Sharing the profits and working in pairs?

[Viper Gas]

Hi Guys,

I have a bit of a conundrum. If any of you guys out there work in pairs this might be of interest to you.

If one of you two guys buy an expensive piece of equipment and it is used for a job you both work on how is the pricing considered? HOw are the profits divided?

Should the guy who bought the powerflusher (for example) get a littel more? But if thats the case shoudl the other guy be paying for his equipment out of his cut?

If anyone has any suggestions to keep both parties happy that would be great.

Regards

DD368

 

[SafeGasInstall]

give and take ,the only way is both to have there own equipment ! keep everything balanced and everything will be ok ! do not use and abuse his tools have yours share responsibility and always be HONEST !

I am starting business in partnership ,we have already done firs big job and have more to come from same hotel ans we are planing marketing strategy to generate more work !

hope this helps

 

[gaspastemania]

Would never do partnership myself , seen to many bickering over this and that . Ppaired up in teams with heating installs and that was bad enough one person always tries to take charge from my experience. Go it alone i say .

 

[gmac]

Was in similar situation few years ago, Was partners with another plumber and I liked to buy new tools regular (out of my own pocket) was forever trying to buy tools and equipment which would enable us to carry out work quicker and enable us to explore other avenues, First 12months didn't say anything and ended up bickering one day and brought the subject up, that was the begining of the end, three months later i called it quits and went by myself, never looked back,

If you looking for compromise, why not price the hire of equip from local hire shop and split the difference, say £80 per day hire. split two ways is £40 so you get £40 of him. He won't like it but it helps you cover cost of purchase and any maintenance in the future

 

[tamz]

Whatever way you have gotten into your partnership or how it is set up, the decision to buy an expensive piece of machinery (plant) should be a joint decision with shared costs and rewards. None should take an independant decision without consulting the other.
I think your partnership (or team) is off to a bad start and is unlikely to last without compromise.
Like every other team game. All require compromises and sacrifices on both sides if it is to work. Think of a marrage. How does it survive?
Ask yer ma if she is still married.

 

[stevetheplumber]

i always worked with a partner untill a few years ago never had a problem if we needed something we bought it out of profits from a job everything was split 50 50 after exspenses we both run a van seperately but if we used one for a week we would split the petrol if you dont get on with your partner from the start dont do it

 

[Kimou]

And you'd think adults would know better. There's always some trifle or other to create a nonsense. If it were me and I'd spent the money for our business then I'd either insist the next major purchase comes out of their pocket that way everyone know whose is whose when you part your ways or £30 out of each job using that machine goes into my own pocket. It costs around £60 to hire for the day so the money is split. You have to have an understanding from the start. And I'm sure that given the price of the job, £30 is not an unreasonable price. and then once it's been paid for you can stop the 'hire fee' but the machine is ultimately yours.

 

[tackleburger]

I was doing heating jobs with another plumber and i had the core cutter and I had to get the cores re-tipped, when I brought it up he wasn't having it so that was that no longer do heating jobs still speak though but enough was enough.

a builder i did work for would get me to price jobs then when on site would add on other things usually coring out tumble dryer vents kitchen extractors etc. I did then 2while I was there" for a while then started charging £30.00 a hole £50 for Victorian houses with 600mm walls. Suddenly the work stopped coming my way.

I say create your own work and don't get matey with builders and others it causes animosity. Written quote, VAT no pricing on the hoof or agreeing to 1/2 hour jobs never works and we always lose. If you need help get another plumber on a day rate pick him up and get him to bring hand tools.

 

[wnjswozo]

get your customers to pay seperate cheques,dont get it in one name ,then you write a cheque to your pal for his cut,
the tax man does,nt like this arrangement,unless your accounts are in a officail partnership,as we found out!

 

[capitanpugwash]

get your customers to pay seperate cheques,dont get it in one name ,then you write a cheque to your pal for his cut,
the tax man does,nt like this arrangement,unless your accounts are in a officail partnership,as we found out!

Why's that? Is that becuase it should all come through the CIS scheme if it is as they count you as an employer otherwise? Seems like a waste of time and effort....

 

[SafeGasInstall]

we are both Ltd and I have been told it's ok

 

[capitanpugwash]

we are both Ltd and I have been told it's ok

Say you get a job with your mate who's also ltd co and you get a cheque for £5k. £3k materials. You can write him a cheque for £1k and that will be ok without being CIS? If so, then this sounds like a good setup.

A mate who employs a lot of casual labourers says the admin on the CIS scheme is really hardwork and to avoid getting involved if you can at all costs.