Hearthlist Digest #225 - Tuesday, November 10, 1998
 
installations
  by "tony" <[email protected]>
RE: Installations
  by "Craig Issod" <[email protected]>
 

(back)
Subject: installations
From: [email protected] (tony)
Date: Tue, 10 Nov 1998 10:02:16 -0500 (EST)
 
We refer customers to a couple of excellent subs who do gas log
installations and complete gas direct vent installations.  One is a
licensed contractor (excellent carpenter) and the other a  master plumber.
My question is, do you think we should handle everything ourselves and mark
up their price, but incurring responsiblity for the installation or
continue to just refer them to the customer, not making anything on the
installtion, but isolating ourselves from that responsibility?
Some jobs, they make the lion's share of the profit, while we have to be
competitive with our products.
Anthony Palmer
 
 
 
 

(back)
Subject: RE: Installations
From: Craig Issod <[email protected]>
Date: Tue, 10 Nov 1998 10:39:03 -0500 (EST)
 
I've had experience with all facets of this one, and actually do both. On
simple gas logs, I often find it best to outsource it...so the callbacks
are also all outsourced. However, I let the customer know that these subs
are very good, and have agreed to warranty their work, etc. etc.
 
I always found it the other way around,......that is, we made our money on
the logs, not on the install. If an install was $275.00 or so, we had to
give at least $200. or more to the installer, usually leaving a profit of
50.00 to 75.00. If we had to get a permit on the job, this screwed things
up even further....then, one callback and our profit was gone. ...you also
"own" the install forever.
 
So, at this point, we sub most of our logs during the busy season...and do
not write them on our receipts..