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Sub Contracting #155564 01/16/05 07:53 PM
Joined: Dec 2004
Posts: 46
T
ToHo Offline OP
Member
I reiceved a call from a local home center and was asked if I would do there electrical installs for them. They want to use a lisenced electrical outfit. I guess in the past they had a handy man doing the electrical installs. The oppurtunity does'nt seem bad. If nothing else its good expsure for the company.I was wondering if anyone had any experience dealing with this type of sub contracting. Thanks... ToHo

Business, Office, Estimating, Legal:
Re: Sub Contracting #155565 01/16/05 08:12 PM
Joined: Jan 2002
Posts: 1,457
E
Electricmanscott Offline
Member
I have not done this but what I have heard of it are higher than normal insurance requirements.

Re: Sub Contracting #155566 01/16/05 09:39 PM
Joined: Jun 2001
Posts: 642
N
nesparky Offline
Member
I looked into this a while back. Check out the pricing the home center gives out vs what they will pay you. I found out that the ones I looked at had low ball prices for your work and kept 45% of that price as a fee for getting you the contact. there was no money in the jobs for overhead or profit. If you like working for less than you pay 2nd or 3rd yr apprentices this might appeal to you. But if you want a profit you have to tell the home center that all the install prices will be set by you and they will only get a set price for each referal that results in a signed contract not just a contact.
[Linked Image]


ed
Re: Sub Contracting #155567 01/16/05 10:22 PM
Joined: Dec 2003
Posts: 84
S
slumlordworker Offline
Member
i looked in to it and the insurance requirement was just too high for me at the time also one company wanted everybody in my company to be drug tested have a criminal background check on file do a credit check and everyone was suspose to have name badges. sounded like a crock of crap to me plus some of the advertized prices they offer are so low u would have to be a hack living on the streets to work for that rate

Re: Sub Contracting #155568 01/17/05 07:13 PM
Joined: Jan 2002
Posts: 1,457
E
Electricmanscott Offline
Member
You have to be kidding. Drug testing, criminal background check, name badges, a crock of crap? Sounds perfectly reasonable to me.

Re: Sub Contracting #155569 01/17/05 07:39 PM
Joined: Nov 2002
Posts: 267
W
Wirenuttt Offline
Member
I had just given a guy that worked in the electrical dept of the big box store my business card. He gave my number out to anyone who asked for an electrician. It was private no involvement with the stores policies.

Re: Sub Contracting #155570 01/17/05 07:44 PM
Joined: Oct 2003
Posts: 259
J
Joey D Offline
Member
I wire hot air furnaces for a company that gets the jobs from Home Depot. I think they pay a 10% fee of the job back to the Depot. They charge what they want to so it works out.

Re: Sub Contracting #155571 01/17/05 09:45 PM
Joined: Feb 2003
Posts: 687
A
Active 1 Offline
Member
I don't think I would want to sub for the big stores because I don't see them as a partner but an enimy.

A NEW HOME DEPOT OPENS EVERY 48 HOURS!!!
HD HAS 7,000,000 IN SALES EVERY HOUR!
http://www.gsb.stanford.edu/news/headlines/vftt_nardelli.shtml

HD OPENED IT'S 1,000 RENTAL DEPT IN 2004! http://rermag.com/Home_Depot_1000_121304/

HD buys Lightmor Canidas largest lighting distributor. One of many planned acquisitions, aimed at taking a bigger bite of the estimated $100-billion-a-year commercial building supply sector.
http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050106/RHOME06/TPBusiness/Canadian

Re: Sub Contracting #155572 01/17/05 10:18 PM
Joined: May 2004
Posts: 697
D
Dave55 Offline
Member
I read a poster at the local supply house that said, "We will never compete with you". It showed an ad of HDs for installations of ceiling fans, etc.

Personally, I'm not very fond of kick-backs.

Dave


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