Try this one, for a job where you know you can buy the thing to be fitted for £100.Scenario 1 - labour £50, materials £150
Scenario 2 - labour £150, materials £50
Who do I choose - The first guy - I pay him £50 and go on the internet and get the materials for £50.
Lemon curry?Which one do you choose, and why?
Nevertheless it's not too hard for you to answer, is it?BAS - why the hell are coming back with some highly theoretical materials versus labour scenario - and asking people to select which tradesman to choose. It is a bit ridiculous.
Do you get many people wanting to work for you after their first experience?For example, if he identified he was doing work for a landlord, which he would have done, he might see 5 hours a month coming his way, from just pitching in at the right level to win this account.
Maybe they were assessing the future profit from not winning future business from you. Is the name of the £130-guy's business Pyrrhic Electrics, I wonder?The corrollary to this, of course, is that the other guys that failed to win this business are much less likely to win future business from me, and today they are all £120 worse off.
It's an example, and everything to do with the point at hand.BAS - I haven't answered because it's theoretical and nothing to do with the point at hand.
B you haven't even specified whether he will just do labour or not),
Person B ... says "OK, NP, I'll fit it for you for £350".
So can A:clearly I choose B - he can supply the part and labour.
Person A quotes you £300 for the thing and £100 labour.
I did, and I don't believe it is.Now read my post and tell me whether it's more realistic.
I have no idea, and I care even less.BAS - what's his marginal cost?
Indeed you can, but you cannot sustainably end up with a lower total cost and maintain quality.In economics and business that's how it works - that's why I can buy a brand new Glowworm A rated combi off the internet for as cheap as any gas safe registered engineer, and then just a gas safe engineer to fit it.
No, I am doubting his abilities and quality because he is not charging an amount which is consistent with quality work done by an able person.Gone are the days when your Person B can buy at trade and sell at retail. These "parts" are called commodities - doesn't matter who buys them, they are the same. It does however matter who fits them - that's what the register is about - surely you are not doubting the abilities and quality of the person I have used, just because he understands marginal cost are you?
You are mistaken about me.He is after all one of you - registered with NAPIT.
All of that may be true, but it is not sustainable for the very reasons I have illustrated in my "theoretical" examples. In the long run all such people will end up earning what they need to earn, no other model can possibly work, and so in the long run any denial of margin on materials will have to be added to labour charges, so unless you can buy cheaper than him it is impossible for you to be better off. All you can hope is that if you buy as cheaply you will break even.For all you know, he is the best engineer in town - perhaps he had a tax bill that was due next week, and he knew, with cash, this would help him a lot? Perhaps he likes to keep busy and would rather work 40 hours a week charing £130 for 5 hours work rather than 20 hours a week charing £260 - your motives are your momotives his is his. be very careful doubting his work.
You have made your motives abundantly clear, and whilst there is not a perfect relationship between what you pay and what you get, there is a reasonable one, and your approach is one which tends towards you getting a carp CU and a carp job done of installing it. Neither outcome is guaranteed, but what is guaranteed is that if you go through life acting like this you will end up with more carp than average, for you are the natural prey John Ruskin was thinking of.You are making a lot of assumptions about the contractor I have used and my motives for buying the part myself.
Unfortunately being registered with NAPIT or any other body is no longer any guarantee of even basic competence, let alone a reasonable degree of craftsmanship.BAS - that is **** - he is NAPIT registered - it is not my job to check his work.
This term, with which you seem so obsessed, does not represent the full picture.what's his marginal cost?
You could not be more wrong. Since you're not a tradesperson, it's not surprising that you don't know, but that doesn't explain why you're pretending to know.Gone are the days when your Person B can buy at trade and sell at retail.
No they're not. Nobody in their right mind calls them that.These "parts" are called commodities
Yes, but it matters who supplies them. Under existing consumer legislation, if the contractor supplies the "commodities" then he is duty bound to provide a warranty for them.doesn't matter who buys them, they are the same.
Very little care is needed to know with absolute certainty that the amount he charged you cannot sustain that kind of business with the right amount of training and the overheads that the business must have.For all you know, he is the best engineer in town - perhaps he had a tax bill that was due next week, and he knew, with cash, this would help him a lot? Perhaps he likes to keep busy and would rather work 40 hours a week charing £130 for 5 hours work rather than 20 hours a week charing £260 - your motives are your momotives his is his. be very careful doubting his work.
Perhaps not, but it's your personal safety that you're using as the ante when gambling that he's any good.he is NAPIT registered - it is not my job to check his work.
What exactly has he done well?well done dizz.
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