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]

So realisticly a rough quote is a waste of time and an in person quote is preferred?

Again, hightower would probably put this better but all I can say is: In this posts case, yes, a persons quote will be a lot better than your app quote......

 

[Andy78]

So realisticly a rough quote is a waste of time and an in person quote is preferred?

All you are doing here with statements like that and many others in this thread is convincing your potential target audience that you don't have the first idea about what we do or what you are doing.

 

[hightower]

Again, hightower would probably put this better but all I can say is

Ha, you make me out to compare with Shakespeare, so I'll leave with this appropriate quote:

"Your brain is as dry as the remainder biscuit after voyage"

Seriously OP, think carefully before you spent another minute on this project.

 

[Spoon]

Ha, you make me out to compare with Shakespeare, so I'll leave with this appropriate quote:

"Your brain is as dry as the remainder biscuit after voyage"

Seriously OP, think carefully before you spent another minute on this project.

haha. ive had quite a few slaggings off about my wonderful brain, and the way it thinks, but it has never been put so quaintly before..

 

[hightower]

haha. ive had quite a few slaggings off about my wonderful brain, and the way it thinks, but it has never been put so quaintly before..

Oh no, I was aiming at the OP

 

[Spoon]

Oh no, I was aiming at the OP

I know mate. That's why I put the smiley face at the end of my post. I do like to twist some posts.

 

[puffy]

Here's a question for you that might be better understood and help the point sink:

I'm setting up a business and need a website. How much will it cost?

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 dont 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.

All you are doing here with statements like that and many others in this thread is convincing your potential target audience that you don't have the first idea about what we do or what you are doing.

All Im doing is finding a solution to a problem. Now what is that problem you may ask? A process where constant work is available eliminating confusion of what a customer wants. It seems to be tough in this electrical business. I'll find a way.

 

[Andy78]

All Im doing is finding a solution to a problem. Now what is that problem you may ask? A process where constant work is available eliminating confusion of what a customer wants. It seems to be tough in this electrical business. I'll find a way.

And there lies your problem, this problem doesn't exist. All you are looking to do is take a large percentage someone else's hard earned money in exchange for passing on details.
For the amount you propose asking for, any electrician could easily increase their business through existing and established promotional methods.
Your business model offers nothing that any electrician or electrical firm could not do for themselves.

 

[Spoon]

Again, its good that you have a positive attitude towards this (blinkered though it may be) but it just can't compete against someone going round, seeing what is actually involved in the job and then quoting. You have to be living on cloud cuckoo land to think it will. You will end up losing money cause your quotes are either too small (then the good electricians will quit and you will end up with muppets doing the job) or you quote will be too high and you won't get the job.

 

[puffy]

... All you are looking to do is take a large percentage someone else's hard earned money ...

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....

 

[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.