Page 158 - Paulisms: Gold Nuggets for Small Business

how much we have paid you over the last year. In the morning, ring me and let me know if you will be continuing contracting to us.’ I never heard from him about this again. You would not have this option with an employee, as you are bound to a contract. In all my time, we never paid hourly rates to our install teams. It was a fixed price – swings and roundabouts. Never charge up (meaning there is no set price and they invoice for their time). Just set a simple rate per unit install. Very simple. We set the rate, and they sent us invoices at those rates.
In the whole thirty-two years of selling installed products, I only had a couple of installer employees. It worked a lot better using contractors or licensees, and there was a better return on our investment. Self-employed people are motivated to get the job done. Contractors enabled us to scale up to seventeen licensees and forty contractors nationwide. Where Dad had himself working every day, I had up to a hundred people working every day; working for me. If we didn’t have work, we didn’t give them work. As easy as that! However, we did create loyalty by paying good rates and always paying on time.