Negotiating & Maintaining Subcontractor Quality with Todd Freeman | Painting Business Pro
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- เผยแพร่เมื่อ 8 ก.ย. 2024
- Make $75k More Profit Per Year Without Working More - Apply Here: paintingbusine...
You can also get access to free resources on our website here: paintingbusine... Todd recently started his painting business. He’s off to an awesome start and getting his first jobs produced.
In this video we talk about how to set up and deal with Workers Compensation and insurances with subs, how to maintain and manage good quality work, and how to negotiate to make sure you are not over paying (or paying for low quality subs).
Subcontracting is a question I get a lot… But once you understand that you are just dealing with people, it gets a lot easier!
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Eric- one of the best videos I’ve seen on subs and how to use them. Been using the sub model since 2003...it works so well. There are excellent subs out there...find a good one and they will eventually dial in to your ways.
I call them “my team” and I consider them partners...not just a throw-away tool. Treat them with respect and support them with a clear scope of work...and bring them consistent work. They will stick beside you and make your life and business so much better than thankless, hourly employees (IMO). Great program....thanks for all the content, like this, that you are putting out there for us.
Totally agree! I love that you have that perspective. Thanks for the comment!
I made the mistake of depending on 1 single sub and letting him know so. I was stupid enough to think he'd appreciate that and put even more enthusiasm to help my business and grow together, but instead what ended up happening is that he became greedy and demanding more and more money. He also started lowering his standards and even treating me like he was the boss. That was ALL my fault for telling him I didn't have anyone else to do the jobs, so please, whatever you do, NEVER give anyone the upper hand on your business. Work on having different subs, and like Eric said, don't negotiate. The second you do it, you basically announced you're capable of paying more and that's exactly what they'll push you to do every time.
What would you do differently?
@@PaintingBusinessPro for starters, not opening my mouth more than necessary. All subs need to know is what the job and your requirements are and how how much you'll pay, that's it.
Great interview. Good luck building your business!
How do you control and enforce your companies standards with subs? I.e. cleanup of paint chips, leaving the property the same way as when they arrived or better, overspray cleanup..etc.
Expectations. Clear subcontractor agreements. People who can't deliver don't get more work from us. We keep great subcontractors around and attract the good ones by being the best company to work for. That's the really simple version.
@@PaintingBusinessPro and these agreements, contracts (both for clients and subs), and other documents are readily available in the materials you provide?
@@johntorres5829 Yes. As well as training on how we manage all of it. And if there is anything not covered that you have questions about, you just ask in the private group and I'll respond (so will a bunch of other members).
The reality is not everything can be covered or it would be a 100 hour course and nobody would go through it. Can't cover every single "what if" scenario. Which is why we have a private group for questions that come up and all of those unique situations.
From what my insurance agent said, if I hire subs without insurance it will only cost me about 6% of what their payroll is. Sort of works out to be about 3% of revenue generated (by them). That does not seem high and it opens up a whole new pool of available labor to hire. Getting guys to accept 1099 payment and buying their own material is not hard. But getting them to get their own insurance is hard. When you no longer require it and take the extra cost yourself (of insuring them) you get to have access to more talent and thus have a better work force. What do you think of this? Of course I guess its easier for me since we have little accident risk since all we do is paint cabinets. I would be afraid to cover guys doing exterior work, even interior work (staircases, 2 story stuff, breaking stuff).
I would not recommend that. It's best to find legitimate subcontractors who carry their own insurance. You should talk to an insurance agent about the risk you are taking and determine for yourself if you are willing to take that risk. Basic insurance for a subcontractor is not very expensive.
Question.. Do some sub contractors have their crews or do you have to hire on multiple subcontractors? This is considering that it's a big job. Thanks in advance!
It's a combo. Some are just themselves. Some have multiple crews.
Eric - I have your course.. How do you present each job and price you are paying out to Subs? Do they go out and look at it prior to starting to see if they accept the price or not?
Once we have an established relationship, they don't need to look at the job. We just send them jobs and the price we pay them and they go do it. We can do it this way because we price well.