Outbound call centre from scratch. How achievable is this?

[plan2014]

There are thousands of call centres fisicx. And I'm based up north where the majority of them are. U can tell me that they are all poor businesses.

 

[fisicx]

Of course not, some are very successful. But you are doing telesales on a difficult to convert product. This is very different to answering quesries about bank accounts, dog food or email problems.

You seem intent on going ahead with this despite the evidence from people who have run call centres suggesting your financial projections are a bit off. You asked for advice and it has been given, but if you think you recruit and retain good sales staff and get the conversions then crack on.

 

[telemax]

I could actually afford to pay them £40 a sale commission only, would that be a better way to go? I thought nobody would come without a basic?

You can't pay £300 and expect to get a car worth £40,000. This is what you are asking for.

 

[beasty]

Hi, I PMd you

If there are several deals a day to be had, then I would go Comm only, but again take small steps.

 

[NickGrogan]

I've run call centres like this and you need to assume massive staff turnover. Places that pay well, £10+ per hour plus have staff problems, at £6.50 you are going to get rubbish.

When I can the centre recruitment worked like this:

Advise jobs every day, everywhere you can afford.
Everyone who applies is offered an interview - regardless of skills, background, etc.
(We had around 120 applicants per week)
Most people will not turn up for the interview.
Everyone who turns up for an interview is offered a job - everyone
Most of these people will not turn up for the job
Sit down with new staff for 1 hour, going through the script, then they start work
After a 2 hours give them a break
About 1/3 won't come back from the break
Of those remaining, about 1/3 won't come back the next day.

Second day more training, more people leaving and so on.

You can invest as much time and effort in training at the start as you want, it won't affect staff turnover. Once they start calling people and are sworn at, threatened, etc they will start leaving.

By the end of the week, you'll be lucky to have 2 people remaining - one of those won't have made any sales and you'll have to let them go. The other one will last anything from a few weeks to a few months.

Cold calling you'll do well get 1 lead in 100 calls. If someone averages this they'll be a superstar.

We maintained an average of 22 staff, but hired around 150 having offered jobs to many many more.

When I had been there for 1 year, everybody else at the company from the sales director to the reception had been replaced at least once.

 

[TradeSmart]

Why don't you approach an existing call centre who may be looking to take on a new campaign. You will probably have to pay around the £40 to £50 mark but there would be no start up costs or recruitment.

Where abouts in the North are you based. I am based in the North East and have a few contacts at local call centres if you want me to send some over to you.

 

[plan2014]

It baffles me the responses on here. So basically what everyone is saying it is physically impossible to start an outbound call centre??????
This can't possibly be the case surely?

 

[plan2014]

Hi trade smart would u be able to pass me those details on. I'd really appreciate it

 

[plan2014]

So how about this? I pay £10 an hour and £25 a sale? I would still make a lot and any salesman worth his salt would make £££ if he hammered it properly. Surely this has to be enticing? I am a really good salesman and if I needed a job i'd do it

 

[telemax]

I've run call centres like this and you need to assume massive staff turnover. Places that pay well, £10+ per hour plus have staff problems, at £6.50 you are going to get rubbish.

When I can the centre recruitment worked like this:

Advise jobs every day, everywhere you can afford.
Everyone who applies is offered an interview - regardless of skills, background, etc.
(We had around 120 applicants per week)
Most people will not turn up for the interview.
Everyone who turns up for an interview is offered a job - everyone
Most of these people will not turn up for the job
Sit down with new staff for 1 hour, going through the script, then they start work
After a 2 hours give them a break
About 1/3 won't come back from the break
Of those remaining, about 1/3 won't come back the next day.

Second day more training, more people leaving and so on.

You can invest as much time and effort in training at the start as you want, it won't affect staff turnover. Once they start calling people and are sworn at, threatened, etc they will start leaving.

By the end of the week, you'll be lucky to have 2 people remaining - one of those won't have made any sales and you'll have to let them go. The other one will last anything from a few weeks to a few months.

Cold calling you'll do well get 1 lead in 100 calls. If someone averages this they'll be a superstar.

We maintained an average of 22 staff, but hired around 150 having offered jobs to many many more.

When I had been there for 1 year, everybody else at the company from the sales director to the reception had been replaced at least once.

Cripes your true cost per employee would have been about £30 per hour. Easier just to find someone really good and pay them £25ph.

 

[kate1]

Telemax, you and I have been in this game for a very very very long time, and ill add very on the end of that aswell, SME's dont realise, want results based on never picking the phone up themselves - it gets very boring

 

[kate1]

If you want quality calling telesales people are already in it

 

[NickGrogan]

So how about this? I pay £10 an hour and £25 a sale? I would still make a lot and any salesman worth his salt would make £££ if he hammered it properly. Surely this has to be enticing? I am a really good salesman and if I needed a job i'd do it

8 hour day, 1 sale per day.

Cost, excluding NI - 8 x £10 + £25 = £105 per sale

How much are you earning per sale?

 

[NickGrogan]

It baffles me the responses on here. So basically what everyone is saying it is physically impossible to start an outbound call centre??????
This can't possibly be the case surely?

No, what we are saying is that you are not going to get

"£61600 - £18900 = £42700 profit" per month

It is hard work, you will have lots of staff problems that will eat into your margin, and you won't get that many sales.

 

[SwindonSteve]

Cripes your true cost per employee would have been about £30 per hour. Easier just to find someone really good and pay them £25ph.

Exactly why he should go down the agency churn & burn route.

It's a truly crappy job, which targets a truly crappy section of society (those who are incapable or too stupid to look after their own financial affairs).

His costs will be less, his obligations as an employer will not exist.

If @plan2014 hasn't stopped and taken on board what's been said by so many, then... Well, good luck, I'm out.

 

[NickGrogan]

Cripes your true cost per employee would have been about £30 per hour. Easier just to find someone really good and pay them £25ph.

Not sure how you've arrived at £30 per hour, it wasn't that high. When it comes to telesales, most people who are really good are going to head to something else where the ability to pick up the phone is better rewarded and the call rate is a bit lower.

 

[kate1]

Its the same coconut every time telemax us in the industry take risks and the small business emplyoyer does not have the funds - its like in the loop - pay me a 1K fee upfront ill help you

 

[kate1]

Nick got on the phone lately? I very much doubt it

 

[NickGrogan]

Nick got on the phone lately? I very much doubt it

Every day, it's what I do.

Why do you ask?

 

[plan2014]

Well call me crazy but I've always been confident in my own self and I think it's achievable. I think I'd be able to create a good working environment with plenty of good incentives to keep staff interested and make them enjoy coming to work. Maybe I might be a little off with my figures but I still think there's enough lee way in there for a good business. I've taken everything on board and I'm not going to dive in head first but I'm going to give trial it. Might only start with 3 or 4 staff on good commission with a small basic. I genuinely believe I can make it work and am going to give it a go.
He who dares....

 

[telemax]

Not sure how you've arrived at £30 per hour, it wasn't that high. When it comes to telesales, most people who are really good are going to head to something else where the ability to pick up the phone is better rewarded and the call rate is a bit lower.

Hi Nick,

It depends on the man hours spent, employing, interviewing, advertising, administering, firing, chasing after all these employees, most of whom are rubbish anyway and don't get any real results.

Jon

 

[NickGrogan]

Hi Nick,

It depends on the man hours spent, employing, interviewing, advertising, administering, firing, chasing after all these employees, most of whom are rubbish anyway and don't get any real results.

Jon

Fair enough, although your figure still seems a bit high. Churn and burn interviews don't take long and there was no chasing - you don't want to come in, don't bother.

@plan2014 - incentives only work if the staff are interested in the incentives. I paid the rent on my house twice with Champagne and Whisky that I won as incentives, but it didn't actually make me work any harder as I don't drink.

 

[mediaguy35]

Ok, the advice you got was pretty much spot on. Now for more reality - I'm a former Recruitment Professional, with background in a call centre (sorry, Contact Centre Cough...) we must be politically correct you know.... as Personnel is now Human Resources.... oh dear!

Having placed candidates into work myself, an agency will want £8k in fees per year for Temp staff (not Permanent) so the wages are paid by the agency @ roughly the £7ph rate eg: £13'440 pa/pro-rata. You will find those that want a 'job', but £13k is not career dosh, so you can work out what staff turnover is like. Yes, some staff genuinely want the experience so will stay for 12 months...... beyond that I doubt you'll retain anyone decent.

Working conditions are sad, bad..... awful. I worked in call centre where the bosses came out of their offices and shouted at staff to 'get the calls answered' (it was all target work) - thought I was in a McDonalds.... Seriously boring work, low pay and the treatment of staff was nuts, and that just from management. Customers are a different nightmare and will make hiring the best a major issue.

Constant recruitment is a must. Id say, you wont get anyone decent for less than 18k per person part-time. Graduates may be an option, but they use the job for CV fodder and will leave for better pay, conditions etc.