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!