Contract Job Need Advice PLEASE!

[Willy Wang]

Hey AGians,

So I found a detailing gig offer on craigslist from a shop that primarily does high end vehicles and definitely charges unlike any other place I have seen. The cheapest package they provide is a wash/clay/wax/interior and they also provide sealant upgrades as well as opti coat 2.0. They don't do heavy paint correction, at most they will apply glazes and spot remove minor scratches. Most of the cars that use his service are very well taken care of.

I applied to this job posting stating that I am a paint correction specialist and have experience working with multiple brands of coatings. So the owner called me in and he gave me an idea of how he wanted to work with me, or vice a versa. His plan for me is to extend his services (he does not currently perform heavy paint correction). He would like to contract these jobs out to me on a 1099 basis. My compensation would be 40%. From my research 40/60 is the market rate if the owner is to provide all the supplies and equipment and 60/40 would be if I provided all supplies and equipment.

So I have several questions to which hopefully I can get some answers to before I dive back into our second meeting. First is insurance. Who should be covering the insurance if I am only getting 40% of gross? Should that be him? Or do I need to be covered myself. I will be working on high end and exotics. Second question is, what is a fair percentage I should be getting and under what circumstances? Third question is, what else should I be concerned about for this sort of business relationship?

Note: This shop charges around $100 per hour for a wash/clay/wax/interior. I'm assuming he will charge his customers more for paint correction and even if he isn't, I will still be making $40 per hour on any job that rolls my way.

Thanks ahead of time for your inputs!

Regards,

Will

 

[CarolinasFinestDetailing]

So who will be supplying equipment & supplies?

 

[Andrew@ToyMotorsports]

I assume if you are being contracted out you would have to insure yourself. He may provide the product and equipment but you are not employed by him so I don't see you being covered under his insurance. I may be wrong but that would make sense to me.

 

[Eric@CherryOnTop]

If you're gonna be 1099, you better have your own insurance. I wouldn't do it for any less than 80%, he can consider his 20% a finders fee.


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[dfoxengr]

Its a no brainer for you to provide supplies and tools for an extra 20% if he is willing. You then own your stuff and dont have to deal with someone else when you need to restock. Plus, even at $100 per hour (what he charges), you get 60 instead of 40. You probably wont be using more than $20 of polish per hour. All the equipment is basically an up front cost. And you likely already have that stuff.

 

[Bates Detailing]

If you are 1099'd you are basically running your own business - you need to insure yourself for sure. I have a 1099 sub that I send to most of my auto jobs from polishes up to corrections and I give him 70% for him to use his own tools, products, vehicle, etc. He loves it cause he makes bank - he can easily make $300 a day this way. He basically has his own business but doesn't want the hassle of going out looking for work, building a website, the issues of what should I charge for what, things like that. He simply gets my client, makes them happy through service, hes happy through pay, and Im happy cause while I made say $75 bucks with him while I was over on the other side of town making $700 bucks with a regular employee. Everyone's happy. I must say that 70% may be higher than most pay, but I have a rep of paying too much lol. Goodluck man :buffing:

 

[Willy Wang]

So who will be supplying equipment & supplies?

I will be negotiating these terms with him on the next visit

Its a no brainer for you to provide supplies and tools for an extra 20% if he is willing. You then own your stuff and dont have to deal with someone else when you need to restock. Plus, even at $100 per hour (what he charges), you get 60 instead of 40. You probably wont be using more than $20 of polish per hour. All the equipment is basically an up front cost. And you likely already have that stuff.

I agree it is a no brainer, but that was not a number that came from him haha. I will negotiate percentages with him along with who supplies. Thanks for your input!

If you are 1099'd you are basically running your own business - you need to insure yourself for sure. I have a 1099 sub that I send to most of my auto jobs from polishes up to corrections and I give him 70% for him to use his own tools, products, vehicle, etc. He loves it cause he makes bank - he can easily make $300 a day this way. He basically has his own business but doesn't want the hassle of going out looking for work, building a website, the issues of what should I charge for what, things like that. He simply gets my client, makes them happy through service, hes happy through pay, and Im happy cause while I made say $75 bucks with him while I was over on the other side of town making $700 bucks with a regular employee. Everyone's happy. I must say that 70% may be higher than most pay, but I have a rep of paying too much lol. Goodluck man :buffing:

70% would be awesome! However, I am using his shop so I am not sure I can command such a high percentage. However, I will try! He does provide me some really high paying customers. One of his customers spends $11,000 a year for him to take care of 3 of his cars. Thanks for the tip!