Revenue sharing? Never heard of that one. So that means, they'll split their profits with you? Interesting. Where do you suppose those profits come from?:whistling
Linda
Linda
Southeastern Asset Services
G
has any one heard of these guys? they are based out of florida. they give you a price sheet with prices for all there different contracts. most of the prices are per bid but they make you sign a 50/50 revenue sharing agreement.
1 - 20 of 47 Posts
G
Good Morning,
There is a company based out of Hedrum, MN (Schnabel) who take 50% of profits but reimburse contractors 50% of costs. I cannot put my finger on it, but I do not like that setup. But they are a regional that cover parts of ND, SD, and MN (parts not all) and they can hold a grudge.
I started out being a sub-sub-contractor for Schnabel. I thought I was making good money ($1000.00 a week at first) but then the "good ole boy" network started up and another contractor with a personal relationship to Schnabel took over 95% of work orders. That's when I started contracting with other nationals. Schnabel found out about it and dropped me without paying about $2000.00 in unpaid invoices. Since then I keep hearing things through the grapevine that Schnabel and their sub-contractor have been pooh poohing my reputation and quality of work.
There is a company based out of Hedrum, MN (Schnabel) who take 50% of profits but reimburse contractors 50% of costs. I cannot put my finger on it, but I do not like that setup. But they are a regional that cover parts of ND, SD, and MN (parts not all) and they can hold a grudge.
I started out being a sub-sub-contractor for Schnabel. I thought I was making good money ($1000.00 a week at first) but then the "good ole boy" network started up and another contractor with a personal relationship to Schnabel took over 95% of work orders. That's when I started contracting with other nationals. Schnabel found out about it and dropped me without paying about $2000.00 in unpaid invoices. Since then I keep hearing things through the grapevine that Schnabel and their sub-contractor have been pooh poohing my reputation and quality of work.
G
they charge 40 for a lock change. the lock cost me 5. they get 20 i get 15 with out any reimbustment. i have cut my ties with them. i didnt think the revenue sharing was part of the PP business.a1propertyclean said:Revenue sharing? Never heard of that one. So that means, they'll split their profits with you? Interesting. Where do you suppose those profits come from?:whistling
Linda
So, basically, they take 50% off the gross invoice and no reimbursements. I suppose their argument would be that they have as much in expenses on their end as you do on your end?derrickp said:they charge 40 for a lock change. the lock cost me 5. they get 20 i get 15 with out any reimbustment. i have cut my ties with them. i didnt think the revenue sharing was part of the PP business.
I would never go for that arrangement. To me, it's just
.Linda
a1propertyclean said:I suppose their argument would be that they have as much in expenses on their end as you do on your end?
I would never go for that arrangement. To me, it's just
Linda
Suuuuuuuuure they do. :no::no::no::no::no::no:
And no I wouldn't go along with that either.
G
We had one of these offers as well, I disposed it in the trash. This is interesting, we invest money, equipment, labor and sharing 50%. That means that if HUD pays 50.00per QY we get 25.00 and we pay to the crews and to dispose it.... So, we work for free.........
G
OK I don't think you are looking at this correctly:laughing:72opp said:Good Morning,
There is a company based out of Hedrum, MN (Schnabel) who take 50% of profits but reimburse contractors 50% of costs. I cannot put my finger on it, but I do not like that setup. But they are a regional that cover parts of ND, SD, and MN (parts not all) and they can hold a grudge.
I started out being a sub-sub-contractor for Schnabel. I thought I was making good money ($1000.00 a week at first) but then the "good ole boy" network started up and another contractor with a personal relationship to Schnabel took over 95% of work orders. That's when I started contracting with other nationals. Schnabel found out about it and dropped me without paying about $2000.00 in unpaid invoices. Since then I keep hearing things through the grapevine that Schnabel and their sub-contractor have been pooh poohing my reputation and quality of work.
This Schnabel is paying 50% of the expense:
1) charge for fuel to and from jobsite
2) charge for fuel to and from landfill
3) charge for the landfill bill
4) charge for 3 men for 8 hour day at $42.00/hour
5) charge for cost of the daily insurance rate for GL, WC, Auto ins etc
6) charge for the photography time with uploading
7) charge for the clerical time at $28.00/hour for invoicing
8) charge for the utility bill for electrical usage for lights and computer usage
9) charge for vehicle and equipment depreciation
Heck the way I see it the labor will eat up 150% of the total cost of the job and they are paying 50% of these costs and then 50% of the leftover (profit)......HMMM sounds like you could come out like a bandit...just got to know how to work the system:thumbsup:
G
That would never happen:no: Remember, these outfits think that if you charge $35 for a grass cut, that you made $35 profit. All those miscellaneous things you referred to above shouldn't be factored for when running a P&P biz......FremontREO said:OK I don't think you are looking at this correctly:laughing:
This Schnabel is paying 50% of the expense:
1) charge for fuel to and from jobsite
2) charge for fuel to and from landfill
3) charge for the landfill bill
4) charge for 3 men for 8 hour day at $42.00/hour
5) charge for cost of the daily insurance rate for GL, WC, Auto ins etc
6) charge for the photography time with uploading
7) charge for the clerical time at $28.00/hour for invoicing
8) charge for the utility bill for electrical usage for lights and computer usage
9) charge for vehicle and equipment depreciation
Heck the way I see it the labor will eat up 150% of the total cost of the job and they are paying 50% of these costs and then 50% of the leftover (profit)......HMMM sounds like you could come out like a bandit...just got to know how to work the system:thumbsup:
G
Isn't that the truth! COB is a voodoo term to these peopleDreamWeaver said:That would never happen:no: Remember, these outfits think that if you charge $35 for a grass cut, that you made $35 profit. All those miscellaneous things you referred to above shouldn't be factored for when running a P&P biz......
G
That is true. I think these companies are looking to find uneducated people who doesn't know what 50% would do to them. I don't even do 40% sharing. I think many of these companies are using bad market and amount of desperate people. But - good luck. I want to see quality of the work completed and volume one can maintain as with 40-50% sharing you have to do all by yourself and very fast, like very fast..... Within 60 mile radius, including not very friendly areas around, including trash-outs...
metropaintingco is right on the dollar. They are casting their nets out looking for the dumb and desperate. The rookies. The longer it takes for them to figure out they are going broke they longer they make money off of them. Yep, land of opportunity people. Before long they will all be stacking their furniture on the top of a pickup and moving their families to california to pick fruit, ie the Grapes of Wrath.
Sas
I have just applied through them, but I have not received anything yet. I am curious, but I have no problem doing the work the right way and abiding by all the rules, regulations and policies provided.has any one heard of these guys? they are based out of florida. they give you a price sheet with prices for all there different contracts. most of the prices are per bid but they make you sign a 50/50 revenue sharing agreement.
Hungry
You not work and be hungry, I get the work and get fed. I know my economics and can make anything work. I'm eating.I got e-mail today from them asking me to sign on as a sub-contractor . After looking at there pricing I think i`ll pass!
I got a email from them 2 weeks ago about signing on with them,i said send a price list,took a look and said no.
Then they asked after i refused how much teriroy i could cover and i said ive got the whole state,then they sent over another price list not much better and i refused again.
Their is a large post about them on linkedIn
Then they asked after i refused how much teriroy i could cover and i said ive got the whole state,then they sent over another price list not much better and i refused again.
Their is a large post about them on linkedIn
I was just going to say what Zuse said.
Look for a group called
Subbers List- Nopay companies....
You'll find about 100+ companies listed...
Look for a group called
Subbers List- Nopay companies....
You'll find about 100+ companies listed...
This is the correct attitude to have in this industry! If you're looking to take the little bit of money you have left & insert it into the pockets of the next guy up the ladder.You not work and be hungry, I get the work and get fed. I know my economics and can make anything work. I'm eating.
I am personally aware of more than 5 vendors who worked for a lowballer company because they needed to eat & "knew" they could make anything work. They either went broke trying or realized real quick to get out while they could.
The "any work is good work" brainwashed Craiglisters of this industry seem to be a dying breed, but every once in awhile a shakey, grainy glimpse of one pops up on this or another forum, and just like a Sasquatch video, I find myself scrutinizing them closely saying to myself 'that's not a real vendor, that's a brainwashed Craigslister dressed-up in a real vendor's costume!":icon_rolleyes:
PS: Unlike a successful brainwashed Craiglister, Sasquatch is real!
that is the most asinie logic you can have in business...You not work and be hungry, I get the work and get fed. I know my economics and can make anything work. I'm eating.
what cutrate insurance do you have????
PropPresPro,
Sasquatch is real? Did you see 1 of those hairy buggers? I've got friends that swear they have! They would absolutely give you "the look that kills" if you doubt them....Saw 1 in NorthWest Colorado.... I personally think it was BPWY BUT...who knows!
Sasquatch is real? Did you see 1 of those hairy buggers? I've got friends that swear they have! They would absolutely give you "the look that kills" if you doubt them....Saw 1 in NorthWest Colorado.... I personally think it was BPWY BUT...who knows!
1 - 20 of 47 Posts
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