Free Estimates & $40/Hour
- Thread starter Sparky555
- Start date
- Status
bphgravity
Senior Member
- Location
- Florida
I would do some research and find out if he is violating any licensing or insurance laws in your state. If so, he should be reported...
mdshunk
Senior Member
- Location
- Right here.
I'd let him sub for you and you can sit back and just sell work and enjoy life.
growler
Senior Member
- Location
- Atlanta,GA
It sounds good but he probably wants his $40 an hour in cash with no paper trail. And once you end up paying his taxes, insurance and being responsible for his warranty it's not such a good deal after all.
Isn't this similar to how Mike Holt got started?
mikeames
Senior Member
- Location
- Gaithersburg MD
- Occupation
- Teacher - Master Electrician - 2017 NEC
Maybe its 40 an hr after a flat rate and materials.
gra electric
Member
- Location
- whitney point, NY
If the guy can legally perform the work, and provides a quality product than kudos to him. I like Marc's philosophy, and I do this quite regularly. As far as the taxes, if this guy is truly desperate, he will accept a 1099 from me, or he doesn't work. Simple as that.
be safe out there
Gerry
be safe out there
Gerry
Many States have a license req., ...simpy "subbing" does not relieve that requirement.
growler
Senior Member
- Location
- Atlanta,GA
Yes, and your workman's Comp carrier wants to know about all these people you have subbed work out to ( guess who gets to pay). Your liability carrier won't cover you for work subbed out.
The state gets to fine you and revoke your license and you end up with a lot of liabiltiy and and a big workman's comp. bill. It just gets better and better the more you think about it.
The guy is probably drawing from unemployment insurance and is not likely to furnish a real SSN or he's in trouble. Unless he's running a legitimate company you just got yourself another employee ( with all those responsibilities to include his insurance, workman's comp. , unemployment insurance, social security and warranty for any work performed ).
growler
Senior Member
- Location
- Atlanta,GA
I agree there are a few that are that clueless. Here it's easy enough to find out, get the location of the buisness and call the county/city and see if a business license has been issued.
BryanMD
Senior Member
getting back to the OP...
Sparky555 doesn't tell us where he is but I can't imagine any newspaper in the US accepting ad from any trade that doesn't require the license number they operate under.
Granted (and assuming there is a lic#), the guy may have ALSO misrepresented himself to that paper but that isn't real likely; and that then implies that he also has whatever insurance etc he needs too.
So, lets get back to how clueless he is as a businessman and assume he is otherwise operating legally (if at a structural operating loss).
Sparky555 doesn't tell us where he is but I can't imagine any newspaper in the US accepting ad from any trade that doesn't require the license number they operate under.
Granted (and assuming there is a lic#), the guy may have ALSO misrepresented himself to that paper but that isn't real likely; and that then implies that he also has whatever insurance etc he needs too.
So, lets get back to how clueless he is as a businessman and assume he is otherwise operating legally (if at a structural operating loss).
With just a little business experience, you really know $40 will not pay the payroll expenses, even on a low paid employee, and with your at overhead, and operating expenses, even for a guy working out of his kitchen table, he will need closer to $70 plus just to break even.
It's capitalism, it's what makes us better than everyone else. The very ability to put out your shingle and undercut the big boys and take care of your family makes us more free than anyone else. I wish that guy the best of luck, maybe if he is good at it he will grow into a real business.
PCN
Senior Member
- Location
- New England
As long as he's insured and has a licence who cares. If he is willing to work for 16 or 18 bucks an hour after all said and done good for him. At least he's out there trying to work and not living off of the wellfare system. Sometimes you gotta do whatever it takes to put food on the table.
If I were desperate I would pull romex laying on my stomach through an insulated attic all day wearing only my shorts for $7.00 an hour if it meant my kids would eat.
If I were desperate I would pull romex laying on my stomach through an insulated attic all day wearing only my shorts for $7.00 an hour if it meant my kids would eat.
BryanMD
Senior Member
Or... He reaally does have a plan!
Giving him the benefit of the doubt that he is fully licensed and insured and technically competent and his wife has a good job with health insurance (not an uncommon scenario so far)... but he also does have some business sense too.
The ad doesn't say how long he'll be charging those rates does it? Nope, sure doesn't.
Over the course of this next year he can reasonably count on being quite busy when he charges at least 50% less than any of his competition and probably even 60% less, right? He could reasonably anticipate 2000 billable hours, and maybe more if he manages his minimum job and travel time charges well.
2000 hours / 3hr small jobs = 660 very happy customers who aren't going to be calling anyone else the next time they need work... when (guess what) the rates have gone up.
($40 x 2000) $80,000 is more than enough to cover all of his operating costs and still leave enough to buy good groceries.
Giving him the benefit of the doubt that he is fully licensed and insured and technically competent and his wife has a good job with health insurance (not an uncommon scenario so far)... but he also does have some business sense too.
The ad doesn't say how long he'll be charging those rates does it? Nope, sure doesn't.
Over the course of this next year he can reasonably count on being quite busy when he charges at least 50% less than any of his competition and probably even 60% less, right? He could reasonably anticipate 2000 billable hours, and maybe more if he manages his minimum job and travel time charges well.
2000 hours / 3hr small jobs = 660 very happy customers who aren't going to be calling anyone else the next time they need work... when (guess what) the rates have gone up.
($40 x 2000) $80,000 is more than enough to cover all of his operating costs and still leave enough to buy good groceries.
Why?
Since when is it the newspaper responsibility to print facts?
:grin:
In NJ, the media is not the licensing police - they are a private business in it for the money.
If I pick up any local rag [town newspaper], there are plenty of ads w/o any license info.
growler
Senior Member
- Location
- Atlanta,GA
Do you really think you are going to get all those call backs next time just because you are cheap. People call the same contractor for a variety of reasons and price is only one of them.
Some it's scheduling
Some it's how clean the job site is.
Some it's the quality of your equipment
Some judge by how friendy the service tech is.
Some want a tech in uniform.
Some even believe that if you don't charge enough that you couldn't possibly know what you are doing.
Some believe that if you are cheap there must be someone cheaper.
Every service call is a sales call and the thing that you are really selling ( no matter the product) is yourself. If you can sell them on you then you get call backs and if not they look for another contractor. It easier to please people if you charge enough to do the job right and it surprises many to learn that those wanting the lowest rates are some of the hardest to please. It's much easier to please a customer that's just looking for good quality work, clean job site and a friendly tech.
mdshunk
Senior Member
- Location
- Right here.
I'm not sure why guys automatically assume someone working for 40 bucks an hour is not properly insured and doesn't pay insurance. He might just be stupid. I have subbed work out to lots of stupid people over the years who were properly insured and received a 1099 from me. You don't need comp on yourself if you're the only guy; at least not in my state. Just GL. If I need to summon a labor force tomorrow, for instance, I like to keep guys like this in mind. I would not, however, recommend letting them sub for you unsupervised.
BryanMD
Senior Member
Are you serious or just being contrary?
Advertising is NOT news. Call your paper and ask what THEIR policy is. I doubt it's very different than around here or anywhere else.
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