25% Discount - REO Property Preservation Forum
 
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Old 01-08-2013, 10:56 PM Thread Starter
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25% Discount

What is this 25% Discount

Regional is offering me this! I think this dont make sense(newborn to PP)

example: $2000.00 Job
Client takes 25%: $ 500.00 DISCOUNT!!!!
Materials : $ 400.00
60%-40% split : $ 1100.00

60% (my money):$ 660.00
40% (regional) :$ 440.00

I went from a $2000.00 dollars job to a $660.00 dollars job + the material reinburstment WITH THIS REGIONAL. Where is the money here? what is this 25% discount that this guys are talking about? 60/40% split with the regional is this a regular screw-up. Anybody has seen something like this before? please help Are this guys just a bunch of thieves in black suites?
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Old 01-08-2013, 11:02 PM
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Welcome to the business!
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Old 01-08-2013, 11:03 PM
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Sounds like ams.....
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Old 01-08-2013, 11:24 PM Thread Starter
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25% discount

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Welcome to the business!
What is this 25% discount . they are keeping this money or what?
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Old 01-08-2013, 11:33 PM
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All the way to the bottom of their pocket
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Old 01-08-2013, 11:38 PM
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Quote:
Originally Posted by NetServe View Post
What is this 25% Discount

Regional is offering me this! I think this dont make sense(newborn to PP)

example: $2000.00 Job
Client takes 25%: $ 500.00 DISCOUNT!!!!
Materials : $ 400.00
60%-40% split : $ 1100.00

60% (my money):$ 660.00
40% (regional) :$ 440.00

I went from a $2000.00 dollars job to a $660.00 dollars job + the material reinburstment WITH THIS REGIONAL. Where is the money here? what is this 25% discount that this guys are talking about? 60/40% split with the regional is this a regular screw-up. Anybody has seen something like this before? please help Are this guys just a bunch of thieves in black suites?
Here is how I would look at the math.

$2000 Job
$660 for you + material $400 is $1060

$1060 for a $2000 job is a 47% discount.

I personally wouldn't accept a deal like that.



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Old 01-09-2013, 12:28 AM
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Quote:
Originally Posted by NetServe View Post
What is this 25% Discount

Regional is offering me this! I think this dont make sense(newborn to PP)

example: $2000.00 Job
Client takes 25%: $ 500.00 DISCOUNT!!!!
Materials : $ 400.00
60%-40% split : $ 1100.00

60% (my money):$ 660.00
40% (regional) :$ 440.00

I went from a $200.00 dollars job to a $660.00 dollars job + the material reinburstment WITH THIS REGIONAL. Where is the money here? what is this 25% discount that this guys are talking about? 60/40% split with the regional is this a regular screw-up. Anybody has seen something like this before? please help Are this guys just a bunch of thieves in black suites?

I have never heard of a deal that that. At the worst I'd expect:
$2000
- 25% to national that is giving regional the work = $1500
- 20% to regional that is giving you the work = $1200 to you. Even if they took their 20% off $2000, still $700 after materials.

But, on the flip side, just focus on the $660 you are getting and make sure you can make decent money off it. If you can, do it, if you can't, or it's borderline, turn it down. I don't think it's good to turn down the job simply because you think the regional is making too much money. How many hours will you have into this? Sounds like a tarp job maybe?
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Old 01-09-2013, 04:45 AM
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Originally Posted by NetServe View Post
What is this 25% Discount
!!!! Are this guys just a bunch of thieves in black suites?
</p>
Teenagers usually cannot afford suites.Yes, the discount is an industry norm. The Preservaton company charges contractors this fee for the favor of giving them business. Usually 20-25% and sometimes more. If you avoid the many pitfalls laid out in other threads, you can keep your take at about 70-75%. Chargebacks, no pays, cut invoices, qc followups, etc, can also take bites out too. The 50/50, 60/40 splits are popping up a little more lately, and I'm not sure why anyone would want to go into an arrangment like that.
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Old 01-09-2013, 10:31 PM Thread Starter
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Wink 25% Discount? (thanks)

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Originally Posted by GTX63 View Post
</p>
Teenagers usually cannot afford suites.Yes, the discount is an industry norm. The Preservaton company charges contractors this fee for the favor of giving them business. Usually 20-25% and sometimes more. If you avoid the many pitfalls laid out in other threads, you can keep your take at about 70-75%. Chargebacks, no pays, cut invoices, qc followups, etc, can also take bites out too. The 50/50, 60/40 splits are popping up a little more lately, and I'm not sure why anyone would want to go into an arrangment like that.
Thank you very much for being kind enough to the newbies here; and took the time to display a logical explanation to us.(The newbornes).

Unfortunately it seems that we just got in to this industry at a wrong time . When every time the only thing that pops-up the most is the general subbing from the whole community. Talking about how, we the working arms have been misstreated once and always. Thanks for your Honest response and guidance.
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Old 01-09-2013, 10:52 PM
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Originally Posted by NetServe View Post
Thank you very much for being kind enough to the newbies here; and took the time to display a logical explanation to us.(The newbornes).

Unfortunately it seems that we just got in to this industry at a wrong time . When every time the only thing that pops-up the most is the general subbing from the whole community. Talking about how, we the working arms have been misstreated once and always. Thanks for your Honest response and guidance.
It was better years ago but you can still make it work. Find better companys, realtors, etc. to work with. And if your going to be giving a large discount, mark up your bids accordingly.
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