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One of the biggest questions I get is how do I pay my subs 50%? And why don’t they just do it on their own?
This video covers how we’re able to pay our contractors 50% and why they don’t venture off and do the business without us. Basically – we pay a very fair amount, which happens to work out to 50%. When we quote a job, we price ourselves so that we can pay 50% to materials and labor.
Whether we sub-contract the painting work, or we hire employees… either way we need to keep our labor + materials around 50% to run a healthy profitable business.
And that 50% needs to be a fair amount, or we will not be able to keep workers.
Contractors don’t go do it on their own, because it’s a different kind of business. Watch the video to learn more – but basically marketing, sales, and managing the production of the job takes a lot of time and money – which the contractor doesn’t have to worry about if they are sub-contracting.
If they were doing it all, they would also need to raise prices to account for the expenses of marketing, sales, and production management.