Am I missing something or is my contractor being greedy?

[Christopher B.]

I pay $25/door to install std. Pre-hung doors, $50/door if they are bi-hinge doors. On Friday a new carpentry crew I'm trying hung 11 doors (8 singles and 3 bi-hinge) in 3.5hrs. So he made $100/hr minus $41/hr for his two guys (1099's) for a gross profit of $59/hr. I understand he has business expenses, we all do, but is this not pretty good money for a contractor? I think it's darn good pay but my new carpenter feels it's too low. 

So what am I missing here? All the contractors that complain about investors being cheap feel $59/hr is low pay? This isn't fair profit? My guy feels he should be getting $625 instead which ends-up being $137/hr for him. If contractors feel anything less than those rates are for "unlicensed immigrant workers" like he said, I may be on the wrong side of this business equation.

[Aaron McGinnis]

Originally posted by @Christopher B.:

Originally posted by @Aaron McGinnis:

Originally posted by @Christopher B.:

I handle all logistics of the doors. I work, and improving on these processes, to help keep the jobs as easy and streamlined for my guys as possible to keep them on track and so they can make good money when they're on my site. I have the doors delievered and checked by my guy, then they are generally placed in the room they get hung in by my guys. If not they're stacked in one central location. Every rough opening is marked for size and swing.

I see your in Wisconsin which probably has different rates but if you're on-site already trimming out an entire house with base, cabinets, counters, doors, tile, etc you'd be charging $75/$100 door? You're already there with tools unloaded, trucks driven, etc. You still charge full retail price on someone?

 Why wouldn't you? If I'm not making my normal rate, I might as well be looking for the next job that will pay me my normal rate.

We don't typically arrive at working rates by looking at tea leaves. We get there because it's what it takes to make it worth working for us, and what the market will bear. If I'm working for below market rate, I'm doing myself and my entire industry a disservice.

 In your normal rate you are calculating your marketing cost, time to go meet a homeowner 1-2x's sometimes more, sit down at your desk and figure out materials needed and their quantities, labor hours it will take go pick-up the materials from supply house, etc. However, when I do all of that for you on top of giving you 6 months of work, you still want the same retail rate you'd charge a homeowner so you just make more money? There is no value in my time or effort in doing all of the leg work for you or the loyalty of providing 6-months of work for you? Carpenters are the only trade I have come across that feel this way. Plumbers, electricians, hvac, everyone but carpenters understand this concept and those people simply get a call "hey, I've got a job for you." 

 My marketing doesn't slow or stop because I'm doing work for any one person, and I assure you... there is time involved in talking to customers. Any customer. All customers. 

If I start cutting my rates because one person is giving me a lot of work, then I have to slow down on my marketing, sales, and other practices. What do I do when that person goes out of business or finds someone they feel is cheaper? Now I have a big problem. Or worse, the person whom I have allowed to dominate my business decides that they should pay me 20% less... I have to bow to it, because I don't have enough outside work going on.

So, to most directly answer your question... the overhead you think you are reducing for me, is valueless to me because at its core, it endangers me. I cannot give you the keys to my business and let you drive it for me.