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.

 

[joehat]

Sounds like rated people

Yep agree

 

[NDG Elecs]

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

Now THAT I would pay for!!

 

[Octopus]

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

We can rate them on :

1. Changing their minds
2. Changing the dates
3. Questioning the work
4. Meddling
5. Late payment
6. "short" payments

 

[Andy78]

We can rate them on :

1. Changing their minds
2. Changing the dates
3. Questioning the work
4. Meddling
5. Late payment
6. "short" payments

I think number one should be frequency of hot drinks provided. I did a 6 hour job the other day and got 6 drinks ! discount is already set for their next job !

 

[Octopus]

I think number one should be frequency of hot drinks provided. I did a 6 hour job the other day and got 6 drinks ! discount is already set for their next job !

I was concentrating on the "painful" clients.... so a "positive" side would be good too .....

 

[Andy78]

I was concentrating on the "painful" clients.... so a "positive" side would be good too .....

I sort of meant that. Lack of tea is number one on my pet hates list. Not getting paid and messing you about just compounds the primary issue

 

[sparksburnout]

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!

This is the point i was trying to make earlier. The OP just does not understand what the customer really wants. Word of mouth, recommendations, local, reliable tradesmen. None of my customers would touch them with one either, and why would they? Sorry, I hope it falls on its face as well, it will be a bleak day when it flourishes.

 

[rwood1981]

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.

Its a no from me,im out!!!!

 

[sparksburnout]

Yep agree

I think it should read BErated people?

 

[puffy]

I bet if I have said there will be no fees, all sarcasms would be dropped, you'd raise from the childish responses to manhood responses, huh?

Can we all just erase x% fees for now? Your minds are not seeing the website's model and how it will (not would) work. While I agree that customers do not normally know what they want, if when they do once the work has started they may want a change. I am not creating a website not know the ins and outs of this business. I was in it but with temp contracted work. I know what I want.

Normally when someone has an idea they expresses it with minimal and once we have an MVP (Minimal Valuable Product) we will show the world for better feedback. There, the idea can be scrapped or praised.

Things to note: The website will not have a registration button for subs, only for customers. Thanks to:

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?

I shall create such website so that at the end, a set price is given. Either I have my own guys go out to finalize the work (pricing) then have a sub carry out the work. If you have missed it, once a price is given, on the website, the customer can decline or agree so once we visit, the work is already sure.

For the curious, I have put £50 on a google advert and I have gotten voicemail on my mobile phone for work. Work is out there you only need to know where and how to find it.

I could easily create a website that has electrician post their business etc, profile etc but too many out there. Since money is important let me clarify. There will be a fee taking from the net profit. A job cost £3000, materials and gas for £2000 (assuming here), I will take x% of £1000. So please stop singing on the 15%.

Before you visit the customer, you'll know what house type, inside of the house with pictures, videos, type of work needed, when to start, empty or occupied house/flat etc, materials needed, direction to, distance and travel time, your money is sure.

How will I find these subs? I'll ask the mods on here to advertise then we will meet in person at your business and we take it from there. Since I live in Birmingham then a Birmingham sub will be needed first.

 

[Spoon]

Before you visit the customer, you'll know what house type, inside of the house with pictures, videos, type of work needed, when to start, empty or occupied house/flat etc, materials needed, direction to, distance and travel time, your money is sure.

Do most customers really know what materials they need? They just know that they want a tv in the corner. They may forget about the sky/cable box, DVD player, xbox/ps, ethernet connection.
You will only truly find out what materials you need until you visit and chat with the customer.

 

[sparksburnout]

A sparky round my way spent loads of £££££ on getting to the top of the Google rankings, it worked a treat, if you put in "electrician in xxxxxxxx" or almost anything else he was top of the list. Guess how many enquiries he got in the first month? 2 and no jobs. This guy just doesn't get it so you are all wasting your breath. The replies have not been childish, tongue in cheek yes, but essentially realistic. It won't work and people don't want this type of faceless service.

 

[Octopus]

How will I find these subs? I'll ask the mods on here to advertise then we will meet in person at your business and we take it from there. Since I live in Birmingham then a Birmingham sub will be needed first.

Hum... beware all you Brum guys!

 

[puffy]

Do most customers really know what materials they need? They just know that they want a tv in the corner. They may forget about the sky/cable box, DVD player, xbox/ps, ethernet connection.
You will only truly find out what materials you need until you visit and chat with the customer.

Materials? They dont but I should have mentioned that once a contractor has visited then I will have that information. In regards to an automated home, I have that covered

A sparky round my way spent loads of £££££ on getting to the top of the Google rankings, it worked a treat, if you put in "electrician in xxxxxxxx" or almost anything else he was top of the list. Guess how many enquiries he got in the first month? 2 and no jobs. This guy just doesn't get it so you are all wasting your breath. The replies have not been childish, tongue in cheek yes, but essentially realistic. It won't work and people don't this type of faceless service.

I live on the internet so I know things that I wont put on here so I know how to get customers so let's leave it at that. But a clue is, when a customer visits your website, you have 2 seconds to catch their attention or else they're gone but I'm not debating on "getting jobs/customers" that's my job. If you say it wont work then I'm eager to find out.

You know what's funny? I say you that "hey Jim I can get you some work and this is how I will get them". You turn around to say "nahhh mate that wont work". Instead y'all just could have said "ok mate, you may could change this up a bit, add this and remove this but here's my number so when you get a customer, hit me up".

Hum... beware all you Brum guys!

Sorry for your bad experience.

 

[hightower]

After reading your last post my 'manhood response' would be you have delusions of grandeur. I'm starting to believe this is nothing more than a wind up.