CABL Forum - Re: There is a way to change things

Let's use your A/O as an example of my point, as your numbers are accurate.

MSO truck roll for A/O would be - $100

Same work with Contractor providing the truck roll - MSO cost $40.00

Prime contractor pays subcontracting company $24.00 (60%) and pockets $16.00 (40%) simply for distributing work

Subcontracting company pays their sub (the installer) $12.00 (50%) and pockets 50% for simply distributing work.

Installer does the work for $12.00 and provides truck, tools, gas, travel time, work time, labor and knowledge to do the job.
In the interest of keeping it simple, he has expenses of $5.00 for his vehicle and $10.00 for his time (30 min. job based on $20 per hour as his set value) for a net loss of ($3.00).

Installer is surly with customer because he knows he is going to do the job at a loss, but hopes to make it up on another job.
Customer has had bad experiences with the MSO and are upset because the prior 2 installers that came out said they weren't able to do the work for various reasons (they didn't want to "lose money" on the job so they blew it off), and they consider this installer at their house this time to be rude, as they see the glum look on his face. As far as the customer is concerned, the installer IS the MSO.
Installer gets his check for the job 3 weeks later and finds a $75.00 chargeback on that job for not correcting the "improper" tagging at the tap according to the QC personnel for the Prime Contractor.

And that is exactly what is currently going on in this industry.

And now, for an alternate way of doing things, that makes much more sense for all.

We will call this scenario number two:

MSO truck roll for A/O still would be - $100

Same work with Independent Contractor providing truck roll - MSO cost $35.00 (MSO saves even more money)

Installer (Independent Contractor) happily installs A/O knowing his cost for the job is ~$15.00 again that same $5.00 for his vehicle and $10.00 for his time (30 min. job based on $20 per hour as his set value for a profit of $20.00 which can be used to maintain or upgrade his truck (wink, wink).

With scenario number two, the MSO saves money, and the customer is much happier with the service
And the installer is much happier and actually can make a living doing something that he/she enjoys to do, and has the willingness and time, because of pay being much more in line with the work task, to do a professional and proper job.

Oh, and I almost forgot, and no Prime contractor drumming up bogus chargebacks!

A win-win for all.

INSTALLATION

CONSTRUCTION / TECH

OFFICE / OTHER

Re: There is a way to change things - for everyone