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Old 04-17-2008, 08:46 AM   #1
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Just got a call from a GC buddy of mine who wants to put me in touch with another guy who has the contract for all of Home Depot's painting. Apparently he has so much work it's insane and says he could keep me busy 24/7/365. What to do? Part of me says "no way, HD and behr paint" another part of me says, hire a few guys and build the business, use the contacts you'll garner from it to your advantage and see where it leads.

I know I'll probably see a little flaming going on because of HD, but from a business perspective in this weird economy, is it worth considering?
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Old 04-17-2008, 09:58 AM   #2
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IMHO, Run Forrest, RUN!

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Old 04-17-2008, 10:59 AM   #3
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To elaborate, you might want to look into it to see what it might entail. But I have heard way too many horror stories on how contractors basically sell their soul to HD and end up losing their a55.

Read this.
And this.
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Old 04-17-2008, 11:27 AM   #4
 
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I've heard that they basically run your business for you and force you to tone down your company image in favor of the bright orange. But it could keep you from having to advertise or worry where the next job comes from.

sometimes the price you pay is too steep
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Old 04-17-2008, 12:29 PM   #5
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Quote:
Originally Posted by ProWallGuy View Post
To elaborate, you might want to look into it to see what it might entail. But I have heard way too many horror stories on how contractors basically sell their soul to HD and end up losing their a55.

Read this.
And this.
I think my decision has been made if any of that is true. Thanks for the insight. I"ll meet with him to see what he has to say, bu tI think I know which way I'm leaning at this point.
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Old 04-17-2008, 01:28 PM   #6
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Good Choice! We all come to points where we must "chose between one and let the other ride." I had a similar offer a few months ago from a contractor who said he could keep a painter busy. After considering it...It came down to did I want to work for myself.... or a GC .... It most likely cost me some $$ this year.... but I have not looked back with regrets.... really have not had time to...
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Old 04-17-2008, 04:37 PM   #7
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Go into the interview with this mindset "Busy does not equal being profitable". Home Depot will be profitable. The guy you buy trucks from will be profitable. Your employees will have jobs and be profitable. Guess who may get screwed? The only thing home depot (or GC) provides is an avenue to eliminate marketing and having to do sales/estimating. Looking at this from a purely business standpoint I would ask myself the following questions:

What percentage of my gross sales is lost to advertising and performing the sales?
Am I equipped to handle being busy? Can you expand efficiently? Do you already have a full schedule?

My feeling for these types of deals. Leave them to the technicians. That means the guys that (no disrespect intended) aren't capable of running a business and just want to paint for a steady paycheck. If you are already priced low and aren't busy enough then this may be a viable option for you. If you command a nice dollar for your work then expand your marketing efforts and grow that way. The last thing I would want to do as a business owner would be to bring in a boss whom will call the shots.

Best of luck. Go into this with your eyes open.
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Old 04-19-2008, 05:55 PM   #8
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Quote:
Originally Posted by Boden Painting View Post
Just got a call from a GC buddy of mine who wants to put me in touch with another guy who has the contract for all of Home Depot's painting. Apparently he has so much work it's insane and says he could keep me busy 24/7/365. What to do? Part of me says "no way, HD and behr paint" another part of me says, hire a few guys and build the business, use the contacts you'll garner from it to your advantage and see where it leads.

I know I'll probably see a little flaming going on because of HD, but from a business perspective in this weird economy, is it worth considering?


The bottom line?--How Much Are They Gonna Pay Ya'?............In these parts Home Cheapo seems to be looking for folks who'll work for Wal-Mart wages........



Casey
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Old 04-19-2008, 11:22 PM   #9
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[quote=Boden Painting;22103]Just got a call from a GC buddy of mine who wants to put me in touch with another guy who has the contract for all of Home Depot's painting. Apparently he has so much work it's insane and says he could keep me busy 24/7/365. quote]

Remember there's a big difference between being busy and making a profit
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Old 04-20-2008, 07:46 AM   #10
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Are you painting the HD buildings or acting as a sub-contractor for them?
One advantage I could see is being able to build a client list, and marketing your business in the areas you are working. (if they let you do that) You may break even on the HD jobs, but be able to build for the future IF you are allowed to promote your business.
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Old 05-14-2008, 06:43 AM   #11
 
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They want 5000 to buy a store should I do it?
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Old 05-14-2008, 08:53 AM   #12
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Quote:
Originally Posted by CincyPainter View Post
They want 5000 to buy a store should I do it?
They want?

What do you want? That is the question. Don't ever go into a job when the client is calling the financial shots, unless you know it's too good to be true, and even then I would hesitate....

J
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Old 05-15-2008, 11:59 PM   #13
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Quote:
Originally Posted by CincyPainter View Post
They want 5000 to buy a store should I do it?
I would read the articles that Prowallguy posted above.

What percentage are they taking? It may have changed, but my understanding was as much as 24% by the time New Image and HD get their share.

If your average sale is $4000, that is giving them $960 per job.

It is also my understanding, that you are still responsible to go out and quote and sell the job.

The brand name may help you to close the deal, true, but in the end your are just paying for the name and the ability to go market the store yourself.


$960 will get you 2400 pieces of high end mail out the door.... All you need is 1/10 of 1% response if you have a roughly 1/3 closing ratio on this type of lead to do the same - and you stay your own boss...

Furthermore, I do not believe that the leads will just "come flowing in".I imagine you still need to go work the HD stores pretty hard to get steady leads.

That is very expensive marketing.... Don't want to beat a dead horse, but I recommend you save that $5000 and study Pressure Pro's post on how to get 4% returns and put that $5000 toward that...

Hope that helps Cincy.
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Old 05-16-2008, 01:36 AM   #14
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good luck corp america
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