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Partnering with sales company
This thread has 15 replies. Displaying all posts.
Post 1 made on Wednesday January 2, 2019 at 22:59
Dboughton
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Has anyone partnered up with a company that sells cable,solar,and power? If so, how have you guys determined commission? I only expect them selling smaller jobs - tv hangs, maybe small surround sound setups. Any suggestions would be great. Currently most of my work comes from my website, word of mouth and lead service like HomeAdvisor and to a lesser extent Thumbtack. I would rather give a local company the commission vs HomeAdvisor but I am not sure what would be a fair commission. Currently I am the only one selling my projects so getting a foot in more doors would be helpful.
Post 2 made on Thursday January 3, 2019 at 02:55
buzz
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I’m not so sure about the cable company giving you leads. They are likely to become your competition for small jobs.
Post 3 made on Thursday January 3, 2019 at 03:24
Ernie Gilman
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This brings up the entire issue of another company whose talents cross over yours quite a bit. You can expect for shit to happen.

I'm going to perhaps go slightly out on a limb here and ask you to just accept that Best Buy's installation business is not a fantastically successful endeavor. Then --

Look at it this way -- if a company like Best Buy has an installation company that really can't make it, and this is in an atmosphere where every dollar stolen by the installation company goes right to the company, how can two separate companies survive the same thing?

This goes two ways, too -- where the sales people may promise things that the installation people can't possibly do, or at least not at the price... if Best Buy can't manage that really successfully, how can two separate companies manage it?
A good answer is easier with a clear question giving the make and model of everything.
"The biggest problem in communication is the illusion that it has taken place." -- G. “Bernie” Shaw
OP | Post 4 made on Thursday January 3, 2019 at 07:30
Dboughton
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It’s not the cable company that would be selling. It is a sales company that sells cable,solor and other services. They don’t do installations.
Post 5 made on Thursday January 3, 2019 at 08:44
kwkshift
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I'd just do an agreed upon % of each job profits that you secure.

The problem is that what we do is so custom and nuanced that this could turn into a mess in a hurry. There are so many costly variables that we run across that it could kill your profits.

I'd rather have them just refer the jobs over to me to look at and bid, if it were me.
OP | Post 6 made on Thursday January 3, 2019 at 09:53
Dboughton
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Agree that’s why I will probably keep them for just the most basic jobs.
Post 7 made on Thursday January 3, 2019 at 09:57
highfigh
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On 1546503865, Ernie Gilman said...| This goes two ways, too -- where the sales people may promise things that the installation people can't possibly do, or at least not at the price... if Best Buy can't manage that really successfully, how can two separate companies manage it?

I think this is the reason CI can succeed where big box stores and many retail operations fail- we actually do this work, so we have a much better idea of how long it takes, what variables might show up and where the plan may need to be tweaked because of things unseen/unknown. Sales vs service/install is as old as sales and each has a different goal- sales people need success in sales slightly more than they need success in service/install because their commission & job depend in closing sales- they can usually survive some amount of conflict with service/installation departments.

If Best Buy would pay commission, come up with a good plan and hire qualified people, we might not want to remain independent.
My mechanic told me, "I couldn't repair your brakes, so I made your horn louder."
Post 8 made on Thursday January 3, 2019 at 11:10
MNTommyBoy
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On January 3, 2019 at 09:57, highfigh said...
If Best Buy would pay commission, come up with a good plan and hire qualified people, we might not want to remain independent.

Isn't that what Magnolia was for?
"There's a big difference between winging it and seeing what happens. Now let's see what happens." ~MacGruber
Post 9 made on Thursday January 3, 2019 at 11:28
MNTommyBoy
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On January 2, 2019 at 22:59, Dboughton said...
Has anyone partnered up with a company that sells cable,solar,and power? If so, how have you guys determined commission? I only expect them selling smaller jobs - tv hangs, maybe small surround sound setups. Any suggestions would be great. Currently most of my work comes from my website, word of mouth and lead service like HomeAdvisor and to a lesser extent Thumbtack. I would rather give a local company the commission vs HomeAdvisor but I am not sure what would be a fair commission. Currently I am the only one selling my projects so getting a foot in more doors would be helpful.

I don't like this idea for leads. My next door neighbor has the exact same two business and power licenses I do, has given me one referral in 10 years, and has a vastly different business than me (he sells Comcast subs and some Sat.)

After looking at your website, which is great by the way, if you want more [local] leads, I would tell you to find a good BNI chapter near you, or be more active in your Chamber and community. If you're already paying for HA and Thumbtack, which are generally the cheapest jobs/people out there, you might as well build your network instead.

Also, not that you asked, you should work more of a new construction angle (contractors/custom builders) and push for higher end systems and clientele. Half of the brands on your website won't make you any real money.
"There's a big difference between winging it and seeing what happens. Now let's see what happens." ~MacGruber
OP | Post 10 made on Thursday January 3, 2019 at 12:33
Dboughton
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I have looked into BNI but haven found a real good group in my area. But will look into it again.

Personally I prefer retrofit work to new construction. I like to get in and out of project quickly. Being a one man shop the smaller jobs work better at this time for me I would have a harder time handling large new construction projects without hiring more people.
Post 11 made on Thursday January 3, 2019 at 14:50
Trunk-Slammer -Supreme
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Do it with a contract that sets out the agreement in detail.

Basically you are their "referral" salesman, and they yours. Have a discussion as to what percentage would be acceptable to both.

I did this with some other trades (electrician, security, cabinet shop, etc, etc) and it worked out really well.

In some cases, I sold their system and they installed, and in some I simply referred them, and they me. Need to have a good contract and a good deal of trust for it to work out for both.
OP | Post 12 made on Thursday January 3, 2019 at 15:20
Dboughton
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Thanks for the info
Post 13 made on Thursday January 3, 2019 at 22:11
MNTommyBoy
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On January 3, 2019 at 12:33, Dboughton said...
I have looked into BNI but haven found a real good group in my area. But will look into it again.

Personally I prefer retrofit work to new construction. I like to get in and out of project quickly. Being a one man shop the smaller jobs work better at this time for me I would have a harder time handling large new construction projects without hiring more people.

Revisit BNI if you get a minute. It's not for everyone, but if you can find a good/big group, cast a wide net, you should well.

For new construction, revisit that too :) I, and many others here, are in the same one-man boat. I like to get in, get out, get paid as much as the next guy but... Start small, a remodel or a basement finish. My largest project last year was a basement finish for 55K. But, I've done them for 5k too. (Ironically they can take about the same time). I would bet you could do most/all of it on your own - a couple days to wire, a few days to finish.

If one can do big chunks of the fiscal year in just a project or two, one will forget about lead generating services in a hurry!
"There's a big difference between winging it and seeing what happens. Now let's see what happens." ~MacGruber
Post 14 made on Friday January 4, 2019 at 08:45
buzz
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We do a good job, and because we are “painless” to work with, we get a lot of referrals from contractors and architects. Everyone feels safe to leave us alone on a site while we do our stuff. We don’t do as well with the decorators because they expect unrealistic commissions and don’t leave any money on the table (plus, they have no respect for the physics of the situation).

In some areas there are “design houses”. A group of builders, architects, and designers adopt a large, usually down trodden property, with each participant outfitting a room. The public is charged a fee, donated to a charity, to view the property. It’s a good venue to “rub elbows”. The property owner benefits from all of the fixing and painting, but does not keep the furniture. Of course, a disadvantage for the property owner is that each room has a different theme.
Post 15 made on Friday January 4, 2019 at 09:10
highfigh
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On January 3, 2019 at 11:10, MNTommyBoy said...
Isn't that what Magnolia was for?

Have you been there? I have yet to speak with someone who knew what they were doing.
My mechanic told me, "I couldn't repair your brakes, so I made your horn louder."
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