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Discussion Starter · #1 ·
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:cry: Are this guys just a bunch of thieves in black suites?
 

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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:cry: 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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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:cry: 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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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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Discussion Starter · #9 ·
25% Discount? (thanks)

</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. :thumbsup:
 

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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. :thumbsup:
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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I talked to someone the other day who negotiated a different percentage with one of the Nationals who do that. I was doing (was is the operative word because I could not make it work) work and giving up 25%. Then they would try and cut me! By the time it was said and done - it wasn't worth it. I would tell them that you can't do it for that percentage. Tell them 15% is what you will do and no more.
 

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re

I would suppose it depends on how much volume they can offer, and how much protection from chargebacks. If they can get you a $2000 job every day then your doing pretty good, and since your buying the materials you get that kickback from the hardware store (around here that kind of volume will get you $2-3k plus a few rides on their private jet)

One nice thing if you are with a decent regional is that they are very good at preventing chargebacks. I know a few people who work with regionals and they rarely get hit.
 

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Was this something you understood going in????

That is a huge discout for a BID.... you don't get half my bid....
 
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