Darryl Keil Last Activity 2024-10-10 3:42 PM
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Aaron Paris

Posts: 55

Joined: 2014-11-28

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Subject : Fair Compensation
Posted : 2015-12-21 12:15 PM
Post #37409
I am not sure if this topic qualifies but I trust and value the answers and suggestions on the forum. I need to use a friend's shop to complete a job that he has subbed out to me. He wants 20% of the jobs costs as rent for the shop and for giving me the job. I would have to raise my bid to cover that. I just think that's a bit to much. Any thoughts? Thanks Aaron



 
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Darryl Keil

Posts: 1453

Joined: 2003-05-22
Location: Maine

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Subject : RE: Fair Compensation
Posted : 2015-12-21 1:04 PM
Post #37410 - In reply to #37409
Seems like an odd approach to me. What about a per hr rate for his using his shop? Feels cleaner and more straightforward.

I can sort of see a "finders fee" for the job but if I were him, (providing he's charging for the entire job) then I would have tacked something on to your portion of the work rather than make you give him a fee on the side. Those are my thoughts, and yes, 20% does seem a bit high.


 
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Don Stephan

Posts: 825

Joined: 2003-07-18
Location: Cincinnati, Ohio

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Subject : RE: Fair Compensation
Posted : 2015-12-21 6:17 PM
Post #37411 - In reply to #37409
Your friend can ask for whatever he wants, but you have to be able to make enough on your work to justify your time. And I would NOT agree to these terms hoping for better terms in the future, to be offered employment down the road, et cetera.

For you to be comfortable on this and future such jobs, I would agree that the hourly rent for the shop and any referral fee need to be separated. Then you can decide if you are interested.


 
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Aaron Paris

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Joined: 2014-11-28

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Subject : RE: Fair Compensation
Posted : 2015-12-24 7:42 PM
Post #37412 - In reply to #37411
Thanks guys. We meet next week to discuss the project further and these suggestions help a lot. Very much appreciated. Thanks Aaron


 
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Don Stephan

Posts: 825

Joined: 2003-07-18
Location: Cincinnati, Ohio

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Subject : RE: Fair Compensation
Posted : 2015-12-25 4:45 PM
Post #37413 - In reply to #37409
There are additional issues that might be important to you.

Who is ordering the materials? If you aren't ordering, you don't know exactly what you will have to work with, whether the quantity is sufficient, or when they will be available.

Financial is a whole set of questions. If the customer is making a first payment to commit to the project, how much are you getting up front? Same question as to progress payments. When your work is completed, are you getting paid when you turn it over to your friend, and if not when?

Who "accepts" your work when completed and how sure are you that you and the customer have identical expectations?

If you are completely hidden from the customer you are dependent on your friend and the customer maintaining good relations.


 
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Aaron Paris

Posts: 55

Joined: 2014-11-28

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Subject : RE: Fair Compensation
Posted : 2015-12-29 9:48 AM
Post #37418 - In reply to #37413
Don. My friend and I share the same suppliers. I will be present at all meetings and the customer knows I will be doing the work. I will be billing customer directly. Who takes credit for the job is still kind of an issue. This is a side job for me from my current employer so having his name on it raises less of an issue. This whole thing is complicated so thanks for your input.
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