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View Full Version : Help! My lead to an $8600 job wants me to add $3000 to my invoice for himself!


Chrysalis
11-05-2008, 09:04 PM
I was at a gravel quarry in Miami when a the property manager of a commercial property approached me to do a proposal. All was fine and dandy, I went to the commercial property in Miami, gave an estimate of 8600 for everything and told him I would give him 5% for himself as a finder's fee commission. He then told me a week later on the phone that he would like $3000.00 instead of 5% and to just simply add it to the proposal in the form of a landscape tearout, and to up the price of the plants to make the difference. He assured me the property owner would have no problem paying around $11,600 for the job and that he knows her personally. When previously he told me her budget was $9500.00. Would this be illegal for me to pad my proposal to simply give him three grand for doing nothing? Also, would it be dumb to simply call her on the phone, (her cell phone # is listed on her company website) and tell her of his intentions and try to sell the job at my original proposal price? I have no clue!

Thanks in advance to all you dashing landscape prof's out there! Yall Rock!

Marc

PLM-1
11-05-2008, 09:10 PM
I'm biting my nails waiting for replies on this topic.

I honestly have no idea what I would do. I would probably do the same thing you are ... ask LawnSite!!

cpel2004
11-05-2008, 09:32 PM
Its completely up to you and your integrity, I wouldnt want a person dictating to me how much I sould pay him/her. At 3k He/She maybe making more profit than you would be making. Deals get done like this everyday in business, its not illegal. I just think this person wants a little much, 3k is a little much for a finder fee.

Chrysalis
11-05-2008, 09:49 PM
Its completely up to you and your integrity, I wouldnt want a person dictating to me how much I sould pay him/her. At 3k He/She maybe making more profit than you would be making. Deals get done like this everyday in business, its not illegal. I just think this person wants a little much, 3k is a little much for a finder fee.

Isnt it a little much! Not more than what I will make on the deal but it is way too much. Plus Im kinda confused on weather I should have him strike up the proposal for her and pay me as a sub my original proposal price and let him add the $3000.00 instead of me marking up the plants and all.

bigbutch
11-05-2008, 10:06 PM
Make sure that you donít end up paying the taxes on the extra money. I did work for a builder and he had me up my price so he could get a kick back. When he sent me the 1099 I had to pay the tax on the extra money

corey4671
11-05-2008, 10:24 PM
Make sure that you donít end up paying the taxes on the extra money. I did work for a builder and he had me up my price so he could get a kick back. When he sent me the 1099 I had to pay the tax on the extra money

^^^that's the FIRST thing that popped into my mind

topsites
11-06-2008, 01:55 AM
Yeah I would've told that fool like gtfo and cya L8r,
because I don't particularly care for these kind of business practices
and I don't like being associated with the folks who use them.

AJ Lawnscapes
11-06-2008, 07:24 AM
I would call the property manager, advise her of the situation, and if she's comfortable with a higher price, make it $15K flat, he get his $3k and you get an extra $3K.

Else I would advise him that you are sticking to the previously agreed to finders fee of 5%, oral agreement hold up in court and with him calling you about upping the price another $3k, that'll make him go down in flames. Just be sure to document all converstations, dates and times, cell phone/business phone records, etc etc.

NNJLandman
11-06-2008, 08:48 AM
I think you lost this bid. Somewhere sometime someone is not going to be happy. Stick to your guns man. When other people start calling the shots thats when you lose. You told the guy a price, finders fee, etc. In my opinion three grand for doing nothing except a few phone calls maybe....$500 sounds more like it. If you give three grand to this guy, Ill come down to florida tonite and go door to door selling work for you for finders fees.

ARGOS
11-06-2008, 10:29 AM
Also, would it be dumb to simply call her on the phone, (her cell phone # is listed on her company website) and tell her of his intentions and try to sell the job at my original proposal price?

If you call her you are guaranteed to NOT get the job. As desirable the job may be...it sure looks like a no win situation.

I have a sales guy and he get 10% and company car. But he also does the proposal, customer meetings, leg work, QC.

T&J Landscaping
11-06-2008, 10:44 AM
u kno that 3,000 u got to add to invoice, you got to pay taxes on that ,, because the company will claim it on there taxes, i think you should just talk to the lady your self and give no finders fee,, he is trying to rob you and her,, obama stuff started already

ARGOS
11-06-2008, 10:54 AM
obama stuff started already

Wrong forum btw Obama is a proper noun.

T&J Landscaping
11-06-2008, 10:55 AM
yea i kno it is the wrong forum ,,

DBL
11-06-2008, 11:09 AM
its your contract not his theres nothing signed saying he gets a penny if he wants to do the work then let him write the contracts but since he didnt have him take your 5% or nothing

Isobel
11-06-2008, 11:12 AM
Honestly I would say, "no," to the guy who gave me the lead. You tell this guy, "This is my business and I make my policy. 5% is what you get."

Then I would also tell your client this. Something to the effect of, "I feel it my duty as a respected business man to inform you that your friend who gave me this lead has asked for a large amount of money as a finders fee, $3000, and feels that if I increased your estimate to $11,600 you would not have a problem. I don't know if that's true or not, however it is not my practice to have others dictate my pricing, thus your original estimate of $8600 stands."

This way you're being honest with your client, and upfront, so if this guy does try to say something behind your back, you're covered.

just my $.02
good luck!
:dancing:

cpel2004
11-06-2008, 01:21 PM
u kno that 3,000 u got to add to invoice, you got to pay taxes on that ,, because the company will claim it on there taxes, i think you should just talk to the lady your self and give no finders fee,, he is trying to rob you and her,, obama stuff started already

What an ignorant comment, it speaks volume about your intelligence or lack there of.

T&J Landscaping
11-06-2008, 01:34 PM
how does it speak lack of intelligence ? the guy wanted 5% they agreed on now he wants $3,000 ,, what a greedy bastard , greedy leads to nothing at the end ,,

cpel2004
11-06-2008, 02:06 PM
obama stuff started already

Im referring to you your comment.

4 seasons lawn&land
11-06-2008, 07:05 PM
BS, tell him no. Your prices are your prices. They make a name for your company, could get you more business, etc.

Grace Irrigation
11-06-2008, 08:24 PM
Lets say you do the job and add the extra 3,000 and your customer is pleased with you and the job you did. The guy takes his money and he is gone. Now she has a friend that needs the same amount of work and you charge her 8,600 because that is what the job is worth. Now the integrity of you and your company is on the line.

For some reason this guy is trying to take advantage of you. Tell him you are giving him the 5% or nothing.

Mike33
11-06-2008, 09:50 PM
i think the finder fee and the extra is illegal and un ethecial. Your playing in to a did honest person and you will take the fall. 1099 excellant point. My wife is a property manager for a large apartment complex that is run by a company she actually works for 140 miles away. These things are well spelled out not to do and to report this activity to them, you will get caught, She even has to list to her company any gift xmas, b-day, etc, to them they don't care but it is documented in case something later arises that she didnt do a personel favor for some one and the issue be throwed up she was given something. She has a vendor who gave her a ham for xmas nice thought and appreciated but she informed her company so 1 day another competive vendor might say the other guy gave her a ham to help get a job and then she would look dishonest to her company.
Mike

NewHorizon's Land
11-07-2008, 06:40 AM
I would have said sorry we dont operate that way and I gave you my price of $8600. If he wanted $3000 for him he should have siad so before hand and still I would be skeptical.(sp)

Isobel
11-07-2008, 10:23 AM
so after 3 pages of responses, what have you decided?

:weightlifter:

Mike Leary
11-07-2008, 01:14 PM
so after 3 pages of responses, what have you decided?

I'd be interested, also. I had the same situation years ago and backed out of
the whole project; it just did not taste right.

Scagguy
11-07-2008, 03:16 PM
You offered 5%. Stay with that number. If he doesn't like it...tough $hit.

mgray10
11-07-2008, 09:35 PM
Wow, the audacity of this guy!

Let's analyze this: he gave you the lead; you made contact with the lead; you made a proposal; you made the first impression; your equipment will be used, your labor (or laborers), and your reputation is on the chopping block.

Above = you're running the show; it is your show!

This is how that conversation should have read:

"Hey man, I need a little more money out of this deal. Why don't you just add three grand to the proposal for me?"

"Ha ha. Dude, that wont work for anyone but you. If you wanted a certain amount of money you would or should have told me beforehand. Since you most definitely would have told me in advance if you needed or wanted a certain amount of money (as evidenced by the fact that you don't have any problem asking now!) I can only conclude that you found out Sally Sue had a budget and I came in under it. So, no, I am not changing my bid, dude. **** you, man. I am not going to screw a customer so you can crack a nut."

"Uh, uh, you're an ******* man!"

"We'll see if Sally Sue feels that way."

Now, that isn't professional in any manner and I wouldn't say that to the guy unless he is acustom to those types of words. Some of these bible bangers cringe when I say "damn" or "****" so I take note of it.

AWJ Services
11-08-2008, 11:00 AM
Just tell him that you will do the job for 8600 dollars and he will pay you and sign a contract with you.
He can then be the primary contractor and charge what he wants.

Otherwise I am sure you already now the right thing to do.

ARGOS
11-08-2008, 11:17 AM
So, ok everyone agrees...what is the outcome?

Mike Leary
11-08-2008, 06:06 PM
I hope he bailed.

Chrysalis
11-08-2008, 06:36 PM
Well this one tasted just right!! Not only did I close the deal and the property get his first half of the three grand and me get half the proposal price.. I closed it for 10 grand more than the original proposal price due to the owner wanting chatahootchie gravel instead of crushed lime rock, 2 added royal palms, a couple glazed ceramic pots and some more clean up! Ohh yeah and an extra $1750 charge to remove the Live Oak in the front! It really turned out great guys I seriously had my doubts but everything ran smoothly. Allthough it was an all day process today, Im in to realize about 7 to 8000 profit!:usflag::usflag:

Marc

Chrysalis
11-08-2008, 06:41 PM
Ohh and yes we did it through his company. He is the primary contractor and he is payed me through his company and I gave him an invoice that shows he payed me half the proposal price minus half of the money that he is to recieve.

Chrysalis
11-08-2008, 06:44 PM
Wrong forum btw Obama is a proper noun.

LOL Micheal!! :)

Chrysalis
11-08-2008, 06:58 PM
BS, tell him no. Your prices are your prices. They make a name for your company, could get you more business, etc.


I know exactly what you mean 4 Seasons. Allthough I decided to give it a go today and see what came up and it really did come out more favorably. Not only was she really happy with the price, (I have no clue why when supposedly her original budget was $9200 ) but she couldnt be more happy and he was sitting right beside me the whole time she was going over everything. He actually helped close the deal for me because he has done alot of interior remodeling work for her and they had a better freindship than I previously knew about. Whatever moneys he is trying to make off her is between him, and yes I did have to up my proposal price by 3000 for him, but she was, and I am serious, more than happy to pay that amount and was so happy just to finally be having the work done. She actually added a couple things and the proposal ended up at 17,381.93. And because I take so much pride in my work and never undercut the job I think she will be very very happy and still spread the word about H2eco Land and Waterworks! :)

Marc

lawns Etc
11-08-2008, 07:09 PM
I just hope that you get paid in full in the end, people that seem that happy to get started usually end up giving the deposit and the rest comes very slow if at all. Just have your guard up and get portions as you bring in materials.Do not let them slide or say I need to go to the bank offer to take them and buy lunch or something. I got burned for a balance of over 6K and my guard will never be let down again

ARGOS
11-08-2008, 07:31 PM
This whole thread ended weird. Too many inconsistencies. I'm outta here.

topsites
11-12-2008, 09:41 PM
Actually...
I would tell the guy I made a mistake and I am very sorry but the entire
thing with the fee was wrong from the start.

Because I can now see what sparked the entire silly thing was the original mention of a finder's fee...
And the guy was wrong for suggesting the 3g but at the same rate I can see where he got the thought...

If we give a customer control over our business, it's the old saying of give them an inch and they take a mile,
and it's wrong but it also comes natural... They shouldn't, and don't ask me why they don't stop themselves
but then I guess they don't run a business so they wouldn't know why or how, that it is wrong is entirely a business
owner's interpretation and I am pretty sure a customer sees nothing of the sort, especially if a business owner
starts out on such a track it is not their responsibility to tell right from wrong, or is it?
But even if it is, who cares?

I think I would chalk this one up to experience, say lessons learned,
no more finder's or any other kind of fees or bonuses for anyone that doesn't work FOR the company.

Which, to be fair I think that's the way it should've been.

Now that's just my .02

topsites
11-12-2008, 10:06 PM
And, having read about the outcome just now...

I don't think I would have done things that way, but that's just me.

Kiril
11-12-2008, 10:20 PM
Thanks in advance to all you dashing landscape prof's out there! Yall Rock!

I'd tell him he is a thief and to go find some other patsy.

Strawbridge Lawn
12-12-2008, 06:03 PM
I would not do it per his demands. All is set up ahead of time and that is what you should bid. Anything else smells like Wall Street.
Not a popular answer, but you asked. Hope it all works out for you.