Back hander / finders fee

[64treefrog]

I know this will be a normal practice for some and a no no for others but;

 

We have recently begun stump grinding for other people (only done our own till this year) and am picking up plenty of work, doing stumps for many landscapers, property developers and several tree surgeons. I usually have a cheaper rate for contractors and a higher rate for private customers and its working fine. We price the job, do the work and bill the contractor. They then charge their customer accordingly, all is well.

 

I have one contractor who is happy to pass the work on to me but wants a 'good fee', I have been running my own company for 20yrs and havnt been asked for a fee before although have gratefully passed on 'a drink' for lads giving out my number.

 

I will be told by many to wake up and realise that this is how business works!

 

comments please:confused1:

[Daniël Bos]

I'd tell him to do one.

You charge the main contractor, they charge whatever they like. If he wants "a good fee" he can add it in the price to the client as I'm sure he would anyway.

If you're keen on the work, explain that your rate to him is already lower than if you'd work directly for the client and he could/should consider that difference his good fee.

[64treefrog]

Cheers Rover.

Thats exactly how I feel but needed to know what others thought

[Brett]

I just recently had a client, in a round about way, ask for a finders fee because he recommended me to another client. oh how I chuckled.

[pie eater pete]

Fire him off..this jobs hard enough without some clown wanting a percentage for nowt..

[Stephen Blair]

10% is the norm, put emotions to the side.

It's not a back hander, it's commission a finders fee.

You pay it if you get the job, if he passes you 10 jobs, and you get none of them you have to decide whether his contacts are poor and his salesmanship isn't matching your business or your not good at your part.

I'd happy pay 10% to just turn up and do the job and get paid.

 

 

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[difflock]

And then charge him the FULL rate, same as you charge your private clients!

[ukminch]

I could have read this wrong,

Normally you bill your client, who then bills their client. They out their mark up on it. This guy wants you to deal directly with the customer but put his mark up on and give it him direct. It's effectively the same thing but he doesn't get caught in the middle? R

[doobin]

10% is the norm, put emotions to the side.

It's not a back hander, it's commission a finders fee.

You pay it if you get the job, if he passes you 10 jobs, and you get none of them you have to decide whether his contacts are poor and his salesmanship isn't matching your business or your not good at your part.

I'd happy pay 10% to just turn up and do the job and get paid.

 

 

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Amen. Paying a finders fee of 10% for a guaranteed job is a lot cheaper than advertising, quoting and dealing with time wasters. I do it all the time, and pass jobs to others in return for 10%.

 

I actively enjoy paying the 10%- I know that if I keep my side of the bargain, work will just keep coming from the 'finder'.

[spudulike]

Surely the guys pay off is the difference in what you charge him and what he charges the end customer or is this a cash bung to avoid the tax???

 

I guess it depends on how much business he gives you, how much profit you can make from it, how much you value it, how much you need it and then there are the law & taxes...think that just about covers it:lol: