Fairly making money by sub-contracting - New Business Startup

[Andy78]

And here we have someone that has their eyes fixed, glued and hammered down on the 10% - 15% where I've said to erase that for a bit.

If I'm correct, I think the business model reflects an umbrella company. hmmmmm....

So what percentage are you going to operate on then ?

 

[puffy]

So what percentage are you going to operate on then ?

between 4% - 6% I have to Factor in cards and BACs fees. But fees are not important as I would discuss that with subs first.

 

[Andy78]

between 4% - 6% I have to Factor in cards and BACs fees.

And you say you would take this off the profit of a job after deduction of materials and wages ? So how would you know the cost of the materials involved ?

 

[puffy]

And you say you would take this off the profit of a job after deduction of materials and wages ? So how would you know the cost of the materials involved ?

That part is a tricky part so I have not finalized that as yet. Maybe the sub will give me a price for materials OR the sub gets the materials, sends me invoice of what the materials cost then we take it from there. OR my company provide materials. This part will be last to implement. Its tricky and trust is needed.

 

[Andy78]

That part is a tricky part so I have not finalized that as yet. Maybe the sub will give me a price for materials OR the sub gets the materials, sends me invoice of what the materials cost then we take it from there. OR my company provide materials. This part will be last to implement. Its tricky and trust is needed.

If you go for the first option you would have no idea of the actual materials used and stand to get ripped off left right and centre. The only way to verify materials used would be to make regular site visits which would insult the contractor, or install it yourself.
If you go for the second option you are not bypassing the awkwardness of a job, you are becoming the awkwardness in a job.

It's a non starting business model. I'm sorry it's not what you want to hear, but at the end of the day it's just another middleman service, and probably the most poorly thought out idea for one at that.

 

[puffy]

If you go for the first option you would have no idea of the actual materials used and stand to get ripped off left right and centre. The only way to verify materials used would be to make regular site visits which would insult the contractor, or install it yourself.
If you go for the second option you are not bypassing the awkwardness of a job, you are becoming the awkwardness in a job.

It's a non starting business model. I'm sorry it's not what you want to hear, but at the end of the day it's just another middleman service, and probably the most poorly thought out idea for one at that.

True. This was the only bit I could not get my head around. So I guess back to the drawing board.

 

[Spoon]

and probably the most poorly thought out idea for one at that.

Don't sit on the fence Andy, say what you mean....

 

[Andy78]

True. This was the only bit I could not get my head around. So I guess back to the drawing board.

Looking back through your posts you are also assuming you can take your percentage from the money left after materials. I would be taking my wages off that too to make sure I'm not losing out. so in effect you are looking to end up with 5% of 5% of the total cost of the job. If the job over runs and makes no profit does that mean you don't get paid ?

The only way you are going to get electricians to give up any portion of their hard earned is to offer value for money that advertising and other methods of revenue creation currently don't. That's going to be hard to beat.

I currently spend £0 on promotion and am as busy as I can manage right now. I do promote myself, but through services that do not charge. Any paid for service would need to virtually guarantee work on a money back basis to make me even consider them.

 

[puffy]

Looking back through your posts you are also assuming you can take your percentage from the money left after materials. I would be taking my wages off that too to make sure I'm not losing out. so in effect you are looking to end up with 5% of 5% of the total cost of the job. If the job over runs and makes no profit does that mean you don't get paid ?

Well if a job cost 2K and materials 1.5K then Ill take 5% of £500 so you get 95% of £500.

 

[Octopus]

Ahhh the customer may have more than one quotes so I'm eliminating just to have my quote.

that does not make sense!

 

[Andy78]

Well if a job cost 2K and materials 1.5K then Ill take 5% of £500 so you get 95% of £500.

Exactly. You're not taking into account wages. The profit on a job is what's left after deductions including wages and overheads. That could be as little as 5% of the total price of the job.

 

[puffy]

that does not make sense!

What makes no sense?? You come on my site select few things then presented with £3K for argument sake. You can walk away but if you request a visit know that it will cost £3 - £4K and you are happy, then you basically got the job. Dont you all see that? You already know the cost so you invite me over to make sure its not more than £4K.

The calculation will be based on feedback so it's not a case where I guess the cost.

 

[hightower]

Easy. Ask customer these first:

• What is the business
• What are your targeted audience
• Are your selling products/services or just displaying static content
• Budget

So I still don't understand what are you trying to get across. If I have a web development business and someone asks that question, my website would extract those information already.

My point is this (and I'm truly flabbergasted you're so ignorant to it):

You can't quote for a website design without the full details. You can't quote for an electrical installation without the full details. The difference between these? Maybe you can work out the full details for a web design by pinging a few emails backwards and forwards. Try that with electrics and you're in for a shock, as the full details can't be uncovered until tests have been carried out, and in some cases the floorboards are up.

But I don't know, maybe you have money to burn, and after seeing your 'head-up-your-dark-place' responses I think all you're wanting from us is to have us say "what a great idea, sign me up".

 

[puffy]

I was just riding along the energy-wave in this post and I see all of your points. Electrics quotes are different from all other; I got it. I'll have a rethink and find a different approach towards this.

 

[sean_ork]

What's to stop the homeowner doing a deal direct with your "subby" to cut you out of the deal ?

The homeowner will get a cheaper job.

 

[puffy]

What's to stop the homeowner doing a deal direct with your "subby" to cut you out of the deal ?

The homeowner will get a cheaper job.

I have that covered already.

 

[sean_ork]

I have that covered already.

Remind me please.

 

[Octopus]

I have that covered already.

Really? I doubt that VERY much

 

[Spoon]

Well if a job cost 2K and materials 1.5K then Ill take 5% of £500 so you get 95% of £500.

So you are intending to take 5% off the electricians wage and not just from the profits now..... This is sounding better and better.....

 

[Andy78]

The last mickey taker that instilled the same sense of irkedness in me was a local sparky. He gave me a call one evening and told me he was expanding and had loads more work than he could handle so needed a decent spark to subby the work out to.
"Yep I'd probably be able to help you a out a bit there" I said "I charge £26/hour"
"Hmmm yeah so there's the problem see I could only really afford to pay £16 and was hoping to pay you less"
"This is on a self employed basis right ?"
"Yes"
"Sorry mate but you'll have to scrape the barrel at that price"
"But I want a decent job doing to protect my reputation and don't want the idiots"
"Then you are going to have to pay the rates.... you must know a self employed electrician's overheads ?"
"Yeah I know but I can't do it any other way if I want to make my £10/hour on you"

I gave the moron some choice advice about the way he conducts himself on the phone, and that the next bloke he insults may take more offence than me, directly at his face.