Partnering Percentage

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T-DUDE
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Partnering Percentage

Post by T-DUDE »

Hey guys! When partnering with a business, let's say a carwash, what would be a good percentage to agree on as in the percentage you allow the company to have from your profit? In a situation like this I wouldn't want to over do or under do a percentage. I know a lot of this just has to do with what you're okay with, but is there a general line that doesn't over do it or under do it?

Thanks, any help would be much appreciated!
mend master
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Re: Partnering Percentage

Post by mend master »

I approach this a little differently. I get what I want for any given job. If the "host" wants a piece of the action, they can mark up my work and bill the customer. I have a detail shop that marks up my work 25% and then cuts me a check. The customer is happy, the shop is happy, and I'm happy. Its a win-win-win scenario! :D I also have a Ford dealer that prefers to just refer their customers to me without requiring any cut of the action. I assume all liability and do the billing. This way, if there were to be any warranty issues, it would be on me and not on them. At least, thats their view. If I were going to offer a "cut", I would simply raise my prices so that I could comfortably afford to pay no more than 10% to the "host", while netting at least what I would normally charge. Hope this helps.
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benswindshieldrepair
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Re: Partnering Percentage

Post by benswindshieldrepair »

Thank God for living in Montana. My local quick lube/car wash guy lets me hang out and solicit for nothing. Nothing includes hunting stories and the occasional 12 pack of Bud Light. That doesn't mean the rest of you should move to Montana by the way...
just chippen away
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Re: Partnering Percentage

Post by just chippen away »

benswindshieldrepair wrote:Thank God for living in Montana. My local quick lube/car wash guy lets me hang out and solicit for nothing. Nothing includes hunting stories and the occasional 12 pack of Bud Light. That doesn't mean the rest of you should move to Montana by the way...
I hope the bud light comes after the day ends.
Just Chippen Away
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T-DUDE
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Re: Partnering Percentage

Post by T-DUDE »

Thanks for the replies! Marking up the price does sound like a good idea because it does create a win-win situation. I'll give more thought into that and use it when I need to!
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Re: Partnering Percentage

Post by ghost rider »

T-DUDE wrote:Thanks for the replies! Marking up the price does sound like a good idea because it does create a win-win situation. I'll give more thought into that and use it when I need to!

Be a little careful when discounting your price thinking your customer will mark it up to their customer. Make sure they will actually mark it up or you will have discounted prices going to retail customers. It's happened to me a couple of times. Once I had a dealer with a customer car that needed a repair and the dealer said he would take care of getting paid by the customer and he would pay me. I told him I would only charge him his dealer cost and he should mark it up to retail. My invoice ended up going to the insurance network at dealer cost with no sales tax added. The network thought that would be my regular price from now on. Had to talk like hell to get them to change it back.

This hasn't stopped me from using this for referrals - it works very well - just be careful.
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