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General Contractor / Sub or Specialty Contractor Relationships

February 04, 2008  |  from Markup and Profit Blog

In another post, Larry Steward commented:

    “Related to jump starting new leads, in addition to advertising, is to get your sub contractors to refer. Most subs are delighted to be assigned to one of our projects but I have to constantly remind them that this process is a two-way effort. I encourage them to look for opportunities for us when they visit their own customers. After all, if we can help their customers, it makes them look good and certainly helps us with a flow of work. I believe this is one of the most direct and positive ways to stir up new leads.”

Great comment, Larry, it’s appropriate to remind your subs that it’s a two-way street. Let’s take it a step further.

I’m assuming you don’t shop your subs, i.e., if they give you a quote on a job, and you get that job, they get the job. So isn’t it fair to tell the subs that for every job you give them (or maybe it every second or third job) you expect at least one new lead or referral from them for new business?

If they are getting a new job from you for $0 advertising, and the only effort they must use is to compile an accurate number to build their portion of the job, isn’t that a fair exchange? Don’t forget what I said above - you aren’t shopping subs. If they quote a job, they get the job.

Those of you doing specialty (sub) work, what say you? As Larry says above, this is, or should be a two-way street.

Filed: Sales-Marketing