subcontracting out replacements?

[scratchy]

I was doing some thinking... dangerous I know. I refer replacements to a mobile guy who charges insanely low prices, $135 installed on late model pickups and the like. Is it feasible to land a replacement job, charge the customer $150 or a little more, sub it out to the other guy to actually do the work and pocket the difference? He does no marketing whatsoever and lives on word of mouth. Right now I am sending the guy a steady stream of work at no charge of course.

[mafsu]

The only problem I see with it is if you sub out the work you accept liability for any problems that arise from the replacements.

[GlassStarz]

I personaly have a agreement with a local replacement guy $50 from him for each referal and he also refers any phone calls he gets that are for obvios repairs to me works well

[scratchy]

I think you have something there. I want to get to know this guy better and see if he is willing to mark up the price for people I send his way and then give me a "commission." I really think he should make even more for himself per job. The current local price war in replacements is a huge disappointment. Why are these guys killing each other's business instead of just going out and finding work? There are plenty of broken W/S's for everyone. You guys probably know better than me but what is the realistic take home pay on $135 per W/S installed? It can't be good.

[StarQuest]

Scratchy,

I had way more to say about this....but I think Mafsu said it all in just a few words. "You would be taking on a big liability" You write one glass replacement invoice and things happen to go wrong, guess who's responsible? You buddy! That might also include your business and all your personal assets if it involved a serious injury for one improperly installed shield. Is that all worth making $15 extra?

I wouldn't !!!!

[StarQuest]

scratchy,

A little more info to share about this guy. If he is legit and buying glass from a regular supplier best price he's getting on glass would be about $55-$75 per shield before figuring in urethane adhesives. Almost all glass jobs require 1 1/2 tubes of urethane to set a shield @ $6-$7 per tube. Most replacements also require molding replacement which will add $7-$15. So far we have a total of $68-$97 in material cost. Which leaves him with anywhere between $38-$67 profit per replacement. The only way he could produce more profit is to steal glass from his 9-5 job glass company (which I see al the time) or to buy 2nds. "2nds"..........can be bought on the open market for as low as $25-$45 per shield but should never be used. It's defective glass that should've been put in the trash.

I already know this guy doesn't carry any glass replacement insurance! So you know if something goes wrong.....he's not covering it!

Find a company like GlassStarz to give you $25-$50 rerferral fee that charges more..and one that you know is at least professional!

[ruffburr]

I work a deal with a local guy who does low cost replacement , the way that i deal with this is that i offer my customers a 10% certificate off any windshield that is beyond repair or the damage spreads while doing repair if they take thier business to my guy, meanwhile back at the ranch In turn i sub contract all of his chip repair at a pre arranged rate. Plus if i have a problem customer i just say "fine, take your car to my friend and i'll give you 10% of your deductable or as always 10% off anew installed windshield . needless to say this works great as a backup and a promotional tool (by the way his biz is licenced and insured as is mine so as far as i can see , no problem

[StarQuest]

ruffburr,

That might work in southern cal......but not here in Detroit! People here are offered 50-100% off glass deuctibles every day.

Guess I should consider moving to another state

[ruffburr]

the 10% is on top of the $100.00 off the deductable that my guy already offers and this works real well for those that don't have comp. ins as they get a low price on thier glass to begin with from the guy i deal with plus 10% off of that, we have the same deductable waver type deals here as you do in detroit

[StarQuest]

ruffburr,

Now you have me really confused Help me understand all this better. OK, so you find a customer that needs a shield, then refer it out to your guy that waives their $100 deductible....plus you add another $10 to that! Is this guy still paying you some kind of referral fee or are you just out 10 bucks for being nice?