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Old 11-05-2008, 10:04 PM
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Chrysalis Chrysalis is offline
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Help! My lead to an $8600 job wants me to add $3000 to my invoice for himself!

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
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Old 11-05-2008, 10:10 PM
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PLM-1 PLM-1 is offline
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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!!
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Old 11-05-2008, 10:32 PM
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cpel2004 cpel2004 is offline
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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.
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Old 11-05-2008, 10:49 PM
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Chrysalis Chrysalis is offline
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Quote:
Originally Posted by cpel2004 View Post
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.
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Old 11-05-2008, 11:06 PM
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bigbutch bigbutch is offline
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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
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Old 11-05-2008, 11:24 PM
corey4671 corey4671 is offline
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Quote:
Originally Posted by bigbutch View Post
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
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Old 11-06-2008, 02:55 AM
topsites topsites is offline
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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.

Last edited by topsites; 11-06-2008 at 03:04 AM.
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Old 11-06-2008, 08:24 AM
AJ Lawnscapes AJ Lawnscapes is offline
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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.
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Old 11-06-2008, 09:48 AM
NNJLandman NNJLandman is offline
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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.
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Old 11-06-2008, 11:29 AM
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ARGOS ARGOS is offline
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Quote:
Originally Posted by Chrysalis View Post
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.
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