Fairly making money by sub-contracting - New Business Startup

[puffy]

So far job-hunting sucks but I'm always trying. My background is really web development/programming and business but I love electrical installation with a passion but never seem to landed that job so I've decided to give the business side of me another go.

This post is no way advertising but rather to get your deep opinion on the subject.

I am building a website, an interactive one. It will no way, shape or form be similar to ratedpeople. I've used it, never liked it. So let us not discuss that business here. About the website/ mobile app:

1. User logs in
2. User selects house type etc
3. User tells us what needs to be doing etc
4. Maybe pictures / video of the areas etc - this is important to the business

This business will solely sub-contract the job out and we would take 10% - 15% off the profit (when all expenses removed) would that be reasonable? The difficulty I face is that most jobs require an onsite quote. Since I know technology very will, I can use a beautiful app for tradesman. It has killer features where the sub-contractor would do the site visit and finalise the quote based on the customer price range. The customer will select their budget so we know for sure that he/she would give the go ahead once we stick to the price range or give them some wow factor if we go above their budget.


The trust relationship

Sub-contractors will know the actual cost of the project that's why we say the business will take 10% - 15% as we will process all transaction online and with handy technologies which you will use and those techs cost money. Is the percentage range fair?

About the business

We advertise heavily. We give you t-shirts and mobile app. You invoice us after the job is completed. You get paid by BACs. We would minus CIS or you pay your own. Legal way of doing things will be reviewed. We have our own guys to sign off work. We make you happy, you make us happy. Win, win.

 

[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.

 

[Spoon]

I try things no matter if someone says it's a waste of time.

Like trying to break through a brick wall by running at it head first.... I bet you luv my posts....

 

[sean_ork]

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.

I'm not knocking you for tying, but going against what you've been told on here is akin to the Russians knowing that a pencil will work, ignoring advice, and spending millions trying to reinvent the pencil.

I wish you well, I hope you have very deep pockets, or are lucky enough to find someone daft enough to fund you.

 

[puffy]

Like trying to break through a brick wall by running at it head first.... I bet you luv my posts....

What if those bricks are made of plastics?

 

[puffy]

I'm not knocking you for tying, but going against what you've been told on here is akin to the Russians knowing that a pencil will work, ignoring advice, and spending millions trying to reinvent the pencil.

I wish you well, I hope you have very deep pockets, or are lucky enough to find someone daft enough to fund you.

Actually 15 customers (home owners) told me it's a good idea plus two well-known companies said the same. Now 15 customers are good to start with.

I'm a developer myself and I have little cash for server hosting and that's all I need along with those 15 customers.

 

[Spoon]

Why don't you make an app that checks if a house has had a survey. If it has then you can view it for £1.

The reason why I say that is the first house I had a survey done on has faulty foundations. I kicked off at the estate agents cause they must have known this before I spent hundreds of pounds getting the survey done.

I wish I could have send the survey so someone and then the next person who wants a survey on the house will not waist lots of money like I did.

 

[puffy]

Why don't you make an app that checks if a house has had a survey. If it has then you can view it for £1.

The reason why I say that is the first house I had a survey done on has faulty foundations. I kicked off at the estate agents cause they must have known this before I spent hundreds of pounds getting the survey done.

I wish I could have send the survey so someone and then the next person who wants a survey on the house will not waist lots of money like I did.

Not.....really what Im after. Just to be clear, Im creating an interactive website.

 

[sean_ork]

Actually 15 customers (home owners) told me it's a good idea plus two well-known companies said the same. Now 15 customers are good to start with.

I'm a developer myself and I have little cash for server hosting and that's all I need along with those 15 customers.

Hosting, so £10 a month - where's the money for all the tee-shirts and advertising going to come from ?

About the business

We advertise heavily. We give you t-shirts and mobile app.

 

[Spoon]

Im creating an interactive website.

Hope it does go as planned, but personally I cant see it working, the way you have described it.

 

[puffy]

Hosting, so £10 a month - where's the money for all the tee-shirts and advertising going to come from ?

Hosting for web apps ranges from £35+ a month. I have x amount of cash for tees. Advertising: facebook and trade shows. I know where my targeted audiences are.

Hope it does go as planned, but personally I cant see it working, the way you have described it.

I feel I have not worded properly. I'll have a re-read of what Ive said later.

 

[sparksburnout]

This is just another typical example of someone trying to get involved in something they obviously know nothing about. Most bigger domestic customers/jobs DO NOT work in a such a set way, and most of them want and appreciate a personal involvement and willingness to discuss things ON THE GROUND as jobs progress. As someone said at the beginning, this is just rated people.
It goes like this for your information: Customer rings sparky, sparky goes round to customer, discusses job, agrees a price. Sparky does job, along with any other "while you are here" bits, makes customer happy, gets paid, goes back next time, simple. Everyone is happy. If it ain't busted don't try and fix it, that's what wrong with things these days.........

 

[sparksburnout]

And also, what you probably don't realise, is that a lot of our work will be word of mouth from other customers who have used a certain spark before and know they do a good job, rather than using some faceless company who rely on apps and a bunch of subby's with no idea of what they actually do. You will never have time to vet them and even if you did how would you do it??

 

[Spoon]

This is just another typical example of someone trying to get involved in something they obviously know nothing about. Most bigger domestic customers/jobs DO NOT work in a such a set way, and most of them want and appreciate a personal involvement and willingness to discuss things ON THE GROUND as jobs progress. As someone said at the beginning, this is just rated people.
It goes like this for your information: Customer rings sparky, sparky goes round to customer, discusses job, agrees a price. Sparky does job, along with any other "while you are here" bits, makes customer happy, gets paid, goes back next time, simple. Everyone is happy. If it ain't busted don't try and fix it, that's what wrong with things these days.........

sounds like he's not prepared to do any jobs that are under £3k and he has 15 of them up to now...... we will see how things go....

 

[Midwest]

OP I've only skimmed over your business proposal, but apart from you making money (and no one can be knocked for that), you seem to be trying invent a solution for the age old problem for customers finding a reliable tradesperson, or selling that to your customers.

There are several business out there at the moment trying to do the exact same thing, and you'll find little support here for that here, I feel. Some of these business, are government approved schemes, which I and others here pay handsomely for the privilege of being a member, so I can't see another being a viable goer, IMO.

Perhaps you could direct your IT skills in another direction?

 

[newtothis]

Again, just skim read.
I can't figure out how you're "fairly making money from sub-contracting" when you haven't been awarded any contracts to sub out.

 

[Welchyboy1]

No decent, self respectable sparky is going to give you 10-15% of their profit!

decent tradesmen really dont need setups like this, they are so few and far between they are usually turning work away

all youll get is muppets signing up like all the other lead generating sites !

, and your going to have to spend a pretty penny in advertising to compete in that already over crowded market!!

amazes me how everyone wants to be a middleman nowadays and skim off the top rather than doing a bit of graft themselves!

 

[puffy]

OP I've only skimmed over your business proposal, but apart from you making money (and no one can be knocked for that), you seem to be trying invent a solution for the age old problem for customers finding a reliable tradesperson, or selling that to your customers.

There are several businesse out there at the moment trying to do the exact same thing, and you'll find little support here for that here, I feel. Some of these business, are government approved schemes, which I and others here pay handsomely for the privilege of being a member, so I can't see another being a viable goer, IMO.

Perhaps you could direct your IT skills in another direction?

Not sure what other people are doing but they are going at it wrong. There will be some who agree while others don't. Let's look at ratedpeople. Good business model but bad for contractors. My business model will be bullet proof. I think most of you feel that I'll be picking up random subs to do the job etc. No. I'll have a hand selected of subs for the jobs in every city eventually.

It's not about me making money, I'm going with the flow of advance technology where someone can request these sort of work with just few clicks of a button, subs know what work is required, get job done and we all are happy.

I cant build this website in a day or two. Research is needed and those feedbacks come from reputable companies like you. Members on here style sparks as if they dont know what they're doing or assume everyone are "school kids" that knows jack. I was once on a swa installation and one of the guys treated me as if i dont know what 1 + 1 is or whats a "grips". We compete with each other too much in this business. It's pathetic. Arent we grown *ss adults?

 

[Andy78]

15% is unreal ! All that is going to achieve is making it a nailed on certainty that the customer will have to pay more for using your service as the shortfall in the contractor's pocket will be passed on directly to the customer.

Are you aware of the business overheads currently experienced by contractors and the margins they work to? If you are you should know that asking as much as 5% and still expecting the contractor's quote to be competitive in the local market is bordering on the unrealistic.

A customer of mine is building a similar service and has the right idea. It's free for contractors and customers to use. They take voluntary donations from satisfied contractors.

 

[NDG Elecs]

Here's a novel idea, people could go here: https://www.google.co.uk/search?q=r...ndroid-google&sourceid=chrome-mobile&ie=UTF-8

And get their work done 5/10/15% cheaper because there doesn't really need to be yet another middle man. If you look beyond the various sites in that link that basically offer a very similiar service then there is competentperson.com, trustmark etc.

Also a lot of people are using social media now to get word of mouth recommendations from friends etc. Nothing personal, but I hope your proposed venture never finds wings.

 

[Octopus]

Most of my customers wouldn't touch your "type" of business with a barge pole!

if you have any doubt, that's a resounding NO from me!

 

[dansk]

You'd be better off building a "rogue customer" website that we can all subscribe to and share details behind secure login