'Protocol' for paying those who give you work?

[HappyHippyDad]

Evening all..

A local (one man band) builder who I have now done 2 jobs for has now given me a third.

He does quite a bit of the electrics himself but on larger jobs he now gets me in.

As my business is still small I dont have any jobs to give him back and It feels one sided. I feel as though I should offer him a small percentage (2-5%) of my quote as he is getting these jobs due to his good reputation, so in fact 'I' am getting these jobs because of 'his' good reputation. I am benefiting from his good name.

What's normal in this situation?

 

[ImpededLoop]

As long as you're not taking the micky with your pricing, he'll just stick a percentage on top before he gives his quote to the customer. You need to be making money yourself and if he's a decent bloke, he'll accept that.

 

[uksparks]

I'd just try to keep it casual and say I'll recommend you etc, maybe do him a better rate, or give him £50 for each good job I do t know.

i got a job last week off the back of s kitchen I'm doing, the kitchen was worth about £450 to me, the extension I picked up was worth about £1400, so have said I'll knock £50 off his bill or parts and he was happy.

 

[Andy78]

What's normal is for him to put his desired percentage on top of your bill before it reaches the customer, and for you to take him out for a few beers round Xmas time.

 

[HappyHippyDad]

We get on well so i think I'll just ask him if he's adding any on. If he isn't i'll give him £50 and a pint (It's a £1000 job - 2 bathrooms with a lot going on!).

 

[Marvo]

Can I move this thread to the Arms for you? Might be a better discussion to have out of public view.

 

[HappyHippyDad]

Can I move this thread to the Arms for you? Might be a better discussion to have out of public view.

I did think about that Marvo. The reason I didn't is because this section always seems to get more responses. But saying that, I think you are right.. so 'yes please'.

 

[happysteve]

I did think about that Marvo. The reason I didn't is because this section always seems to get more responses. But saying that, I think you are right.. so 'yes please'.

Shame. Interesting discussion. (But completely fair enough for moving it...)

 

[Marvo]

I did think about that Marvo. The reason I didn't is because this section always seems to get more responses. But saying that, I think you are right.. so 'yes please'.

It's a bit of a touchy subject, you're basically talking about 'back-handers' and I'm not sure you'd get many honest answers in the public facing part of the forum even though it probably get a higher view count there.

**edit** .....and sorry HappySteve even though you won't see this reply.

 

[amlu]

bottle of something nice should do the job

 

[egg67]

Normally tend to find what goes around comes around, one day he will need help on a job and you help him, when he goes to pay you just say that's all right have this one on me.
Please note just a small job not a big one even if it's just helping him to get rubbish outside or helping to dig a hole

 

[davesparks]

Has he asked you to pay for giving you the work? It is definately bad practice and dishonest to be handing out or receiving back handers for work.
A bottle or two at Christmas is a good idea, but the paying for work on a job by job basis is just not on in my opinion

 

[HappyHippyDad]

Well.. Some interesting responses!

I have to admit (bit naive), I didn't think of it as a 'back hander' as its not a bribe to get the work as I will be getting the work anyway.. I just saw it as a bit one sided and I like things to be fair and balanced.

Possibly keeping money out of it is a good idea though.. Maybe a few bottles of something extra nice at Christmas is a better way of saying thank you.

 

[mayfair]

Why is it dishonest and bad practice ?

Has he asked you to pay for giving you the work? It is definately bad practice and dishonest to be handing out or receiving back handers for work.
A bottle or two at Christmas is a good idea, but the paying for work on a job by job basis is just not on in my opinion

 

[ian.settle1]

Well.. Some interesting responses!

I have to admit (bit naive), I didn't think of it as a 'back hander' as its not a bribe to get the work as I will be getting the work anyway.. I just saw it as a bit one sided and I like things to be fair and balanced.

Possibly keeping money out of it is a good idea though.. Maybe a few bottles of something extra nice at Christmas is a better way of saying thank you.

What;s your proper name Sepp Blatter

 

[7029 dave]

If he is happy with your work, that's all that matters and the end of the day Steve

 

[dansk]

Your probably saving him time and money just by doing the job right, so i wouldn't be giving any incentives, also as other said he will most likely be putting 10% on your bill.

 

[Marvo]

I agree with most of the above. I think you've first got to establish what your customer is getting from employing you to do the work. Is he marking up your invoice for your services to the customer? Are you already giving him a preferential price? Is he getting a service from you that he wouldn't easily get from elsewhere at the same price? Are you already somehow adding value for him by making him look good to his customers?

It can be a very fine line between a back-hander and a 'thank you' and between a bribe and a sales commission. I've been caught on the wrong side of the line on a couple of occasions.

 

[gnselectricals]

All the builders etc I work for put their bit on the bill first. I usually drop some bottles off at Xmas spashed out on some penderyn whiskey from the distillery by me this year

 

[Andy78]

All the builders etc I work for put their bit on the bill first. I usually drop some bottles off at Xmas spashed out on some penderyn whiskey from the distillery by me this year

If you ever need a subby....

 

[gnselectricals]

If you ever need a subby....

I'll bear it in mind haha got a spare one if you send me your address pal

 

[Doomed]

There are contractors that regularly give us work, we make sure that we bend over backwards to help them, but not at the loss of any income, you know, being helpful on site etc.

 

[Paul.M]

The odd free favor every now and then works for me. Developer that sends me a few jobs a year for example, I did an EICR for his daughters house before she sold it. Another thing I do is install a pir security light for people that recommend me. It costs £10 + a bit of off cut cable but it can open a lot of doors.

 

[tigerpaul]

Really interesting thread. I'm just too naive to know about this type of thing. Of course I know it goes on, but I don't know how to come across properly.
I don't want to give the wrong impression, so I generally don't do backhanders/gifts/greasing palms or whatever you wanna call it. It could backfire, and give the person ordering the work, the impression that you've overcharged them. I guess it all depends whose money it is, and who is in control of spending it.

 

[Midwest]

We get on well so i think I'll just ask him if he's adding any on. If he isn't i'll give him £50 and a pint (It's a £1000 job - 2 bathrooms with a lot going on!).

If he is adding a %, him invoicing the customer, then paying you, it should come under CIS.

 

[happysteve]

It's a bit of a touchy subject, you're basically talking about 'back-handers' and I'm not sure you'd get many honest answers in the public facing part of the forum even though it probably get a higher view count there.

**edit** .....and sorry HappySteve even though you won't see this reply.

Ha! Proved you wrong! Apology accepted, by the way.

Beer anyone?

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