3rd Party Work

[theengel]

How many of you guys do 3rd party work?

When I first started as an independent, I would go just about anywhere for anyone. But I don't think I've ever taken a third party service call and had an over-all good experience--whether it's because of being underpaid, having less opportunity to expand my customer base, or just because they sent me on a call no one else could figure out over the phone.

At first, I started telling companies I wouldn't run their calls unless they bought parts from me, paying the full price I charge normal customers. Eventually, I just stopped doing 3rd party work altogether.

To me, it's shooting myself in the foot. I might get a few bucks off the gig, but if I do a good job, that end client has no reason to change their service provider. If I just don't take the call, there's a chance they'll get crappy service and end up calling me directly. Then I can actually add them to my client data base and hopefully get work on their other machines as well as selling supplies.

[blackcat4866]

Re: 3rd Party Work

I was running a one-man service department for a while, and I was generally underwealmed by the quality of the work I was paying for. Nearly every call came back incomplete for parts. The contractor must have thought that he could double his billable hours by ordering parts, especially when none were needed. When I noticed the trend, I started to do the followups myself. Most often it was feed tires, and frequently they had extremely low counts ... and the original call was for image quality.

I've done a little third party work myself, and yes, I usually ended up working on somebody's "can't fix" machine, and ended up giving away many labor hours, and spending lots of time on the hotline.

I don't care for either side of the equation. =^..^=

[Tonerbomb]

Re: 3rd Party Work

generally all bad! those 3rd party service contractors for the Big Box stores search for the Indy's and small locals and want to negotiate a service fee. They only want to pay for 1 trip even if it takes 2 or 3. the 3rd party has already done their telephone/online trouble shooting and tells you what they have sent, and that's not what's needed to fix the customers problem, And will you get paid..................sometime, maybe...........

[atwageman]

Re: 3rd Party Work

I've done 3rd party work with success. Written contractual agreements is what helps protect you.

I don't do 3rd party work unless a service contract is in place. I write the contract, and if you don't like the terms, then find someone else.

I dictate the hourly rate, who's responsible for buying parts, who provides service manual documentation etc.........

I get regular phone calls from companies I've never heard of before wanting me to go out and fix their shit. 50% of the time, these companies move on to someone else when they realize they are dealing with a business man, and not just a nerd with a screwdriver.

[NeoMatrix]

Re: 3rd Party Work

I'm trying out the self independant technicians life style for a while.
I'm picking up on what you guys are saying. It feels cold an empty so far as I'm getting a complex that everyone
wants everything for nothing.
Example: In sympathy I spent an hour with a lady helping her understand her new cash register, an I only charged her 35 dollars labour for the hour. I charged her 1/4 the normal hr rate. She keeps telling me the cheque is in the mail.
I hope I don't lose to much faith in people at the early stages.

[atwageman]

Re: 3rd Party Work

I'm trying out the self independant technicians life style for a while.
I'm picking up on what you guys are saying. It feels cold an empty so far as I'm getting a complex that everyone
wants everything for nothing.
Example: In sympathy I spent an hour with a lady helping her understand her new cash register, an I only charged her 35 dollars labour for the hour. I charged her 1/4 the normal hr rate. She keeps telling me the cheque is in the mail.
I hope I don't lose to much faith in people at the early stages.

The something for nothing crowd is minimized with signed service contracts/service orders. Sometimes the mom and pop businesses are worse about paying than than the corporate giants.

I have no sympathy. I have a business to run too. I'll spend all day helping you, and do it with a smile, but it's gonna cost you. You just have to be straight up and honest with people from the beginning.

[theengel]

Re: 3rd Party Work

Sometimes it seems like the more people want, the less willing they are to pay. Personally, I don't mind spending extra time with the smaller businesses. I figure if I don't have work waiting for me, then what's the big deal to stop for a few and help someone out. They can't afford to pay someone to explain crap to them, and I get fuzzies for being helpful.

At the same time, you can't feed your family with fuzzies. But still... if I don't have a paying customer waiting for me, I'll spend some extra time trying to help someone.

[dbrownlee]

Re: 3rd Party Work

I'm trying out the self independant technicians life style for a while.
I'm picking up on what you guys are saying. It feels cold an empty so far as I'm getting a complex that everyone
wants everything for nothing.
Example: In sympathy I spent an hour with a lady helping her understand her new cash register, an I only charged her 35 dollars labour for the hour. I charged her 1/4 the normal hr rate. She keeps telling me the cheque is in the mail.
I hope I don't lose to much faith in people at the early stages.

Would that be a Sam4S ER-650?

[NeoMatrix]

Re: 3rd Party Work

Re: Slow invoice/debit payments.

I've toyed with the idea of writing an automated web page the publicly names those businesses that take a long time to pay their debt. The web page would publicly display the names of those businesses/customers, the days, months and the amount they are in arears, along with the number of repeat times they have been on the name-n-shame debit web page.

As people know w-o-m advertising is a two edge sword : it can work both ways; for good or bad. The only way they could remove their business/customer name off the debit page is to pay it off the page directly via EFT. It would be left up to the business themselves then, as to how long they wanted their own self generated bad advertisement to appear public.

Obviously the name-n-shame debit page would only be used as a very last resort an extreme worst case scenerio.

It amazes me though how much money business/retail spends on "advertising" each year to get you in the door,and then slams the door on your back to help hurry you on your way out.

As I said," it's just an idea", I doubt very much if I'll do anything more with it..... rant over....

[theengel]

Re: 3rd Party Work

I think the company reporting such companies would lose an immense amount of business. I myself would never do business with a company who publicly reported those companies who owe them money.

[NeoMatrix]

Re: 3rd Party Work

I think the company reporting such companies would lose an immense amount of business. I myself would never do business with a company who publicly reported those companies who owe them money.

You are totally correct, but the fact that the company won't pay you is solid evidence that all future transactions are terminal. So all future business is null and void. Which is all the more reason to shame the S.O.B's so other good business can gain from your interlude and build a profile against the SOB.

Zero from zero is still zero... Starting with zero profit ending with zero profit is still zero....

I don't work with negative profiles in any case., the web page was just and idea. It's not how I truly operate.
I appreciate your input on the subject....

[theengel]

Re: 3rd Party Work

As you said you were just starting out as an independent, I can give you one tip: you'll be waiting a lot longer than you expected for people to pay... but most of them DO pay, eventually. I think in 10 years, I've only been stiffed once. But I've waited six months for a $500 check. I send them a lot of letters and make a lot of phone calls. So far, I've learned to expect the bigger companies to pay slower than the small companies. I think it was Pitney Bowes who took the longest for me. They have trained book keepers to keep money in their accounts as long as possible. Most won't even look at an invoice until it's 30 days old.

It makes things hell when people owe you money and you don't have enough gas to get to your next call. Three different times I've had to take part time jobs to keep from drowning in bills. Life as an indie isn't easy. Unless, that is, you have a huge chunk of business from the very start.

One of the things that really helped me was accepting credit cards. You can get set up as a merchant with Paypal and accept credit cards over the phone for something like $30 a month. This made payment faster for probably half my customers.

[atwageman]

Re: 3rd Party Work

Some of my more trust worthy business relationships I've got set up on net 15 and net 30 payments. I also accept credit cards.

Im also insured/bonded and have business licenses. Many companies want to see that before they will do business with you. It's a good thing to have when negotiating. Clients will ask sometimes why am I more expensive? I say I'm insured in case something goes horribly wrong. What's the other guy gonna do for you if he fucks something up beyond repair? Or falling thru on a commitment he wasn't qualified to handle to begin with.

[atwageman]

Re: 3rd Party Work

All kinds of little things things need to be considered when it comes to being profitable.

An example can be something as simple as covering the cost of parking in some downtown metropolitan areas. Did you figure in enough to cover it? If I have a regular customer base within a few blocks, I may spread it out a little, but yet I bill them as if they are the only customer I have.

No need to struggle to stay afloat.