Fairly making money by sub-contracting - New Business Startup

[puffy]

Why bother having the customer set a budget then, as if that's magically going to make the spark do the job at a cheaper price, if as you've admitted the quote could come back over or under budget. The second most important thing I think is being overlooked is most sparks won't quote, they'll only estimate. So what happens if the subby estimates within budget, but finds half way through the job that it's going to cost another £1000 because something unexpected came up?

I think you've created in your mind a simple solution for a problem that is anything but simple.

True. Do you have an experience you'd like to share? Have you ever told a customer "hey James, I need to replace x because it's out dated so it will cost an extra x"?

This is why I take onboard your feedback strongly so I know and think this properly.

 

[hightower]

True. Do you have an experience you'd like to share? Have you ever told a customer "hey James, I need to replace x because it's out dated so it will cost an extra x"?

I'm a trainee, but I've worked with sparks that have had to - it comes up quite frequently in electrics, your tests can only prove so much but when you start scratching the surface a different story starts to appear.

 

[puffy]

Please can you elaborate on this. There will be more than one budget range? So in your example there will be a 2k to 3k, then maybe a 3k to 4k then maybe a 4k to 5k.....??
Why would the customer pick the 4k to 5k when he can get it done for 2k to 3k? What is the difference?
or am I just reading this wrong....

Yes. Different budgets. So if the customer selects 1k - 2k and need a rewire (their description) then that's a no no. We would alert the customer that an acceptable budget for what they want is x. This website will be "smart" based on your description you fill in.

 

[sean_ork]

All that will happen is that your rakeoff will be added to the quote, so it'll be that much more expensive than quotes gained not via you - you might see a dribble to work through your books, but you won't live off it. Youve assumed the customer will get all of the quotes for the job via you - that's just not going to happen.

Your business model is flawed, you do nothing to justify such a high % takeoff - all of your competitors are doing is encouraging a race to the bottom in terms of cost and quality - the customer suffers.

Youd be far more likely to earn a living, and encourage trades to sign up with a sub 5% rakeoff, if you could target your market at the high end where customers don't mind paying a bit more for a top quality job.

All you are trying to do now is to reinvent a broken wheel.

 

[Spoon]

Can you also explain how the quote system works as I all it can ever do I give a very very rough ballpark figure.
e.g. say I want a cooker point adding. How will it quote for this? It could bust be a simple cable going from consumer unit, then under the floor to the new cooker point. Or the floor is solid so has to go a different route. or the customer wants the cooker point fitted to an island in her newly tiled floor kitchen.

 

[sean_ork]

Can you also explain how the quote system works as I all it can ever do I give a very very rough ballpark figure.
e.g. say I want a cooker point adding. How will it quote for this? It could bust be a simple cable going from consumer unit, then under the floor to the new cooker point. Or the floor is solid so has to go a different route. or the customer wants the cooker point fitted to an island in her newly tiled floor kitchen.

It's a smart app remember, runs on smart phone so uses GPS to work out routes lengths, ground penetrating radar module plugs into headphone socket to determine structure construction. Also does post code lookup to calculate your travel costs (and the chances of you getting your van nicked), and plots route to nearest cafe.

 

[Spoon]

It's a smart app remember, runs on smart phone so uses GPS to work out routes lengths, ground penetrating radar module plugs into headphone socket to determine structure construction. Also does post code lookup to calculate your travel costs (and the chances of you getting your van nicked), and plots route to nearest cafe.

haha now that what I call a good idea..

 

[puffy]

All that will happen is that your rakeoff will be added to the quote, so it'll be that much more expensive than quotes gained not via you - you might see a dribble to work through your books, but you won't live off it. Youve assumed the customer will get all of the quotes for the job via you - that's just not going to happen.

Your business model is flawed, you do nothing to justify such a high % takeoff - all of your competitors are doing is encouraging a race to the bottom in terms of cost and quality - the customer suffers.

Youd be far more likely to earn a living, and encourage trades to sign up with a sub 5% rakeoff, if you could target your market at the high end where customers don't mind paying a bit more for a top quality job.

All you are trying to do now is to reinvent a broken wheel.

Our percentage takings are not finalised, it's just a placeholder value to work with. We will see what expense we accumulate running the website and app etc.

Just to shed some light, 15% will be very high, I agree but I just used that for now.

Can you also explain how the quote system works as I all it can ever do I give a very very rough ballpark figure.
e.g. say I want a cooker point adding. How will it quote for this? It could bust be a simple cable going from consumer unit, then under the floor to the new cooker point. Or the floor is solid so has to go a different route. or the customer wants the cooker point fitted to an island in her newly tiled floor kitchen.

I have not mentioned this part:

Research is needed to know what these sort of services costs. I wont offer "light buld replacement services" but rather re-wire services: services with high value. So a market research will be conducted to see what each services cost and things to expect then based on that, we based the selectable budget. Customer will select a dropdown of services and based on that a budget to choose from.

 

[Electric Magic]

I agree with many of the comments above. Letting the customer set the budget for the job is definitely the wrong way to go. I'll give an analogy: Person A has £200 budget to buy a TV. Trader 1 offers them a 32 inch HD LED Samsung with a 2 year warrantee, trader 2 offers them a 4k 50 inch TV, but its unbranded and the trader won't say where is from, or where they are from, etc. Most people would not be stupid enough to buy from trader 2. It's not like that with electrical work. Most people don't know their a##e from their elbow electrically speaking so more for less is an attractive option and so customers will set the lowest budget your site will let them. And you'll be able to find "electricians" who'll work to the budgets set, but unlike rated people who manage to distance themselves if your subcontracting cowboys you'll get the flack. And if you get good tradesmen and you're constantly telling customers their budget isn't high enough you'll not keep many of them. Time for a rethink methinks...

 

[puffy]

...Most people don't know their a##e from their elbow electrically speaking so more for less is an attractive option and so customers will set the lowest budget your site will let them. And you'll be able to find "electricians" who'll work to the budgets set, but unlike rated people who manage to distance themselves if your subcontracting cowboys you'll get the flack. And if you get good tradesmen and you're constantly telling customers their budget isn't high enough you'll not keep many of them. Time for a rethink methinks...

You have not got the concept, I have noted this in previous comments. They will select a budget (based on feedback we set values):

Title: Select work type:
{customer chooses full rewire}

Budget:
{customer selects "£2K - £3K"}

Description:
{Customer: I have a one bedroom flat etc}

The customer could also say "I have a 2 bedroom flat etc..." so based on their description we would determine the correct budget. If they selects the lowest budget and their description has "I have 2 bedroom etc..." we would contact the customer explaining to them x and y.

 

[Spoon]

I wont offer "light buld replacement services" but rather re-wire services: services with high value.

Wow. So you are not quoting for small jobs. Is your motto going to be "Don't give us your small povie jobs, give us your money". Yes I'm being an --- again, but that is the was some people may interpret you not offering "light build replacement services"

 

[Spoon]

The customer could also say "I have a 2 bedroom flat etc..." so based on their description we would determine the correct budget. If they selects the lowest budget and their description has "I have 2 bedroom etc..." we would contact the customer explaining to them x and y.

How do you know what they want? How many sockets do they want per room? Do they want TV signals in each room? Music in each room? Alarm cables? Internet cables?

 

[puffy]

How do you know what they want? How many sockets do they want per room? Do they want TV signals in each room? Music in each room? Alarm cables? Internet cables?

That's what the description is for. Not sure what's that? It's a blank text box that the customers types into to state what they want.

The website will not be for everyone. We have chosen a niche and will work with it. Just like a teacher: he/she teaches few subjects and stick with you. That teacher could never teach every subject. But I am taking on board all feebacks to see the best way to layout the website.

 

[Electric Magic]

You have not got the concept, I have noted this in previous comments. They will select a budget (based on feedback we set values):

Title: Select work type:
{customer chooses full rewire}

Budget:
{customer selects "£2K - £3K"}

Description:
{Customer: I have a one bedroom flat etc}

The customer could also say "I have a 2 bedroom flat etc..." so based on their description we would determine the correct budget. If they selects the lowest budget and their description has "I have 2 bedroom etc..." we would contact the customer explaining to them x and y.

No I think I got it. You are planning to waste customers time and your own time by allowing the customer to select a budget that you then have to tell them is unrealistic. Why not have a system that allows them to pick what they want e.g. number of sockets, type, number of light fittings type, details about the house etc etc and then tells them a price range final price to be confirmed following contractor visit?

 

[puffy]

No I think I got it. You are planning to waste customers time and your own time by allowing the customer to select a budget that you then have to tell them is unrealistic. Why not have a system that allows them to pick what they want e.g. number of sockets, type, number of light fittings type, details about the house etc etc and then tells them a price range final price to be confirmed following contractor visit?

Sounds good. Never thought of that. Hmmmm. Thanks.

 

[Spoon]

It's a blank text box that the customers types into to state what they want.

So your wonderful app is going to analyse this text and then quote accordingly....... cool app.

 

[puffy]

So your wonderful app is going to analyse this text and then quote accordingly....... cool app.

Very simple. You extract keywords etc. But Electric Magic just made a valid point.

 

[Spoon]

Magic just made a valid point.

Yes he has. He has worded it a lot better than my sarcastic comments in my previous posts...

 

[sean_ork]

There's a time and place for smart apps, this isnt one of them.

NASA spent millions developing a pen that would work in zero gravity - the Russians used a pencil.

 

[puffy]

There's a time and place for smart apps, this isnt one of them.

NASA spent millions developing a pen that would work in zero gravity - the Russians used a pencil.

And NASA's pen failed because they tried. I have not. Big difference. I try things no matter if someone says it's a waste of time. I'm not re-inventing any wheels here.