I realize that every hour is not billable. This is explained to the installer. He has agreed to take the good with the bad. Many of the package/project jobs are billed for more hours than they take to install. For example $200 to prewire a room for speakers and volume control should take about an hour. This is billed for more than 3 hours @65/hour. So he can make lots of extra money, therfore he must absorb some of the non-billable work, just like the company does.
I have set up a system for Promo work or favor type work. Like for our builder's personal systems or model homes. What I do is make an imaginarybill rate of $36/hour. I give the installer 1/3 of that so he makes $12/hour. Not bad for work which will increase everyones bottom line.
Based on current pricing, he should do really well as long as he can keep up. If he needs a helper, it is taken from his pay. For example, If a prewire is billed for $3000 and normally takes 4 day, he makes good money. If he wants to be faster then he hires a helper(the company pays from his third of 3K). Now it takes 2 days but less the $160 he pays the helper.
I think this can work. As long as he is a hustler.
