer and that any additional work should go through them.

(2)
MC
Marty Calhoun
May 06, 2017
IPVMU Certified

If every job an experienced (lets say 25yrs) Sales consultant sells needs 10% change orders to complete properly I would think it is a slap in the face to the consultant and his/her experience.

(2)
U
Undisclosed #3
May 08, 2017
IPVMU Certified

If every job an experienced (lets say 25yrs) Sales consultant sells needs 10% change orders...

I don't think Michael is saying the "job" needs the change orders, only the Integrator.  The original sales consultant could likely get an override on that new business in any event.

U
Undisclosed #10
May 08, 2017

I would not want to invest into a company where there project manager of my projects was constantly chasing a 10% carrot. That is not a productive way to breed project managers. I foresee their spare time being spent nagging the engineers and service technicians for data.

As far as consultants, there is always an error found or a minute way to improve the design. I find it a matter of biting the hand that feeds you. If I have an idea and there is a consultant or architect involved I voice to them first. If there is no response or mutual understanding, we then ask the customer to voice the consideration back to the consultant. If it still does not move we just document our query and when the chips fall we are ready to engage.

Salespeople, sigh...sometimes they are not needed after an account is established with the design team. If negotiations are conducted right I have seem many bi-directional mentorship relations with a customer being built on everyone in the company. I do not like the salesperson to own the customer and if they must they need to do it with company first in mind. When dealing with the competition and you cannot beat price I just use my engineers to go in and slice the predecessor salesperson to shreds. The summary of the story is how in the holy hell can my project manager attempt to chase carrots such as these when I need that PM to protect the companies scope my customer invested in.

UI
Undisclosed Integrator #11
May 10, 2017

That is a truly horrible approach for project management but it may also be derived from low bid scenarios.  If awarding projects based on cost it is effectively commoditizing the project, driving margins down for the integrator as the bidders seek to trim as much margin and cost as possible.  The only countermeasure against this is change orders.  With frequent use of boilerplate specs this leaves holes for those change orders.

JH
Jay Hobdy
May 05, 2017
IPVMU Certified

I have experience in 2 other industries, and have talked to numerous service managers/owners. They all say the same thing, technicians do not upsell. 

 

I would compensate your tech who upsells. I would not force those who can not

 

You want to give the other techs a chance to payment bonuses, get a certification, complete manufacturing training, etc

(1)
Avatar
Steven Kahn
May 08, 2017
Private Enterprise

I would move him to a sales position. Technicians you can find but a Sales Person with the right attitude is hard to come by. 

(5)
CS
Claudia Synnatzschke
May 08, 2017
IPVMU Certified

I'm a facility manager and if I ever have anyone come out to give me quotes or design a system I always tell them to bring their Tech or I will not even consider them. This based on years of having sales people being great at asking about how my weekend was while paying no attention to what my building might need or how the system can actually be installed in my environment. They are for the most part very knowledgeable about their product - but that's it. A technician who has installed hundreds of these systems and listened to customers complain about what they don't like about their installation will have a far greater understanding of how to make a system work great for their client. Making him into a full time sales person just does away with that advantage. Do the opposite - send your sales people out to assist installers for a couple months.

(1)
(2)
UI
Undisclosed Integrator #8
May 08, 2017

I believe everyone should have the incentive to do a little more don't you?

Should you sell and extra job this week? If you made no extra money would you?

Not being a wise ass. Just being real.

(1)
(1)
Avatar
Mark Jones
May 08, 2017

You pay your technicians to create revenue for you by performing technical work.  If they go above and beyond, they deserve above and beyond.  Yes, pay him/her if you want to kee him/her.

(3)
U
Undisclosed #10
May 08, 2017

There is always an exception to consider. Always reconsider you actions.

UM
Undisclosed Manufacturer #9
May 08, 2017

I was a technician and I am now in sales. If you were to pay him the commission that would have gone to a sales person for the upsell, then he should be happy and that should also encourage your other technicians.

Having said that a small sit down discussion on how and when to try and upsell is important. Your enterprising tech seems to have a good idea of how to go about this, you do not want to risk alienating or pissing off a customer with the other techs due to not having a basic skill set.

U
Undisclosed #10
May 08, 2017

How long were you a technician and how long have you been in sales?

Avatar
Bob Kusche
May 08, 2017

The first instinct is to make him a sales person, but technicians often loathe sales and would not welcome that offer (recently Dilbert was offered a Management position; of course, hilarity ensued). Plus he wouldn't have that unique (buddy) advantage he has today.

I think the related but better approach would be to put him in a leadership position (along with a pay bump) amongst your techs, and if he is your ONLY tech then it is time to hire more so that they can learn from the Master.

This way I feel that we will appreciate being recognized, complimented, paid more, and will very likely return his pay bump (plus some) via better future techs and finally demonstrate more loyalty to your company for years to come.

(2)
U
Undisclosed #10
May 08, 2017

Mentorship has it's privileges.

(1)
UI
Undisclosed Integrator #8
May 08, 2017

Agree with Bob good talent is hard to find. Cherish it, nurture it and make sure it stays with you. Its easy to find 9-5 drones. If you dont give oppurtunity to those seeking it they will find it else where. Thank godnesd I never got the raise I asked for in my early 20's.

Or the straight commision sales job I was looking for before I was forced to start my own business.

UI
Undisclosed Integrator #8
May 08, 2017

If your salesman sold the job and missed the oppurtunity or failed to follow up on upgrades (If he sold the system he should know of additional oppurtunity) too bad for him. He doesnt deserve the commision.

 

U
Undisclosed #10
May 08, 2017

Technicians competing with salesman with no engineer to referee. Caution: Could spawn Mutany! (within your customer base).

U
Undisclosed #10
May 08, 2017

If this is a service tech, be careful they are not wasting time trying to go on an Easter egg hunt each call.

New customer system takeovers I will send in an engineer to audit as much as possible to determine system aging, software compliance, hardware and installation quality. If the new customer just wants the trunk slammer then it is BYE FELICIA. No one wants to acquire a headache or follow the last trunk slammer off the same cliff.

If the site is huge, ask the customer which service technicians from other companies have maintained good rapport. Find this technician and see where his future lies.

Avatar
David Coughlin
May 08, 2017
Protection One / ADT

Before deciding on if and what to pay techs (or other non-sales people) for upselling, bringing in leads, etc., ask them what will motivate this behavior. Money is often the ultimate behavior. However, some people are motivated and rewarded with non-monetary perks such as getting public recognition.

That noted, at a time when there is extreme competition to hire good technicians, I recommend paying them. Quarterly bonuses often make the most sense. But again, it's important to understand what drives your specific staff as the effect of motivation is very much tied to company culture.

 

That noted, never allow anyone to sell for your company that hasn't been properly training buy you as to how you want your company's products and services presented. Include sales training designed for technicians as part of every tech's onboarding and annual training. One cringe-worthy practice is tech's showing up at jobs then berating what the customer already purchased in an effort to upsell.

Hope this helps...

(4)
Avatar
David Watkins
May 09, 2017
National Training Center

Let me help you with this.  ALL pay plans should reward the behavior you want the employee to do.  If you don't want the technicians upselling, don't pay them for it.  If you want them to do it, then you should pay them for it.  

I once worked for a company that wanted customer profiles on every company we called on, and paid $100 per profile filled out.  As a salesperson I was techically supposed to sell products, but I realized very quickly that I could make more money filling out profiles than selling products.  My sales quickly went down, but I had some beautifully filled out profiles.  The company knew everything there was to know about the customers, but we didn't sell squat.  Let that sink in.

So yes, but with the salespeople's knowledge.  Often a tech can get the customer to upgrade the number of smokes, the number of motions, etc., sometimes even upgrade the panel to one with touch screen or remote software.  The technician is looked upon as the expert, the salesperson is just that, someone who is in it to sell it.  Not all technicians can sell, and not all salespeople can install.  The ones who can sell should be rewarded, but the technicians that can't may be rewarded because they install more efficiently, have fewer call backs, lose less inventory or tools, or any other behavior that you choose to motivate for.  

Everyone, even the company owner, should have some sort of commission or bonus plan, preferably tied to profit.  After all, if it's not generating a profit, is it really desirable behavior?  That's what we teach in our alarm business class.

(3)
(1)
Avatar
Christopher Freeman
May 10, 2017

Always Reward Loyalty. 

Give incentives to perform

Reward Performance

Discipline for Failure to follow rules, guidelines, co.standards

Very important to have continuity in the process 

Dont Show open Favoritism it leads to disloyalty 

And always Keep it neutral, not personal, strictly policy 

New discussion

Ask questions and get answers to your physical security questions from IPVM team members and fellow subscribers.

Newest discussions