Finders Fee

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FreeD

FreeD

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A builder has approached me with work which he got through freeindex...I got the same lead through but didn't follow it up...he wanted to do the building work and get me in to quote for the rendering, I said no worries i'll come and quote for you. He wants a finders fee if I get the work!...wants this to be an ongoing arrangement. He said 10%...the job is £4000 so £400...for making one phone call...I drove to the quote! lol I feel this is far to high...and would through all my profit and more out the window...i'm thinking more like 5% or less is fair what do u guys reckon? I can't simply add money on cause i'll lose the quote.
 
if some one punts a job my way i'll always give em a drink, 10% sounds fair to me, i just add it to what i want. usually get repeat work off these types.
 
personally id tell him to (french word) himeslf

if some1 wants a drink, then they should price it and provide materials themselves, ie sub it out

if not, then (french word) em
 
I don't mind sorting him out a £200 but £400 for one phone call....just isn't fair i'll be running the job, supplying etc everything writing the quote up the whole lot...my day rate will drop from £150 to £120 at 10%...to be honest I feel like its not worth me doing the job when he takes that much of a cut
 
When a mate of mine is really busy he passes me quite a few jobs & our arrangment is 10% but before materials.
I know what your saying as some jobs I price I have to whack another ton or so on the job & sometimes this can loose you the job.
But most times it's ok.
Say for example I price a job at £800 labour £200 mats plus his 10% of the labour price £80
So all in that's £1080 not to bad is it.
 
Ok m8 yea that makes sense...i was including materials on that! lol would work out more like £360 i'll try and get him to reduce it to round about 7 or 8 then i'll be happy :)
 
FreeD said:
Ok m8 yea that makes sense...i was including materials on that! lol would work out more like £360 i'll try and get him to reduce it to round about 7 or 8 then i'll be happy :)
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Like i say that's how i do it, but just have a chat with him then see if you can knock him down & explain to him you want the percentage on the labour only ;)
Other than that tell him to price the job then pay you what you want then he can stick whatever he wants on top for himself.
 
you mustn't think of the fee as coming out of your pocket, it's coming out of the customers pocket, if you don't get the job, you both lose out, if you think his fee will make your quote too high, tell him.
 
I can't see anything wrong with adding 10% ? I was always told as 30%! I do loads of work, I go see jobs get the right people in to quote and add what ever I feel I want to make, shouldt be a problem for them as they still get the money they wanted and if we don't get the job that would be my loss and not there loss, after a while u can work out how much a job is worth and just put a price in for what it will cost you in trade price then add 20% + for profit, nuffin bad here just a nice way to make money.
 
no, you give him your price then he adds 10%, you get what you asked for, if the price becomes too high, you both lose out. and don't call me shirley!
 
10% is added to the final cost...may not seem like alot but when many people are working to 0% profit margins at the mo...adding this much to a job can easily lose it. Oasis I think you are talking about something else...getting people into help or subbying and making your cut...in this case the builder will have no involvement in the job I take full responsibility...but I pay him a fee for passing on each job.

With a 10% I'd have to reduce my day rate too much to win the work (as I can't add the full 10% on top)..would be better off working for others and not taking on responsibility...negotiated with him today though, hopefully will work out.
 
sounds a lot like rated tradesmen will he want his fee up front? Give him the price and let him add 10% and see if you get it.
 
If you need the work mate youl have to pay the 10%.if you dont need the work tell him to go fcuk himself.
Personally id pay him the 10% and have work.Might make him look harder for more work for you so he can keep making his 10%.
 
What about extras...the 10% is that for work quoted or is it for the whole job so any extras the customer has the builder takes 10% also?
 
this really annoys me people wanting finders fees... ok a drink is a drink but come on the bloody customers will always have to bear the cost but how can you justify 10%
on massive jobs the main contractor asks for (not demands) that you allow a 2.5% main contractor discount and a 2.5% retention which you get back after a certain length of time if all is well....
 
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