DTV Contractor Group - Info Needed

[daytech43]

If I am putting this in the wrong forum, I apologize in advance, feel free to move & send me a message telling me I'm in the wrong forum.

I currently have 10 SBCA Certified contractors with 4+ years experience in Dish & Directv installs & I am looking to work with an HSP to perform residential/commercial installs in OH & Kentucky. I have a price in mind of what I want to charge on a per install rate with additional charges per receiver, deca, additional line items, etc.

My question is this: Do I contact the HSP & discuss what I have in mind as far as a rate goes or do the HSP's have a rate that they pay contractor groups that are either negotiable or not? I have been working in audio video for 7 years now, but this is my first time running my own contractors group, so the negotiations part is a little foreign to me.

Anyone that has helpful information would be greatly appreciated. Thanks in advance for your time.

 

[Liquidforce88]

If I am putting this in the wrong forum, I apologize in advance, feel free to move & send me a message telling me I'm in the wrong forum.

I currently have 10 SBCA Certified contractors with 4+ years experience in Dish & Directv installs & I am looking to work with an HSP to perform residential/commercial installs in OH & Kentucky. I have a price in mind of what I want to charge on a per install rate with additional charges per receiver, deca, additional line items, etc.

My question is this: Do I contact the HSP & discuss what I have in mind as far as a rate goes or do the HSP's have a rate that they pay contractor groups that are either negotiable or not? I have been working in audio video for 7 years now, but this is my first time running my own contractors group, so the negotiations part is a little foreign to me.

Anyone that has helpful information would be greatly appreciated. Thanks in advance for your time.

I think you will be dealing with Directsat.

They will offer you what they pay and that is it. Take it or leave it. Then they will start nailing you with all kinds of B.S. back charges for things like defective receiver, defective LNBs, customers calling in at 8am looking for an ETA on PM jobs. Then you will get bogus back charges for receivers that were installed, but they can't seem to locate where they are, or give you aged equipment and say you did not install it in time.

Not to mention you are going to have to get and pay for all the D* certifications that will cost you several hundred per tech.

 

[kjlued]

Basically what he said.

There is no negotiations.

It is take it or leave it.

BTW, they may not let you contract out with only 4 techs.

Some HSP's require 10 techs from a shop.

 

[daytech43]

I do have 10.... The #4 was 4 years experience. I currently work for an OH HSP, so what Liquid mentions hits home with me. I have a few options that I want to approach, Skylink isn't one of them. As you stated with DirectSat, Skylink tries to hit you w/ everything. Charged back a friend of mine on a failed QC because the QCT couldn't get into the customers backyard for inspection! Employees (not contractors) being charged for cable & parts. This stuff makes me sick to my stomach!

Multiband & Bluegrass were the two I planned to speak with on the Directv side. Digital Dish is who I planned to speak with on the Dish Network side. I just want to provide a good & honest workplace for hardworking people trying to earn a living & support their families. Too much BS with a lot of these companies to where guys don't even know how much they'll bring home on average!

I appreciate your posts guys. If anyone else has more to add, please feel free to do so. I would appreciate any & all information anyone could post!

 

[Liquidforce88]

Multiband is no better than Directsat.

 

[kjlued]

To be honest, I don't know of any company that is any better then the other.
To the best of my knowledge none of them will really negotiate pay.
Many if not all have levels of what they will pay contracting companies.
You will start on the bottom and have to work your way up which lately is darn near impossible.
However, you can work your way with proving good numbers.

Keep in mind that in their eyes you may have 10 guys but if they don't work you, those 10 guys will just go to a different contracting company to find work.

Also, keep in mind that DirecTv keeps cutting back what they pay the HSP's and that cut keeps trickling down.

It is tough, the best advice I can give is to contact each HSP in your area and see what they will offer.

 

[catv/dtvtech]

Id talk to Multiband for ky. they get 90% of the work in ky. Also bluegrass is multiband now, multiband bought them.

 

[Joe Diamond]

A prediction and observation:
The HSPs have a hard won territory. They do not need you because you are their best competition...competent techs, operating money and management skills to organize 10 techs and move them as a group. They do need your techs and maybe even you personally to work at their rate under their name & office.

What to do?

They will promise what is needed to get you started. Then the routes will become thin. The drives will get longer. Then the cash flow will slow down. There will be short checks and charge backs you can disprove. This will also take time. Eventually your operating cash will be gone....After you miss a few payrolls and your men try to hang you the HSP will offer them work.

All they have to do is get you signed up for a full pallet of receivers and cut back your work. As those receivers go out of date,,,so do you.

There is only so much meat on the bone and not enough to subcontract from subcontractors. The standard installation has become more complex as the money offered has declined. Directv will not involve themselves in the operations of their HSPs (other than to approve & suggest stuff.) The largest HSPs get sued all the time...even if you win in court you will be out of money and out of business. Your techs will be elsewhere.

Stand in the door....kiss your ass goodbye & jump. Hit the ground running. There will be gunners in the trees. These HSPs are not friendlies!

Joe

 

[Liquidforce88]

They will promise what is needed to get you started. Then the routes will become thin. The drives will get longer. Then the cash flow will slow down. There will be short checks and charge backs you can disprove. This will also take time. Eventually your operating cash will be gone....After you miss a few payrolls and your men try to hang you the HSP will offer them work.

Joe

This is all so true. I have been through 3 contractors in 2 years.

There is one thing Joe did not mention. When you finally realize that you can't survive any longer, you will let the HSP know you are pulling out. This is when they will hit you with a huge charge back amount. I am talking a couple 1000 per tech.

Another thing I forgot to mention was the Retention fee that will be held out from each tech. You wont see that again either. Thats 1500 each.

 

[kjlued]

Basically don't do it.

lol

 

[Joe Diamond]

Basically don't do it.

lol

+1

The most recent Directv ads I see invite people to sign up.............Installation is quick, easy and FREE. The hint that the monthly charges are $29.95 makes it look pretty good.

So where does the money come from?

Joe

 

[Liquidforce88]

+1

The most recent Directv ads I see invite people to sign up.............Installation is quick, easy and FREE. The hint that the monthly charges are $29.95 makes it look pretty good.

So where does the money come from?

Joe

Well 29.99 for choice on 1 STD tv. No one does that. Most are 2-4 receivers with DVR and Choice Extra. Throw in the ones that pay for HD, MRV and you end up with alot more. Then the bill goes up 26 more on the second year. I think I saw that D* averages over 100 per a customer.

 

[Joe Diamond]

Well 29.99 for choice on 1 STD tv. No one does that. Most are 2-4 receivers with DVR and Choice Extra. Throw in the ones that pay for HD, MRV and you end up with alot more. Then the bill goes up 26 more on the second year. I think I saw that D* averages over 100 per a customer.

Yup, It is called a loss leader;..."Oh,you want tires and a running motor with that $1.00 car?....There will be an additional charge of..."

The $100.00 / month is probably accurate. And it is quite a jump from $29.99.

Folks go to work in the installation business with the expectation of getting paid. They get the same expensive experience and lesson. As Directv takes over these installations from the HSPs it will be interesting to see if the abuses continue.

Best HSP manager quote = "You report more than forty hours in any week and you are fired before you hit the ground." and my fav subcontractor quote = "...don't cash your check yet,,I can't pay you until I am paid. My invoices are past due..."

Joe

 

[kjlued]

Honestly, I do not know how some of the installation companies stay in business with all the back charges D* enforces.

Under 40% on phone lines? $3 per receiver installed that month (yes every receiver)
Sit on equipment for more then 14 days? Back charge
Customer calls in wanting to know when tech will be there? $10 back charge (even if a 12-4 appointment calls at 8 am)
Late for appointment and customer calls? $150 back charge

This is on top of constantly cutting pay rates (last cut costs me about $100 a week) while materials and gas keeps going up.

I am just wondering when we will have to write D* a check every month to be able to install their crap.

 

[Joe Diamond]

Honestly, I do not know how some of the installation companies stay in business with all the back charges D* enforces.

Under 40% on phone lines? $3 per receiver installed that month (yes every receiver)
Sit on equipment for more then 14 days? Back charge
Customer calls in wanting to know when tech will be there? $10 back charge (even if a 12-4 appointment calls at 8 am)
Late for appointment and customer calls? $150 back charge

This is on top of constantly cutting pay rates (last cut costs me about $100 a week) while materials and gas keeps going up.

I am just wondering when we will have to write D* a check every month to be able to install their crap.

I too have a question...no two questions?

#1= Why do we do this crap.

#2. Where is Bill (Willie) Major of Emerald Cabling Satellite of Baltimore, MD? I need the $4000.00 plus all the interest awarded by the courts.. DirectSatUSA and DirecTv say they are not responsible. Bill left MD and is now in PA. Anybody want $1000.00? Sub partner my ass! Help me collect and I will share. Frank Genco you are next.

Joe

 

[kjlued]

#1= Why do we do this crap.

Because it is a job in this crap ass economy.

Eventually the economy will get better and we will move on to better things or they will start bringing the rates back up.
Either that or they will be stuck with crappy ass installers.

 

[Liquidforce88]

Honestly, I do not know how some of the installation companies stay in business with all the back charges D* enforces.

Under 40% on phone lines? $3 per receiver installed that month (yes every receiver)

That is not a Directv charge, it's an HSP charge. The HSP gets more money per install when they hit a certain percentage, when they don't hit it they don't get the bonus. Do they give you a bonus when you hit that 40%?

Sit on equipment for more then 14 days? Back charge

Again a HSP charge. They get 90 days to use the equipment. After 45 days they get charged a % up to 100% at 90 days.

Customer calls in wanting to know when tech will be there? $10 back charge (even if a 12-4 appointment calls at 8 am)
Late for appointment and customer calls? $150 back charge

These are Directv charges. The sad part is that the HSP's allow them to get away with it. I can tell you that if you fight it they will credit it back. Thing is the HSP's don't care about the contractors so they just pass the charge on.

This is on top of constantly cutting pay rates (last cut costs me about $100 a week) while materials and gas keeps going up.

I am just wondering when we will have to write D* a check every month to be able to install their crap.

The way it is going not much longer.

 

[Joe Diamond]

Because it is a job in this crap ass economy.

Eventually the economy will get better and we will move on to better things or they will start bringing the rates back up.
Either that or they will be stuck with crappy ass installers.

I respect the "any port in a storm" idea. Kids should be fed. It is hard to move kids from school to school to follow work.

But these crooks and defrocked car washers think they have management skills. As they progress by screwing anyone who comes through the door one could get the impression they are competent. Also, let the Directv customers be stuck with the crappy ass installers. I (we) have no responsibility to bring Directv to anyone unless I (we) are paid to do it. I am positive if the Directv sats fell from the sky tomorrow the advertisers would neither send checks nor even answer the phone. Let Directv pay the freight for competent installations! We are not f**kin missionaries!

Everything is possble. Money talks. Directv mumbles while the HSPs just BS.

In My Humble Opinion!

Joe

 

[kjlued]

That is not a Directv charge, it's an HSP charge. The HSP gets more money per install when they hit a certain percentage, when they don't hit it they don't get the bonus. Do they give you a bonus when you hit that 40%?

I wish as in the last 3 months I have been 70%+ twice and over 50% the 0ther. Currently I am over 70% again this month.

Again a HSP charge. They get 90 days to use the equipment. After 45 days they get charged a % up to 100% at 90 days.

At least this is one charge back I don't have to worry about.
I still do my part to make sure I grab aged equipment though.

These are Directv charges. The sad part is that the HSP's allow them to get away with it. I can tell you that if you fight it they will credit it back. Thing is the HSP's don't care about the contractors so they just pass the charge on.

Luckily my company does not currently pass these on.
However, I have been bitching about getting next day work orders at a decent hour the night before for quite some time.
On the occasion they do come at a decent hour the night before, I call all my customers that night.

The way it is going not much longer.

Yup, I am at the point where it is no longer getting worth holding on.

 

[kjlued]

I respect the "any port in a storm" idea. Kids should be fed. It is hard to move kids from school to school to follow work.

But these crooks and defrocked car washers think they have management skills. As they progress by screwing anyone who comes through the door one could get the impression they are competent. Also, let the Directv customers be stuck with the crappy ass installers. I (we) have no responsibility to bring Directv to anyone unless I (we) are paid to do it. I am positive if the Directv sats fell from the sky tomorrow the advertisers would neither send checks nor even answer the phone. We are not f**kin missionaries!

Everything is possble. Money talks. Directv mumbles while the HSPs just BS.

In My Humble Opinion!

Joe

I can agree

Although I know subs can not technically unionize, we need to form a union.
We need to start speaking up for our rights.
If every installer nationwide spoke up and laid their tools down att he same time, they would have to play ball.

Unfortunately it will never happen