Contractor/friend of mine referred me to a small kitchen job. Basically it went like this: Woman owns a condo in the same building as my friends brother in law. She asks the BIN if he knows a contractor. BIN gives her my friends number. He mainly does paint and small repair jobs. He calls me and asks if I want to go look at it with him. We both go, spend about 45 minutes with her. He tells me job is totally yours if she accepts my bid. So in total he spent about an hour of his time. I say 5% of the total contract which works out to be $250 in his pocket for that hour. What do you guys think?
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I think that $250 is very generous .
dusty
Can I be friends with you?
You are way too generous even if it is the season.
Depends....when you refer him for "paint and small repair jobs", do you receive a cut?
Seriously. I work with several contractors around town. We don't nickel and dime one another for referals, which is basically all this guy is doing.
Unless he is actually contracting the job, you don't owe him anything other than a referal down the road.
J. D. Reynolds
Home Improvements
Jd ,
He didn't say the guy asked for or expected a fee , so I don't think the guy is nickel and diming him .
I have a cabinet shop and between a friends shop and mine we send each other referrals when we can't handle the work load . My pal was dead in the water 4 months back and I was able to send him several jobs probably worth $25,000 . We have a basic agreement ,, we help each other when we can and at best on a good job it usually involves a dinner here or there and a nice evening.
On the other hand in these slim times I am not so sure I wouldn't be happy to pay finders fees to stay busy , some guys cut the price to get the job .I never have had to pay a fee or really drop my price in 27 years to get work but I am remaining open minded and looking forward to a better economy and being able to feed my family this winter .
regards dusty
You're right....I worded that wrong.
It's a generous offer, but I think he may be setting a precedent by offering a finders fee. His friend may from here on out expect such a fee......and a generous one at that.
Business is business and all, but from his description, it doesn't sound as though his friend would be able to recipricate in kind.
I think offering to buy lunch as a thankyou would be more than enough, along with making sure to recomend his friend on smaller projects.
J. D. Reynolds
Home Improvements
Right On !
"It's a generous offer, but I think he may be setting a precedent by offering a finders fee. His friend may from here on out expect such a fee......and a generous one at that."
Agreed. I also think that the friend will next try to steal his childred and sleep with his wife. Figured I'd jump to the next conclusion for you.
I would love to read a thread where the worst possible case does not happen immediately. Vic
I offered "the worst possible scenario"?
J. D. Reynolds
Home Improvements
I was in the business for 42 years and I think that is a fine amount for a finder's fee. It would be nice to make $250 in every hour.
D.E.McFarland, Ltd
I'm not sure it's a great idea to start attaching a number to that sort of connection.
Keep an eye out for something up his alley that you can pass on to him and you're one for one. Both of you will be better off for it, I think.
j
Tis the season, and you have demonstrated such. Consider it a wise and a very fair investment.
My accountant once said to me & my wife, "money is nothing more than an agreement."
Good show.
Just so happens $250 is the exact amount I sent as my last finders fee. Job size/ scope sounds similar. I was tempted to send restraunt and/or other gift certificates, but decided cold hard cash spends best. The finder seemed happy.
That one job will most likely lead to additional work in the same house and I am planning on sending him something for that additional work also. Some would, and will argue that after the initial contact his deal is over, but the customer had mentioned this additional work as possible during our first meeting so I feel without the initial lead, I never would have got that work either. Vic
I think he will be a happy guy, and will think of you next time he runs across someone that needs work done .
Seems fair to me, maybe a bit on the generous side. What I notice mostly is that the two of you spent 45 minutes at the jobsite, and that is translating to 'about an hour'. Is that really how much time it took out of your day? I know it's nit-picking, but from my experience I find it better to round out 1/4 days, half days, and such. That would cover travel time and gas, the fact that you (and he) are not able to be someplace else at that time, basically the real cost of spending 45 minutes with a costomer. I guess I'm just saying that $250 is quite fair for 1/4 day.
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I sold a whole house (bid) to a friend a couple times back when building was good........
i'd say I wanted ten percent of his profit....he's give a hundred bucks.
We'd use that to get drunk.....
Rarely do good framers make good business men.