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Matterport Pros>Pricing When Sub-Contracting4479

WGAN Forum Founder DanSmigrod private msg quote post Address this user
Hi All,

More and more Matterport Pros are getting Matterport scanning jobs in distance cities.

They have a trusted relationship with a client whom asks can you also help me in [cities]? Examples might include a multiple family community builder; property management company or bank working on foreclosures.

If you have trusted relationships like these, ask your clients if you can help them on other cities (and engage Pros via the We Get Around Network (see Map above with public profiles: green, blue and purple pins).

I know the above is already happening because many We Get Around Network Pros already reach out to me when they can not find a Matterport Pro on the Map above. That's when I post: Matterport Pro Wanted: [City].

About pricing, the following may apply both to the Pro engaging other Pros and the Pro being asked to be a sub-contractors.

If are a one-person business, you wear many hats ...

When you think about pricing, I suggest giving some thought to: 50/30/20 ...

✓ 50 percent to the photographer (that's you)
✓ 20 percent to sales (that's you)
✓ 30 percent to operations (that's you)

When you think about pricing in context to 50/30/20, then you can think bigger about how to grow your business.

Examples Include

✓ maybe I should add a sales person and pay them 20 percent
✓ maybe I should pay other Pros 50 percent to scan spaces
✓ maybe I should offer my scanning services to other Pros 50/50
✓ maybe I should allocate 20 percent of time/revenue to sales

My Concerns Include

✓ if you can not afford to pay a sales person 20 percent, you can not scale your business beyond just you.

✓ if you can not afford to pay another Pro 50 percent, you can not scale your business beyond just you.

✓ if you are not paying yourself - or someone else - 20 percent for business development, then you are probably not charging enough. For clarification, would you be willing to scan spaces at 20 percent less, if someone else developed business for you? Would you be wiling to scan spaces at 50 percent off, if someone else handled sales and operations for you?

And, by the way, that's 20 percent for at least 12 months from the first order: not just 20 percent for the first project.

What are your thoughts about 50/30/20 or paying a sales person 20 percent?

What are your thoughts when another Pro calls you to sub-out work to you? Are you still thinking retail pricing or are you thinking about sub-contractor pricing since you don't need to develop the biz and you can upload the scans to the engaging Pros Matterport account.

Best,

Dan
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Metroplex360 private msg quote post Address this user
@DanSmigrod I agree completely.

With pricing on a 50/50 basis -- consider also --

#1) Who is proofing, taking snapshots, setting the start location and finalizing in 'Workshop'?
#2) Who is paying the processing fees?
#3) Will you pay the moment the model is turned in and take on the financial burden?
#4) What is your normal rate? What is their normal rate?

Metroplex360 has been 100% my work until February 2017. I now have multiple cameras, 3 photographers and have 2 MSPs that I send out work to when we cannot (or do not want to) do it. I'm using PhotoUp to increase the # of photography opportunities I take and I'm trying to optimize my time to where I drive less and make more $ while building a team.

How I accept subcontracts:

I want 66% of the published prices that I publicly ask of my clients on my website. If you're hiring me and you usually charge 5/c per square foot, call someone else.

I believe that my pricing is the market value where I'm at -- and I believe that a 66/33 split is a "temp service mentality." A temp service that my wife used 10 years ago would fill a $12/hr job and pay the person $8/hr. When that person went from temp to permanent, they then received the full amount. Thus, I think that a 66/33 split is fair.

Dan has brought up the fact that there's value to the salesman, the business, etc - but I will say too that the temp service is not factoring in those things separate to the 66/33 split. They are justifying the split that way. Plus, the job that they are filling probably sends them a commission... so... my analogy falls apart at this point.

How I pay my employees (that I provide a camera to):

50/50. I provide the camera; I provide the training; I provide the cloud hosting and processing; I do the workshop/finalization; I take on the financial burden. And as a perk, on your day off, you can go scan whatever you want for your own 'clients'.

I also have a minimum of $150 per job (2 apartments = 1 job if at the same location). I have actually lost money on a job, and you may too if you start to scale up. It keeps the people working for you excited to share your vision when you don't ask them to make sacrifices and stay consistent with them.

I pay my employees based on MY published prices. Therefore, if I cut a deal with the client, it's not an employee / subcontractor's fault. The 'salesman' takes the cut out of the commission - therefore, I make less money, but I keep the work consistent.

Additionally, I take on the shoots that also have photography. I do not have secondary photographers. I also reserve the right to make $ off of any peripheral things -- so if, for example, I chose to sell schematic floorplans to a client at a modest markup, I as the salesman keep the profit (and buy a cheeseburger, or perhaps a value meal if I am very very lucky). Depending on how the Street View Summit goes, this may open up some new revenue that the salesman in this scenario would make $ off of, but the photographer would not.

What are the difficulties:

- On the employee perks (wherein the employee is using your equipment on their day off) - there's always that looming Doomsday Clock of 'When will my account reach the 300 scan limit.' I'll cross that bridge when I get there... I think they need a $200/mo plan that supports 1,000 scans because it's no secret that cloud hosting costs pennies. Cloud hosting is storage, bandwidth and processing. Once the tours are submitted and idling in one's account, they really don't cost Matterport very much $ from the cost analysis I've done; therefore I live in full faith that I'll soon be paying $200/mo for hosting 1,000 scans.

- On sending someone in your place -- I subcontact for Agency A. The reached out to me today and asked that I send out Photographer B, which is not me, because the agent liked him. That was weird. I'll send out Photographer B... but that's a subcontracted subcontractor already... and at that point Agency A is taking a cut, and then I'm taking a cut ... and the pot gets rather empty and I end out not taking any money for myself.

- Realizing that you probably need a bookkeeper and to reorganize yourself as a section-c. Right there is a wonderful service that someone might want to start offering here. If a bookkeeping service that is passionate about photographers / freelancers who may be paying too much in taxes as a DBA or LLC wants to get on the We Get Around Network, it would be a clever thing.

--

What do you guys think?
Post 2 IP   flag post
davidpylyp private msg quote post Address this user
excellent topic string
Thank you

10 cents a square foot does not make profit or income
Post 3 IP   flag post
Viewing private msg quote post Address this user
With the way our site functions, one member of the forum suggested it could work as a distribution channel. This was never my intention but it's actually feasible because of the DM & IM features, the upload, create draft, share with client and edit by either party until happy nature of how it all works.

Now, taking into consideration what was mentioned above and the fact that we already display the network map of providers to help clients find you - plus the fact that we will be paying pros on a monthly basis anyway and have a financial director on board with outrageous experience (he's a government advisor) - I see no reason we couldn't act as a central hub for orders, using our site's existing functionality for pros to liaise with clients to agree the details of a job, do the job, upload the product for the client to check, edit if necessary, sign off and hand over. If the payment went to our site we could potentially sort taxes etc and add figures to the accumulated revenue for each pro who has an account.

I would need to talk to the FD more about this to know the finer details but the way the site functions makes it very versatile. It has potential to be a lot more than just a listings site that's for sure.
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