kickback?

[peter d]

Are you building a business or just being a profession electrician who is self employed..

Look at Marc's profile. He's a fry cook at McDonalds. A noble occupation for sure, but he is not to be trusted when it comes to advice given about the electrical trade.

 

[mdshunk]

Been taking business lessons from Exxon Valdez

I don't see the parallel. That was an oil tanker who'd drunken captain crashed into something.

You can charge anything you want but in the end customers talk and you can be the real loser..

Okay, want to compare my last year's 1040 with yours?

 

[cschmid]

Price of fuel is same as material costs..except fuel is overhead charge and material is job specific costs..commision are overhead charge not job specific charge..yet comes out the same in the end..

 

[cschmid]

I don't see the parallel. That was an oil tanker who'd drunken captain crashed into something.


Okay, want to compare my last year's 1040 with yours?

Okay wrong comparison just Exxon Mobile..

nope I am employee of corporation not an owner..not my position for such informational exchange..

 

[iwire]

You can charge anything you want but in the end customers talk and you can be the real loser..If I am the customer and get an itemized bid vs the flat bid which are you going to pick..especially if they are only few dollars different, the one who is up front or the one who acts as if there is something to hide..Your choice..

So how is it car dealerships seem to have no problem filling their service bays.

They charge far more for parts then I can buy them for.

They charge much more per hour then the local service station.

The fact is some customers are happy to pay more when they feel they are getting good value. Many people have the perception that the dealership is better and the parts are better so they pay the extra.

 

[cschmid]

Marc this question (Are you building a business or just being a profession electrician who is self employed) is not about the cash it is about business philosophy..

When I leave this company another person will be employed and when they leave another will fill the vacancy..a business when a professional electrician business is dissolved his employees are without jobs and need another job..there is nothing wrong with being a professionally self employed electrician..

 

[peter d]

Okay, want to compare my last year's 1040 with yours?

And that would produce an utterly meaningless comparison.

 

[mdshunk]

And that would produce an utterly meaningless comparison.

Yes, it would, so it seems now. I thought he was doing the same thing I do, since he attempted to give me advice in that regard. I see now that he's an employee dispensing business advice. Pretty weird.

 

[cschmid]

So how is it car dealerships seem to have no problem filling their service bays.

They charge far more for parts then I can buy them for.

They charge much more per hour then the local service station.

The fact is some customers are happy to pay more when they feel they are getting good value. Many people have the perception that the dealership is better and the parts are better so they pay the extra.

Very true BOb..I use the dealer..no parts changers for me..or at least this dealer does not do that to me..the bills are normally cheaper than the quote..

 

[cschmid]

Yes, it would, so it seems now. I thought he was doing the same thing I do, since he attempted to give me advice in that regard. I see now that he's an employee dispensing business advice. Pretty weird.

When you manage part of it you need to know what is going on in order to be effective..

edited to add..besides I do not see it as advice but as an opinion..

 

[winnie]

cschmid, I should have been a bit more clear. I said 'essentially stealing' because this is not theft in the official sense. But if you choose to use your boss' money to buy something for $110, rather than $100 (costing your boss an extra $10), and as a result you put $1 into your pocket, you've done something that may be closely related to stealing.

I claim that it may or may not be unethical depending upon what your responsibilities are, what your agreement with your boss is, etc.

If your _job_ requirements include getting the best price for things that you buy, then IMHO what I describe above is as bad as stealing.

I believe that there are corporations that explicitly prohibit employee participation in frequent flyer programs for corporate travel, so that the employees would select the best carrier for a given flight, rather than the one that would get them the free vacation.

Thinking on this topic since my last posts: I think that offering a finders fee is _always_ ethical; in the same way that paying for advertising is ethical. Someone accepting that finder's fee may be unethical, if they have an explicit or implied responsibility to provide independent evaluations.

-Jon

 

[brian john]

I had a blow up, Switchgear price 38,000.00 6 weeks, 72 hour ship, $82,000.00.

Three years ago I was able to buy a certain GFP relay for $345.00, last year $720.00 recently bought one $1,050.00.

Is someone padding anything? is anything unethical NO? It is called business. Now if I mark up the gear 25% am I a good guy or an unethical monster, wait maybe I mark the gear up 45% same question.

No different that a sales agent (interior decorator) wanting a finders fee, a sales fee.

Car salesman sells me a truck for $42,000.00 and sells you the same vehicle for $40,000.00 is he a bad guy or am I a bad shopper?

 

[iwire]

Very true BOb..I use the dealer..no parts changers for me..or at least this dealer does not do that to me..the bills are normally cheaper than the quote..

So you trust the car dealership to give you the best deal?

That is something I would never do. :smile:

 

[cschmid]

unethical in my opinion is doing something with the specific intent to cause ill will..example knowingly taking unnecessary advantage of a specific situation..like that switch gear price "Switchgear price 38,000.00 6 weeks, 72 hour ship, $82,000.00" in my opinion that is unethical..But what you do is where the ethics are..I can not control someone else just my own actions..

 

[mdshunk]

..like that switch gear price "Switchgear price 38,000.00 6 weeks, 72 hour ship, $82,000.00" in my opinion that is unethical..

Guess you've never needed a switchgear cabinet on short order? It's not like they're sitting in a warehouse someplace. They actually stop the work on the factory floor and build your order, then ship it to you PDQ. It's crazy expensive.

 

[peter d]

Yes, it would, so it seems now. I thought he was doing the same thing I do, since he attempted to give me advice in that regard. I see now that he's an employee dispensing business advice. Pretty weird.

My comment was much more philosophical than I let on. What would it prove to compare 1040's, even assuming an apple to apples comparison like two similar EC's running an similar operation? In the grand scheme of things, nothing.

 

[cschmid]

So you trust the car dealership to give you the best deal?

That is something I would never do. :smile:

I watch the bills from these so call garages..I have really seen no price difference from my personal bills at the dealership..except my vehicle is fixed right the first time..I have expressed my displeasure with the quality of work from some of the garages at work..Yet another whole subject..

 

[mdshunk]

...even assuming an apple to apples comparison like two similar EC's running an similar operation? In the grand scheme of things, nothing.

You'll understand at some point. Essentially, it proves who's doing it right. When you evaluate a business to purchase it, the first thing you do it look at the books to see if they make sense.

 

[peter d]

You'll understand at some point. Essentially, it proves who's doing it right. When you evaluate a business to purchase it, the first thing you do it look at the books to see if they make sense.

Whatever...that wasn't my point at all, but thanks for the extra information anyway.

 

[bradleyelectric]

I agree with most of your points.

However you missed my point of questioning why should the decorator receive additional benefit besides that she is already earning an extra profit by working with an EC she knows? I would not have a problem her marking up the subcontracting fee if she is to hire the EC.

Because she has a value to me. It's 10% of the job.