Open Association of Landscape Industries
10% of Invoice price for getting work..???
I have been asked to do a design and build for a new customer by a friends new company
The work involves the design and build of a raised stand stone paved area,, stone walls and steps, plus other paving and planting.
The raised patio area is where the other company comes in and they would build the handrails and glasswork.
After sitting down, to do the quote I received an email that said---
("I usually ask for 10% of the invoice price for my time and introduction")
AS the price just for my work comes to nearly £9000, and would go up by around 15% as the job went on.
I thought that 10% was way over the top for a one-hour site meeting and two telephone calls.
Not sure, if I want to continue with the job now, but feel I’ve put quite a bit of time and effort in and it would be a nice job for the portfolio.
Any thoughts how I can go around the 10% charge. Or should I just walk away..
Replies to This Discussion
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Permalink Reply by Mark Watson on -
Michael
IMHO it depends on how much time you have invested already and how much you want/need the job-if you haven't already done the quote you could of course just up it a bit.
Also you could express your surprise,haggle and offer 2.5% and take it from there. He did say "usually" 10% .
Above all it's another step up the learning curve!
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Permalink Reply by Linda Secker on
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I would say you wouldn't 'usually' pay (or charge) any introduction/finders fee as it is not transparent, not fair on customer, raises everyone's costs blah blah blah.... and see what they say. If you really want the job (for your portfolio) put this in a jokey, informal way, and point out that you'll make an exception for htis job....
It's not on really
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Permalink Reply by chris nangle on -
I would haggle,we do pay finders fees if its all in the open the get go.
that said if its a friends new company I would put it too him that you may well be using his work your projects from time too time and no finders fee should be involved,you scratch my back ext
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Permalink Reply by Michael james Holland on
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Thanks for the input...
Still not that sure how to go about this one as the guy is a mate.
I'm thinking of a one off payment of say £200,,which to be fair is a good drink.
Have to get the quote sent off to the customer by the weekend so would like to get it sorted..
How much do others pay as a finding fee???
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Permalink Reply by Colin Hunt on -
Mmmmm interesting one this - dosnt sound very businesslike to me. Most guys I know, are quite happy to 'do their bit' on the job while recommending you for 'your bit', knowing that at a later date you will recommend them.........and so on. Will your 'friend' be happy if you ask for 10% from any work you 'introduce' him to?
If he was main contractor, you would give him a price and he would add his percentage on before quoting, then project manage the work, start to finish, dealing with any problems etc and he would earn his percentage.
Not sure your friend is asking for anything more than 'a bung'.
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Permalink Reply by Gabino Carballo on -
Careful with this one, it is a slippery slope.
Asking for a 10% of certain specified goods is a way that interior and garden designers (for instance) have to crank up their income. As long as you are not a professional bound by an ethical code it is "okish", since it is not really illegal, even though it is a conflict of interest, since the designer needs to check the quality of their work.
Who is going to check the quality of your work? The same guy that took your money? Yeah, right.
Asking people to pay to work is common in some countries (I will not name them): You will find people demanding up to a 40% of your invoice. You end up with a few people acting as gatekeepers to busines opportunities, who reap between 7 and 40% of all invoices.
Cue abismal productivity, poor quality, dodgy business practices and high official "unemployment", all a direct result of this practice.
That money has to come from somewhere...
It is a tough call, but it may be worth resisting the temptation. Asking people to pay to work is just a return to serfdom. If the UK goes down that path, good bye to business as you know them...
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Permalink Reply by POC Landscaping on
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Thank him for his introduction and tell him it is not part of your business practice to pay finders-fees. Then I'd offer him a flat £100 as a 'goodwill gesture' along with asking him to be a little more transparent in the future.
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PRO MemberPermalink Reply by Gary RK on -
Agree, unethical and believe a practice that at best is frowned upon by SGD, at worst is against most profession's (including SGD) code of practice.
Presents a real conflict of interests, surely ?
Wonder how the Client would feel ?
Gabino Carballo said:Careful with this one, it is a slippery slope.
Asking for a 10% of certain specified goods is a way that interior and garden designers (for instance) have to crank up their income. As long as you are not a professional bound by an ethical code it is "okish", since it is not really illegal, even though it is a conflict of interest, since the designer needs to check the quality of their work.
Who is going to check the quality of your work? The same guy that took your money? Yeah, right.
Asking people to pay to work is common in some countries (I will not name them): You will find people demanding up to a 40% of your invoice. You end up with a few people acting as gatekeepers to busines opportunities, who reap between 7 and 40% of all invoices.
Cue abismal productivity, poor quality, dodgy business practices and high official "unemployment", all a direct result of this practice.
That money has to come from somewhere...
It is a tough call, but it may be worth resisting the temptation. Asking people to pay to work is just a return to serfdom. If the UK goes down that path, good bye to business as you know them...
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PRO MemberPermalink Reply by Craig McGibbon on -
Agree with all of the above and would also say he should have made that clear prior to any introductions etc... and were you happy to proceed on that basis.
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PRO MemberPermalink Reply by Mick Gammage on -
change your friends
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Also, to add to what I said yesterday, if your mate's firm is 'new' then they don't actually HAVE a 'usual' anything do they....
They recommend you for this job - you recommend them for something that you find. Mutual back scratching is fine, but paying (or charging) a finders fee is unprofessional at best, unethical at worst. If an SGD member were caught doing this they would be barred....
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Permalink Reply by Stephen Puckett on -
The fact that you have posted the question in the first place indicates you are not comfortable with the idea - go with your gut instinct. If your friend is trying to maximise profits, you could suggest that they put their fees up, not get you to do it!
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