Repair Only Business that subs out Replacement

[nixquax]

Are there many Repair only businesses that subcontract out the replacement jobs? If so what are the benefits and/or the pitfalls of doing this kind of business?

[mend master]

I don't sub. I have a friend that does replacement and no repairs. I do repairs but no replacements. We refer to each other without any money changing hands and it works out well. One of the issues with subbing, is that not only do you put your reputation on the line, but you also have a liability issue if there is any damage. Its just like a general contractor using subs in the housing industry. The home owner often doesn't even know who the electrician is that wired his house, but if something doesn't work the general contractor is the one that gets the call and is expected to handle the problem. If you're okay with being liable for someone else's workmanship and have the insurance to back it up, go for it. If not, better to either refer to a reputable company or simply state that you are repair only and don't make recommendations because you are not in that side of the business. There is money to be made, but there are also risks to it as well.

[GlassStarz]

I have a deal with a replacement guy when I find one I call him he gives me a wholesale price. I mark it up what I think I can which depending on the customer and type of car is usually between 25 and 75 bucks if the customer says to do it I call him and schedule the replacement. He collects and I go by once a week and pick up the difference from him. It works really well.

[vintage]

I sub out to a company that I know will stand behind there job, and they have me do there repairs. At the end of the month we trade invoices, and checks. Every replacement gives me between $50-$150. It allows me to serve my customer and not send them to another company that may also offer repairs, and compete with me.

[jimmymaguire]

To Sub out replacement/repair whichever you wish is a good idea. It saves on the trouble of investing in infrastructure and you can concentrate more on the job you are dealing with. It will save space, time and money provided you sub it out to some trustworthy firm. There needs to be clarity in business and you have a choice to customize your business deal with the person the way you like. It should be a win-win situation for both. If you get a perfect deal, then nothing like it! It will save you a lot of hassle and you could gain expertise in the job you do. This system works for some business men, though others learn and then become self sufficient with both specialties in the future. Depends on the nature of business and businessman

[nixquax]

Thanks for the feedback. I'm still trying to find someone or trustworthy company who will work with me on this. NXQX