Guys, I have a short summary of the post for those of you that don’t want to read the whole thing. I hope y’all are having a great Friday!
Most of the vendors I work with in the building/maintenance trades are solid—until one isn’t. For the last couple of years I’ve been locked in a tense relationship with a landscaping crew where the foremen and I are always one wrong word away from a full blown fist-fight. I tried to fix it by secretly paying the entire team extra cash under the table (enough to wipe out their taxes on the job). The laborers loved it. The foremen treated it like it still wasn’t a good enough gesture. So I finally fired them… and ended up paying more than double the original quote to get the same work done today. Business relationships are expensive—especially the divorces.
If you’ve ever had to cut ties with a vendor, I’d love to know what you would have done differently.
I have had to work professionally with alot of vendors throughout my working life. And for the most part, they’ve been great. I’ve worked with heating oil delivery people, construction workers/framers, electricians, etc. I’ve worked with almost the whole spectrum of services in the building industry for my line of work.
With very few exceptions, those relationships go through their full course without too many hiccups. I’ve had one or two that have gone sideways but for the most part, they’ve worked. However, with the particular relationship I’ll discuss, I’ve had to take steps so that the impending divorce wouldn’t be a gigantic mess.
Business relationships are expensive, both to maintain and especially to dissolve.
I’ve been working with a landscaping company for a while for various jobs and it’s an open secret that the foremen and I (there’s 5 but I’m talking about a certain 3) are less than one misunderstanding away from coming to full physical blows.
I have tried to see the situation from their side; maybe the price I pay doesn’t leave alot for all of them to have a decent payday. Maybe, the jobs I subcontract them for are not profitable enough?
So, I’ve come to give them an extra cash payment while on the job – all of them. I’m not giving them USD $5.00 and a wink of an eye. No, I’m giving them cash that essentially negates the taxes they would pay for that job.
The laborers are thankful for it, and I can sense their genuine appreciation.
But the foremen? They act like the cash is somehow beneath them.
The last job they did for me a few weeks ago, the foreman took my cash with a look of disdain on his face and that was pretty much the last straw. I wanted so badly to throw fists at that point but I also have to think about my own business’s interests. So I just made sure that all the laborers within viewing distance and earshot knew I wasn’t happy with the foreman’s attitude and left it at that.
I had to hire another crew for a job I am doing today because I’ve decided that it’s not in my best interest to trust that company with my business. If the foremen think they can visibly show their displeasure at me, I’m playing with fire retaining them year after year, job after job.
The bitter part is the cost: the original company had quoted $2,000. To get a new crew on site in the tight timeframe I needed, I’m now paying $4,200—more than double. I’m taking real risks with this new group. I’ve only used them on smaller jobs, so I’m not sure how they’ll handle this big one. I’m crossing my fingers. Where the first crew showed up with 11–12 people, this owner sent only 5. Sure, those 5 can earn a bigger tip, but I’m worried the scope of the job may be too much for such a small team.
This new team is on-site right now and it’s 10:30AM. I hope they don’t need the full day.
But to get back to the main point, for me to be willing to pay what is essentially a 100% markup on top of an existing quote just so that I don’t work with certain people is a testament to how extensive business costs can be – especially when tempers and pay take center stage.
And if you’re the guy that’s coordinating all of it, you cannot afford to have lieutenants whose attitudes force you to balance the trade-offs between the work environment and the final work product.
Feel Free To Leave A Comment!