referall fees; last gasp???

[JIMRPT@AOL.COM]

before getting into the main reply I'd like to say that referral means(to 
me)....
"hey Jim Ms. yada wants her piano worked on why not give her a call?"
dollar value?  5% of anything over 1,000 including the first 1,000.

wheras subcontracting means "hey Jim we have a possible contract to do Ms. 
yadas grand here is the quote I have worked up, any thoughts before I present 
it?"
dollar value? 20% of contract.

In a message dated 30/08/01 1:29:09 PM, mfarrel2@tampabay.rr.com writes:

<< Do you use the same system for a complete rebuild of the $10,000 to 
$25,000 nature? Does the referring tech get 20% of that work? Seems to me 
that $2,000 to $5,000 for the referral is steep. But of course that is the 
view from my vantage point (as the one that would be shelling out the 
referral fee). Seems to me there should be a formula for reduced percentage 
as total project budget goes up. What is your (or anyone else) take on that? 
>>

Seems to be quite a bit of interest in this subject. :-) 
  From my perspective there are several salient points that need to be 
addressed without regard to manner of agreement between prime contractor and 
subcontractor. 
While reading through these points(my opinions only) remember that without 
the 'prime' contractor the 'sub' *would likely not have this work at all.*

 1. To be successful the 'sub'-contractor must have a FIRM handle on their 
time/slash expenses.
 2. To be successful the 'sub'-contractor must set their prices at a point 
which allows an adequate margin of profit while supplying "earned fees" to 
the 'prime' contractor.
 3. To be successful the 'sub'-contractor must insure competent workmanship 
and quality parts/materials are used in all shop work.
 4. To be successful the 'sub'-contractor must supply 'on schedule' work as 
per any agreements.
 5. To be successful the 'sub'-contractor must be flexible as to actual work 
which 'always' shows up during a rebuild and be willing to entertain this 
work without added costs, within reason.
 6. To be successful the 'sub'-contractor must be trustworthy in all aspects 
of the agreement as to workmanship and any customer contacts.
 
*********
A. To be successful the 'prime'-contractor must have a FIRM handle on their 
time/slash expenses.
 B. To be successful the 'prime'-contractor must be trustworthy in all 
aspects of the agreement and to follow-on workmanship and any customer 
contacts.
 C. To be successful the 'prime'-contractor must be flexible as to available 
shop times.
 D. To be successful the 'prime'-contractor must be willing to act as the 
go-between
 from customer to 'sub' without regard as to the subject matter, if requested 
to do so.
 E. To be successful the 'prime'-contractor must have the 'customers' 
interest in mind as they only they know, directly, what the customer needs, 
wants , and expects. 

Those are some of the basics from my viewpoint...so this brings us to 
amenable distribution of funds........................
 This area is open to 'any' agreement between sub and prime but I find that a 
straight percentage agreement works best for me. This without regard to the 
totals involved, be they 3,000 or 30,000. (my percentage happens to be 
80%/20% but is always subject to negotiation, *before* any individual 
contract is accepted by me or presented to the customer, owing to 
circumstances)

 If a prime tech brings me a rebuild contract worth say 20,000 I would just 
as happily write out the prime checks totalling 4,000 as I would if the job 
was 5,000 and the prime checks came to only 1,000. This for a number of 
reasons: 

First because without this contract I probably would not have gotten the job 
at all.
Second because it has not cost me any ''current' time/expense at all in order 
to get this work
Thirdly because I can sit in my shop have the work brought to me and know 
that once it leaves the shop I will never have to see this particular piano 
again, barring unforseen developments of course. :-)
Fourth because The customer will get a well done piano, the 'prime' will get 
a profit for their work/referral and I will make my margins as I have dete
rmined them to be.

*That is a win for the customer because their piano will be ready to play, 
hopefully better than ever.
*That is a win for the 'prime' because they will have provided a service for 
their customer, gotten suitably rewarded for same in direct proportion to 
their 'selling' efforts and along the way will have enhanced their reputation 
with that customer.
*That is a win for me because I have managed to keep the wolf from the door 
"one more time!" :-)
It don gets no mo bettur den dat.
Jim Bryant (FL)