But check out this math/////
We are going to start with One Dollar///paid to the prime
Of course the prime must make money too, So he snags 30% out of that dollar leaving 70 cents for the contractor.
Now the contractor must survive too, But since he dont deal in the volume as the prime, He ups his cut to 35%. So he pays out 45 .5 cents to the sub- contractor.
Now the sub-contractor must survive too. But since he dont deal in the volume as the contractor, He ups his cut to 50%. So He pays out 22.75 cents to the sub of a sub-contractor.
My figures are on the low side/ The high side would be :
Prime cut 45%, Contractor cut 50%, Sub cut 60%, leaving the sub of a sub 13 cents out of that dollar.
I hope this give you a better knowledge of what we old dawgs call the "Tricle Down Effect"
Good luck in your ventures
