Originally Posted by PaperCutter
Out west I worked for a landscape co that dealt directly with the homeowner but had to give a 10-15% kickback to the pool co. We obviously just marked our prices up by that much. It's where I learned to sell - if your pricing is that out of line with the market you better be able to close or you're going hungry.
That was initially the arrangement. The pool company would get a kickback from me. We had a job last May and the company wanted 20%! 20% FOR WHAT? For forwarding a name, address, and phone number??! The 20% mark up blew the price out of reality. And i told them the home owner would never go for it and all we're doing is prompting the home owner to shop around. I told him it was a lose / lose.
So on this round I sent an e-mail saying we needed to talk about their commission, and I said that 15 to 20% was too much. I also said it wasn't worth my time to price because I know the home
Owner will never go for it. People are not stupid, with the Internet everyone researches everything.
We have another pool company where I just pay a flat commission, with a cap of $500 maximum. This keeps the prices in line with the market, and the pool guy is happy, I'm happy, everyone is happy.
And architects are the same way. Gotta have their hands in the pot
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