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Inside vs. Outside Salespeople

admin — Thu, 03 Feb 2011 07:01:53 +0000

Proper payroll classification means big things to your company

Most contracting companies employ salespeople to help solicit new business and help customers with existing orders.

However, there are two very different types of salespeople – inside and outside.

Outside salespeople are basically responsible for soliciting new business and new projects from existing customers. They primarily work outside of the place of business, frequently making sales calls and visiting clients.

Inside salespeople do just that…they work inside the place of business. They often help existing customers with add-on orders. They often help clients with existing projects or orders. If there are changes or additions that have to be made in the middle of the project, the inside salesperson could be responsible for those activities.

Inside and outside salespeople are also subject to different laws regarding compensation. Inside salespeople are subject to Federal and State* minimum wage and overtime laws. However, outside salespeople are exempt from the same minimum wage and overtime laws.

The problem comes when inside salespeople are misclassified as outside salespeople so companies do not have to submit to minimum wage and overtime laws. According the Federal and State laws, this is a crime and could result in harsh penalties.

Companies that have misclassified inside salespeople as outside salespeople in the past have received:

Tax penalties
Federal and State Fines
Civil Lawsuits
Back overtime pay mandates

Other companies could also refuse to do business with companies who abuse this, judging them as untrustworthy.

When classifying salespeople as inside versus outside, look at the amount of time they spend out of the place of business. Most states classify outside salespeople as spending at least 50% of their time outside of the place of business. Also, look at the specific duties they perform. When in doubt, seek professional advice from a lawyer to ensure compliance with these laws.

It is important to follow these laws closely as it will prevent costly fines and penalties as well as ill will from other companies.

*Please consult the laws regarding minimum wage and overtime for inside and outside salespeople in your individual state.

CALIFORNIA ADOPTS THE 2010 CALIFORNIA RESIDENTIAL CODE RESIDENTIAL SPRINKLERS

mculmer — Thu, 14 Jan 2010 22:24:55 +0000

On Tuesday, January 12, 2010, the State of California, Building Standards Commission (BSC), voted 10-0 to adopt the new 2010 California Residential Code (Title 24, Part 2.5), which will include a historical chapter requiring the installation of fire sprinklers in all new residential construction including 1 and 2 family dwellings and townhouses.

Please let us know how you feel about this new requirement.

Michael Culmer

Hue & Cry Would Love To Hear From You

lisak — Sun, 20 Dec 2009 17:43:27 +0000

At Hue & Cry, your satisfaction is our top priority. We would love to hear from customers of Hue & Cry. Please comment on this post and let us know about your experience with Hue & Cry Security!

Happy Holidays from the Hue & Cry family

mculmer — Tue, 15 Dec 2009 22:42:20 +0000

Once again we find ourselves enmeshed in the Holiday Season, that very special time of year when we join with our loved ones in sharing centuries-old traditions such as trying to find a parking space at the mall. We traditionally do this in my family by driving around the parking lot until we see a shopper emerge from the mall, then we follow her, in very much the same spirit as the Three Wise Men, who 2,000 years ago followed a star, week after week, until it led them to a parking space.

~Dave Barry

TORTIOUS INTERFERENCE WITH ALARM MONITORING CONTRACTS

mculmer — Fri, 13 Nov 2009 21:15:35 +0000

Some of us believe the activity of “stealing accounts ” will substantially increase. I have seen serious business plans that magnify this issue, and can share some of those strategic and tactical issues.

Bullet points:
~ 25 million systems are already sold and installed in the US and producing RMR.
~ It is easier and less costly to convert and upgrade an existing alarm system than to locate and sell a fresh non-user.
~ Massive competition exists for every fresh non-user, whereas little or no competition for “conversions”.
~ High percent of existing alarm users are unhappy with their system or supplier, thus little or no loyalty.
~ Police departments are lowering the priority for alarm response, even stopping emergency response.
~ Alarm users are generally unaware of the local legislation that is diluting the credibility of their alarm supplier.
~ Many existing long term alarm contracts can be reset to month-month due to pressure from consumer protection laws.
~ Pressure of “tortious interference” is a low priority in a high number of consumer protected States or communities.
~ Some of the national and regional alarm associations are diluting the credibility of their members.
~ The term “deceptive business practices” will be focused on the existing alarm suppliers, not the new guys.

Recent activity suggests that the real threat of conversion marketing is not from the “summer, collage kids”. It could be from well funded, well organized, highly experienced, firms that will be setting a trend by gaining high market share at relatively low cost, without a legacy liability.

We hope managers of existing installed alarm systems will apply a defensive/offensive strategy, rather than just holler “foul”.

Lee Jones
Support Services Group
949-361-3300

Home Land Security “Tip of the week”

mculmer — Wed, 02 Sep 2009 21:46:02 +0000

Our Tip of the Week, regarding emergency preparedness, is courtesy of the Department of Homeland Security.

“You should keep enough supplies in your home to meet the needs of you and your family for at least three days. Build an emergency supply kit to take with you in an evacuation. The basics to stock in your portable kit include: water, food, battery-powered radio and flashlight with extra batteries, first aid supplies, change of clothing, blanket or sleeping bag, wrench or pliers, whistle, dust mask, plastic sheeting and duct tape, trash bags, map, a manual can opener for canned food and special items for infants, elderly, the sick or people with disabilities. Keep these items in an easy to carry container such as a covered trash container, a large backpack, or a duffle bag.”

HEAT RELATED PROBLEMS

mculmer — Wed, 29 Jul 2009 00:39:38 +0000

I am sure that every company is aware the “Heat Stress Index” for california says that there are a special set of rules that an employer must go by if there employees are working in conditions greater than 100 degrees.

Take these four steps to prevent heat illness

1. Training

Train all employees and supervisors about heat illness prevention.

2. Water

Provide enough fresh water so that each employee can drink at least 1 quart per hour, and encourage them to do so.

3. Shade

Provide access to shade for at least 5 minutes of rest when an employee believes he or she needs a preventative recovery period. They should not wait until they feel sick to do so.

4. Planning

Develop and implement written procedures for complying with the heat illness prevention standard.

Alarm Companies & General Contractors Contracts

karl — Thu, 02 Jul 2009 22:37:21 +0000

   Contracts with General Contractors and Institutional/Government Subscribers
********
     You know that you need to have properly executed contracts when you install fire and security systems. Not just any contracts, but industry acceptable contracts. [and the acceptable are found at www.alarmcontracts.com]. -Who decides what industry standard contracts are? Is there some independent agency that sets standards? Stumped for a moment, I came back with the answer. No independent agency, but insurance companies insuring the alarm industry have certain things they look for, central stations have certain things they look for, lawyers and judges have certain things they look for, and state and federal laws impose certain restrictions and requirements. Put them all together and you have what I would call an industry standard alarm contract.
     So to get to the topic, what do you do when you are asked [required] to sign something other than your alarm contract, or no contract at all?
     General Contractors will look to have you sign their AIA or general construction contract. It will not have any of the protective terms you need as an alarm company, and it will require you to fully indemnify the general contractor. Is the General Contractor your customer – subscriber? No. You may be brought in by the GC but you know who the end user is. It’s the party who contracted with the GC. Ultimately your alarm system is going to be used by that end user, not the GC. How should you handle this?
     If the GC lets you contract directly with the end user, that’s fine. Your contract can even state that the GC will be paying you, but the end user should sign your contract.
     If the GC won’t let you contract directly with the end user then you need to read the GC’s contract. The specifications that deal with the alarm system need to include your contract terms. The GC should either incorporate your contract terms or attach your contract to the GC’s contract as an addendum so that your contract terms govern your work. Without one of these alternatives you will have no contractual protection that your alarm contract affords.
     Same goes for institutional / government end users. They often present you with their contract or bid form, which provides none of the protective terms you need. You need to get their contract to incorporate your terms, reference your terms, or state that your contract supercedes their form.
    If the GC or end user will not sign your contract and wants you to sign its contract then you need to assess the risks that contract will impose upon you. You need to be certain that your insurance company will protect you if a claim is made regarding the installation.
     Your monitoring and service work will be covered only by your Monitoring Contract and your Service Contract [for fire - the Fire Inspection Contract]. Make sure you get those contracts signed when providing those services.

Holding on to your customers in a shakey economy

mculmer — Fri, 19 Jun 2009 00:33:13 +0000

It has been my experience that what you do for others you will have done for you in some fashion or another. So in times like these I would suggest to keep your customers needs as your primary focus and also expand your services to encompass more for your customer so they feel like they get more for the dollar. Everyone has felt a tightning of their wallets in the past year but that doesn’t mean that there is not a basic need that still needs to be met. You must show your customers why your company has the best services for them to spend their hard earned cash on. If they are existing customers then you do not need to validate their need for the service just maybe the cost of it. If it is a potential new customer then you have to diffierentiate your services from the next companies and show them how you stand behind your promises. There is a completely new dianamic with todays consumer and it may never be like it was several years ago.