Commission for staff/Finders Fee?

[benedmonds]

50:50 would be a very bad deal for you... We had this alot a while back with someone wanting to borrow a truck and then a chipper most weekends.  In the end we went down the hire route.

 

We will hire the kit to the guys at a market rate, ie equivalent to if they went to a hire shop.. Rarely happens now days..

 

[jrose]

Cheers all. It may work for some people, but I'm not really interested in the hiring the kit out idea. Think I'll draw up some sort of terms and conditions letter, 10% commission.

 

The deal I currently have with regards to work coming in - every team leader has a work phone I provide, and that number is the one they contact my customers on, so they're not using their own phone. Any work that then comes through that (repeat work, word of mouth etc) is my job, no finders fee. The same for if the neighbour sticks their head over the fence while we're there, and wants a quote.

 

The problem arises when Auntie Sues neighbour wants something doing, she asks her nephew and he passes it to me. In this instance, a commission seems right and fair, but not 50/50!

 

 

[Nick Connell]

Over the years one of the down sides I've noticed of encouraging weekend work is some guys will start using your jobs as recovery time so they can put full effort in on their jobs.

[benedmonds]

1 minute ago, Nick Connell said:

Over the years one of the down sides I've noticed of encouraging weekend work is some guys will start using your jobs as recovery time so they can put full effort in on their jobs.

I have also experienced this, guys doing night shifts on the weekend for another firm and being a wreck on monday...

[benedmonds]

1 hour ago, jrose said:

Cheers all. It may work for some people, but I'm not really interested in the hiring the kit out idea. Think I'll draw up some sort of terms and conditions letter, 10% 

Trouble with that is auntie sue asked her nephew as she wanted a good price.. your adding 10 percent making it more expensive.. 

[jrose]

3 minutes ago, benedmonds said:

Trouble with that is auntie sue asked her nephew as she wanted a good price.. your adding 10 percent making it more expensive.. 

I understand this to a point, but when Auntie Sue has a mature Sycamore overhanging her garage & conservatory that needs to come down, my price for four men, van, chipper & MEWP for a day is probably cheaper than two lads spending a months worth of weekends mashing up brash in the back of a BMW 1 series (yes, apparently this has been done!)

[Treeation]

On 26/09/2018 at 06:42, jrose said:

Hi all,

 

Got a question, and want to see how you all deal with it as it's come up a couple of times recently.

 

Most of our work is commercial, with the odd domestic job thrown in. But domestic isn't really my bread and butter.

 

Some of the lads who work for me have their own kit (climbing kit, saws, pickup). They have been offered jobs by neighbours, friends, aunties, people they bump into at the petrol station.

 

A couple of times, the job offered has required either kit they don't have or more time/staff than they can cope with - chipper, tipper, rigging, big saws, etc. They have approached me to go in on the job with them, and got offended when I don't want to split the cost 50/50? Despite me paying diesel, using kit, insurance, etc...

 

I understand the feeling that they brought the job in so they deserve some sort of bonus, but not to that extent! Anyone else pay a commission/finders fee to staff, and if so what percentage? 

 

I'm thinking of writing up a more formal agreement - something along the lines of 10% of the job price in addition to normal day rate?

 

Sorry for the slightly rambling tone of the post.

Hi joe, I think 10% is totally reasonable.....if they dont go for it then there not going to be able to undertake the  work as you have already said as they dont have the kit or resources. I think its a case of they can like it lump it!

[Mark Bolam]

The danger is letting them price it.

[benedmonds]

37 minutes ago, Mark Bolam said:

The danger is letting them price it.

Good point, do they pay 10% of the loss when it takes  an extra day...

[eggsarascal]

Surely no one is going to let someone else price a job if the person pricing is getting 10%.

 

Side note: Is that 10% of the price of the job, or 10% of the profit?