Starting a Door to Door Sales Business, Advice plz!

[andy greenhalgh]

Hi Everyone,

Please feel free to throw some advice my way, I've never ran my own business before and I'm a little green about all this... so here goes:

I have worked in Door to Door sales off and on for a number of years and I am about to start my own business selling a £30 product Door to Door (I'm aware I need a pedlars license, but first things first...).

I will be asking for the cash after I've installed the product and, because I'm not registered for vat, won't be charging the customer vat - my turn over will be low and certainly won't reach the legal vat threshold, not yet anyway.

If I sell something for more than £42 (maybe cos they want 2 of the product) I understand that the customer is entitled to a cooling off period, does this even apply if I've already installed the product and has been paid for? (it is physically attached to the property and I wouldn't relish going back and taking it out).

And is it OK to use a "business name" even though I only work for myself as a sole trader and not a registered company? (I'm thinking of printing out some business cards with a web address on showing the product lines I do, I could use the web name as my business name?)

This will all be small time to start with, I'll be knocking my local area at first, explaining I'm just starting up in my local area and working for myself (so special discount!), in other words I don't mind just telling the customer the truth - I'm a one-man operation and just earning a few quid!

OK please share your thoughts and suggestions, any legal issues I might face or other pitfalls. Generally when do I start paying income tax etc? Etc...

Thanks in Advance,

Andy

 

[Thermodynamic Man]

If there is any issue with a cooling off period just get yourself a little contract printed out with a waiver on it. They state that they waive the right to a cooling off period and accept instant installation. I doubt if you would get many question it anyway.

Interested as to what you supply for £30 that requires install and that can be sold on the doorstep

 

[AG Consult]

I am also interested to know what the product is, even more so if it is something to do with energy.

 

[Thermodynamic Man]

I guessed it was but it has to be rather cheap and quick to install otherwise I cannot see how the OP is going to profit.. I am guessing that he will need a good strike rate for this

 

[andy greenhalgh]

I cannot say what the product is, certainly not on a forum full of business heads ready to steal my idea!

How will it work if I'm paying £15 for the product and making £15 profit - this is worse case scenario. I can't claim the vat back on what I pay for the goods because i'm not registered - so do I simply claim back my money with a self assessment at the end of the tax year? Handing in petrol receits and other expenses as well as what I've paid for supplying my goods (price inc. vat)?

 

[Thermodynamic Man]

Oh I really do not think you would have too many on here looking to steal your idea. I would not imagine many here would want to go banging on doors hoping to get a profit of £15 per install/sale. Unless of course you are selling and installing around 4 an hour, which would be great..... but I doubt you will.be.

You won't have to worry about VAT. It has nothing to do with your tax. If you are not charging it then you do not have to pay it. You just lose out on the VAT you pay on your purchases, as you mentioned.

I suggest if you are making 4 installs per hour then have a word with an accountant. You must have done some form of business plan and have some figures based on what you expect to achieve in sales/installs.

If you are going into homes and installing then, without you giving us an idea of what you are doing, I will just assume that you will need some personal liability insurance in case you cause damage to a customers property or injury to them.

However, without knowing more then this about as far as I can go

Best of luck with it anyway. Drop me a mail when you have hit your first thousand installs

 

[after hours]

I don't know which type of product you want to sales door to door. My suggestion for you, firstly you have to create business cards for your business promotions.
Best of luck for your Business.

 

[Mark T Jones]

You must thank after hours for the most profound & thoughtful advice ever given

Have you thought through the economics of this, as it is unlikely that you will actually reach minimum wage on the figures given?

You can't get a customer to waive their rights to a cooling off period. You can charge a reasonable admin fee or possibly create 2 sales (on different days)

 

[Thermodynamic Man]

Sorry Mark but you can get them to sign and waive their rights. There are many companies I have known use this if the customer wishes to beat an expiry deadline on an offer for example, or just wants to get the job done as soon as possible.. This happens a lot in the home improvement industry for sure

 

[MBE1]

The potential depends on the product and salesman, I know of a similar business installing a product door to door with similar costs and sale price, the annual profit exceeded £500,000 a year with a handful of salespeople, many buyers bought 2-8 products per house installed.

The hardest part is finding professional door to door salespeople. Hard graft, but very good money can be made.

A team I know of on the doors is averaging £900/week per salesperson at the moment giving a product away.

 

[Thermodynamic Man]

The potential depends on the product and salesman, I know of a similar business installing a product door to door with similar costs and sale price, the annual profit exceeded £500,000 a year with a handful of salespeople, many buyers bought 2-8 products per house installed.

The hardest part is finding professional door to door salespeople. Hard graft, but very good money can be made.

A team I know of on the doors is averaging £900/week per salesperson at the moment giving a product away.

Are we talking door to door salesmen here or door to door canvassers?

I am not sure how much these products are you talk about but to make that sort of profit then they cannot be cheap. Which then makes the possible 8 products bought at the door rather a large amount. These sort of figures are normally made by a canvasser making an appointment for a salesperson to follow up on. The customer then gets time with that salesperson to then make an informed decision as to purchase or not. Rarely are these decisions made with a stranger knocking on a door at any time of day. These days people are wary of doorstep scammers. That is not inferring anybody is by the way but I am sure you get my point

Back in the day, when it was a really good deal, we used to give away free solar panels. We had many teams involved and they would include what I would class as guys good at what they did This deal would save the client hundreds of pounds a year. And yet even these could not be "sold" on the door. So I would love to know what product this "super team" of canvassers are giving away that are earning them £900 per week on average and £1/2m for the company whilst knocking on a doorstep. Unless you are talking government free insulation etc which isn't exactly what the OP was referring to I feel

One thing I know for sure is that it is harder to give something away than it is to sell it. People do not perceive any value if it is free...and think it a possible con to boot

 

[MBE1]

Are we talking door to door salesmen here or door to door canvassers?

I was talking about door to door salespeople, not canvassers.

Rarely are these decisions made with a stranger knocking on a door at any time of day. These days people are wary of doorstep scammers. That is not inferring anybody is by the way but I am sure you get my point

Such decisions are made everday all the time throughout the country, it's all down to the skill of the salesperson and their credibility, hence why as I mentioned it is very hard graft and hard to find the right people. I agree people are wary these days and rightly so, but those same people are happy buyers if they see value in the deal.

So I would love to know what product this "super team" of canvassers are giving away that are earning them £900 per week on average and £1/2m for the company whilst knocking on a doorstep. Unless you are talking government free insulation etc which isn't exactly what the OP was referring to I feel

I'm sure you would love to know, it is a physical product along the same costings as the OP mentioned, but in sales you keep valuable information close to your chest, but it is not a Gov scheme of any sort. If you read my original post you will notice I never used the term canvassers, I have worked with door to door salespeople on and off for over thirty years, canvassers have their place in business, but not in door to door sales.

 

[Thermodynamic Man]

I am going to use the term what a load of tosh..... only because if I was to say what I really thought of your post in real terms I would certainly be kicked off this forum. Based on what you have said I doubt you have had thirty hours experience let alone thirty years. I have actually had more years than you and would never make the statements you have done.

You never mentioned canvassers but sales door to door. If they were sales sold door to door these days they would be akin to the gypsies selling pegs and cleaning cloths in bygone days. There is no way you could have anyone knocking doors and selling products that would make anywhere please do not say I have no experience.near the figures you quote. Total dreamland. And please do not tell me \I have no idea of what I talk about. For the last twenty years or so I have had door canvassers and sales people knocking on doors attempting to sell products for £30 to £30K
No point in me replying to anything else you have to say. For sure we will not agree. As I said politely...utter tosh
End of

 

[MBE1]

[QUOTEIf they were sales sold door to door these days they would be akin to the gypsies selling pegs and cleaning cloths in bygone days.][/QUOTE]

Of course it is similar, it always has been and always will be, hence the requirement for a pedlars licence as per the OP's original post.

Unlike yourself I know nothing about you so will not bother with infantile insults, believe what you want to, it matters not to myself.

Only an idiot believes they know everything.

 

[Chris Ashdown]

I assume you are talking about something simple like door chains or fire extinguishers etc that can just be fitted in a few moments

The main problem I see apart from low sales is the who would want a stranger inside their house from a street call to look around, especially women.

£15 ph may seem a good amount if you could sell one per hour for 37 hours per week but that seems very optimistic plus travel time costs etc.

Many try selling door to door and the only long term ones seem to be for women customers like Avon where again its for peanuts unless you build up a team to work for you

 

[Thermodynamic Man]

[QUOTE.Only an idiot believes they know everything.[/QUOTE]

You said it pal. Have a lovely day

 

[Mitch3473]

I'll have a punt on one of those peep hole viewers........Low cost, easy install, impulse buy and I cant see too many folk wanting you to take it out once it's in.

 

[Chris Ashdown]

Can you sell those to people named Thomas?