National Account Scams.

[Fordean]

Well here it is. I get these calls to service certain stores. With there pricing schedule. I would not leave my office for stuff like this.

Many large companies are being directed to marketing companies or management companies. To fix their equipement, Im seeing this over and over again. I lost many accounts to this type of sales companies. This is just one of them. Attached is their pricing they willin to fish for. Find a Contractor in need of low budgeting. Where they use a Re sale certificate to mark up.

 

[Bacchus]

I never heard of this. So what is the scam? They subcontract out to really low bidders who obviously can't make anything on a job at those prices... it kills the competition and then they raise the prices?

What's the scam exactly.

 

[gadfly56]

Well here it is. I get these calls to service certain stores. With there pricing schedule. I would not leave my office for stuff like this.

Many large companies are being directed to marketing companies or management companies. To fix their equipement, Im seeing this over and over again. I lost many accounts to this type of sales companies. This is just one of them. Attached is their pricing they willin to fish for. Find a Contractor in need of low budgeting. Where they use a Re sale certificate to mark up.

Well, I guess you can get Johnny Trunkslammer to go for these prices. Looking at the first item on the material list, the Philips 415224 MH1000/U, I see the lowest Google price at $23.49, price list is $25.50 which gives you a sale price of about 1.09 of cost. If you are expecting to buy from us at 10% over cost, it's going to be quantities of 50-100 and drop shipped from the manufacturer to you with shipping extra. That's just bogus. The only way this works for them is if someone's company is circling the drain and they need any revenue they can get.

 

[gadfly56]

I never heard of this. So what is the scam? They subcontract out to really low bidders who obviously can't make anything on a job at those prices... it kills the competition and then they raise the prices?

What's the scam exactly.

The scam is probably their middleman cut. If they don't double these prices to the end user I'd be surprised.

 

[kwired]

I have to agree that it is not a scam. If you are not willing to accept those terms you don't have to enter into any contract.

As long as someone is willing to agree to those prices, why should they bother to raise the rates?

That is just business.

If they advertised for bids instead of laying down the requirements who says someone wouldn't bid lower then what they have listed?

 

[Sierrasparky]

I never heard of this. So what is the scam? They subcontract out to really low bidders who obviously can't make anything on a job at those prices... it kills the competition and then they raise the prices?

What's the scam exactly.

The scam is they don't pay rates normal in the area they want a huge discount.
Then they try not to pay. They want to pay when paid which could be the sixth Monday of the month. You have to call and call. Cost you more to collect than you made.

 

[gadfly56]

I have to agree that it is not a scam. If you are not willing to accept those terms you don't have to enter into any contract.

As long as someone is willing to agree to those prices, why should they bother to raise the rates?

That is just business.

If they advertised for bids instead of laying down the requirements who says someone wouldn't bid lower then what they have listed?

Well technically you're right. But a tech and lift for the same price as a tech and a ladder? Really?? And maybe $55.20/hr is OK in your neck of the woods, but it isn't worth starting the truck for that here. I looked at the 71A6542001 PHILIPS ballast kit. On-line pricing doesn't get anywhere down to the $90 sell and usually the on-line guys are slitting their own throats as it is to move product.

 

[kwired]

Well technically you're right. But a tech and lift for the same price as a tech and a ladder? Really?? And maybe $55.20/hr is OK in your neck of the woods, but it isn't worth starting the truck for that here. I looked at the 71A6542001 PHILIPS ballast kit. On-line pricing doesn't get anywhere down to the $90 sell and usually the on-line guys are slitting their own throats as it is to move product.

I say let them slit each others throats. If they do work for little or no profit they will eventually go under.

You have to remember part of what some of those stores are about is to buy many of their items in large enough quantity to hopefully be able to sell at an attractive price for their customers. Why should one expect their shopping for routine services be much different? Nothing illegal going on here. If you want to see what people are willing to pay for a service go up then you need to somehow convince those providers that bid and accept bottom prices to increase the bottom. Some can afford to offer lower prices if they have lower overhead costs, which is also a reality that many seem to complain about. If you feel your service is worth more you need to sell the customer on why it is worth more. Maybe you are more prompt at responding to calls, maybe you seldom have call backs because you get it right the first time, maybe you have commonly needed parts on hand which allows for quicker service.

 

[petersonra]

if you do not want to do the work for this kind of money, just decline to do it.

it is possible for people who do this kind of work on a regular basis to make money at it but my guess is that the average EC can't. they just have more overhead than can be accommodated by these rates.

I know a couple of local companies (pest control and similar) that are doing this kind of stuff for the same kind of service companies and they like it. it is steady work and it costs them nothing to get the work. there is not a ton of profit in it but it costs them almost nothing to get the work.

 

[jmellc]

When I was in business a national maintainence co. called me about servicing restaurants and stores in my area. They wanted same day service if possible, wanted pricing before completing work and wanted a photo of the finished job texted to them. I did not have a cell phone with camera at the time and told her I couldn't do that. She said they could probably get local managers to do it for me. Wanted to know my rates. I said standard was $75/hr but I would give them a rate of $60 for their steady business. She said they were used to paying $40. I told her to call someone else. I would have probably had to wait weeks or months to get paid too.

 

[Fordean]

The scam is they don't pay rates normal in the area they want a huge discount.
Then they try not to pay. They want to pay when paid which could be the sixth Monday of the month. You have to call and call. Cost you more to collect than you made.

Yes That is the scam, They reaping the trades. This is not only one scenario. Some of these companies are interlinked. Meaning. They have more then one Corp. Setup. So you get three bids. And somehow its related.

Flat rate on lamp change is 250 with lamp back in the day. 400 plus for ballast kit and lamp Discount if more then three. How you going to make any money I have no clue.

 

[GUNNING]

Bilked. scammed. conned. taken. ripped off. gyped. swindle.defraud.rooked.

Bilked. scammed. conned. taken. ripped off. gyped. swindle.defraud.rooked.

When I was in business a national maintainence co. called me about servicing restaurants and stores in my area. They wanted same day service if possible, wanted pricing before completing work and wanted a photo of the finished job texted to them. I did not have a cell phone with camera at the time and told her I couldn't do that. She said they could probably get local managers to do it for me. Wanted to know my rates. I said standard was $75/hr but I would give them a rate of $60 for their steady business. She said they were used to paying $40. I told her to call someone else. I would have probably had to wait weeks or months to get paid too.

I think they make up the numbers. I also think payment is not going to be in your favor. I get service companies all the time calling me. The boss is generally coked out crazy mad and the room is filled with cold callers and closers. If they get the job done they get paid. If there is more work in the area they keep you stringing along. I have a list of things not to do and not responding to service companies calls is 3rd. I had one to a GAP store with over 200 lights burned out. They wanted an estimate and they wanted me to change out one light. How do you document a fixed fixture when the place does not have any that work? I gave them an estimate of work needing to be completed. The said they would get back to me. This took about 4 hours walking around figuring out which would be cheaper fixing or replacing. Got them the data. Its like they fell off the face of the earth. Up until then the area supervisor of the GAP store was involved, then nothing. A year later, I get a call from another service company wanting to know if I would be interested in fixing a bunch of lights in a GAP store. They would have to send me an extensive list because it was so many. Did not get paid for the estimate or finding the original work. Never do. Had sort of the same thing yesterday. Lights out in a Payday advance store. Got there and there was another electricians permit on the door. Work was in progress but not completed. I can only describe the phone call as pleading and whining from the blonde on the other end of the phone line at the service company. The foreigners on the other side of the 2 inch carbonate plastic were going to call their boss and were outraged they were in the dark. For showing up, I get the blame.
If its too good to be true, it is. Service companies, to be polite, are a fairy tale organization. Its the not so new phone scam. Do not expect to get paid.

 

[Sierrasparky]

Yep , read the contract.

You will need to indemnify that company, you will get paid if and when they get paid,
They will ask for a additional insured certificate that usually costs you money. The additional insured cert gives them control over your insurance policy. It enables them to file a claim without your consent or knowledge.


Yup it's all good.