If I ever have to sub out work I just take my 20-25%. For me my company does not deserve more then that. All we are doing essentially is pushing paper work. With pricing that MCS is giving it is impossible to sub out and feel right about what you are paying out.
See, that right there would make you just another part of the problem. You want to sub out work so you would take the ALREADY low pay and take ANOTHER 20-25% and pass on the PRE DETERMINED pay to someone else.
Before you start jumping all over me, let me just say that I am NOT TALKING ABOUT YOU! I said it "would" make you (or anyone else) part of the problem. You seem to agree that it would be impossible to do and not feel right about it, but you did bring up a good point and sooooo many other contractors and middlemen companies do this.
That's the number one problem in this industry and as long as people continue to accept work at a price that is determined by someone else and that work gets chopped 2,3,4 times or more then the regionals and subs of regoinals will always be around. People need to just say no!
A little background on me and my company.
I have been around for a long time and started with preservation and maintenance work with the sole intention of working up to where I am at now which is a repair/rehab contractor and I ONLY do bank work. And I ONLY work direct.
I started out many moons ago with Safeguard and MCS and that was when you could work direct with them, I think now a days you need to cover an entire state to get work? Back then there were zones and I only covered 1 and had all the work I could ever want. Once I got my feet wet I made sure EVERY broker/agent in my coverage area knew who I was and what I did. I walked away from Safeguard and MCS within 6 months.
OMG, I JUST REVEALED THE COVETED SECRET HOLY GRAIL FORMULA EVERY NEWBIE COMES TO THIS SITE FOR!!!
SORRY EVERYONE ELSE, THE NEWBIES NOW KNOW THE SECRET AND ARE GOING TO TAKE ALL OF OUT WORK AWAY!!
PLEASE DON'T BE MAD AT ME!!
Of course that was sarcasm! But I am so sick and tired of hearing all the newbies cry that we won't give them the secret because we are soooo afraid of new competition. The fact is there is no secret! It takes hard work but what I posted above is all you need to know. Just like CL said, if they are contacting YOU, instead of ME, there's a problem. I just recently posted my story about a company called AIM to shed some light to the newbies, I suggest you read that if you are new to the game and some random company calls you to offer you work.
Earlier I said I contacted EVERY, AND I MEAN EVERY local agent. Why?
If your work is professional and you are in an area that has some decent populated areas, you will get direct work! You also can't just talk to one person and come back and say" Nope, there is no direct work in my area"
It's there, you just haven't found it! Or, they already have one of us veterans who they are very loyal to! If that's the case just seek out NEW agents, they pop up every day and it's a perfect chance to work with a new agent who doesn't have a go to guy!
Also, I work for many different brokers and they all have very different clients, some are large, some are small. I also work directly for Wells Fargo who is my main client and we have a 50 work order capacity. These aren't lawn cuts, these are average $25,000+ jobs.
Back to the first paragraph and what got me started
(sorry for the rant but since this is a newbie thread and sticky I wanted to get some good info in here)
I am a general contractor, I can't possibly do 50 jobs at a time by myself. I sub out 95% of the work and do the other 5% myself, no employees all 1099 contractors.
I don't get my prices from some client and just take my 20-25% cut and call it a day. I get BIDS from my contractors, then I charge the bank WHATEVER THE HELL I WANT! Sometimes I make 10% sometimes I make 200%!! And I fell just fine about it, do you know why?? Because that contractor GAVE ME HIS PRICE! That's what he needed to do the job and make a profit! I don't blow thru contractors, most have been with me for 6+ years and I have never have one turn down work or not answer my calls, why? Because they make damn good money and I treat them fair.
So please get that thinking out of you head that everyone must take 20% of the set price and pass it along. It's unfortunate that is how this industry works but real contractors set their own prices!
If everyone would turn down the middlemen the agents would get even more control and more work for everyone. But, that will NEVER happen. So your only real option is to go find direct work or DO SOMETHING ELSE!
PLEASE, PLEASE, PLEASE, stop working for middlemen and then coming back to cry about being ripped off!!